Redacted LSJ.pdf

J&A Number: 20-0464

LIMITED SOURCE JUSTIFICATION

1. Contracting Activity.

Naval Air Warfare Center Weapons Division (NAWCWD) China Lake, CA

2. Nature and/or Description of Action being Approved.

This limited source justification and approval authorizes the procurement of six Quad Xeon Servers with the associated power distribution units and Uninterruptible Power Supplies.

This purchase is intended to be a manufacturer sole source procurement to H.Co. Computer Products Inc. an authorized GSA schedule holder.

3. Description of the Supplies or Services Required to Meet the Agency’s Needs (including the estimated value.

The items required for procurement are six Quad Xeon Servers with their associated power distribution units and Uninterruptible Power Supplies. The estimated value of this procurement is $289,442.00.

4. Identification of the Justification Rationale (see FAR 8.405-6 and, if applicable, a Demonstration of the Proposed Contractor's Unique Qualifications to Provide the Required Supply or Service.

FAR 8.405-6(a)(1)(i)(B), Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

As this order is required to expand on an existing capability, the hardware configuration is intended to be duplicated, to the greatest extent possible, to minimize the potential of incompatibilities and increase operational synchronization. There is no other source that would be able to duplicate this capability due to the unique, highly specialized nature of these systems.

As this is an expansion of an existing capability, the initial federal supply schedule order was placed without the utilization of sole-source or limited-source procedures. The expansion requirement occurring today is consistent with the award provided on the initial FSS order. The initial FSS order attributed three server units at a rate of [Redacted]. This FSS order is expanding with an additional six server units at a rate of [Redacted]. This defines an increase of [Redacted]. The discrepancy of value comparison is rationalized as lower capacity hard drives provided in the initial FSS order are no longer available and must be upgraded to higher-capacity drives. Therefore, the remaining [Redacted] increase per server is attributed to the increase of storage capacity in the amount of 12 TB.

J&A Number: 20-0464

An identical purchase was placed last fiscal year under the applicable Federal Supply Schedule ordering procedures. The original order was not previously issued under sole-source or limited sources procedures. As the award was provided to this vendor through open competition, and the organization is looking to expand the capability, the vendor was contacted to provide a 2X duplication of the original order with exact specifications. The vendor responded to the request but identified that the 480GB hard drives utilized in the initial order were no longer available from the manufacturer and would need to be increased to 960GB hard drives.

5. Determination by the Ordering Activity Contracting Officer that the Order Represents the Best Value Consistent with FAR 8.405-4.

In accordance with FAR 8.404(d), by placing an order against a schedule contract, the ordering activity has conc that the order represents the best value and results in the lowest overall cost alternative to meet the Government’s Additionally, if necessary, NAVAIR will seek additional discounts from the schedule holder before placing an or the order will exceed the simplified acquisition threshold, in accordance with 8.405-4.

6. A Description of the Market Research Conducted among Schedule Holders and the Results or a Statem the Reason Market Research was not Conducted.

Market Research was performed under value comparison with Purchase Request #1300812909- 0001. Purchase Request #1300812909-0001 was competitively bid and awarded to the identified vendor. Market research is described as the existing award’s cost, as compared to this request, and resulted as fair and comparable.

7. Any other Facts Supporting the Justification.

As this is an expansion of an existing capability, the initial federal supply schedule order was placed without the utilization of sole-source or limited-source procedures. The expansion requirement occurring today is consistent the award provided on the initial FSS order. The initial FSS order attributed three server units at a rate of [Redacted]. This FSS order is expanding with an additional six server units at a rate of [Redacted]. This d an increase of [Redacted]. The discrepancy of value comparison is rationalized as lower-capacity hard drives provided in the initial FSS order are no longer available and must be upgraded to higher-capacity drives. Therefore the remaining [Redacted] increase per server is attributed to the increase of storage capacity in the amount of 12 TB.

8. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers that Preclude the Agency from Meeting the Requirements of FAR 8.405-1 and FAR 8.405-2 before any Subsequent Acquisition for the Supplies or Services is Made.

Currently H.Co. Computer Products Inc. servers and accessories is the only equipment available on the market that can meet the unique capability described within this justification.

With that stated, we will continue to perform market research in all future requirements as to promote competition and address and changing requirements.