Sole Source Justification_HITC Postal Equip Tech Refresh signed.pdf

DEPARTMENT OF VETERANS AFFAIRS

Office of Procurement, Acquisition and Logistics (OPAL)

Strategic Acquisition Center (SAC) 5202 Presidents Ct, Suite 103

Frederick, MD 21703

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FEDERAL ACQUISITION

REGULATION (FAR) 13.5

(1) Identification of the agency and contracting activity, and specific identification of the document as a “Sole Source Justification Under Simplified Procedures for Certain Commercial Items in Accordance with Federal Acquisition Regulation

(FAR) 13.5.”

The Strategic Acquisition Center - Frederick (SAC-F), on behalf of the Department of Veterans Affairs (VA), Office of Information and Technology (OIT), Hines Information Technology Center (HITC), located in Hines, IL, proposes to enter into a sole source contract with Bell and Howell, LLC (B&H), under simplified acquisition procedures.

(2) The nature and/or description of the action being approved, i.e., sole source under procedures for certain commercial items in accordance with FAR 13.5.

This activity proposes to modify the current contract (36C10X23C0002) with B&H to provide for the needed parts upgrades and continuing maintenance to those items.

B&H does not enter into any third party or licensing agreements allowing subcontracted providers to install, repair, or provide ongoing maintenance to its products and was accordingly awarded the follow-on sole source contract for maintenance to both of HITC’s Bell and Howell Phillipsburg Mailstar Aim 6” Mail Handlers. Administratively it would lessen the burden to both the requiring and contracting activities by not awarding a separate, new contract for the upgraded parts and their ongoing maintenance.

Furthermore, the increased efficiency will be clear to the program, particularly the Contracting Officer’s Representative (COR), with respect to monthly invoicing should we simply modify the existing contract and not award another separate contract with its own contract line item(s) (CLINs) for the maintenance requirements. The anticipated total contract value for this requirement is $444,000.00 and does not exceed the threshold for use of Simplified Acquisition Procedures for commercial items. Contracting recognizes the expansion in scope of the current order with respect to the total overall increase. Current contract overall anticipated value is $655,932.00 and would increase by approximately 60%. Despite this percentage of increase the Government will see overall administrative savings by awarding a modification as opposed to awarding a new contract for the upgraded parts and their ongoing maintenance.

(3) A description of the supplies and/or services required, including the delivery schedule and/or the period of performance (inclusive of all option periods), and the estimated dollar value of the acquisition.

Product equipment upgrades to existing two (2) Bell and Howell Phillipsburg Mailstar Aim 6” Mail Handlers are as follows:

FAR 6.302-5 JA | HITC | Postal Equipment Tech Refresh

Item name: Continuous Large Format Folder (CLFF) upgrades, including CL Feeder, Accumulator, MBO Folder, PLC 12” Touchscreen, Narrow AIM Frame, JETVision 2 Area Scan Cameras with Monitor, Apollo 2+2 HP Print Heads System, Vacuum Base, OCR Read to Print Software, and VETVision License.

Part of or used with: two (2) Bell and Howell Phillipsburg Mailstar Aim 6” Mail-handlers, (Serial Numbers 48-W998 and 48-W999)

Ongoing bi-weekly maintenance will be provided by B&H via weekly visits that provide alternating service to each machine. That is, each machine’s upgraded parts receive service once every other week.

(4) The statutory authority permitting sole source.

This action is under the procedures of Federal Acquisition Regulation (FAR) 13.5 under the authority of:

X 41 U.S.C. 1901, Simplified Acquisition Procedures

☐41 U.S.C. 1903, Special Emergency Procurement Authority

This acquisition is conducted under the procedures of FAR 13.501(a)(1)(ii). The agency may solicit from only one source if the circumstances of the contract action deem only one source reasonably available. FAR 13.106-1(b)(1)(i).

(5) A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring use of the authority.

There is only one responsible source, and no other services will satisfy agency requirements. The current schematics of this B&H equipment are proprietary and prevent other vendors from identifying and diagnosing problems with the hardware and software. The schematics will not be made available to an alternate vendor by B&H.

The current mail-handlers were upgraded from the “Original Purchase” several years ago and are designed to provide HITC with components to meet HITC output requirements.

