Sole Source FAR Part 13.5 - Scantron HW Maintenance_ Knox 2020-62_Redacted.pdf

Control No:Knox-2020-62 Contractor: Scantron Corporation

Program/Equipment: Hardware/Software Maintenance

Version – March 2017 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR SUBPART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS – SOLE SOURCE JUSTIFICATION AND APPROVAL

Program/Equipment: HQ United States (US) Military Entrance Processing Command (MEPCOM) located in North Chicago, IL has a requirement to renew hardware/software maintenance agreement for Scantron products.

Authority: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 as implemented by FAR Subpart 13.5.

Amount:

Prepared by:

Contracting Officer: Nathalie W. Riley DSN: 464-8264 Date:

Technical:

Requirements:

Reviews: I have reviewed this justification and find it adequate to support sole source.

Program Manager:

MICC Contracting Officer:

Nathalie W. Riley DSN: 464-8264

MICC Contracts Attorney:

5. Reason for Authority Cited:

(a) One of USMEPCOM’s mission involves applicant and student testing to determine vocational aptitude. USMEPCOM conducts student testing at remote sites across the country using pencil and paper answer sheets.

Scanning of these sheets occurs at MEPS and RPS using Scantron scanners purchased in 2007 and 2011 in conjunction with annual software licensing.

These devices have not reached the end of serviceable life based on number of sheets scored. Scantron is the inventor and manufacturer of Optical Mark Reading (OMR) scanners and holds intellectual property protections relating to the technology used in its iNSIGHT™ and OpScan® product lines, as well as its proprietary software, ScanTools®. These products are used for resolving optical marks including accurate determination of intended marks versus erasures. Scantron’s image based scanners can also capture machine printed characters, hand-printed characters, and bar codes directly into full or partial image clips for storage/retrieval systems.

(b) Alternatives: One alternate solutions would be to replace all the equipment, software and USMEPCOM student testing procedures. This is not a viable solution due to the time and expenditure required to research, plan, implement, and install the new devices. The replacement of new equipment would require several years to complete.

(c) Impact if justification request not approved: This would effectively shut down one of USMEPCOM’s main mission of testing applicants as the hardware used for grading the paper Department of Defense’s entire Armed Service Vocational Aptitude Battery (ASVAB) test would be dismantled.

(d) The impact of not awarding this contract will cause USMEPCOM mission failure. The maintenance for this acquisition would not be available to support scanner equipment used for grading all of the paper ASVAB (high school and enlisted versions) tests at all Military Entrance Testing Sites (METS) and all Military Entrance Processing Stations (MEPS) along with gathering data from the Medical Omaha Five surveys conducted at the MEPS.

6. Efforts to Obtain Competition: The Contracting Officer (KO) published notices required by FAR 5.201. On 16-20 July 2020, a sources sought notice was published on beta.sam.gov. One response was received from a small business. However, the response was deemed non-responsive as the small business provided no information to determine if this firm can satisfy the requirement.

7. Actions to Increase Competition: Scantron Corporation is the sole provider of the scanner equipment and the software is proprietary. However, USMEPCOM is currently developing a competitive requirement with GSA FEDSIMS that includes the replacement of the scanner equipment. The maintenance required is to provide support for the existing scanner equipment.

8. Market Research: The previous five acquisitions for scanner hardware/software maintenance renewals were awarded to Scantron Corporation. The last acquisition was awarded to Scantron Corporation through their GSA schedule on task order, W9124D20F0009 for $281,321 awarded on 29 October 2019. Scantron Corporation’s GSA schedule (GS-35F-0278K) expired 2 March 2020. USMEPCOM completed market research on the Army CHESS website and with the GSA Schedule 70 vendors. No other vendor was identified as having the capability to provide hardware/software maintenance for the equipment proprietary to Scantron Corporation.

9. Interested Sources: To date, no other sources have written to express interest in the acquisition.

10. Other Facts:

a) Procurement History

1) W9124D20F0009 for $281,321 awarded on 29 October 2019 to Scantron Corporation.

2) Competitive status: Unrestricted.

3) The key significant changed circumstances from the previous acquisition is Scranton Corporation no longer provides these items on a GSA contract. Competition was attempted by soliciting the requirement on Reverse Auction to the GSA schedule holders for 30 days and only one quote was received from Scantron Corporation.

b) Procurement History

1) W9124D19F0051 for $272,880 awarded on 18 December 2018 to Scantron Corporation.

2) Competitive status: Unrestricted.

3) Competition was attempted by soliciting the requirement on Reverse Auction to the GSA schedule holders for 30 days and only one quote was received from Scantron Corporation.

c) Procurement History

1) W9124D17F0144 for $280,531 on 29 September 2017 to Scantron Corporation.

2) Competitive status: Unrestricted.

3) Competition was attempted by soliciting the requirement on Reverse Auction to the GSA schedule holders for 30 days and only one quote was received from Scantron Corporation.

11. 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.

12. 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.

13. 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. This determination will be made using price analysis and procurement history. As a part of this basis, certified cost or pricing data will not be required and the following exceptions apply (FAR 15.403): a commercial item is being acquired.

Nathalie Riley Contracting Officer

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

Nathalie Riley Contracting Officer