Bridge_Ship_IDIQ_Class_J A_AwardNotice_Posting_Redacted-.pdf

CLASS JUSTIFICATION AND APPROVAL FOR

OTHER THAN FULL AND OPEN COMPETITION

J16-10130

1. Contracting Activity.

The Naval Medical Logistics Command (NMLC), Acquisitions Management Directorate, Code 05, 693

Neiman Street, Fort Detrick, Maryland 21702, is acquiring Authorized Medical and Dental Allowance

Lists (AMALs and ADALs) assemblages on behalf of Naval Operational Forces.

2. Description of the Action Being Approved.

The Government intends to establish one (1) year indefinite-delivery, indefinite-quantity (IDIQ) firm-fixed price contracts with the Ship Outfitting IDIQ contractors currently providing AMAL and ADAL assemblages. The current Ship Outfitting contracts that require bridge services are as follows: N62645-

11-D-5033 American Purchasing Services, LLC doing business as American Medical Depot (AMD), 10315 USA Today Way, Miramar, FL 33025-3902 and N62645-11-D-5034, T.Q.M. Incorporated doing business as Two Rivers Medical (TQM), 3088 Elm Pt Industrial Drive, Saint Charles, MO 63301-4337.*

*To date, T.Q.M. Incorporated doing business as Two Rivers Medical is going through a novation/name change. Their name is now TQM, LLC doing business as Two Rivers Medical (TQM) according to the

System for Award Management (SAM) (Activation Date 10 May 2016/Expiration Date 04 May 2017).

The Center for Disease Control and Prevention (CDC) is the responsible contracting activity. As a result, the novation/name change agreement will be executed through the CDC.

3. Description of supplies/services.

NMLC serves as the U.S. Navy’s manager of service-unique authorized medical and dental allowance lists (AMALs and ADALs). When multiple AMALs and ADALs are combined for a specific mission, unit, or ship, it is referred to as an assemblage. As part of its role as the manager of medical and dental assemblages, NMLC executes the procuring of these assemblages in support of new ship construction.

NMLC is expanding its role from AMAL and ADAL management and associated procurement to

Assemblage Production (AP). AP is a methodology to configure AMAL and ADAL materiel or components into predetermined assemblages based on type of ship and associated scope of medical and dental care. Medical and dental materiel to be included in these assemblages consists of general consumables, medical-surgical consumables, non-narcotic pharmaceuticals and durable materiel. The assemblages are then issued to the local outfitting activity designated for ships under construction or undergoing a significant conversion or overhaul. The Contractor shall conduct set assembly services

(SAS) to build these medical and dental assemblages for the Government in accordance with component data provided by the Government. The assemblages shall include the procurement of the components to be included within the assemblage, assembling the materiel by AMAL or ADAL, storage (if required), and the shipment of the complete assemblages to the various CONUS shipbuilding site destinations. If less than a complete assemblage is required, the contractor shall provide only those SAS required to complete the delivery order (DO).

The total estimated dollar value of the acquisition is Fiscal year funds will be used.

4. Statutory Authority Permitting Other Than Full and Open Competition.

The statutory exception permitting other than full and open competition for this acquisition is 10 U.S.C.

2304(c)(1) and FAR 13.501(a) sole source (including brand name acquisitions). This acquisition is being conducted under simplified acquisition procedures, FAR 13.501 under the authority of the test program for commercial items (section 4202 of the Clinger-Cohen Act of 1996).

5. Rationale Justifying Use of Cited Statutory Authority.

NMLC serves as the U.S. Navy’s data manager for the AMALs and ADALs for naval operational force units. These AMALs and ADALs, or assemblages, are configured by ship class and are the required medical and dental consumables and durable materiel the ship is required to have on hand to perform its health care services support mission during routine and emergency conditions. In accordance with Naval

Sea Systems Command (NAVSEA) Navy Outfitting Program Policies and Procedures Manual (9T9066-

AA-MAN-020) of 11 January 2016, NMLC executes the procuring of materiel contained within these assemblages in support of new ships under construction or ships undergoing a significant conversion or overhaul. The range and scope of materiel must meet 95% upon crew move aboard and 97% when the ship sails away from the construction site with 100% of designated “emergency” materiel on board. The medical and dental materiel included within these assemblages consists of general consumables, medical-surgical consumables, non-narcotic pharmaceuticals and durable materiel. Without the proper oversite and kitting of these assemblages, the medical treatment facilities onboard the ships cannot execute their patient care mission.

