Shipboard Bridge J and A final- redact.pdf

DDEFENSE LOGISTICS AGENCY

CONTRACTING SERVICES OFFICE

5404 J AVENUE, BUILDING 404

NEW CUMBERLAND, PENNSYLVANIA 17070-5059

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY:

Requiring Activity:

Defense Logistics Agency (DLA) Strategic Data Services Equipment Management Solutions (J67E) Shipboard Multipurpose Copier Program 1641 Morris Street – Bldg. KBB Norfolk, VA 23511 POC: Nancy Cruz

TEL: 757-278-8111

E-mail: nancy.cruz@dla.mil

Contracting Activity:

Defense Logistics Agency Contract Services Office P-New Cumberland (DCSO P-New Cumberland) 5404 J Ave.

Bldg. 404 New Cumberland, PA 17070-5059

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING REQUESTED:

This justification for other than full and open competition requests approval for a sole source Bridge IDIQ contract to Xerox Corporation in the amount of $8 Million. The purpose of this bridge contract is to support DLA’s Shipboard Multipurpose Copier Program (SMCP) with a contract whereby DLA’s customers may continue to purchase new devices required to perform their mission. This bridge contract will mirror all terms and conditions of the previous IDIQ contract (SP7000-13-D-0013) for the purpose of ordering new devices. The contract’s period of performance will be for up-to 13 months (inclusive of an eleven (11) month base period with up to two (2) one (1) month option periods).

On February 14, 2019, the DLA HCA approved awarding the previous bridge contract to Xerox Corporation in an amount not to exceed $4 Million.

As documented in the approved Justification and Approval (J&A), the previous bridge contract arose due to significant changes to solicitation testing requirements when compared to previous SMCP support contracts. The significant change required submission of an approved test plan for electromagnetic interference resistance (EMI), shock and vibration mounting, and network compatibility from all offerors prior to award in lieu post award. Additionally, DLA had anticipated issuing a solicitation for the competitive follow-on September 29, 2019, with an award within 180 days following the issuance of the solicitation.

The previous bridge contract was awarded with an effective date of February 21, 2019 with an up-to 12-month period of performance (inclusive of a six (6) month base period with up to six (6) one (1) month option periods). It was expected that the previous bridge contract would provide DCSO the necessary time to award the competitive follow-on IDIQ. However, the competitive follow-on IDIQ award has been delayed, primarily due to the following two unexpected events:

Event #1

Prior to Solicitation Closing there was a GAO Protest Requiring Significant Changes to the Performance Work Statement (PWS)

On April 19, 2019 (prior to original solicitation closing date of April 26, 2019), DCSO received a GAO solicitation protest. DCSO agreed to take immediate corrective actions, and on May 9, 2019 GAO dismissed this protest as academic. The corrective actions resulted in significant changes to the PWS which reasonably took DLA until August 28, 2019 to complete. Specifically, these corrective actions included the following:

Single manufacturer o Solicitation stated a single manufacturer was required for certain equipment classes. The protester stated that only one manufacturer is currently able to meet that requirement. As a result of the corrective actions, the single manufacturer was no longer an issue.

Print resolution o Solicitation stated a print resolution of 2400 x 2400 was needed.

Protestor requested that be changed to 1200 x 1200. This was thoroughly discussed with all customers to determine if a minimum print resolution of 1200 x 1200 was acceptable. After numerous discussions with all customers and careful consideration, it was determined that a minimum print resolution of 1200 x 1200 was acceptable.

250 sheet document feeder o The solicitation stated that a 250-sheet document feeder was necessary. The protester stated that number was too high and unduly restrictive. After numerous discussions with all customers and careful consideration, it was determined that a 100-sheet document feeder as the minimum requirement was acceptable.

Dry toner vs ink toner o The solicitation stated the use of dry toner only was unduly restrictive.

The protestor requested to be able to provide ink toner. After numerous discussions with all customers and careful consideration, it was determined that ink toner was acceptable.

On July 10, 2019, DCSO issued amendment 0013 revising the PWS to incorporate the single manufacturer, print resolution, document feeder, and toner changes discussed above. However, the changes to the PWS led to further questions from potential vendors.

