FedBiz__JOFOC_C02_Carts.doc

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

In accordance with the authority granted under FAR Part 13.5, this request for a noncompetitive acquisition is hereby submitted for consideration for acquisition approval.

IDENTIFICATION OF THE AGENCY AND THE CONTRACTING

ACTIVITY:

Requesting Agency:

USDA APHIS VS SPRS NVS

4700 River Road

Riverdale, MD

Contracting Activity:

USDA, APHIS, MRPBS, ASD

Minneapolis Procurement Branch

Butler Square, Fifth Floor

100 North 6th Street

Minneapolis, MN 55403

NATURE AND/OR DESCRIPTION OF THE ACTION BEING

APPROVED:

USDA APHIS Veterinary Services National Veterinary Stockpile is seeking to acquire resources and services necessary to perform credentialing services to the US Department of Agriculture’s Animal Plan Health Inspection Service’s (APHIS), National Veterinary Stockpile or other APHIS designated agencies during declared emergencies within the United States, its territories. They are currently in need of 150 C02 carts for HPAI response in preparation for the fall

A DESCRIPTION OF THE SUPPLIES, EQUIPMENT, OR SERVICES

REQUIRED TO MEET AGENCY NEEDS (INCLUDING THE ESTIMATED

VALUE OF THE ACQUISITION INCLUSIVE OF OPTIONS):

Contractor must manufacture 150 C02 Carts for use in USDA Emergency Depopulation Operations of (Swine, Chickens, Turkey and other species. This will meet the response requirements of HSPD 9 in the event of a damaging animal disease outbreak.

IDENTIFICATION OF THE STATUATORY AUTHORITY PERMITTING

NONCOMPETITIVE ACQUISITIONS:

The statutory authority 41 U.S.C. 253(c) (2) allows contracting without providing for full and open competition due to an unusual and compelling urgency. Additionally FAR 6.302 (a) (2) states when the agency's need for the supplies or services is of such an unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals, full and open competition need not be provided for. FAR 6.302 (a) (2) (b) (1) and (2) further states an unusual and compelling urgency precludes full and open competition and delay in award of a contract would result in serious injury, financial or other to the government.

The US National Veterinary Stockpile (NVS) is the nation's repository of vaccines and other critical veterinary supplies and equipment. It exists to augment state and local resources in the fight against dangerous animal diseases that could potentially devastate American agriculture, seriously affect the economy, and threaten the public’s health.

Homeland Security Presidential Directive 9 established the NVS in 2004. It required the NVS to deploy within 24 hours “sufficient amounts of animal vaccine, antiviral, or therapeutic products to appropriately respond to the most damaging animal diseases affecting human health and the economy. The directive reflects the nation’s concern that terrorists could simultaneously, in multiple locations, release disease threats of an unprecedented magnitude; thus, the need for an NVS that could deliver at the least cost, large quantities of critical veterinary supplies and equipment to the right place at the right time for as long as is necessary.

A DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES

USE OF THE AUTHORITY CITED:

The CO2 cart must be designed in accordance to guidelines from the University of Georgia Poultry Science Department and meet the approval of the United Egg Producers to euthanize spent hens. Siebring Manufacturing, Inc. is the only known manufacturer with this capability

A DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE, INCLUDING WHETHER A NOTICE WAS, OR WILL BE, PUBLICIZED AS REQUIRED BY FEDERAL ACQUISITION REGULATION (FAR) SUBPART 5.2, AND IF NOT, WHICH EXCEPTION UNDER FAR 5.202 APPLIES:

FedBizopps Sole Source Special Notice# PR-15-763226 was published on 08/19/2015 and closed on 09/03/2015

No capability responses were received

A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE, AND THE BASIS FORTHAT DETERMINATION:

According to Siebring Manufacturing, Inc. They supplied these same carts to Clean Harbors for the USDA/APHIS HPAI Summer outbreak in Ames, IA @ $1,586.00(ea) the price has increased by 14% ($1,809.00) due to an increase in cost of materials, labor and overhead.

Material 60%

Labor 30%

Overhead 10%

USDA/APHIS/NVS has no historical data for price comparison. Jan Denekas at Siebring Mfg. has stated the price of $1,809.00 is the current market price for this product. Price is considered fair and reasonable on the basis that this same product is offered and sold regularly to the general public in substantial quantities in the course of normal business operations.

Reference: Email: From: Warren Tiedeman [mailto:warrenmfg@mtcnet.net]

Sent: Thursday, September 03, 2015 4:54 PM

To: Dingess, Carol R - APHIS

Cc: janmfg@mtcnet.net

Subject: RE: Pricing for C02 Carts needed for USDA/APHIS/NVS HPAI Fall project

A DESCRIPTION OF THE MARKET RESEARCH CONDUCTED (FAR

PART 10) AND THE RESULTS, OR AN EXPLANATION OF THE REASON

MARKET RESEARCH WAS NOT PERFORMED:

14% Cost Increase Breakdown:

According to Jan Denekas at Siebring Mfg.; these carts are made of a mix of 14 gauge steel to ¼ inch steel, magnetic flaps, and belting, Siebring Mfg. has started using a larger industrial wheel with double ball bearings for easier rolling and steering. They also made the door hinges heavier and added square tubing underneath so they can be lifted with a forklift. This overhaul of the product has caused significant employee overtime costs to Siebring.

According to Siebring; some of the materials used to make these carts like the Magnetic flap and the belting haven’t been purchased for long time, so the price should have been increased last year and the year before more than it was. Siebring Mfg. had sold several of these carts, depleting their supply of these materials before they found out the true cost of new supplies. Also, they didn’t have a true accounting of the time it takes to make them because in the past they were made a little at a time and never start to finish the way they are doing it now due to such high demand.

Material 60% = 8.4%

Labor 30% = 4.2%

Overhead 10% = 1.4% Total increase 14%

ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL

AND OPEN COMPETITION - FAR 6.303-2(a)(9):

Specification Requirements:

The carts sizes 56” X 21” X 58”H.

The cart should have a 700lb bird capacity and designed to be easily operated by one operator.

Cart must be loaded at either end of the cart through self-sealing doors or hatches.

Cart capacity should be no less than 200 birds and designed to be easily operated by one operator.

The carts should have 10” pneumatic caster wheels with Multi-position wheel mounts facilitate unloading

Carts easily go down aisles, and can be either pushed or pulled

The cart must to be easy to sanitize and constructed of tubing and aluminum sheet.

The vendor must demonstrate through references that they have successfully manufactured and sold no less than 200 CO2 carts and has the capability to produce 50 carts in 6 weeks.

The vendor must deliver 44 carts within 5 days. 50 carts in 4 weeks and the remaining 56 in 6 weeks.

Carts must be made of heavy duty 14 GA construction

Heavy duty 8" dia. X 2" wide casters, with swivel casters on one end, provide maneuverability and easy rolling

Approx. size 56” X 21” X 58”H

A LISTING OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THE ACQUISITON:

None

A STATEMENT OF THE ACTIONS, IF ANY. THE AGENCY MAY TAKE

TO REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION

BEFORE ANY SUBSEQUENT ACQUISITION FOR THE SUPPLIES,

EQUIPMENT, OR SERVICES REQUIRED:

Will continue monitor the market for changes and to publish solicitations for capability responses on future requirements