N6883618P0738_06_J_A_NECO.pdf

J&A No. 18-029

Source Selection Information – See FAR 2.101 and 3.104

NAVSUP FLEET LOGISTICS CENTER

CONTRACTING DEPARTMENT

110 YORKTOWN AVENUE

NAS JACKSONVILLE FL 32212

JUSTIFICATION AND APPROVAL FOR USE OF

OTHER THAN FULL AND OPEN COMPETITION

ONLY ONE RESPONSIBLE SOURCE

1. Contracting Activity.

(a) Requiring Activity: Fleet Readiness Center Southeast (FRCSE) Naval Air Station Jacksonville Code: 66290 Jacksonville, FL 32212-0016

(b) Contracting Activity: Fleet Logistics Center (FLC) Jacksonville Regional Contracting Department Jacksonville, FL 32212

2. Description of the Action Being Approved.

This Justification and Approval (J&A) authorizes issuance of a firm-fixed-price contract on a sole source basis to Dematic Corporation (CAGE: 4FE76, Large Business), located in Grand Rapids, MI, for comprehensive onsite maintenance agreement for the B797 Automated Storage & Retrieval System

(ASRS).

3. Description of Supplies/Services.

The contractor shall provide technical support, preventive and emergency maintenance including inspecting, repairing, testing and certifying the following ASRS equipment.

Table 1

Nomenclature Description FRCSE Plant Nomenclature

Conveyor System 5886021226

Material Handling System 65886015680 Aisle 1 Cargo Retrieval System 65886067963

Aisle 2Cargo Retrieval System 65886067964 Aisle 3 Cargo Retrieval System 65886067965

Aisle 4 Cargo Retrieval System 65886067966

Aisle 5 Cargo Retrieval System 65886067967 Aisle 6 Cargo Retrieval System 65886067968

This action covers the basic contract with a one (1) year base period and two (2), one (1) year option periods. The total Government estimate including option periods is . Funding in the amount of on document number has been provided for creation of the base award which expires 30 September 2018. Working Capital funds are anticipated for use in funding of all option periods.

Table 2

Base Option Year 1 Option Year 2 Total

Period of Performance:

Base Year: 27 Sep 2018 – 26 Sep 2019 Option Year I: 27 Sep 2019 – 26 Sep 2020 Option Year II: 27 Sep 2020 – 26 Sep 2021

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

The statutory authority which permits other than full and open competition is 41 U.S.C. 1901(e)(2) and the Federal Acquisition Regulations (FAR) Part 13.501(a). Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

The original installation of the ASRS was a result of a competitive procurement and the resultant contract N62467-89-C-0186 was awarded 1 January 1990 for $5,563,619 to Harnischfeger Engineers. The conveyor system design is proprietary to Harnischfeger Engineers and FRCSE cannot reproduce or provide drawings to any other company without the consent of Harnischfeger Engineers. Harnischfeger Engineers was acquired by HK Systems in 1993 which was then acquired by Dematic in 2010. The crane & sub-system controller of the ASRS were upgraded through a competitive contract N68836-12-C-0014 which was awarded to Retrotech Incorporated $1,135,574, as no other vendors were rated as being technically acceptable. FLCJ also awarded sole-source contract N68836-16-P-1099 for $97,000 to Retrotech Inc. in September 2016 to update the ASRS communication software and to assist with the accreditation of the system in order to operate on the FRCSE network. In December 2017, Retrotech Inc.

merged with Dematic Corporation under the name of Dematic Corporation. Confirmation of the merger and a statement attesting to its exclusive ownership to the data rights was received from the aftermarket sales manager at Dematic Corporation, (Davis). The operating software, crane system design, and the underlying operating computer code (“Golden Code”) are proprietary and are only available to Dematic Corporation personnel. The warranty has expired on both contracts and FRCSE relies on the internal plant maintenance division to maintain the system. Independently contracted maintenance is required to maintain operation as maintenance tasks are very lengthy and there is a lack of manpower/for the equipment at hand internally.

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

A sources sought notice was uploaded to Navy Electronic Commerce Online (NECO) on 06 July 2018 and closed on 13 July 2018 with one respondent, Guzman Group, LLC Engineering (CAGE Code:

55U62) who submitted a non-specific capability statement. No other potential sources expressed an interest in this requirement. The Contracting Officer’s Representative performed market research through review of previous acquisitions for the same or similar requirements and discussions with the FRCSE ASRS technical team that has the capability to do a portion of this requirement through organic resources. Internet searches included a review of the Federal Procurement Data System-Next Generation, FedBizOpps, Haystack Gold, DLA PubLOgFlis Search, and previous acquisition documents. All sources confirmed Dematic Corporation is the current holder of all proprietary data and the only source capable of performing the required services with the exception of organic resources which only has limited ability to troubleshoot and repair this system.

7. Determination of Fair and Reasonable Cost.

Analysis of the contractor’s proposal will be performed by the contract specialist with the assistance of the FRCSE technical team, DCMA and DCAA auditors, as required, to determine price fair and reasonable pursuant to FAR 13.106-3(2).

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in section 5, FLCJ has no plans at this time to compete future contracts for the types of services covered by this document. If another potential source emerges, FLCJ will assess whether competition for future requirements is feasible.