Other_Than_Full_and_Open_Competition.pdf

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. IDENTIFICATION OF THE AGENCY AND CONTRACTING ACTIVITY.

Requiring Activity Defense Logistics Agency (DLA) Installation Operations Fort Belvoir 8725 John J Kingman Road Fort Belvoir, VA 22060-6220

Contracting Activity DLA Contracting Services Office Philadelphia – (DCSO-P) 700 Robbins Avenue Philadelphia, PA 19111

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED.

This justification authorizes and approves the use of other than full and open competition for procurement of equipment maintenance and mail meter leasing capabilities for DLA Installation Operations Fort Belvoir in Fort Belvoir, VA, and software maintenance and software residence for DLA Installation Operations Fort Belvoir in Fort Belvoir, VA, DLA Installation Operations Columbus in Columbus, OH, DLA Installation Operations Richmond in Richmond, VA, DLA Installation Operations San Joaquin in Tracy, CA, and DLA Installation Operations Susquehanna in New Cumberland, PA on a sole source basis.

The period of performance of this acquisition will be a 12-month base period with two 12-month option periods as follows:

Base Period: October 1, 2018 – September 30, 2019 Option Period 1: October 1, 2019 – September 30, 2020 Option Period 2: October 1, 2020 – September 30, 2021

3. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS/ESTIMATED DOLLAR AMOUNT.

DLA has a requirement for mailroom services, equipment maintenance, and mail meter leasing capabilities in support of DLA Installation Operations Fort Belvoir in Fort Belvoir, VA and software maintenance and software residence in support of DLA Installation Operations Fort Belvoir in Fort Belvoir, VA, DLA Installation Operations Columbus in Columbus, OH, DLA Installation Operations Richmond in Richmond, VA, DLA Installation Operations San Joaquin in Tracy, CA, and DLA Installation Operations Susquehanna in New Cumberland, PA as illustrated in the tables below.

Table 1. DLA Installation Operations Field Sites - Table of Requirements

DLA

Installation Operations Field Sites

Equipment Mail Meter Software Package Residence

Fort Belvoir Fort Belvoir Fort Belvoir, Columbus, Richmond, San Joaquin, & Susquehanna

Fort Belvoir, Columbus, Richmond, San Joaquin, &

Susquehanna

Annual Maintenance Mail Meter

Head Leasing

SendSuite Live Enterprise

SendSuite Tracking

Software Maintenance

Pitney Bowes Software Residence

Contract Line Item

Distribution

CLIN 0001

CLIN 0002

CLIN 0003

CLIN 0004

Base Year

DLA Purchases

DLA Leases DLA Purchases DLA Leases

First Option Year

DLA Purchases DLA Leases DLA Purchases DLA Leases

Second Option Year

DLA Purchases DLA Leases DLA Purchases DLA Leases

Table 2. DLA Installation Operations Fort Belvoir - Equipment and Software Covered By Maintenance Contract

Seq DLA HQC Equipment & Software Package Item Quantity

1 Connect+ 3000 Series WOW (Mailing System #1) AZBD* 1 2 Connect+ Series Meter 1W00 1 3 310/205 Letters/minute Feature APSK* 1 4 10 in. Display – Standard Apps Center MSD1 1 5 Connect+ SendSuite Interface MSPQ* 1 6 Connect+ Mono Printer AZBE 1 7 Connect+ Power Stacker MSPS* 1 8 Roll Tape Kit MW90650 1 9 Connect+ 3000 Series WOW (Mailing System #2) AZBD* 1

