JA_-_MRO_Northeast_Zone_2_Graybar-_Final.pdf

MRO NORTHEAST - ZONE 2 Page 1 of 5

JUSTIFICATIO~ FOR OTHER THAN FULL AND OP..,N COMPETITION

GRAYBAR - NORTHEAST ZONE 2

MAINTENANCE, REPAIR, AND OPERATIONS (MRO) PROGRAM

l. Defense Logistics Agency (DLA) Troop Suppo1i, 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 will be a bridge contract for a period of 122 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 PY) contract provides for MRO materials and other supplies including, but not limited to: Heating, Ventilation and Air Conditioning (HY AC); 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; construction 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 Northeast Region of the United States (Zone 2). The maximum dollar value, based on current sales data including $5 million added for surge requirements, for this proposed contract is $16.6 million (approximately $3.15 million per month) for the period of 122 clays. The original contract was awarded to Graybar Electric on August 31, 2004 to support military customers with MRO requirements in the Northeast Region Zone 2 which includes: Maine, New Hampshire, Vennont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, and Delaware, including but not limited to the following activities: Portsmouth Naval Shipyard/ Fleet, Hanscom AFB, USCG Boston/ Cape Cod, Naval Station Newport, Naval Undersea Warfare Center, Naval Sub Base - New London/ SEABEES, USCG Academy. F01i Drum, Fort Monmouth, USCG Training Center - Cape May, Maguire AFB, Fort Indiantown Gap, and Dover AFB. The contract was issued with a two (2) year base period and eight (8) one-year options. The contract is c1mently in the eighth and final option year and is due to expire on August 30, 2014. This action will be the first bridge contract for this region with an effective period of August 31, 2014 through December 30, 2014. Should a competitively awarded contract be 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 )(1) 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. The Northeast Region includes two separate Zones. There is one contract in place supporting the No1iheast Zone 2 Region under the existing MRO Program (Northeast Region Zone I is being addressed in a separate J&A). The cmTent contract is critical to maintaining continuity of supp01i for war-fighters stationed in the Northeast Region Zone 2. The requisite MRO products and associated incidental services are deemed to be available only from the current contractor, Graybar Electric, in the required time-frame. Award to any other source would result in unacceptable delays in fulfilling the Agency's requirements.

MRO NORTHEAST - ZONE 2 Page 2 of 5

The Northeast Zone 2 contract is one of fomieen 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 Northeast Zone 2 follow-on solicitation. The first two of these fourteen follow-on acquisitions, Japan and Korea Regions, were protested during the evaluation stage resulting in a cancellation of the acquisitions (April 2012). Major adjustments were made to the acquisition strategy, which also affected the acquisition strategy for the MRO Southeast and, ultimately, MRO N01iheast Region Zone 2.

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 NORTHEAST - ZONE 2 Page 3 of 5

Following approval of the acquisition strategy change, the MRO Northeast solicitation was synopsized and issued on April 1, 2014 with a closing date of May I, 2014. During the solicitation stage there were multiple inquiries from potential offerors, Price Evaluation List (PEL) discrepancies and multiple inquiries from potential offerors for extension to allow more time to quote new PEL items. This initiated an amendment extending the solicitation closing date to May 6, 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 December 24, 2014.

It is essential that DLA Troop Support maintain the ability to purchase MRO supplies and associated incidental services, in the period from August 31, 2014 through December 30, 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 Northeast Region Zone 2. If this bridge contract is not awarded and coverage lapses, DoD and DLA's ability to provide much-needed supplies will be significantly impaired

Graybar is the only established firm capable of providing continued support for these vital MRO items in the Northeast Region Zone 2 while the follow-on competitive acquisition is being competed.

A new contractor would require at least a thirty (30) day

"ramp-up" to form relationships with local suppliers and manufacturers located in the Northeast

MRO NORTHEAST - ZONE 2

Page 4 of5

Region Zone 2, identify potential delivery service and transportation requirements, establish adequate purchasing, distribution and quality control systems, hire local customer support representatives, and implement systems that would interface with DLA Troop Support.

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 firms 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 Graybar is required to support customer requirements until a follow-on initiative is competitively awarded. The current contract with Graybar allows DLA Troop Support to support the Northeast Region Zone 2 by 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.

I 0. Graybar is the only established source to express an interest in this bridge contract.

11. The proposed bridge covers the MRO Not1heast Region Zone 2 contract. The solicitation for the follow-on initiative was solicited on a full and open competition basis on April I, 2014.

The award of the follow-on contract is expected by November 25, 2014.

12. As the Contracting Officer, I hereby ce11ify that this justification is accurate and complete to the best of my knowledge and belief.

7-17-ltj

DATE DIANE NEFF

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 complete to the best of my knowledge and belief.

1,7 J,,./ ,Jotc.t

DATE /

lVIRO NORTHEAST - ZONE 2 Page 5 of5

I have reviewed this justification and recommend app~al.

7- Iv -to1( _____ _

DATE CHET EV ANITSKY

MRO Division Chief

I have reviewed this justification and recommend approval.

DhE' Director of Supplier Operations Construction & Equipment

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DA TE RDBERTiiANICHELLE DLA Troop Support Competition Advocate

I have reviewed this justification for legal suf1iciency.

7·'7-f.{

DATE /

Su ply Chain Counsel DLA Counsel - Troop Supp011

I have reviewed and hereby approve this justification.

Executive Director DLA Troop Supp011 Contracting and Acquisition Management