Justification and Approval_Redacted.pdf

CUI

DEFENSE LOGISTICS AGENCY

DISTRIBUTION

5430 MIFFLIN AVENUE

NEW CUMBERLAND, PENNSYLVANIA 17070-5008

Template v2.0, Effective July 25, 2022 CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY:

DLA DISTRIBUTION ACQUISITION OPERATIONS (J7)

5430 MIFFLIN AVE, SUITE 3102A

NEW CUMBERLAND, PA 17070-5008

2. NATURE/DESCRIPTION OF ACTION/CONTRACT TYPE (INCLUDING

ESTIMATED VALUE AND PERIOD OF PERFORMANCE):

Contract SP3300-21-D-5003 is currently in place with Logistics Support Services JV LLC.

(LS2) for the below required services at DLA Distribution Albany, GA (DDAG). DLA Distribution New Cumberland, PA is currently in the process of executing a modification to the current contract and anticipates executing the modification by September 2023.

To ensure that the services procured under this contract are obtained without further delay or duplication of cost, DLA Distribution would like to issue a modification to contract SP3300-21- D-5003; to provide warehousing assistance to the Government operated Distribution side of DDAG. The Contractor shall provide services outlined in the Performance Work Statement (PWS) to support an influx of workload at DDAG outside of their normal buildings of operation.

Due to the amount of time it takes to onboard Government personnel and the unpredictability of workload surges, assistance is being requested from the currently existing Service Provider (LS2) performing the same functions but in a different location within Marine Corp Air Station (MCAS) Albany GA.

This action is a non-competitive change in scope of performance location of an existing contract performed by LS2 at the DDAG supporting MCAS. The estimated value for the modification is and anticipated to have a Period of Performance (PoP) from date of award to March 31, 2026 Use of a sole-source action is in the best interest of the agency concerned.

3. DESCRIPTION OF SUPPLIES/SERVICES:

DLA Distribution intends to issue a modification which will incorporate services utilizing the current service provider to assist the wholesale government operation to avoid a disruption in services to the warfighter. To support the Government side of the operation, LS2 will be performing receipt, store, issue, rewarehousing, pack and local delivery functions to augment the current government workforce to ensure warfighter support is not hindered by an increased workload and insufficient Government workforce to support.

The scope of work and description of requirements to be incorporated via modification is as follows, in accordance with the Performance Work Statement (PWS):

Scope of Work: This PWS will provide the mechanism by which the Service Provider can support the Government side of the operation, LS2 will be performing pick/issues, pack, stow, receipt, and local delivery functions to augment the current government workforce. The Government has estimated the following is needed to support this effort:

# of FTEs Labor Categories Warehouse Specialist Supervisor 1 Truck Driver - Medium 2 Warehouse Specialist 12

TOTAL 15

The contractor shall perform functions identified within this PWS within buildings 1220, 1230, 1240, 1250, 1260, 1221 and 1261 while meeting the Government established APLs identified below:

DDAG Goal

IS

SU

ES

High Pri 1 Day Routine 3 Days

RDO 3 Days STO 5 Days DRO 21 Days

RE

CE

IP

TS

New Proc 24 Hrs RDO 24 Hrs STO 24 Hrs

Cust Rtrn 24 Hrs

ST

O

W S

New Proc 3 Days RDO 5 Days STO 5 Days

Cust Rtrn 8 Days

Description of Requirements: The contractor shall perform pick/issue, pack, stow, receipt, and local delivery functions in accordance with Attachment J.1 Section C-5. The contractor shall provide personnel identified to ensure the functions set forth in this PWS are performed in a manner that will maintain a safe environment and in compliance with the current J.1 and/or all applicable SOPs. The contractor shall:

Perform pick/issues IAW Attachment J.1, Section C-5.5 Perform pack IAW WMS Warehousing Pack SOP 4140.03-002 Perform stow IAW Attachment J.1, Section C-5.3 Perform receipt IAW Attachment J.1, Section C-5.2 Perform local delivery IAW Attachment J.1, Section C-5.5.1 Perform bin to bin, rewarehousing IAW Attachment J.1, Section C-5.4.6

This work will be incorporated under the base contract CLIN for Special Projects/Surge & Sustainment, in accordance with the PWS.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

The statutory authority permitting other than full and open competition is: 10 U.S.C. 2304(c)(1) or 41 U.S.C. 3304(a)(1), Only one responsible source and no other supplies or services will satisfy agency requirements (FAR 6.302-1, DFARS 206.302-1).

Pursuant to the exception under FAR 6.302-1(a)(2)(iii), only LS2 is capable of providing the services; award to any other source will result in unacceptable delays and will cause the continuation of delayed items to the warfighter. Moreover, in order for other potential sources to fulfill this immediate need through a competitive solicitation an acquisition lead-time of 255+ days would be required. Accordingly, the most effective course of action is to issue a modification to contract SP3300-21-D-5003. Doing so will ensure continuation of these critical services and meeting warfighter needs.

