SPMYM115D0002_Redacted.pdf

FOR OFFICIAL USE ONLY

Source Selection Information – See FAR 2.101 and 3.104

MEMORANDUM FOR RECORD

SUBJECT: Justification and Approval for Other than Full and Open Competition under

Authority of 10 U.S.C. 2304(c)(1) of the Federal Acquisition Regulation (FAR)

The Defense Logistics Agency, DLA Land and Maritime, is the contracting activity.

The action being approved is the acquisition of supplies on other than a full and open competition basis.

I. Summary/Introduction (10 U.S.C. 2304(c)(1): Contract SPMYM1-15-D-0002 is a firm fixed price (FFP) requirements contract with a fixed negotiated escalation rate of 2.5% applied at the beginning of each option year. Contract SPMYM1-15-D-0002 was awarded by DLA Maritime Norfolk to The Sherwin-Williams Company (Sherwin-Williams) (CAGE - 54636) on September 30, 2015, with a one-year base period and four, one-year option periods. The items covered under this contract were solicited and awarded on an unrestricted basis and utilized full and open competition procedures in accordance with FAR Part 12, FAR Part 15, 10 U.S.C. 2304, and FAR 6.102. The required items are competitive but must be obtained from sources on the appropriate QPL relevant to the specified military performance specifications and standards (MIL-SPECs and MIL-STDs).

Contract SPMYM1-15-D-0002 provides support for 198 marine coatings and paint items. The scope of this long term contract (LTC) is to provide Just-in-Time (JIT) supply coverage and support for all marine coatings and paint to the following four (4) Naval Shipyards: Norfolk Naval Shipyard (NNSY), Pearl Harbor Naval Shipyard (PHNSY), Portsmouth Naval Shipyard (PNSY), and Puget Sound Naval Shipyard (PSNSY). The Just-in-Time (JIT) support concept entails a delivery standard of 72 hours. Sherwin-Williams is required to deliver all marine coatings and paint within a 72 hour time period after an order is received. The Government exercised the fourth, one-year option period which will expire on September 30, 2020. The agency seeks a 180 day bridge contract with no option periods. The bridge population will include all NSNs and LSNs covered under SPMYM1-15-D-0002 in order to provide the Government with continued support and prevent loss of coverage for these items that are set to expire on September 30, 2020.

II. Description of Agency’s Need (10 U.S.C. 2304(f)(3)(A): The Government has a need for continued contract support for the 198 marine coatings and paint supplied under contract SPMYM1-15-D-0002. The bridge contract will be executed for 180 days in order to provide continuous support and coverage for the items on contract. The follow-on acquisition is underway. Negotiations are expected to take a few months' time with a proposed award date of end-March 2021. An additional 180-days provided by the sole source contract would provide continuous long-term coverage while the pre-award team finishes the successor contract.

DEFENSE LOGISTICS AGENCY

DLA Land and Maritime

POST OFFICE BOX 3990

COLUMBUS, OH 43216-5000

The extension will be effective from September 30, 2020 through March 29, 2021. The estimated value for the single source contract is $ . This contract action will be executed using the same methodology and calculations initially used to establish the contract values set forth on contract SPMYM1-15-D-0002. The value of this action was calculated by using the same annual demand quantities identified on contract and multiplying this quantity by the current option year four (4) unit pricing. The total estimated value of this extension ( , is reflective of the same annual demand value (ADV) for the effective option period, year four (4), on contract and currently in place. For administrative purposes; the same annual demand quantities identified for the base period and all four, one-year option periods were used to derive this figure. The Government was unable to arrive at an estimated demand quantity for each line item to account for the specific time period of the 180-day extension.

Attachment 1 includes a listing of the items, estimated annual demand quantities, current option year four (4) unit pricing, and estimated totals for the 180-day single source contract. By executing this contract action as proposed, the Government will avoid any disruption of supply support and will be able to successfully maintain current mission readiness levels.

