NE_Z1_Redacted_J A.pdf

MRO NORTHEAST REC~ - ZONE 1 r--. Page 1of4

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SAIC-NORTHEAST REGION- ZONE 1

MAINTENANCE, REPAIR, AND OPERATIONS (MRO) PROGRAM

1. Defense Logistics Agency (DLA) Troop Support, Construction and Equipment Supply Chain, is the contracting activity.

2. The action being approved is the ability to solicit for DLA requirements on an other than full and open competition basis.

3. The proposed acquisition is for a bridge contract for a period of 92 days to provide for the purchasing of facilities Maintenance, Repair and Operations (MRO) supplies and associated incidental services. The Tailored Logistics Support Prime Vendor (TLS PV) contract provides for MRO materials and other supplies including, but not limited to:

Heating, Ventilation and Air Conditioning (HVAC); plumbing supplies (including bath and shower items); electrical products (including generators, wire, connectors, sockets, outlets, lights, etc.); tools of various kinds; chemical, lubricating, and rubber products and products including same; construction supplies (including but not limited to cement, lumber and plywood, bricks, blocks, steel, aluminum, and other metal products, conduits, prefabricated structures, etc.); perimeter security items such as barriers, barbed wire, concertina wire, and sand bags (also used for erosion prevention); communication devices (such as walkie-talkies, two-way radios, etc. used by maintenance personnel);

and various other MRO supplies needed by war-fighters stationed in the Northeast Region of the United States. The maximum dollar value, based on current sales data and customer's requirements, including an additional $3.15 million added for surge requirements, for this proposed contract is $15 million for the period of 92 days. The original contract, SPM500-04-DBP24, was awarded to SAIC on August 31, 2004 to support military customers with MRO requirements in the Northeast Region, Zone 1.

The contract was issued with a two (2) year base period and eight (8) one-year options;

included an implementation period of ninety (90) days and expired on August 30, 2014.

The current bridge contract with SAIC is due to expire on April 1, 2015. The proposed action will result in the award of a third bridge contract for a period of ninety-two (92) days with SAIC effective April 2, 2015 through July 2, 2015. Should a competitively awarded contract be issued ahead of the projected timeframe and, the new contract awardee is fully implemented, and the contract guaranteed minimum of $100,000.00 is satisfied, delivery orders will no longer be placed under this bridge contract.

4. The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(l), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. This J&A addresses coverage for the Northeast Region, Zone 1. Coverage for Zone 2 will be addressed in a separate J&A. The use of this authority is necessary because SAIC is the only contractor that can provide the requisite MRO products and associated incidental services in the required time frame for the Northeast Region, Zone 1. The current bridge contract with SAIC expires on April 1, 2015 and the follow-on competitive procurement has not yet been awarded; therefore a third bridge contract is necessary to maintain uninterrupted support of military customers in the Northeast Region, Zone 1. Award to any other source would result in unacceptable delays in fulfilling the Agency's

MRO NORTHEAST RE(:~ - ZONE 1 Page 2 of 4 requirements.

The first bridge contract was necessary because of delays in awarding the follow-on competitive procurement due to numerous changes in the acquisition and pricing strategies.

The complexity of the proposals (evaluation of 200 PEL price points, a sixty (60) price point distribution table, consisting of twenty (20) tiers per pricing period, and two pricing scenarios from the offerors) resulted in a protracted evaluation process that has delayed the award of the follow-on solicitation. Further suspension in progress of the Northeast, Zone 1, follow on contract resulted from prioritization of acquisitions to support Operation Unified Assistance (QUA), A protest was filed with the General Accounting Office (GAO) on February 17, 2015 by one of the vendors that had been excluded from the competitive range. This protest triggered an automatic Competition in Contracting Act (CICA) stay or postponement of contract award pending resolution of the protest. The GAO decision is due by May 29, 2015. Thus, the proposed third bridge contract is necessary to facilitate award and implementation of the follow-on contract.

It is essential that DLA Troop Support maintain the ability to purchase MRO supplies and associated incidental services, in the period from April 2, 2015 through July 2, 2015.

This proposed bridge contract will ensure continuous contract coverage providing for an uninterrupted supply of vitally needed MRO supplies and incidental services throughout the Northeast Region, Zone 1. If this bridge contract is not awarded and coverage lapses, DoD and DLA's ability to provide much-needed supplies will be significantly impaired

SAIC is the only established firm capable of providing continued support for these vital MRO items in the Northeast Region, Zone 1, while the follow-on competitive acquisition is being completed.

A new contractor would require a thirty (30) day "ramp-up" period to form relationships with local suppliers and manufacturers located in the Northeast Region, Zone 1, identify potential delivery service and transportation requirements, establish adequate purchasing, distribution and quality control systems, hire local customer support representatives, and implement systems that would interface with DLA Troop Support.

6. This requirement will be synopsized in FedBizOpps as required by FAR Subpart 5.2. In addition, this justification will be made available for public inspection after award, in accordance with FAR 6.305.

7. As the Contracting Officer, I hereby determine that the anticipated cost to the Government will be fair and reasonable based on price analysis, including comparison to available commercial pricing, General Services Administration (GSA) pricing, and other Government contracts.

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8. The requirement for this bridge contract will be synopsized. No other firms will be solicited since the required supplies and services are only available from the incumbent contractor in the required timeframe.

9. Considering the high volume of demands currently being experienced and the ability to reduce the logistics response time, the current contract with SAIC is required to support customer requirements until a follow-on initiative is competitively awarded. The current contract with SAIC allows DLA Troop Support to support the Northeast Region, Zone 1, by reducing customer wait time, improving logistics response time, managing suppliers rather than managing supplies, avoiding depot operation costs for managing, storing, shipping, handling, and transporting MRO materials, and improving product availability.

10. SAIC is the only established source to express an interest in this bridge contract.

11. The proposed bridge covers the Northeast Region, Zone 1. The solicitation for the follow-on initiative was solicited on a full and open competition basis on April 1, 2014, and future solicitations are expected to be issued competitively. The award of the follow on contract is expected by June 3, 2015.

12. As the Contracting Officer, I hereby certify that this justification is accurate and complete to the best of my knowledge and belief.

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I hereby certify that the requirements which form the basis of this justification are accurate, that these supplies and incidental services meet the Government' s needs in accordance with applicable specifications and that this justification is ac;yurate and comJl).ete...to the best of my knowledge and belief.

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I have reviewed this justification and recommend approval.

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MRO Division Chief

MRO NORTHEAST RE(:~ - ZONE 1

I have reviewed this justification and recommend approval.

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RALPG. LUND

Director of Supplier Operations Construction & Equipment

I have reviewed this justification and recommend approval.

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DATE . PANICHELLE

DLA Troot Support Competition Advocate

I have reviewed this justification for legal sufficiency i\1 y I c _ ___ _

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Supply Chain Counsel DLA Counsel - Troop Support

I have reviewed and hereby approve this justification.

~ ~ D M~JfJ::o Executive Director DLA Troop Support Contracting and Acquisition Management