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This document is a Justification Review for an Exception to Fair Opportunity under an existing Multiple-Award Indefinite-Delivery-Indefinite-Quantity (IDIQ) contract. It describes a requirement to provide leased Multi-Function Devices (MFDs), maintenance, and onsite support for the III Armored Corps units at Fort Cavazos, Texas.

The requirement is for a firm fixed-price follow-on task order to be awarded on October 23, 2024, using Fiscal Year 2025 Operations and Maintenance funds. The period of performance is from October 23, 2024 to December 15, 2024. The contract is a logical follow-on to an existing task order under the Department of the Army's Computer Hardware, Enterprise Software, and Solutions (CHESS) ITES 3H contract, which is the required source. However, due to the III Armored Corps' transition to the Defense Logistics Agency (DLA) as the mandatory source per DoDI 5330.03, there will be a two-month gap between the existing task order and the commencement of the new DLA contract. The incumbent vendor is the only qualified provider to maintain the currently leased equipment during this interim period.

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CUI//SP-PROCURE//FEDCON

Control No: Cavazos 2025-1

JUSTIFICATION REVIEW DOCUMENT

FAR PART 16 EXCEPTION TO FAIR OPPORTUNITY JUSTIFICATION

For Actions Exceeding the Simplified Acquisition Threshold (SAT)

Program/Equipment: This is a non-personal services contract to provide leased MFD’s to the various units of III Corps that are assigned to Fort Cavazos, TX.

Authority: 10 U.S.C. 3406(c)(3) as implemented by FAR Part 16.505(b)(2)(i)(C) – The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

Amount

Prepared by:

Contracting Officer:

Technical:

Reviews: I have reviewed this justification and find it adequate to support an exception to fair opportunity.

Program Manager:

Date: See digital signature

Small Business Professional:

FAR Part 16 Exception to Fair Opportunity Justification

Under Multiple Award Indefinite Delivery Contracts For Actions Exceeding the Simplified Acquisition Threshold (SAT)

1. Contracting Activity: Mission and Installation Contracting Command – Fort Cavazos 36000 Darnall Loop, Fort Cavazos, Texas 76544-5095

2. Description of Action: The III Armored Corps (AC) at Fort Cavazos, Texas, requests the issuance of a Firm Fixed Priced Task Order under the existing Multiple- Award Indefinite-Delivery-Indefinite-Quantity (IDIQ) contract associated with the Department of the Army’s Computer Hardware, Enterprise Software, and Solutions (CHESS) ITES 3H contract W52P1J-16-D-0029. The Government plans to award a firm fixed priced follow-on Task Order on 23 October 2024, utilizing fiscal year 2025 Operations and Maintenance funds. An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquistion Regulation Supplement 207.103(d)(i)(B).

This action is a follow-on Contract Task Order: W91151-25-F-0004

3. Description of Supplies/Services: This requirement involves providing leased Multi- Function Devices (MFDs), maintenance, and onsite support for III Armored Corps units at Fort Cavazos. Services will include a Full-Service Maintenance Plan, all necessary scheduled maintenance to ensure optimal device performance, and training and technical support as needed. The period of performance is from 23 October 2024 to 15 December 2024, with a total contract value of

4. Authority Cited: 10 U.S.C. 3406(c)(3) as implemented by FAR Part 16.505(b)(2)(i)(C) – The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

5. Reason for Authority Cited: The III Armored Corps is preparing for the start date of 01 December 2024, for their newly awarded MFD support contract through the Defense Logistics Agency (DLA), as mandated by DoDI 5330.03. However, due to the timing of the III Armored Corps request and the establishment period for the DLA contract, there will be a two-month gap between the conclusion of the existing task order (W91511-19- F-0054) under the CHESS contract W52P1J-16-D-0029 and the commencement of the new DLA contract.