10 Connect+ Series Meter 1W00 1 11 310/205 Letters/minute Feature APSK* 1 12 10 in. Display – Standard Apps Center MSD1 1 13 Connect+ SendSuite Interface MSPQ* 1 14 Connect+ Mono Printer AZBE 1 15 Connect+ Power Stacker MSPS* 1 16 Roll Tape Kit MW90650 1 17 Connect+ 1000 Series (Accountable Section Mailing System) AZBA* 1 18 Connect+ Series Meter 1W00 1 19 130 LPM Feature APSA 1 20 10 in. Display – Standard Apps Center MSD1 1 21 Connect+ SendSuite Interface MSPQ* 1 22 Connect+ Mono Printer AZBE 1 23 Connect+ Drop Stacker MW90007 1 24 Additional SendSuite Live Location (1) price per location SSH1* 1 25 Add 1 Site w/ Multiple Workstations T5UC* 1 26 Tracking Assistant Plus Win Mobile (T742) T5UM 4 27 Four Bay Cradle/Battery Charger for Tracking Assistant (T742) T51M 1 28 Single Bay Cradle/Battery Charger for Tracking Assistant (T742) T51S 1 29 Counter Signature Pad Plus (Inbound station) J546* 1 30 100 lb. Tabletop Scale (One per outbound station) T310* 3 31 Low to Mid Volume 4 in. Label Printer T536* 5 32 Cordless Scanner (Inbound) T539* 1 33 Non-Contact Programmable Wedge Scanner (Outbound Stations) V320* 3 34 Installation Project Management (Outbound Area & training) T5M3* 3

35 Installation Project Management (Inbound Area & training) T5M3* 1 36 Laser Printer (Accountable Section) T321* 1 37 Laser Printer (Inbound Tracking) T321* 1 38 SendSuite Live Enterprise Package 1 39 SendSuite Tracking Package 1

The Government contemplates award of a firm-fixed price contract as a result of this solicitation. The estimated dollar value for above requirement, including equipment maintenance, mail meter rental, software maintenance, and software residence is:

4. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER

THAN FULL AND OPEN COMPETITION.

The statutory authority permitting other than full and open competition is 10 U.S.C.

2304(c)(1), as implemented by FAR 13.106(b)(1)(i): Contracting officers may solicit from one source if the contracting officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand-name or industrial mobilization). The services are deemed to be available only from one responsible source because the requirement is for unique supplies or services available from only one source or only one supplier with unique capabilities.

5. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES

USE OF THE AUTHORITY CITED.

Pitney Bowes is the manufacturer and the brand name of the required items and services.

There are only two main manufacturers left in the production mailing machine industry, Neopost and Pitney Bowes. Pitney Bowes is the only U.S. manufacturer approved by DISA PPMS System and is based in the United States. Neopost systems communicate to Neopost servers located in France. To protect the postal currency funds, Pitney Bowes and Neopost systems cannot communicate with each other. The entire system, including packaged equipment and software purchased, software updates, equipment maintenance, and mail meter rental is peculiar to Pitney Bowes. In accordance with USPS guidance

(Quick Service Guide 604c, Postage Meters and PC Postage Systems), Pitney Bowes is the only authorized vendor which provides both physical and PC Postage meter capabilities to its customers. According to the Quick Service Guide, there are other vendors listed, but they do not offer the complete package offered by Pitney Bowes as shown in the Authorized Providers table.

- Pitney Bowes is the only vendor that can supply both physical postage meters and computer-based postage meters operating as one system.

- Data-Pac Mailing Systems Corp., FP Mailing Solutions, and Neopost, Inc., can supply physical postage meters only.

- Endicia.com (PSI Systems) and Stamps.com can supply computer-based postage meters only.

The DLA Installation Operations sites require both styles of meters to complete their daily outbound mail operations. The physical meter is required to process first class mail.

The PC Postage meter is required to process mail falling under the Commercial Plus Pricing (Schedule 48). DLA has a requirement for both physical and computer-based postage meters at each site. It is necessary to purchase both physical and computer-based postage meters from a single vendor in order to have a complete, functional system.

Currently, Pitney Bowes is the only vendor that offers both the physical and computer-based postage meters running on one system. Pitney Bowes is currently the only vendor authorized by the USPS to sell and lease the entire system including the packaged equipment, mail meters, service, maintenance as well as software and hardware capable of processing mail.

A search on the internet, as well as on the GSA schedule, indicated that there are resellers available to offer the Pitney Bowes systems. However, authorized Pitney Bowes resellers have geographical territory coverage in which they are allowed to market certain Pitney Bowes products. No reseller has approval for national coverage or marketing outside their territory. In addition, some accounts within a reseller’s territory are restricted from the reseller marketing to them. In the case of the Department of Defense, Pitney Bowes resellers are not authorized by Pitney Bowes to offer its products or solutions to the Department of Defense due to the global support required by the Department of Defense.

