Final_Redacted_JA_NC_08.04.2014.pdf

MRO NORTH CENTRAL REGION Page 1 of5

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SUPPL YCORE -NORTH CENTRAL REGION

MAINTENANCE, REP AIR, AND OPERATIONS (MRO) PROGRAM

I. Defense Logistics Agency (DLA) Troop Support, Construction and Equipment Supply Chain, is the contracting activity.

2. The action being approved is the ability to solicit for DLA requirements on an other than full and open competition basis.

3. The proposed acquisition is for a bridge contract for a period of 123 days to provide for the purchasing of facilities Maintenance, Repair and Operations (MRO) supplies and associated incidental services. The Tailored Logistics Support Prime Vendor (TLS PV) contract provides for MRO materials and other supplies including, but not limited to: Heating, Ventilation and Air Conditioning (1-IVAC); plumbing supplies (including bath and shower items); electrical products (including generators, wire, connectors, sockets, outlets, lights, etc.); tools of various kinds;

chemical, lubricating, and rubber products and products including same; constrnction supplies (including but not limited to cement, lumber and plywood, bricks, blocks, steel, aluminum, and other metal products, conduits, prefabricated structures, etc.); perimeter security items such as barriers, barbed wire, concertina wire, and sand bags (also used for erosion prevention);

communication devices (such as walkie-talkies, two-way radios, etc. used by maintenance personnel); and various other MRO supplies needed by war-fighters stationed in the North Central Region of the United Stales. The maximum dollar value, based on current sales data including an additional $5 million added for surge requirements, for this proposed contract is $8 million for the period of 123 days. The original contract, SPM500-04-D-BP 10, was awarded to SupplyCore on April 30, 2004 to suppo11 military customers with MRO requirements in the North Central Region. The contract was issued with a two (2) year base period and eight (8) one-year options, and also included an implementation period of 90 days. The contract is currently in the eighth and final option year and is due to expire on July 28, 2014. This action will be the first bridge contract for this region with an effective period of July 29, 2014 through November 28, 2014. If a competitively awarded contract is issued ahead of the projected timeframe and the contract guaranteed minimum of $50,000.00 is satisfied, delivery orders will no longer be placed under this (c)(l) bridge contract.

4. The statutory authority pennitting other than full and open competition is 10 U.S.C. 2304(c)(l), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Contract SPM500-04-D-BP10 is the only contract supporting the North Central Region under the existing MRO Program. This contract is critical to maintaining continuity of support for war-fighters stationed in the No11h Central Region. The requisite MRO products and associated incidental services are deemed to be available only from the current contractor, SupplyCore, in the required time-frame. Award to any other source would result in unacceptable delays in fulfilling the Agency's requirements.

MRO NORTH CENTRAL J?i<:GION

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The North Central Region contract is one of fomteen contracts which operate alike under the MRO TLS PV Program. The first three follow-on solicitations (MRO Japan, Korea and Southeast) were to be a template for the North Central Region follow-on solicitation.

Based upon the foregoing reasons, including additional market research conducted and customer feedback, the Agency reconsidered this detennination and decided that it is necessary to provide for the incidental service requirements.

This revised acquisition strategy was necessary to meet mission requirements and customer needs.

Additional market research was conducted and confomed that the MRO TLS Prime Vendor Program is in line with commercial industry buying practices.

MRO NORTH CENTRAL FT<:GION

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Following approval of the acquisition strategy change, the MRO North Central solicitation was synopsized and issued on March 26, 2014 with a closing date of April 24, 2014. During the solicitation stage there were multiple inquiries from potential offerors, Price Evaluation List (PEL) discrepancies and multiple requests from offerors for extension to allow more time to quote new PEL items. This initiated an amendment extending the solicitation closing date to May 1, 2014.

This proposed bridge contract is required to allow for negotiations, reverse auction, final evaluations, preparation of award documents, contract review and approval, as well as to provide contract coverage during the thirty (30) day "ramp up" or transition period. Full contract implementation is expected by November 28, 2014.

It is essential that DLA Troop Support maintain the ability to purchase MRO supplies and associated incidental services, in the period from July 29, 2014 through November 28, 2014.

This proposed bridge contract will ensure continuous contract coverage providing for an uninterrupted supply of vitally needed MRO supplies and incidental services throughout the North Central Region. If this bridge contract is not awarded and coverage lapses, DoD and DLA's ability to provide much-needed supplies will be significantly impaired in as much as the traditional DLA supply system could not support the volume of individual orders that are processed through the MRO program. SupplyCore is the only established fmn capable of providing continued support for these vital MRO items in the No1th Central Region while the follow-on competitive acquisition is being completed.

A new contractor would require at least a thi1ty

(30) day "ramp-up" period to form relationships with local suppliers and manufacturers located in the North Central Region, identify potential delivery service and transportation requirements, establish adequate purchasing, distribution and quality control systems, hire local customer suppmt representatives, and implement systems that would interface with DLA Troop Suppo11.

MRO NORTH CENTRAL r1\GION Page 4 of 5

6. This requirement will be synopsized in FedBizOpps as required by FAR Subpart 5.2. In addition, this justification will be made available for public inspection after award, in accordance with FAR 6.305.

7. As the Contracting Officer, I hereby determine that the anticipated cost to the Government will be fair and reasonable based on price analysis, including comparison to available commercial pricing, General Services Administration (GSA) pricing, and other Government contracts.

8. The requirement for this bridge contract will be synopsized. No other films will be solicited since the required supplies and services are only available from the incumbent contractor in the required timeframe.

9. Considering the high volume of demands currently being experienced and the ability to reduce the logistics response time, the current contract with SupplyCore is required to supp01i customer requirements until a follow-on initiative is competitively awarded. The current contract with SupplyCore allows DLA Troop Support to supp01i the North Central Region hy reducing customer wait time, improving logistics response time, managing suppliers rather than managing supplies, avoiding depot operation costs for managing, storing, shipping, handling, and transporting MRO materials, and improving product availability.

10. SupplyCore is the only established source to express an interest in this bridge contract.

11. The proposed bridge covers the North Central Region. The solicitation for the follow-on initiative was solicited on a full and open competition basis on March 26, 2014 and future solicitations are expected to be issued competitively. The award of the follow-on contract is expected by October 29, 2014.

12. As the Contracting Officer, I hereby ce1iify that this justification is accurate and complete to the best of my knowledge and belief.

~'V Contracting Officer

I hereby certify that the requirements which form the basis of this justification are accurate, that these supplies and incidental services meet the Government's needs in accordance with applicable specifications and that this justification is accurate and co the best of my knowledge and belief. --11 Jlt/.?&~

DATE (

I have reviewed this justification and recommend approval.

MRO NORTH CENTRAL .1?1'GION

I have reviewed this justification and recommend approval.

Director of Supplier Operations Constrnction & Equipment

I have reviewed this justification and recommend approval.

DATE Tl PANICHELLE

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DLA Troop Support Competition Advocate

I have reviewed this justification for legal sufficiency.

7-11- ;J.ef('i

DATE .

Su ·ply Chain Counsel DLA Counsel - Troop Suppo1t

I have reviewed and hereby approve this justification.

Executive Di ctor DLA Troop Support Contracting and Acquisition Management