Pitney Bowes - Single Source Justification - CO Signed.pdf

CONTROLLED UNCLASSIFIED INFORMATION

Single Source Justification (Simplified Acquisition)

CONTROLLED UNCLASSIFIED INFORMATION April 2021 Page 1 of 3

Section B: Description of the Supplies/Services Required

Section C: Justification for Soliciting from a Single Source or Brand Name

Yes No Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan?

Contracting Activity: 502d Contracting Squadron

Project/Program Name: JBSA Postage Meter Heads Lease and Maintenance

Purchase Request / Local ID Number: F2M3MS5086AZ01

Estimated Contract Cost (including Options): $170,584.05

This is a sole source acquisition for JBSA Postage Meters (Connect+2000 postage machines) to replace contract FA3016-24-P-0006. Pitney-Bowes postage meters are used to complete several tasks as a mail room efficiency solution, including sorting letters, charging and creating postage stamps, weighing packages, and printing shipping labels. This requirement includes seven (7) JBSA Postage Meters located at JBSA Lackland (2), JBSA Randolph (2), and JBSA Ft. Sam Houston (3), the associated postage software lease, and maintenance. While the units themselves have been purchased through Pitney-Bowes, the meter heads which allow these machines to create postage stamps can only be leased, not owned. Pitney-Bowes manages the meter head lease for the United States Postal Service, which must be renewed annually along with the maintenance plan. The JBSA Postage Meters contract will be for a base year and four (4) option years. The base year cost is $99,316.21 for equipment, the meter head lease (subscription), and maintenance. Each of the four option years will cost $17,816.96 for the meter head lease (subscription) and maintenance.

The seven (7) existing Pitney Bowes Connect+2000 mailing systems at JBSA Lackland utilize an IBI-compliant meter.

In compliance with USPS mandates, this technology must be upgraded to IMI-compliant meters, as USPS will discontinue rate updates to current meters by mid-2027. Given this requirement, Pitney Bowes --the original manufacturer of these postage machines --is the only source capable of providing the necessary meter head software, hardware, and maintenance support under the company's service Terms and Agreements.

Pitney Bowes has developed and maintains exclusive rights to the proprietary technology and technical specifications of these mailing systems. No other contractors have access to, or legal rights to, the proprietary data necessary to support this requirement. The government does not own, nor does it have access to, the source code or technical documentation required for third-party servicing or upgrades. Any attempt to utilize another vendor would not only be infeasible but would also introduce operational risks and potential service disruptions.

Additionally, because the meter heads in these machines are owned by the USPS and leased exclusively through Pitney Bowes, any attempt to source from an alternative vendor would provide negligible cost savings while introducing logistical and contractual complications. Re-solicitation would be impractical and detrimental to operational continuity.

Furthermore, the Pitney Bowes system integrates seamlessly with the Automated Military Postal System (AMPS) software, which is essential for efficient mail processing and tracking within the military postal system. Using an alternative system could result in compatibility issues, increased administrative burden, and potential disruptions to mission-critical mail operations.

This procurement will also include training on the new features for current mail assistants, ensuring a seamless transition to the upgraded system and maintaining operational efficiency.

For these reasons, Pitney Bowes is the only responsible source capable of meeting this requirement without

Section A: General Contract Information

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Section E: Steps to Preclude Future Single Source or Brand Name Awards compromising compliance, system integrity, or mission-critical mailing operations.

Due to the proprietary data required to support this requirement, pursuing an alternative vendor at this time would be impractical and fiscally irresponsible, potentially resulting in unnecessary costs to the Government. As Pitney Bowes is the sole provider with the necessary rights to service and upgrade the existing systems, transitioning to another vendor prematurely would not only compromise operational continuity but also create undue financial burden.

Therefore, continued service by Pitney Bowes remains the most viable and cost-effective solution until the existing postal machines reach the end of their life-cycle, at which point an open-market competition may be more feasible. To ensure the Government is positioned to obtain the most efficient and economical mailing systems in the future, the 802 FSS/FSVP will continue proactive market research to assess emerging hardware and software capabilities from other vendors. This ongoing evaluation will ensure that JBSA’s evolving postal requirements are met while identifying potential opportunities for competition when the replacement of existing systems becomes necessary. These continued efforts demonstrate a commitment to both responsible stewardship of government resources and the pursuit of competitive solutions when feasible.

Until it is definitively established that the Pitney Bowes mailing system no longer meets the operational and regulatory demands of the Official Postal Center, maintenance and support for the existing equipment must remain exclusively with Pitney Bowes. Due to the proprietary nature of this system and its critical role in ensuring compliance with USPS regulations, any transition to an alternative vendor at this time would be both technically unfeasible and financially irresponsible.

The Pitney Bowes system is intricately integrated with the Automated Military Postal System (AMPS) software, a vital component for efficient mail processing, tracking, and compliance within the military postal system. Any alternative system would pose substantial risks, including compatibility issues, increased administrative workload, and significant disruptions to mission-critical mail operations, all of which would undermine the operational integrity and regulatory compliance of military postal functions.

To maintain the Government's readiness for future competitive procurement opportunities, the 802 FSS/FSVP will continue active, comprehensive market research to monitor advancements in mailing technology, assess alternative vendors, and evaluate potential solutions that align with USPS mandates and JBSA's evolving needs. This proactive approach ensures that:

• The latest hardware and software innovations are systematically reviewed, determining the precise moment when competitive alternatives become viable.

• The Government adapts to industry progress, eliminating over-reliance on a single-source provider.

• Future procurements will prioritize both efficiency and cost-effectiveness, while ensuring continued compliance with USPS regulations and uninterrupted AMPS integration.

Section D: Efforts to Obtain Competition

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I have determined, in accordance with FAR 13.106-1(b)(1), that the circumstances of this contract action deem only a single source is reasonably available.

Date Typed Name and Rank/Grade of Contracting Officer SSgt Grant Jackson Contracting Officer

Signature of Contracting Officer

Section F: Contracting Officer's Determination

8/14/2025