P03 Exception to Fair Opportunity Justification - Pitney.pdf

Attachment 1: Request for Exception to Fair Opportunity Memo Format

Effective Date: 03/15/2023 Revision: 02

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval

For

Exception to Fair Opportunity Memo

Acquisition Plan Action ID: 36C242-24-AP-2369

1. Contracting Activity: Department of Veterans Affairs, VISN 02, Finger Lakes VA Medical Center Justification for Other Than Full and Open Competition.

2237: 528-24-3-6846-0026

2. Description of Action:

The proposed sole source task order against VA SAC Contract Number 36C10X19D0020 is for a twelve-month base, with consideration of, four (4) twelve-month options via firm-fixed price (FFP) effort to lease digital mailing system equipment, software and services required to meter mail with Pitney Bowes Global Financial Services LLC, 27 Waterview Drive, Shelton, CT 06484.

3. Description of Supplies or Services:

The proposed action of leased services to include all mail processing equipment, web-based browser software, scalable cloud-based software solutions for data hosting mailroom processing accessories and handheld scanners, which are all underpinned by maintenance and support services to keep all systems fully operational. Leased services additionally include delivery, set-up, configuration, user training, complete functionality testing, thirty (30)-day quantity of operating supplies, and removal of old equipment. The contractor will ensure that all applicable hardware, software, and support services must adhere to the United States Postal Service (USPS) Domestic Mail Manual (DMM) www.usps.gov, and shipping partners rules and regulations of those as United Parcel Service (UPS), Federal Express (FedEx), DHL, etc. The Contractors leased services will include delivery, set-up, configuration, user training, complete functionality testing, initial quantity of operating supplies and removal of old equipment. The total estimated value of the proposed action is $361,678.00 (inclusive of options).

4. Statutory Authority: The statutory authority permitting an exception to fair opportunity is Section 41 U.S.C. 4106(c) as implemented by the Federal Acquisition Regulation (FAR) 16.505(b)(2)(i):

(X) FAR 16.505(b)(2)(i)(B): Only one awardee can provide the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

Effective Date: 03/15/2023 Revision: 02

5. Rationale Supporting Use of Authority Cited Above:

Based on the information contained herein, a determination has been made that this requirement meets the exception at FAR 16.505(b)(2)(i)(B). Only one source can provide the required supplies and services. All awardees were given fair opportunity to be considered for the original order.

The IDIQ contract is specifically tailored to meet VA mail facility requirements and is supported by improved, documented processes. The Mail System shall include password protected security features to prevent unauthorized use. The software application connecting all the Mailing Systems for reporting purposes must be FIPS compliant and support active directory sign on authentication.

The Mail Systems shall accommodate network connectivity for downloading postage, software upgrades, updating rate changes, data collection, reporting and maintenance. It is the contractor’s responsibility to meet VA security requirements of all contractor supplied equipment and software.

Non-Software-as-a-Service (SaaS) solutions utilizing the VA Enterprise Cloud (VAEC) Cloud Service Providers (CSP) where VA generated data and application services do not extend beyond VA’s architectural environment will not require FedRAMP authorization. The Contractor shall however, provide all Assessment and Authorization (A&A) support and documentation required to achieve and maintain full A&A certification for a data and application level Authority to Operate (ATO) using the process specified in the in VA’s A&A Standard Operating Procedure (SOP).

Per OMB issues, December 8, 2011, Security Authorization of Information Systems in Cloud Computing Environments, any cloud services that hold federal data must be FedRAMP authorized.

The VA has issued Pitney Bowes SendPro 360 Solution Software a FedRAMP Authority to Operate (ATO). Pitney Bowes has been sponsored by the VA and their SendPro 360 Solution Software is FedRAMP authorized.

In October 2021, Pitney Bowes was given an Authority to Operate (ATO) the cloud-based software solution by the VA. This requirement requires a cloud-based software solution which will include Personally Identifiable Information as defined in the Controlled Unclassified Information (CUI) Registry at http://www.archives.gov/cui/registry/category-list.html.