LS2 is a responsible source that currently understands the service requirements of the Performance Work Statement (PWS) as well as experience in a recently deployed Warehouse Management System which will ensure effective and timely support to the Government wholesale side of operations. While LS2 is supporting, the Government will work on increasing Government staff to meet the current demands.

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS OR

NATURE OF ACQUISITION THAT REQUIRES THE CITED AUTHORITY:

DDAG operates a hybrid organization which includes a wholesale operation and a retail operation which directly supports the on-base customer. The retail portion of the operation is supported by Logistics Support Services JV LLC (LS2) who provides receipt, store, issue, rewarehousing, pack and local delivery of stock materials in support of the onsite Plant Production Activity (PPA) for various maintenance shops during the vehicle maintenance cycle.

The functions between the wholesale Government supported operation and retail Contractor supported operation are synonymous with each other and only differ by the direct customer they are supporting and the buildings of operation. The government run wholesale side of the operation is currently experiencing a large influx of workload and coupled with a new system implementation, they are in dire need of immediate support to meet customer demand in order to sustain daily operations.

Utilizing the current service provider to assist the wholesale Government operation will avoid a disruption in services to the warfighter. The functions performed by the government and service provider are synonymous with each other and only differ by the direct customer they are supporting and the buildings of operation.

Utilizing the current service provider for this effort is most beneficial as they are familiar with the processes and there will be no need to train an outside entity on a recently implemented system and most importantly, it keeps the lines of responsibility clear.

Adding an additional service provider to this site would blur the lines of responsibility making it hard to hold certain parties accountable for the work being performed.

duplication of cost. LS2 is the only source capable of realistically providing this requirement without causing unacceptable delays.

Authority in accordance with FAR 6.302-1(a)(2)(iii) is appropriate in this instance in order for the Government to avoid incurring substantial duplication of costs that would not be recovered through competition. It would also cause unacceptable delays in service and disruption to the mission. Issuing a new contract to another contractor would not be logical, efficient, or cost effective to the Government.

6. SYNOPSIS ANNOUNCEMENT/POTENTIAL SOURCES:

On 05 September 2023, a notice of the Government’s intent to issue a sole source action, as required by FAR 5.201 and in accordance with the procedures at FAR 6.302-1(d), was performed. This information will be for informational purposes only.

7. DETERMINATION OF FAIR AND REASONABLE COST:

In order to determine whether the estimated price is fair and reasonable, the Acquisition Specialist and Contracting Officer will review the current Government estimated costs. If the estimated price appears questionable for reasonableness, a justification from the contractor will be required in order to determine whether the estimated price is fair and reasonable. The Contracting Officer will determine the price to be fair and reasonable and in line with current costs distribution services before issuance of the subject modification.

8. DESCRIPTION OF MARKET RESEARCH:

Based on present circumstances as outlined in the preceding paragraphs of this document, conducting market research in an effort to seek competition, or another method of acquiring these services, is not a meaningful action. The time it would take to perform the research, solicit, award, and mobilize a contractor for the interim period incorporated by the modification (4-months) would cause unacceptable delays. In addition, the current service provider, LS2, is the only company capable of performing this effort without any break in services providing continuity and stability for the Government. LS2’s staff have their security clearances and are fully trained, while other companies are capable of performing these services, they would require a phase-in period of three (3) months in order to meet security and training requirements.

9. OTHER SUPPORTING FACTS:

10. ACTIONS THE AGENCY MAY TAKE TO REMOVE BARRIERS TO

COMPETITION:

This procurement action is for a one-time temporary modification of existing contract SP3300-21-D- 5003. Actions to increase future competition are not needed as this is a temporary requirement to assist in surging workload. Contract SP3300-21-D-5003 was competed under competitive 8(a) Set- Aside and the requirements being fulfilled subsequent to the modification requested under this J&A are temporary and only for the timeframe stated within this J&A.

11. STATEMENT OF DELIVERY REQUIREMENTS:

The period of performance for this acquisition shall be from Sept 1 through December 31, 2024.

12. TOTAL ESTIMATED DOLLAR VALUE OF THE ACQUISITION COVERED BY

THIS J&A:

The total estimated dollar value for this effort is .

13. CERTIFICATION, REVIEW, AND APPROVAL:

The following endorsements/approvals are to be provided for the Justification.

J&A ENDORSEMENT

TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION

I certify that the facts, representations, and any supporting data under my cognizance which are included in this justification and its supporting acquisition plan which form a basis for this justification are complete and accurate.

Technical Cognizance:

(Requirements originator)

Name Title Phone Signature Date

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-1(a)(2 or FAR 8.405-6(c)(2)(ix)):

I certify that this justification, including its supporting acquisition plan, is accurate and complete to the best of my knowledge and belief.

LEGAL REVIEW

The foregoing justification has been reviewed for legal sufficiency.

APPROVAL OF THE JUSTIFICATION – FAR 6.304: