JA_Lenox_FBO_posting_Aug_18_2016.pdf

07/28/2016

SOLE SOURCE JUSTIFICATION FOR SIMPLFIED ACQUISITIONS

FAR Part 13.501(a)(1)(ii)

1. Identification of the agency and the contracting activity:

In accordance with Federal Acquisition Regulation (FAR) 13.501(a)(1) in accordance with 41 U.S.C. 1901, the Office of Acquisition Management proposes to award PR5518459 on the basis of other than full and open competition with Lenox Corporation for sterling silver flatware on behalf of OBO/OPS/RDF. The total estimated cost is $284,100.00.

2. The nature and/or description of the action being approved.

This is a sole-source action for a contract with Lenox Corporation, which is the only U.S-based manufacturer of sterling silver flatware.

3. A description of the supplies or services required to meet the Department’s needs.

The only flatware being used at the residences available for purchase is the Embassy

Scroll pattern. Three other patterns in the inventory being used worldwide are no longer in production and were purchased from “other than U. S.” sources before the Department was mandated to Buy American. The current flatware pattern has been in use since 1979.

There is no long-term contract in place with this company. Flatware is purchased based to maintain a minimum stockpile readily available to support the requirements of the official representational residences.

The requirement is to provide continuous support at over 400 official representational residences overseas at a total cost of $284,100. These supplies/services require that the material be compatible in all aspects (form, fit, and function) with the existing flatware currently used. This will allow the Office of Residential Design and Furnishings to accomplish its mission objective of providing elegant, yet graceful formal table settings that reflect American standards and products for official entertaining of foreign dignitaries.

4. An identification of the statutory authority permitting other than full and open competition:

In accordance with FAR 13.501(a)(1)(ii), in accordance with 41 U.S.C. 1901

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the action require use of the authority cited.

Specific characteristics of the sterling silver flatware limit the availability to a sole source as Lenox is the only manufacturer of sterling flatware in the United States. Lenox owns the pattern and design currently being used by the official representational residences.

6. A description of the efforts made to ensure that offers are solicited from as many potential sources as is practicable, include whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies.

A patent, copyright, proprietary data or licensing agreement limits competition. Lenox owns the pattern and design currently being used by the official representational residences.

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable. Note: dollar amounts may not exceed statutory limitations for the commercial items test program identified in FAR 13.500.

The Contracting Office determines that the anticipated price(s) will be fair and reasonable based on previous pricing and current market research. By signing the justification the Contracting Officer makes a determination that the cost/price to the Government are expected to be fair and reasonable.

8. A description of the market research conducted (per FAR Part 10) and the results or a statement of the reason market research was not conducted.

The most recent market research was conducted November 2010 to determine interest, capabilities and qualifications to manufacture silver and sterling silver flatware for the Department of State. Four companies responded to the Sources Sort and 3 out of the 4 were resellers of the product and did not design or produce flatware in the United States.

9. Any other facts supporting the use of other than full and open competition such as:

A patent, copyright, proprietary data or licensing agreement limits competition. Lenox owns the pattern and design currently being used by the official representational residences.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

A synopsis was issued in FBO, dated November 2010, requesting that parties express their interest in writing to the Contracting Officer. Only four responded. The four capabilities statements were reviewed and (deficiencies vs. requirements were identified and discussed with four of the four companies, who agreed.

11. A statement of any actions the agency will take to remove or overcome any future barriers to competition before any subsequent acquisition for the supplies or services required.

Orders have occasionally been submitted to replenish stockpile inventory, and to satisfy allocation and/or replacement requests made by posts.