South Korea JA (12.23.2020).pdf

DEFENSE 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) 5404 J Ave Bldg. 404 New Cumberland, PA 17070-5059 POC: Paul Lange

TEL: 757-278-8259

E-mail: Paul.Lange@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 contract to Samsung Corporation in the amount of $1,086,688.32. The purpose of this sole source contract is to provide continued leasing support of the existing 1,988 multifunctional devices (MFDs) which have been placed in land-based facilities in support of the United States Armed Forces stationed in South Korea. This sole source contract will have its own pricing and terms and conditions which will be based on order SP7000-16- M-0105, and subsequent continuation contract SP7000-20-P-0005 with Samsung, which expires on 31 December 2020. The continuation contract SP7000-20-P-0005 was issued as an administrative action due to EProcurement issues which were experienced with SP7000-16-M-0105 that made it impossible to administer in EProcurement. This sole source action will be for a base period of performance of eight (8) months.

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

THE AGENCY’S NEEDS/ESTIMATED DOLLAR AMOUNT:

The purpose of this sole source contract action will be to give the United States Armed Forces in South Korea the ability to continue to lease existing MFDs that have already been tested, approved and certified while allowing for the ongoing testing and delivery to be completed for follow-on order SP7000-21-P-0013.

mailto:il:%20Paul.Lange@dla.mil

This sole source contract action was unavoidable because of the problems listed below:

Solicitation SP7000-20-Q-0021 was issued on 30 April 2020 and two (2) amendments were issued before it closed on 30 June 2020. On 12 August 2020, a reverse auction was completed and one (1) quoter indicated that they were unable to place bids. This situation was reviewed by DLA Counsel and it was determined that a new auction would have to be conducted to allow all quoters an opportunity to participate. On 19 August 2020, the 2nd reverse auction was initiated and all ten (10) quoters were able to participate with Happy Land Company submitting the lowest offer. It was determined that Happy Land Company’s devices were already on the approved device list so they didn’t need to go through the testing process. On 17 September 2020 award SP7000-20-P-0099 was issued to Happy Land Company. On 8 October 2020 a cure notice was issued because, among other things, the vendor appeared unable to deliver MFDs per the contract’s required delivery dates. On 20 October 2020, a termination notice was sent to the vendor due to their inadequate response to the cure notice and Happy Land Company was subsequently terminated for cause.

As a result of the termination for cause, HP Korea & Company K, the next lowest priced technically acceptable quoter was contacted to verify their quote was still valid on 21 October 2020. On 22 October 2020, HP Korea & Company K verified that their quote was still valid and the award process was started. It was determined that HP Korea & Company K needed to have their devices tested by DLA and the test results will then have to be subsequently reviewed by Armed Forces Korea so they can be placed on the Armed Forces Korea’s network. An award, SP7000-21-P-0013 was issued to HP Korea & Company K on 13 November 2020. At this time, the devices for testing have not been received by DLA’s J67E’s testing lab. Due to COVID19 related delivery issues, HP Korea & Company K is anticipating that the devices will be received by DLA on or about 31 December 2020. It will take approximately ninety (90) days for DLA’s device testing to be completed. After device testing is completed by DLA, the devices will need to be reviewed by US Armed Forces in South Korea, which will take approximately an additional thirty (30) days. The Performance Work Statement then allows for ninety (90) days for delivery once the device testing is completed and Armed Forces Korea has completed their review. Under normal circumstances, ninety (90) days would be sufficient time for delivery of tested and approved devices, however, the removal of 1,988 MFDs on this sole source order and the current COVID19 Pandemic environment will cause the delivery to take one hundred and twenty days (120). This is because the COVID19 Pandemic is anticipated to caused delays in Samsung being able to remove devices and HP Korea & Company K the ability to manufacture and deliver the 1,988 replacement devices.

As stated above, due to the termination of the initial awardee and the time needed to test and approve the devices of the new awardee, a sole source is needed to continue to provide leasing devices to Armed Forces Korea. The period of performance of the sole source action is expected for approximately eight (8) month and will coincide with the period of performance start date of the new contract action on 1 September 2021.

DLA J67E (Equipment Management Solutions) estimates that $1,086,688.32 will provide for mission essential leases that cannot be delayed. This estimate was determined by using new proposed pricing under the reverse auction and applying the information to this sole source order for an eight (8) month period.

The contracting officer will determine Samsung’s pricing to be fair and reasonable prior to award by comparing it to pricing awarded on the Japan IDIQ’s and GSA PRISM BPA’s because these contracts contain similar MFDs in form, fit and function.

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:

DLA has a new short-term, time sensitive requirement for the leasing of MFDs throughout South Korea. Market research shows, while various sources are capable of providing MFDs to these locations, only one source (Samsung) can meet DLA’s time sensitive portion of DLA’s requirement for the leasing of existing MFDs that already meet all network requirement and are in place throughout South Korea for 8 months.