In addition, the Pitney Bowes GSA Schedule customers are serviced by Pitney Bowes directly and not through the resellers. Lastly, the SendSuite Live and SendSuite Tracking products are not marketed by any of the Pitney Bowes resellers. These two product lines are only available from the Pitney Bowes direct channel. Pitney Bowes direct is the only source to obtain the required DLA functionality and global support needed to fully comply with the DLA PWS.

6. A DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE

INCLUDING WHETHER A NOTICE WAS OR WILL BE PUBLICIZED AS

REQUIRED BY SUBPART 5.2 AND, IF NOT, WHICH EXCEPTION UNDER

5.202 APPLIES.

IAW FAR subpart 5.2 – Synopses of Proposed Contract Actions, the Government intends to post a synopsis via FedBizOpps.

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COSTS TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE.

As the Contracting Officer, I hereby determine that the anticipated cost to the Government will be fair and reasonable based on pricing analysis in accordance with FAR 15.404-1. It is anticipated that the Government will use various price analysis techniques including, but not limited to, comparison of proposed prices to historical prices paid for the same or similar items in accordance with FAR 15.404-1(b)(2)(ii) and a comparison of proposed pricing with the independent Government cost estimate in accordance with FAR 15.505-1(b)(2)(v).

8. A DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS

NOT CONDUCTED.

Market research was performed to determine if other sources were available to provide the required service. A search on the internet, as well as on the GSA schedule, indicated that there are resellers available to offer the Pitney Bowes systems. However, authorized Pitney Bowes resellers have geographical territory coverage in which they are allowed to market certain Pitney Bowes products. No reseller has approval for national coverage or marketing outside their territory. In addition, some accounts within a reseller’s territory are restricted from the reseller marketing to them. In the case of the Department of Defense, Pitney Bowes resellers are not authorized by Pitney Bowes to offer its products or solutions to the Department of Defense due to the global support required by the Department of Defense. In addition, the Pitney Bowes GSA Schedule customers are serviced by Pitney Bowes directly and not through the resellers. Lastly, the SendSuite Live and SendSuite Tracking products are not marketed by any of the Pitney Bowes resellers. These two product lines are only available from the Pitney Bowes direct channel. Pitney Bowes direct is the only source to obtain the required DLA functionality and global supported needed to fully comply with the DLA PWS.

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

OPEN COMPETITION.

DLA Installation Operations has been working on an enterprise solution to standardize mail processing throughout all of the agency’s sites. Pitney Bowes is the only vendor with the technology available to make this solution work in the future.

The DLA Enterprise Mailroom Solution is an effort by DLA Installation Operations to combine the mail operations of the DLA Installation Operations sites into one system, which will save the agency money. The process began in FY16 at DLA Installation Operations Fort Belvoir. The savings will come by ending the practice of leasing equipment at each site, when the agency purchase of the equipment is cheaper over the expected lifetime of the equipment. The software purchase will allow the agency to save money by not having each site lease their own software.

The software and data residence for use by all DLA Installation Operations sites was purchased or leased by DLA Installation Operations Fort Belvoir in October 2015 as the first part of the enterprise solution.

10. LIST THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THIS ACQUISITION.

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.

DLA has and continues to exercise competition as often as possible and is required to conduct ongoing reviews to keep abreast of new technology, both in industry, and in the Government as a continuing effort within DLA. DLA uses a variety of vendors, manufacturers, and contracts to fulfill its requirements and will continue its practice of surveying the market to ensure future full and open competition. At this time, the requirement will be solicited on a sole source basis; however, market research will continue to be done for future acquisitions to determine the availability of alternate sources.

12. CONTRACTING OFFICER’S CERTIFICATIONS:

Requirements 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.

DATE

Contracting Officer Certification:

I hereby certify that this justification is accurate and complete to the best of my knowledge and belief. I have reviewed and approve this justification.

DATE