In some cases, these questions uncovered other areas of the PWS where further review was necessary. Specifically, these areas included the following:

Dry toner vs ink based toner quantities o Forty-four CLINS had to be reviewed due to potential calculation errors with toner quantities. A deep dive was conducted by the Program Manager and Contracting Specialist to see where the calculation errors occurred for the toner CLINS. The toner discrepancies were discovered and the CLINS required revisions were identified.

Historic quantities for toner, parts and supplies o Vendor questions came in regarding what the actuals were for CLINS for supplies, parts and toner. A deep dive was conducted by the Program Manager and Contracting Specialist to pull historical data to identify the historic quantities for toner, parts and supplies.

The recommended corrective actions to correct the discrepancies/necessary revisions required considerable coordination with the requiring activity, all users/customers, legal and contracting to ensure that changes were implemented through amendment to the solicitation still met the minimum requirements of the customers. As a result of the required revisions, amendment 0014 was issued on August 28, 2019. The solicitation closed on September 18, 2019.

Thus, as explained above, taking the corrective actions resulting from the GAO protest reasonably delayed the competitive follow-on IDIQ for almost five (5) months.

Event #2

After Solicitation Close, the Navy Advised it Could not Honor the July 2018 Verbal Agreement to Review Proposers’ Testing Plans

Second, after the revised solicitation closed on September 18, 2019, and as part of the agreed upon evaluation process, DLA J67E forwarded the proposers’ test plans to Navy Surface Warfare Command PD (NSWCPD) C/333. The review of the proposer’s test plan was verbally agreed to on July 16, 2018, when the DCSO acquisition team and the J67E Configuration Manager met with members of NSWCPD C/333. In that meeting, members of NSWCPD C/333 verbally agreed to do a cursory review of the vendor test plans prior to award as part of the technical evaluations.

In November 2019, instead of honoring its agreement, NSCW informed DLA J67E that it would not perform the promised testing without both a written agreement and funding from DLA. DLA estimates that the intra-agency agreement (with funding) will not be complete until March 2020. Once an agreement is in place, the Navy estimates that the test plan review and approval will take 90-120 and is largely dependent on the quality of the submitted test plans. As a result, DLA does not anticipate completing proposal evaluations until July 2020.

This bridge contract is needed for an up to 13-month period of performance. Event #1 caused a five (5) month delay and Event #2 caused a six (6) month delay. As detailed above, these two (2) events support the request of the 11-month base. The two (2) 1-month options are needed for any unanticipated delay that would impact the follow-on award.

3. A DESCRIPTION OF THE SUPPLIES AND SERVICES REQUIRED TO MEET

THE AGENCY’S NEEDS/ESTIMATED DOLLAR AMOUNT:

The purpose of this Sole Source Bridge contract will be to continue to give DLA’s afloat customers the ability to purchase new devices (e.g., Multifunctional Devices that copy, print, scan and fax; Single Function Devices that copy, Specialty Devices for Photo Printing, etc.) that have already been tested, approved and certified for shipboard use while DLA awards its follow-on Shipboard Multipurpose Device Program (SMDP) IDIQ contract.

DLA J67E (Equipment Management Solutions) estimates this $8 Million will provide for mission essential purchases that cannot be delayed. This $8 Million amount was determined by reviewing unanticipated requirements of this unique program, and assessing updated forecasting of DLA’s SMCP afloat customers’ requirements including:

1) Outfitting the following carriers (CVN’s) with new equipment, 2) Completing Military Sealift Command Phase to provide MFD/MFP’s to 96 vessels, 3) Providing MFD and Media Support to Pre-Commissioned Unit (PCU) John F. Kennedy, 4) Providing new MFP support to the Coast Guard and 5) Providing continuing MFD support to large and medium amphibious vessels and submarines, and Marine Forward Forces and Expeditionary Units.

4. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER

THAN FULL AND OPEN COMPETITION:

The Statutory authority permitting other than full and open competition is Title 10, U.S.C. 2304 (c) (1) as implemented by the Federal Acquisition Regulation 6.302- 1(a)(2)(iii)(B) – Only one responsible source and no other supplies or services will satisfy agency requirements.

5. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES

USE OF THE CITED AUTHORITY:

Currently only Xerox Corporation has devices that have already been tested, approved and certified for shipboard use. While other manufactures equipment may, eventually, be certified for shipboard use, testing for these certifications is anticipated to take up to 180 days. Thus, only Xerox Corporation’s equipment can meet DLA’s short term, time sensitive requirement to provide shipboard-compliant devices for its afloat customers.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE:

DLA intends to award, test and implement its follow-on Shipboard Multipurpose Device Program (SMDP) IDIQ contract by end of fiscal year 2020. To ensure proposals were solicited from as many potential sources as practical, DLA used full and open competition procedures when it issued Request for Proposals (RFP) SP7000-19-R-0001 for this follow-on SMDP IDIQ contract. Moreover, this RFP was posted to the Federal Business Opportunities website in accordance with FAR 5.201(b). As noted above, this RFP closed on September 19, 2019 and DLA is currently evaluating the proposals.

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT REPRESENTS THE BEST

VALUE TO THE GOVERNMENT BASED ON RECOMMENDED ACTION:

As the Contracting Officer, I hereby determine that the anticipated cost to the Government will be fair and reasonable. Price will be determined fair and reasonable using previous award SP7000-19-D-0001, which was determined to be fair and reasonable based on adequate historical pricing.

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS

NOT CONDUCTED:

A Request for Information (RFI) was posted on 18 June 2018 and only three (3) vendors (two (2) large and one (1) small) responded with questions related to current contractual requirements and testing protocols.

Due to the information received from the RFI, it was determined that no other vendor could provide devices that meet the testing requirements in the time necessary to allow for continuity of new product support to our customers. Although slightly more than one year old, the information learned from this RFI’s and its determination remain current and relevant.

Since issuing its 2018 RFI, DLA issued RFP SP7000-19-R-0001 for its follow-on SMDP IDIQ contract using full and open competition procedures. When this RFP closed on September 19, 2019, a vendor who did not respond to the RFI submitted a proposal. While the proposals are currently being evaluated and the outcome remains unknown, this vendor’s equipment does not and cannot meet DLA’s short term, time sensitive requirement to provide shipboard-compliant devices for its afloat customers.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION.

None.

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

INTEREST IN THE FUTURE ACQUISITION:

Xerox Corporation 550 Pearl Street Rosemont, IL 60018-5303

Konica-Minolta Business Systems 1595 Spring Hill Rd. Ste 400 Vienna, VA 22182-2228

JTF Business Systems Corp 85 S. Bragg St. 6th Fl Alexandria, VA 22312-2797

Trident Engineering and Procurement, P.C.

320 Circle of Progress Dr. Ste 1 Pottstown, PA 19464-3800

11. STATE THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR

OVERCOME ANY BARRIERS THAT PRECLUDE THE AGENCY FROM

MEETING FUTURE REQUIREMENTS FOR COMPETITION:

Barriers to competition will be removed when the award is made on the follow-on competitive solicitation. The RFP closed on September 19, 2019 and proposals are currently being evaluated and award is anticipated by end of fiscal year 2020.

12. CERTIFICATIONS:

Requirement/Technical Certification:

I hereby certify that the support data provided for which I am responsible and which form a basis for this justification are complete and accurate.

Nancy Cruz DATE

SMCP/SMDP Manager, J67E

CRUZ.NANCY.DENICE.10

22841935

Digitally signed by

CRUZ.NANCY.DENICE.1022841935

Date: 2020.03.04 14:36:45 -05'00'

Contracting Certifications:

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief.

Chad R. Spittle DATE Contracting Officer/Team Lead DCSO P-New Cumberland East

I have reviewed and concur with this justification.

Assunta Bonanno DATE DCSO Competition Advocate

DUBECK.FRANCI

S.1239006392

Digitally signed by

DUBECK.FRANCIS.1239006392

Date: 2020.03.04 14:49:40 -05'00'

BONANNO.ASSUNTA.12290

97675

Digitally signed by

BONANNO.ASSUNTA.1229097675

Date: 2020.03.04 15:13:17 -05'00'