SP470422F0023_Redacted.pdf

CUI

CUI SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

A six-month extension is requested for the Retail Integration and Additive Manufacturing level of efforts. The new period of performance (PoP) for the Retail Integration and Additive Manufacturing efforts will be from March 01, 2025, to August 31, 2025. The total estimated cost for this six-month extension is The Retail Integration cost is and the Additive Manufacturing cost is . Funding is provided in full.

A four-month extension is requested for the F-35 Transition Study level of effort. The new PoP for the F-35 Transition Study will be for a four-month period from March 01, 2025, to June 30, 2025. The total estimated cost for this four-month extension is . Funding is provided in full.

The combined total for all three levels of effort is

(4) Authority and supporting rationale and, if applicable, a demonstration of the proposed contractor's unique qualifications to provide the required supply or service:

The acquisition is conducted on a limited source basis pursuant to one or more of the following authorities:

FAR 8.405-6(a)(1)(i)(C) – In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures.

LMI is currently performing this work under task order SP4704-22-F-0023 through February 28, 2025.

A gap in coverage if the current task order were to end before a new award were made would result in a loss of critical support to DLA and the Services in strategic retail program execution and quantitative analysis for Supply Chain Integration activities that would impact readiness and material support to customers. The impact to the agency/mission if the services are not extended is DLA’s failure to complete Warehouse Management System (WMS) implementation at three Air Logistics Complexes at Warner Robins, GA; Oklahoma City, OK; and Ogden, UT. J3 will lose critical support to Service customers in strategic retail program execution and quantitative analysis for United States Marine Corps (USMC) Industrial Supply Integration activities at two Marine Corps Maintenance depots, four Navy Shipyards, three Fleet Readiness Centers, and Army Depots impacting readiness and material support to customers. Additionally, a loss in coverage would no longer allow LMI to provide Additive Manufacturing (AM) or Transition Support for the F-35 program from the Office of the Secretary of Defense (OSD) to the Military Services.

The need for the FAR clause 52.217-8 extension is due to a follow-on procurement still being worked.

DLA Logistics Operations (J3) is working with the DLA Contracting Services Office to begin to establish an Indefinite Delivery Indefinite Quantity (IDIQ) contract to support J3 and this Retail Integration requirement was identified as a procurement that could be supported through the IDIQ vehicle; however, the IDIQ has not been established in time to utilize that vehicle for follow-on procurement support for this Retail Integration requirement. As such, the follow-on procurement was delayed and lead to requiring executing FAR clause 52.217-8 to extend the support while the follow-on procurement is worked as a standalone order. Under the current Continuing Resolution, this effort was

CUI SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

further delayed due to a shortfall in approved and available funding that required J34 to seek available funds from the Director’s Reserve/J3.

The scope of this work includes conducting quantitative analysis and providing strategic recommendations to the government to improve operations and effectiveness throughout the supply chain and integration with retail and military service industrial sites. These tasks require an in-depth knowledge of logistics, particularly with management requirements of wholesale and retail inventory supporting industrial and operational requirements for both consumable and reparable secondary items to provide an understanding of the uniqueness in planning, procuring, repairing, distributing, and retrograding these items. LMI works with and visits stakeholders from the Services, Office of the Assistant Secretary of Defense for Logistics and Material Readiness OASD (L&MR) and United States Transportation Command (USTRANSCOM) to review both quantitative data and qualitative information to understand the drivers of variability and the effect it has on the end-to-end supply chain.

DLA anticipates impacted areas of the end-to-end supply chain to include inventory levels, repair times, and number of procurement actions.

LMI’s capabilities through the use of various inventory management programs (Distribution Standard System (DSS), Integrated Master Plans (IMPS), Economic Movement Quantity (EMQ), etc.) to support integrated solutions for inventory management are managerially and technically sound and are adequately resourced to provide desired levels of readiness to support the warfighter. They perform fact-based analyses and evaluations of the DoD Supply Chain Service industrial depots and retail sites, assess the effect of changes to readiness, identify potential benefits and improvements, develop solutions, and apply best business practices to the DoD supply chain to improve performance and responsiveness.

In the interest of economy and efficiency, the new work is a logical follow-on to the work already being performed by LMI. This level of effort could not be accomplished through any other vendor in such a relatively short period of time. LMI has spent the past five years performing this work and gaining invaluable expertise and institutional knowledge through their performance. The government is uniquely poised to benefit from the economy of scale and lessons learned in having LMI continue this work. LMI possesses deep knowledge of the current Retail Integration and Additive Manufacturing environments and infrastructures. LMI’s experience working with the Defense Logistics Agency (DLA), the DLA J codes, as well as the Major Subordinate Commands (MSCs) all confer additional benefits insofar as this expertise offers greater efficiency and expediencies that another contractor could not offer the government at this time. Furthermore, transferring this knowledge to another contractor at this juncture would not be efficient as it would result in a substantial duplication of costs and effort and would not be in the government’s best interests. It is in the best interest of the government to extend these services to prevent a gap in coverage of services provided by LMI before a new competitive award can be completed. The Procurement Acquisition Lead Time (PALT) to award a new contract is approximately 210 days, hence the request to extend the current service afforded under this task order by six months.

