LSJ_REDACTED_17F0155.pdf.doc

LOG # 17-10065

LIMITED SOURCE JUSTIFICATION FOR FSS ORDER

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY:

This justification is executed by the Naval Medical Logistics Command, Fort Detrick, Maryland on behalf of Naval Hospital Camp Pendleton hereafter referred to as the medical treatment facility (MTF).

2. NATURE/DESCRIPTION OF CONTRACT ACTION:

The Government intends to negotiate a logical follow-on call order with Loyal Source Government Services, LLC for the existing Clear and Legible Reporting (CLR) Clerk services currently being provided under GSA Federal Supply Schedule (FSS) V797D-30203, Blanket Purchase Agreement (BPA) N62645-15-A-0005, call order 0011. The current call order has a period of performance ending 31 March 2017. The new call order will have a period of performance of 01 April 2017 through 31 March 2018.

3.

DESCRIPTION OF REQUIRED SUPPLIES/SERVICES:

The follow-on call order will mirror the CLR services that Loyal Source Government Services, LLC is currently providing. The follow-on call order will have a performance period of 01 April 2017 through 31 March 2018.

4. IDENTIFICATION OF THE JUSTIFICATION RATIONALE AND/OR DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

The statutory authority which permits restricting consideration of schedule contractors to fewer than that required in FAR 8.405-1 is 41 U.S.C. 253, as implemented by FAR 8.405-6(a)(1)(i)(C) In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order or BPA must not have been previously issued under sole-source or limited-sources procedures.

Due to the nature of the acquisition for services currently being performed by Loyal Source Government Services, LLC under the FSS BPA, it is in the best interest of the Government to negotiate a logical follow-on allowing for the most effective use of resources. Recompeting the services currently being filled would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. Such costs include the time of technical and contracting personnel to review and evaluate the requirement, proposal, and call order; as well as the costs associated with the recruitment and hiring of personnel if a new contractor is chosen. The current services will be followed on with Loyal Source Government Services, LLC based on there being no change in scope to the current requirement.

5. DETERMINATION OF BEST VALUE:

The contractor’s quote for the requirements of the current call order was determined to represent the best value out of all six quotes submitted by contractors holding BPAs under the FSS. The price under the current call order was determined to be fair and reasonable based on competition. In order to determine whether the contractor’s proposed price for the LFO is fair and reasonable, the Contract Specialist and Contracting Officer will review the proposed price against current market research information available. If the contractor’s proposed price appears to be questionable for reasonableness, justification for the proposed price and the proposed price for the option period from the contractor will be required. The Contracting Officer will determine the price to be fair and reasonable before awarding a new call order.

6. DESCRIPTION OF MARKET RESEARCH:

A comparison may be made between the Employment Cost Index from the Bureau of Labor Statistics and the price increase proposed for the LFO. A price increase not exceeding the current Employment Cost Index rate may indicate that the proposed price is fair and reasonable. Other current market conditions may be considered in the reasonableness determination. Market research may include comparing the prices for similar requirements provided by other contractors holding BPAs under the FSS.

7. ANY OTHER SUPPORTING FACTS:

This contractor is successfully providing services and has already worked through recruitment costs and has established a system for tracking and providing staff that works well at the requiring MTF. Changing contractors could require a complete turnover of current staff, adding the costs associated with reviewing new worker packages and conducting orientation (during which time no services are provided).

8. ACTIONS TAKEN TO REMOVE BARRIERS TO COMPETITION:

At this time there are no actions being taken to remove or overcome barriers leading to the exception to fair opportunity under the FSS. It is possible that option periods may be added to future competitive call order requests for quotes (CORFQs) to allow contractors holding BPAs under the FSS to propose prices. A call order would then be competitively awarded for current and subsequent years of service. The use of options for CORFQs would eliminate the need to issue logical follow-on call orders, which require the use of the exception to fair opportunity.