Redacted_J A_SC_Z2_08.04.2014.pdf

.MRO SOUTH CENTRAL ZONE 2 Page 1 of 5 I

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SAIC - SOUTH CENTRAL ZONE 2 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 will be 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 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 South Central Region of the United States (Zone 2). The maximum dollar value, based on current sales data including $5 .25 million added for surge requirements for this proposed contract, is $10.5 million (approximately $2.625 million per month) for the period of 123 days. The original contract, SPM500-04-D-BP12, was awarded to Science Applications International Corporation (SAIC) on April 30, 2004 to support military customers with MRO requirements in the South Central Zone 2 Region which includes: Colorado, New Mexico, Oklahoma (excluding Tinker AFB and F01i Sill), Kansas, and Arkansas including but not limited to the following activities:

Fort Carson, Buckley ANG Base, Kirkland AFB, Holloman AFB, and McAlester Army Ammunition. 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 in its eighth and final option year and is due to expire on July 28, 2014. This will be the first bridge contract for this region with an effective period of July 29, 2014 tln·ough November 28, 2014. Should a competitively awarded contract be issued ahead of the projected timeframe and the contract guaranteed minimum of$100,000.00 is satisfied, delivery orders will no longer be placed under this ( c )( 1) bridge contract.

4. The statutoty authority permitting 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. There is one contract in place supporting the South Central Zone 2 Region under the existing MRO Program. The contract, SPM500-04-D-BP12, is critical to maintaining continuity of suppoti for war-fighters stationed in the South Central Zone 2 Region. The requisite MRO products and associated incidental services are deemed to be available only from the current contractor, SAIC, in the required time-frame. Award to any other source would result in unacceptable delays in fulfilling the Agency's requirements.

MRO SOUTH CENTRAL Z:ONE 2

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The South Central Zone 2 contract is one of fourteen 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 South Central Zone 2 follow-on solicitation.

Based upon the foregoing reasons, including additional market research conducted and customer feedback, the Agency reconsidered this dete1mination 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 confirmed that the MRO TLS Prime Vendor Program is in line with commercial industry buying practices.

MROSOUTHCENTRALZONE2

Following approval of the acqnisition strategy change, the MRO South Central Zone 2 solicitation was synopsized and issued on March 28, 2014 with a closing date of April 28, 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 on 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 South Central Zone 2 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. SAIC is the only established firn1 capable of providing continued suppo1t for these vital MRO items in the South Central Zone 2 Region while the follow-on competitive acquisition is being complet~d.

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

"ramp-up" to foim relationships with local suppliers and manufacturers located in the South

MRO SOUTH CENTRAL ZONE 2

Central Zone 2 Region, identify potential delivery service and transportation requir~ments, 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 co111111ercial 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 SAIC is required to support customer requirements until a follow-on initiative is competitively awarded. The current contract with SAIC allows DLA Troop Support to support the South Central Zone 2 Region 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.

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

11. The proposed bridge covers the MRO South Central Zone 2 Region Contract. The solicitation for the follow-on initiative was solicited on a full and open competition basis on March 28, 2014 and future solicitations are expected to be issued competitively. The estimated award date of the follow-on contract is October 29, 2014.

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

DATE DIANE NEFF

Contracting Officer

I hereby certify that the requirements which fo1m 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.

MRO SOUTH CENTRAL ZONE 2

I have reviewed this justification and recommend approval.

11dJchl!

DATE

I have reviewed this justification and recommend approval.

?f,1/11(

D TE '

Director of Supplier Operations Construction & Equipment

I have reviewed this justification and recommend approval.

DATE

ROBERT J. PANICHELLE

DLA Troop Support Competition Advocate

I have reviewed this justification for legal sufficiency.

Su ply Chain Counsel, DLA Counsel -Troop Suppmi

I have reviewed and hereby approve this justification.

DAT

Executive Director DLA Troop Support Contracting and Acquisition Management