Under the current Continuing Resolution, the effort to extend the current contract services was further delayed due to a shortfall in approved and available funding that required J34 to seek available funds from the Director’s Reserve/J3.

CUI SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

(5) Determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 8.404(d):

The Contracting Officer determines the anticipated cost to the government will be fair and reasonable, and the resulting order represents the best value to the Government by comparing proposed prices to historical prices paid for the same or similar supplies/services and/or comparison of proposed prices with independent government cost estimates and/or comparison of proposed prices with prices obtained through market research for the same or similar items.

(6) Description of the market research conducted among schedule holders and the results, or a statement of the reason market research was not conducted:

Market research was undertaken between November and December 2024 by researching other Best in Class (BIC) contract options to include the J6 Enterprise Technology Services (JETS 2.0), the Strategic Transformation and Enterprise Project Support (STEPS) BPAs, and an LMI Small Business Innovative Research (SIBR) contract, in addition to the WHS/AD LOGS BPAs.

LMI embedded DLA for Stock Positioning and Lead Time Estimation Sustainment that consists of an artificial intelligence (AI)/machine learning (ML) model that was developed by LMI in 2020 and updated as part of the DLA research and development (R&D) program as of November 2023. This adds another layer of loss of economy and efficiency if this effort were to be performed by another vendor as it would add a significant and costly delay in the implementation of the AI/ML model across the Agency.

STEPS is not designed for enduring support, defined as support lasting more than 12 months for Tier 2, and this requirement has been enduring for 15 years. Therefore, STEPS is not an available fit for this requirement.

Furthermore, the use of a Phase 3 LMI SBIR contract was researched. This research and development effort, while similar in scope, did not accurately fit the broader encompassing scope of work needed for the current retail integration effort. Therefore, using the SBIR was determined not to be a proper fit for this requirement.

The WHS LOGS BPAs have ample ordering period and cost ceiling to accommodate the extension. The WHS LOGS BPAs are a proven mechanism for past iterations of this support and switching to a different contracting mechanism at this stage would introduce unnecessary risk to cost, schedule, and the technical quality of the support DLA is seeking to achieve, which leads to LMI offering the economical and efficient option to continue this support.

An additional consideration is that even though the prior requirement was competed, LMI was the only party that expressed interest.

Due to the pricing for the extension being a continuation of the current option year’s pricing, which was priced three years prior, it is unlikely lower rates could be obtained for this work. The marketplace will continue to be monitored for updated market research. After all of the above was taken into consideration, market research indicated that the party most poised to be able to economically and efficiently complete this work is LMI; therefore, it is in the government’s best interest, considering

CUI SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

economy and efficiency, to extend the PoP for the services provided by LMI under the current task order, not to exceed six months, in accordance with FAR clause 52.217-8.

(7) Other facts supporting the justification:

Not applicable.

(8) Statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

A follow-on acquisition strategy is being planned to award a new contract on a competitive basis. At a minimum, the agency will perform market research to ensure competitive opportunities are considered and utilized if practicable.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that any supporting data that is the responsibility of technical or requirements personnel (e.g., verifying the Government's minimum needs or requirements or other rationale for limited sources) and which form a basis for the justification have been certified as complete and accurate by the technical or requirements personnel.

Technical/Requirements Cognizance:

____ _ ________ Robert A. Hughes Sr. _ 25 FEB 2025

Signature Name (Printed) Phone No. Date

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

___ _______ _ Tiffany Welch______ 25 FEB 2025

Signature Name (Printed) Phone No. Date

ADVOCATE FOR COMPETITION, DCSO-DC (APPROVAL FOR ACTIONS > $750,000 - $15,000,000)

In accordance with FAR 8.405-6(c)(2)(xi), I have determined that FAR 8.405-6(a)(1)(i)(C) applies and approve, as Competition Advocate, the proposed procurement(s) described herein on a limited source basis, pursuant to the authority of the Multiple Award Schedule Program.

___ _______ _ Matthew Ryan___________ 25 FEB 2025

Signature Name (Printed) Phone No. Date

HUGHES L

LEN.SR

Digitally signed by

H S.ROBERT.ALLEN.SR

25.02.25 15:11:46 -05'00'

WELCH.TIFFAN

Y.M.

Digitally signed by

WELCH.TIFFANY.M. 7

Date: 2025.02.25 12:0 '

RYAN.MATTHE

W.S

Digitally signed by

RYAN.MATTHEW.S.

Date: 2025.02.25 15: '