During the time period of the current contracts, NAVSEA’s policy for outfitting ships was to provide funding to the Naval Supply Systems Command (NAVSUP) Weapon Systems Support (WSS) for funding of requisitions submitted by NMLC and other outfitting support activities. The current contracts were awarded in anticipation of the policy being modified soon after award to permit utilization of the contracts but remained unchanged until 2015. During a Continuous Process Improvement (CPI) event hosted by Fleet Logistics Center Jacksonville (FLC) in Pascagoula, MS during August 2014, the use of the subject contracts and the flow of outfitting funding to NMLC was agreed to in principle by all attendees. In May 2015 at the NAVSUP WSS Outfitting Support Activity meeting, all shipbuilding

Program Executive Officer (PEO) and NAVSEA’s Director of Navy Outfitting agreed to the funding policy change. Also in May 2015, the Director NMLC Operational Forces Support commenced actions to define the requirements for the follow on contract. In August 2015 NMLC was approached by PEO Ships

PMS-317 (LPD Program Office) to commence using the new process with USS JOHN P. MURTHA

(LPD 26) that was expected to deliver in May 2016. As the outfitting of LPD-26 progressed it was realized by NMLC’s Director of Operational Forces Support and the FLC JAX on-site logistics team at

Supervisor of Shipbuilding (SUPSHIP) Gulf Coast that the contract could be expanded to allow for a greater range of materiel and flexibility for ordering and delivery options. Because of these lessons learned, a deliberate and conscious decision was made to delay moving further on what was deemed an antiquated statement of requirements for the new competitive solicitation, and capitalize on the lessons learned being gained on the LPD-26 project that is expected to conclude in May 2016. The new, competitive solicitation was supposed to be posted to Federal Business Opportunities in fiscal year 2016, and is expected to be posted in late fiscal year 2016/early fiscal year 2017.

There are currently no contracts in place that could envelope the requirement in support of Ship Outfitting assemblage production during the performance period 29 July 2016 – 28 July 2017. Therefore, the above referenced contractors are in the best position to fulfill current and new requirements that may precipitate during the bridge period.

AMD and TQM already have the established resources, facilities and manpower in place to continue providing AMAL and ADAL assemblages during the proposed one year period of performance. No other contractors would be able to procure components and deliver the assemblages kits, and have expertise in place in order to avoid a lapse in service.

Due to the expiration of the current Ship Outfitting IDIQ’s on 28 July 2016, bridge contracts are proposed. This action is required to establish stop-gap measures to provide the required AMAL and

ADAL assemblages to meet the existing missions in support of new ships under construction or ships undergoing a significant conversion or overhaul. The Acquisition Planning for the competitive Ship

Outfitting IDIQ is currently being worked and is in the beginning stages of the acquisition process.

AMD and TQM are the only known sources that are able to meet this short-timeframe requirement. There are no known performance issues with any of the referenced contractors that would prevent them from obtaining a bridge contract. However, if performance issues arise during the bridge period, the contracting officer reserves the right to sole source this requirement among remaining contractors.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable.

Upon approval of this Class J&A, an announcement will be published on Federal Business Opportunities

(FedBizOpps) in accordance with FAR Part 5 of the Federal Acquisition Regulation indicating the

Government’s intent to award contracts on a sole source basis to AMD and TQM.

7. Determination of Fair and Reasonable Price.

The prices for the assemblages currently being provided on the Ship Outfitting IDIQ contracts were determined to be fair and reasonable. The contracting officer will use a procedure similar to that used to negotiate delivery orders in order to assure a fair and reasonable price for these assemblages is obtained.

In the event this process fails to produce acceptable negotiated prices, limited competition between the two (2) Ship IDIQ contract holders will be used to ensure that the requirements under the bridge contracts will be awarded at fair and reasonable prices.

8. Actions to Remove Barriers to Future Competition.

The requirements that will be issued under the bridge contracts will be the existing requirements currently in place on the current Ship Outfitting IDIQ contracts, N62645-11-D-5033 and N62645-11-D-5034. The follow-on requirement for a new Ship Outfitting IDIQ contracts is currently in the acquisition planning process and will be competed as a small business set a side.

9. Contracting Point of Contact.

The point of contact at the Naval Medical Logistics Command, Fort Detrick, MD, regarding the contents of the sole source justification is , Code 05, who may be reached at or

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

Requirements Cognizance:

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

Officer, Code 05

CONTRACTING ACTIVITY COMPETITION ADVOCATE REVIEW

Code 00L

APPROVAL

Upon the basis of the above justification, I hereby approve, as Head of the Procuring Activity, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(1).

NAVSUP Date