JA-_Shutterstock.pdf

DEFENSE LOGISTICS AGENCY (DLA)

DLA CONTRACTING SERVICES OFFICE-PHILADELPHIA

700 ROBBINS AVENUE

PHILADELPHIA, PA 19111-5092

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 at Battle Creek 74 N. Washington Ave.

Battle Creek, MI 49037-3092 POC: Charles Rice Ph: 269-961-4784 Email: charles.rice@dla.mil

Contracting Activity:

DLA Contracting Services Offices Philadelphia Site 700 Robbins Ave Philadelphia, PA 19111

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

This justification is for the procurement of brand name Shutterstock subscription licenses access to a web page to use images that are royalty free. The requirement is for 3 (three) licenses with up to 750 download images with no daily limitation.

The proposed procurement action will result in the award of a Firm Fixed Price Contract for Shutterstock high-quality licensed images, videos, and music.

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

THE AGENCY’S NEEDS/ESTIMATED DOLLAR VALUE:

DLA has a requirement to obtain the Shutterstock subscription licenses access to a web page to use images that are royalty free.

mailto:charles.rice@dla.mil

The proposed procurement will provide access to Shutterstock web page and license permissions for photos, videos, and music for a quantity of 3 subscription licenses. These subscription licenses will continue to provide DLA with the latest clipart, graphics, photos, illustration, videos, and music files to support the development of training material, flyers, announcements, and brochures.

The period of performance is for 12 months with one option year. The estimated cost of this requirement is $11,496.00 in the below table:

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 6.302-1 “Only One Responsible Source and no other supplies or services will satisfy agency requirements”. Shutterstock is a brand name product of Shutterstock, Inc. No other firm can provide these license subscriptions due to proprietary nature and sole distribution point. Use of this brand name description in the acquisition is essential to the Government’s requirements, thereby precluding consideration of a product of another company.

5. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF ACQUISITION REQUIRES USE OF

CITED AUTHORITY:

Shutterstock, Inc is the only vendor of its kind that offers royalty free still photo images, video footage, and music that our graphic artists can use for advertising for DLA services and programs. These advertisements include DLA Disposition Services web pages, posters, training videos, advertising clips and many more. The versatility that this subscription licenses will provide the graphic artists is the ability to create fresh media without the risk of copyright infringements for still and motion photography and music.

Shutterstock is the only subscription license that allows access to millions of high resolution and quality photos, images, graphics, illustrations, and vectors; primarily focusing on information technology, computer security, privacy, and training.

Shutterstock is exclusively owned and propriety of Shutterstock, Inc. Shutterstock, Inc only sells directly to the Government, and as such, there are no authorized resellers for Shutterstock license subscription.

Period Shutterstock, Inc Base $5,748.00 Option period 1 $5,748.00 Total $11,496.00

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE:

Since Shutterstock, Inc is the sole designer and producer of the Shutterstock, no formal market survey will be performed to identify other manufacturers of this graphics.

However, the requirement will be synopsized to solicit resellers, if any, for Shutterstock subscription license access to a web page to use images that are royalty free. All responsible parties will be given an opportunity to submit an offer.

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE:

As the Contracting Offices, I hereby determine the pricing 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: 1) comparison of proposed prices received in response to the solicitation (FAR 15.404- 1(b)(2)(i)); 2) comparison with competitive published price lists (FAR 15.404- 1(a)(2)(iv)); and 3) comparison of proposed prices within prices obtained through market research of the same or similar items (FAR 15.404-1(b)(2)(vi)) in order to obtain a fair and reasonable price. The contracting officer will determine prices fair and reasonable prior to award using price history, IGCE, and published price lists (if available).

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS:

Shutterstock, Inc is the only firm that provides access to a web page to use images that are royalty free. To provide the best value to the Government, for this requirement an open market research was performed. During this research, it was determined that only Shutterstock, Inc provides Shutterstock subscription licenses access to a web page to use images that are royalty free. Shutterstock Inc, representative has been contacted to find out if there were any authorized resellers for Shutterstock products and services. It has been determined that Shutterstock does not have any authorized resellers for its licenses.

Additionally, the Government technical expert’s performed market research using the Internet, and it was also determined that no other such product can provide the breadth of materials to meet DLA’s requirements. Companies researched included Fotolia LLC, Getty Images, and Alamy Inc, which provide similar item substitutes, but neither have the full and integrated high-quality licensed images, videos, music, and more.

Even though Shutterstock advertises a price list, the prices being offered by Shutterstock when compared to the items of vendors mentioned above can be considered fair and reasonable. No other sources have demonstrated the capability necessary to provide the license support at this time.

Based on the above, Shutterstock, Inc is the only source that can meet the Government’s requirements.

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

OPEN COMPETITION:

N/A

10. A LISTING OF THE VENDOR SOURCES, IF ANY, WHICH EXPRESSED IN

WRITING AN INTEREST IN THE ACQUISITION:

Since Shutterstock, Inc has proprietary subscription licenses rights to date no one came forward to express an interest in the acquisition effort:

Shutterstock, Inc Empire State Building 350 Fifth Avenue, 21st Floor New York, NY 10118 Ph: 646-419-4452 ext.86088 E-mail: Rsantos@shutterstock.com

11. A STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE

ANY SUBSEQUENT ACQUISITION FOR SUPPLIES OR SERVICES:

DLA has and continues to exercise competition as often as possible and it is required to conduct ongoing reviews to keep abreast of new technology, both within the 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 FedBizOpps to ensure fair opportunity and no other providers are available.

mailto:Rsantos@shutterstock.com

12. REQUIREMENTS/ TECHNICAL CERTIFICATIONS:

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.

Technical Certification

I hereby certify that the technical data provided for which I am responsible and which form a basis for this justification are complete and accurate.

Charles Rice DATE

Chief, Plant, Property, Equipment and Audit Sustainment

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.

Moses Clark DATE

IT Business Program Support Analyst

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

Contracting Officer DATE

DLA Contracting Services Office Philadelphia

3/5/2018