6. Efforts to Obtain Competition:

Market research was conducted, details of which are in the market research section of this document.

This effort did not yield any additional sources that can meet the Government’s requirements. There is no competition anticipated for this acquisition. In accordance with FAR 5.301 and 16.505(b)(2), this action will be synopsized at award on the Federal Business Opportunities Page (FBO) and the justification will be made publicly available.

Effective Date: 03/15/2023 Revision: 02

7. Actions to Increase Competition:

The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be competed.

8. Market Research:

The Government’s technical experts from the Enterprise Mail Management (EMM) issued an Indefinite Delivery Indefinite Quantity (IDIQ) contract, which provides options for mail facilities when leasing mail equipment, software, and services. The IDIQ contract is specifically tailored to meet VA mail facility requirements and is supported by improved, documented processes. In 2019, prior to issuing the EMM IDIQ, the Office of Information and Technology, Enterprise Mail Management Program Office conducted market research. The EMM Program Offices’ conclusion and recommendation at that time is as follows:

In summary, traditional mail use is in decline and has resulted in a declining pool of mail processing equipment suppliers/manufactures/OEMs. The members of that pool are Pitney Bowes, Neopost and Endicia all of which are large businesses. Additionally, these companies have a long history of fulfilling these requirements for the VA, either as a direct seller or thru a 3rd party vendor. This reality significantly limits the number of responsible sources to fulfill this procurement requirement. As noted previously, this procurement is the most (likely the only) effort to centralize the VA’s enormous mail management system. EMM history demonstrates that this requirement has been predominately a location-by-location requirement and fulfilled/managed/resourced as such. This history has not provided the VA the opportunity to operate its mail rooms in the most efficient manner as possible. Through this requirement and the addition of web-based enterprise software reporting solution, the VA will be better able to manage the mail process and monitor costs. Additionally, this procurement approach will allow the VA to realize economies of scale which are not realized now due to each mail center having their own individual contracts.

The recommended acquisition strategy above has indicated there is no existing contract vehicle that supports this requirement. There are not two or more small businesses, veteran or otherwise, that can meet the requirements of the PWS. Therefore, the recommended strategy is to issue an unrestricted solicitation on SAM.gov utilizing the SAC EMM IDIQ contract.

Pitney Bowes is the only contractor who currently holds an Authority to Operate (ATO) their cloud-based software solution by the VA.

Effective Date: 03/15/2023 Revision: 02

9. Other Facts:

The VA Office of Information and Technology (OIT) and Enterprise Mail Management (EMM) established and streamlined a Lease Based contract vehicle to procure Mail Systems standardizing and integrating mailroom operations across the VA enterprise.

The EMM office has established strategic objectives related to mailroom operations:

Modernize and standardize Mail Systems across the enterprise.

Establish, enhance, and advance mail management reporting through web accessible, cloud-based data hosting services to optimize mail operations and funding efficiencies across the enterprise.

Establish and advance centralized management and oversight of agency mail managers, mail operations and accomplishment of emerging strategic objectives.

10. Technical and Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Brian Healy Date Acquisition Utilization Specialist Finger Lakes VAMC

11. Determination that Anticipated Cost is Fair and Reasonable: A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable: Task Order will be issued under the Enterprise Mail Management (EMM) Indefinite Delivery Indefinite Quantity (IDIQ) contract.

12. Contracting Officer's Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Tevia Mastykarz Date Contract Specialist

13. Approvals in accordance with VHAPG Part 816.505 Indefinite Delivery Contracts: Ordering.

a. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Joseph Cellino Date NCO/PCO 02 Branch Chief, Services I

MATTHEW

HEALY

Digitally signed by

MATTHEW HEALY

Date: 2024.04.30 14:04:39 -04'00'