HITC has been using the B&H mail-handlers for over ten years, and their utility and effectiveness have already been proven. B&H maintenance support provides a unique solution that is compatible with the existing system and with current business needs.

Only a B&H certified technician is capable of providing these service requirements. B&H is the Original Equipment Manufacturer (OEM). All of the associated components are single source products manufactured, sold, and distributed by B&H. No other division of B&H or any other company makes a similar or competing product. This service must be done directly by B&H. This equipment has a custom design of components, a specifically distributed control system with advance user interface, which needs to be maintained by this procurement of a maintenance agreement and service package.

The B&H Mail-handlers are a foundational component that enables HITC to support the veterans of this country now and in the years to come. In addition, it is a building block that enables HITC personnel to provide benefits and services to veterans of the United States.

VA has determined that no other vendor is capable of providing the relevant services and maintenance of the B&H Phillipsburg Mailstar Aim 6” Mail-handlers that are proprietary to B&H.

(6) A description of efforts made to ensure offers/quotes are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by FAR 5.2 and, if not, which exception under 5.202 applies.

The Notice of Intent to sole source will be published on SAM.gov, and vendors will be given ten (10) days to respond to this notice. This notice provides for any vendor believing they are capable of providing the requirement to submit a response. The notice of intent is not a solicitation. Vendor responses received in response to the notice will be used solely to determine whether competitive procedures can be used for this acquisition.

The justification and approval will be published on SAM.gov no later than fourteen (14) days after the award. However, there is no competition anticipated for this acquisition.

(7) The anticipated dollar value of the proposed acquisition, including options if applicable, and a determination by the contracting officer that the anticipated cost to the government will be fair and reasonable.

The anticipated total dollar value of this requirement is $444,000.00 and would increase the current contract value by approximately 60% for a potential overall contract value of $1,099,932.00. A fair and reasonable price determination for the parts and bi-weekly maintenance visits will be based on comparison of the proposed price with prices found reasonable on the previous contract and other contracts awarded for similar requirements. Discounts will also be sought for this proposed procurement.

(8) A description of the market research conducted and the results or the reason market research was not conducted.

Market research was conducted via review of several previous contracts for maintenance of the two (2) existing B&H Phillipsburg Mailstar mail-handler machines (VA119A-18-C-0019 and 36C10X23C0002). A letter indicating the proprietary nature of https://www.acquisition.gov/far/part-5#FAR_Subpart_5_2 https://www.acquisition.gov/far/part-5#FAR_5_202 the B&H equipment to include repair and maintenance was also found amongst the contract artifacts of the previously awarded contracts.

(9) Any other facts supporting the use of sole source.

B&H provided a new document, signed and dated by Senior Vice President, Earle Painter, stating that there are no third parties approved by B&H to perform maintenance services, or equipment or software upgrades on B&H manufactured equipment within the state of Illinois, or otherwise (see file briefcase). Accordingly, B&H is the only factory trained and authorized maintenance servicer and upgrade provider for their software and equipment.

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

Bell and Howell, LLC., 760 Wolf Road, Wheeling, IL, provided an informal quote for the proposed upgraded parts and maintenance to the program during their market research.

(11) A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

This action to upgrade both of the current (as-is condition) Mail Handlers will allow for continued use of these machines for at least another five years. Should the equipment become obsolete or technologically incumbering to the required services at HITC, the program will seek new equipment and thus new vendors via full and open competition to meet the ongoing mailing demands of the organization.

(12) Evidence that any supporting data that is the responsibility of technical or requirements personnel and which form a basis for the justification have been certified as complete and accurate by the technical or requirements personnel.

I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Signature: _________________________________ Sarah Heitz

Contracting Officer Representative (COR)

Office of Information Technology (OIT)

(13) Contracting officer certification that the justification is accurate and complete to the best of the contracting officer ’s knowledge and belief.

I certify that this justification is accurate and complete to the best of my knowledge and belief. As this action does not exceed $750,000.00, the certification below required by FAR 13.501(a)(2)(i) serves as approval.

Signature: _________________________________

Justin Cole Contracting Officer Strategic Acquisition Center