Justification and Approval (JA) DDSP PM Contract - Redacted.pdf

CUI

DEFENSE LOGISTICS AGENCY

DISTRIBUTION

5 430 MIFFLIN

AVENUE

NEW CUMBERLAND, PENNSYLVANIA 17070-5008

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

(Note: Justifications restricting consideration IAW FAR 8.405-6(a) or (b), retitle document “Limited-Sources Justification”)

1. IDENTIFICATION OF AGENCY AND CONTRACTING ACTIVITY:

DLA DISTRIBUTION ACQUISITION OPERATIONS (J7)

5430 MIFFLIN AVE, SUITE 3102A

NEW CUMBERLAND, PA 17070-5008

Contracting Officer: Joshua L. Woodworth Joshua.Woodworth@dla.mil Name Email Address

Acquisition Specialist: Allexas R. Kirchgessner Allexas.Kirchgessner@dla.mil Name Email Address

2. NATURE/DESCRIPTION OF ACTION BEING APPROVED: (Inclusive of contract type)

This is a single/sole source action, that will utilize the procedures in FAR 12 and be awarded as a new Firm-Fixed Price contract for a Base and Four (4) Option Years to Dematic Corp. 756 W Peachtree St. NW Atlanta, GA. 30308.

Dematic Maintenance and Training for AS/RS Crane, AGV, AutoStore, DMS, and Goods to Person are new platforms with proprietary technology.

Expected Number of quotes/offers: One (1)

Use of a sole source contract is in the best interest of the agency concerned.

Controlled By: DLA Distribution Controlled By: DLA Distribution J7-AF

CUI Category(s): PROCURE; SSEL Distribution / Dissemination Controls: FEDCON

POC:Allexas Kirchgessner, allexas.kirchgessner@dla.mil mailto:Joshua.Woodworth@dla.mil mailto:Allexas.Kirchgessner@dla.mil mailto:allexas.kirchgessner@dla.mil

3. DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET AGENCY’S

NEEDS:

Dematic Maintenance and Training is a mission-critical requirement to close a critical capability gap. Our highly experienced maintenance teams lack the proprietary knowledge and OEM-required certifications to service this new technology. Without this complete support package, we face certainties of extended equipment downtime, compromised mission effectiveness, and a continued reliance on costly external contractors. This contract is the only method to build and sustain organic expertise, maximize force readiness, and mitigate significant operational risk for the entire life cycle of the system. A contract is required because the AS/RS Crane, AGV, AutoStore, DMS, and Goods to Person are new platforms with proprietary technology. This training program is designed to equip maintenance personnel with the knowledge and skills necessary to perform preventive maintenance, provide timely after-hours support, and deliver effective on-site support, ensuring the continuous operation of the Dematic Systems.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

The statutory authority permitting other than full and open competition is:

_X 41 U.S.C. 1901, 12.201-1, Simplified procedures

5. DEMONSTRATION OF CONTRACTOR'S UNIQUE QUALIFICATIONS OR

NATURE OF ACQUISITION THAT REQUIRES USE OF THE CITED AUTHORITY:

It would be in the best interest of the government to award this requirement to Dematic Corp.

due to the proprietary nature of the Dematic Equipment that has been installed in the EDC Modernization project.

Dematic is the only company that is going to have the OEM Proprietary specific specifications and knowledge for all the new platforms that the DDSP Technicians will need training on.

(AS/RS Crane, AGV, AutoStore, DMS, and Goods to Person). Dematic owns proprietary rights, intellectual property, and source code. Due to these systems and source code owned by Dematic, this does not allow a third-party contractor to have the legal right or technical access as a third-party integrator to provide maintenance training, upgrades, or patching to these systems.

6. SYNOPSIS ANNOUNCEMENT/POTENTIAL SOURCES:

This justification must be made publicly available within 14 days after contract award as required by FAR 6.301(b).

7. DETERMINATION OF FAIR AND REASONABLE COST:

To determine whether the contractor’s proposed price is fair and reasonable, the Contract Specialist and Contracting Officer will review the proposed price against current market pricing information for the same or similar services available.

8. DESCRIPTION OF MARKET RESEARCH:

Market research used historical data from contract SP3300-20-D-0021 delivery order SP3300- 20-F-1300, internet searches and a search of the local Small Business repository. It was concluded that, due to the inherent proprietary Dematic OEM systems, there are no other companies that can provide the services needed to fulfill the Preventative Maintenance services and Training alongside our government employees.

9. OTHER SUPPORTING FACTS:

None

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

INTEREST IN THE ACQUISITION:

No sources have expressed interest in writing for the acquisition at this time. The services required by the agency can only be provided by Dematic, as this is a follow-on to contract SP3300-20-D-0021 delivery order SP3300-20-F-1300 with installed propriety Dematic equipment.

11. ACTIONS THE AGENCY MAY TAKE TO REMOVE/OVERCOME BARRIERS

BEFORE ANY SUBSEQUENT ACQUISITION FOR THE SUPPLIES/SERVICES IS

REQUIRED/MADE:

As this is a singular and standalone contractual effort, barriers are being removed by utilizing the requirement to train existing Government personnel to perform these job functions. The intention is for Government employees to maintain the equipment in-house so that further contracts for the same efforts will no longer be necessary.

12. STATEMENT OF DELIVERY REQUIREMENTS:

Base Period: 01 August 2026 through 31 July 2027 Option Year 1: 01 August 2027 through 31 July 2028 Option Year 2: 01 August 2028 through 31 July 2029 Option Year 3: 01 August 2029 through 31 July 2030 Option Year 4: 01 August 2030 through 31 July 2031

13. TOTAL ESTIMATED DOLLAR VALUE OF THE ACQUISITION(S) COVERED BY

THIS JUSTIFICATION:

The Dematic PM Maintenance and Training Requirement is estimated to cost over the course of 5 years that are covered by this J&A is $5,644,805.50.

ENDORSEMENT

TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION (FAR 6.303-1(c) or FAR 8.405- 6(c)(2)(x)):

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)

Joseph Olson Industrial Engineer (717)770-6415

OLSON.JOSE

PH.R.127836

Digitally signed by

OLSON.JOSEPH.R.1278

361132 Date: 2026.07.08 13:32:41 -04'00'

Name Title Phone Signature Date

CONTRACTING OFFICER CERTIFICATION/APPROVAL:

(Note: Pursuant to DARS Tracking Number: 2026-O0017, Rev. 1 Revolutionary Federal Acquisition Regulation (FAR) Overhaul Part 6 Defense FAR Supplement (DFARS) Part 206)

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

WOODWORTH.JOSH

Digitally signed by

WOODWORTH.JOSHUA.LYLE.1245

Joshua L. Woodworth_Contracting Officer_(614) 693-9845 848133 Date: 2026.07.08 13:23:50 -04'00'

Name Title Phone Signature Date

UA.LYLE.1245848133