Pursuing a competitive award for this time sensitive eight (8) month requirement would result in unacceptable delays, increased performance risks and interruption of services, resulting in a significant impact to the United States Armed Forces in South Korea’s mission accomplishment. Experience shows, it takes a minimum of 225 days to actually receive delivery of operational MFDs through the competitive contract award process. The 225 days includes the 135 days for DLA to conduct the competitive procurement itself and an additional 90 days from award to delivery of operational MFDs. In this case, such a 225 day lapse would be severe and negatively impact DLA’s customers. Additionally, the 225 days does not account for the additional time that will be required to get devices tested and certified, which has proven to be a lengthy process that is only exacerbated by the COVID19 Pandemic. Thus, by the time a competitive award would be complete, DLA would no longer have this short term, time sensitive requirement.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE:

In accordance with DFARS PGI 206.303-2(b)(i) a request for information (RFI) was posted on 10 December 2020 and closed on 15 December 2020.

Ameritel Corporation, Brother International, CDW-G, Inc, F-Concepts, Inc.- A-Tech, Macro Technologies LLC, Office Depot Inc. and Ricoh USA, Inc. showed interest in the RFI, but none of the vendors can meet the time sensitive element of DLA’s requirement

(i.e., none can provide MFDs that would be delivered, installed, and up and running by 01 January 2021).

The follow-on contract, SP7000-21-P-0013 has been awarded and is waiting device testing and delivery. (See § 2, Nature and/or Description of the Action Being Requested, for details.)

In accordance with FAR 6.305, this Justification and Approval will be synopsized via the Government-wide Point of Entry, Beta.Sam.Gov’s Federal Business Opportunities website.

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 when comparing the pricing awarded on the Japan IDIQ’s and GSA PRISM BPA’s because these contracts contain similar MFDs in form, fit and function.

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS

NOT CONDUCTED:

Market research indicates that an adequate competition pool exists for requirements of this type (see Items 6 & 9 for further information). This sole source contract shall only be in place long enough to provide for the testing and delivery under SP7000-21-P-0013.

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

OPEN COMPETITION.

It is necessary to continue to support the customer through the leasing support arrangement. Attempting to do a short-term contract, at this time, via competitive procedures would result in unacceptable delays to achieve contract award and delivery/installation of new devices. The unacceptable delays would entail the removal of the 1,988 devices currently in place, recompeting the short-term lease, testing and certification of the devices and delivery of the short-term lease devices, during which DLA’s customers would be without devices.

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

INTEREST IN THE FUTURE ACQUISITION:

Ameritel Corporation 15010 Broschart Road Rockville, MD 20850

Brother International 200 Crossing BLVD Bridgewater, NJ 08807

CDW-G

120 S. Riverside Plaza Chicago, IL 60606

F-Concepts, Inc.- A-Tech Systems, Inc.

1801Research BLVD STE 590 Rockville, MD 20850

Macro Technologies LLC 11350 McCormick Rd Hunt Valley, MD 21031

Office Depot, Inc.

6304 Woodside CT STE 1 Columbia, MD 21046

Ricoh USA, Inc.

300 Eagleview Boulevard Suite 200 Exton, PA 19341

All the above vendors showed interest in the RFI, but none of these vendors can meet the time sensitive element of DLA’s requirement (i.e. none can provide MFDs that would be tested, certified, delivered, installed and up and running by January 1, 2021). Also, if a vendor were able to provide devices that are certified and delivery by 01 January 2021, the vendor would not be able to provide pricing that is fair and reasonable and competitive with the current pricing based on the contracting officer’s knowledge. The reason for this is because the vendor would be amortizing the devices over an up to eight (8) month period, instead of over a sixty (60) month period that vendors are accustomed to doing.

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 all the devices on order SP7000-21-P-0013 are tested, approved and delivered. It is not anticipated that another sole source action will be needed once the current awardee under the competitive acquisition has been approved to proceed with delivery of the new MFD devices.

Also, DLA has and continues to exercise competition as often as possible and is required to conduct ongoing reviews to keep abreast of the new technology, both within industry and the Government, as a continuing effort within DLA. Furthermore, DLA utilizes a variety of vendors, manufacturers, and contracts to fulfill its requirements and will continue the practice of surveying the market to ensure future full and open competition.

Requirements will continue to be posted on Beta.Sam.Gov’s Federal Business Opportunities website to ensure fair opportunity is given and no other providers are available.

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.

Claire Terada DATE DLA OCONUS Branch Chief, J67E

Contracting Certifications:

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

For John Lingrel DATE

Contracting Officer/Team Lead DCSO P-New Cumberland East

I have reviewed and concur with this justification.

Matthew Ryan DATE Competition Advocate DLA Contracting Services Office