For follow-on orders under FAR 16.505(b)(2)(i)(C):

The Multi-Function Devices currently in use have been leased to the requiring activity for the duration of the existing contract and are maintained by vendor personnel who are authorized to access various locations throughout the installation.

An estimated of equipment are leased across multiple locations. Given the terms of the leasing agreement and current contract, the specified contractor is the only vendor qualified to maintain and service this equipment.

While other multiple award contract holders may offer similar equipment and services, they do not own the existing onsite equipment and therefore cannot lease it or provide the necessary maintenance.

a. Alternatives:

1) Suspension of services: Fort Cavazos has several entities under the III Corps footprint that rely on the leased equipment and services from the current vendor. These resources are essential for the daily operations across the installation. Not awarding this action to the incumbent vendor would result in mission disruptions until the newly awarded DLA contract is established, making this an untenable option.

2) Use In-house Services: The Government has traditionally depended on contract support to supply the leased equipment and associated services. No entity on the installation has personnel authorized to fulfill this requirement, and military personnel are dedicated to their primary duties and cannot provide the necessary services.

3) Competitively award a separate contract: Awarding a competitive requirement is not a feasible alternative. While there are other companies capable of providing these services, it would neither be cost-effective nor realistic to expect another contractor to mobilize during this brief interim period. The start-up and mobilization costs would constitute a significant portion of the overall expense for a short-term contract, without directly delivering the required services. There is insufficient time for a new contractor to familiarize themselves with the facility locations and specific needs of each site. Additionally, the recruitment, onboarding, and vetting of new contractor employees would be challenging to complete by the full performance date of October 23, 2024. This situation increases the risk of failure beyond acceptable limits, which is not viable for the Contracting Officer or the Customer.

b. Impact if justification not approved:

1) If this contract requirement is not approved, it will lead to significant service disruptions that could adversely affect the mission and operations of the Installation, as well as the welfare of our civilians, military personnel, and their families.

6. Efforts to Obtain Competition: According to DoDI 5330.03, the Defense Logistics Agency is now the primary provider of printing services, office print devices, and electronic conversion services for the Department of Defense. III Corps at Fort Cavazos has established an agreement with DLA, and services are anticipated to commence upon the completion of this action. Therefore, there will be no further efforts to seek competition at this time through Chess.

7. Market Research: When this contract was awarded, the Department of the Army's Computer Hardware, Enterprise Software, and Solutions (CHESS) ITES 3H vehicle was the required source. However, since then, the Defense Logistics Agency (DLA) has been designated as the mandatory source per DoDI 5330.03.

III Corps is currently in a transition period from the existing CHESS-approved vendor to the DLA, which is now the required mandatory source.

8. Other Facts: Procurement History

Contract: W52P1J-16-D-0029 / Task Order– W91151-19-F-0054 P00001-P00009 Contractor Award Date: 21 February 2019 Competitive Status: An inquiry (W91151-18-R-0099) on CHESS determined that there was sufficient competition amongst vendors at the time the action was awarded.

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

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

11. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. Price is equivalent to the current order in place and remains reasonable based on historical prices and competition from the original award.

This determination will be made using the following: ☐ cost analysis ☒ price analysis ☐ should cost ☐ IGCE audit: identify the audit type ☐ other: identify the methodology or combination of methodologies that will be used

As a part of this basis, certified cost or pricing data:

☐ will be required.

☒ will not be required and the following exception applies (FAR 15.403):

☐ Prices that will be agreed upon are based on adequate price competition.

☐ Prices that were established during the original competition that are not subject to negotiation.

☐ Prices that will be agreed upon are based on prices set by law or regulation.

☒ A commercial item is being acquired.

☐ A waiver has been granted by the head of the contracting activity (HCA) in accordance with DFARS PGI 215.403-1.

☐ The contract action is a modification to a contract or subcontract for commercial item(s).

☒ The estimated cost of the contract action is less than the threshold for certified cost or pricing data.

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

/ Contracting Officer

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