Contract SPMYM1-15-D-0002 was awarded as a firm fixed price (FFP) requirements contract, in accordance with FAR Part 16.503. The total dollar amount reflected on the original award is

This amount attributes to the base contract year rather than the total value for all five (5) years (one-year base period and four, one-year option periods). As previously conveyed, the total estimated value of this contract bridge action is , which is reflective of the same total estimated value of the effective option year four period of contract SPMYM1-15-D- 0002. The contract bridge is a standalone contracting action that does not apply to, increase, or effect the total or maximum contract value of SPMYM1-15-D-0002. The same annual demand quantities identified for the base period and all four, one-year option periods were used to determine the total estimated value of the contract bridge action. The Government was unable to arrive at estimated demand quantities for the 180 day time period, therefore the identified annual quantities were used to determine the contract bridge action value. The Government does not anticipate to meet or exceed the estimated value $ based on the method used to determine the contract bridge amount.

Multiple unforeseen events occurred causing significant delays in the pre-award process of the follow-on successor requirement. A change in the initial acquisition strategy occurred in December 2019 when DLA Maritime Puget Sound made the decision to proceed with executing their own marine coating and paint requirement. This would cause a complete rewrite to the initial requirements package and specification of work, as the original package was intended to continue to provide coverage and support to all four (4) Naval Shipyards. The requirement data, CLIN information, and annual demand quantities had to be revised to address this acquisition strategy change. To ensure this effort stayed on target, DLA Maritime Norfolk held bi-weekly meetings with the Shipyard customer during the January 2020– February 2020 time period.

Another key event attributing to the delay occurred when the COVID pandemic began in March 2020. The pandemic has had a severe impact on the forward progress of the successor project and caused multiple delays with receiving the necessary requirement information needed in order to proceed with the procurement process. Another significant delay occurred during the beginning of May 2020 when DLA Maritime Norfolk experienced an unforeseen departure of a Contracting Division Supervisor, who was also a contracting lead assisting with the successor follow-on project. Concerns with completing the successor follow-on project were initially

Acceptable (LPTA) evaluation process. In addition to price, these factors were also evaluated on the basis of technical acceptability: Product Conformance Factor, Technical/Quality Plan Factor, Past Performance Factor, and Small Business Subcontracting Plan Factor. Based on the information outlined above, the Contracting Officer determines that the anticipated cost to the Government for the 180-day single source contract will be fair and reasonable.

V. Market Research/Efforts to Obtain Competition (10 U.S.C. 2304(f)(3)(D) and 10 U.S.C.

2304 (f)(3)(E): Market research was conducted prior to awarding contract SPMYM1-15-D- 0002. However, because of the short duration of this contract action, no formal market research was conducted specific to the 180-day single source contract. See Attachment 2. There is no reasonable expectation or indication that any other potential source of supply would be capable of, or have the resources available to, support this requirement. DLA Maritime Norfolk is currently in the process of conducting market research and acquisition planning for the successor project and solicitation. At this point in the market research for the successor contract no additional QPL sources have been identified. For the reasons outlined herein; it highly unlikely, if not impossible, that a source other than Sherwin-Williams would express interest and have the available resources and capabilities to perform on this extension. Therefore, Sherwin-Williams is the only source able to and capable of executing and supporting this this contract action. The requirement to synopsis the proposed contract action is waived per the exception at FAR 5.202(a)(11).

VI. Action Being Taken to Overcome Barriers to Competition (10 U.S.C. 2304(f)(3)(F):

Due to the short 180-day time period of the proposed contract, no specific actions are being taken to overcome barriers to competition specific to this contract action. However; the Government anticipates and fully expects to increase competition in the future by synopsizing and publicizing contract actions, to include the successor follow-on requirement, to beta.SAM.gov as an additional measure to promote competition on future procurement actions.

In accordance with DFARS PGI 206-303-2(b)(i)(B), a copy of the previous justification could not be located at the time of this action for the previous Just-in-Time paint contracts N00189-10- D-0006 and N00189-10-D-0007. The Contracting Officer was unable to locate a hard copies of the files, electronic records, or records of either notice on beta.SAM.gov.

APPROVAL/CERTIFICATION

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief. If not exceeding $700,000, this signature serves as the approval.

Contracting Officer Date

SPENN.AM

ANDA.R.12

83715090

Digitally signed by

SPENN.AMANDA.R.

1283715090 Date: 2020.09.30 16:55:21 -04'00'

Competition Advocate Date

APPROVAL REQUEST

( ) Up to $700,000 Contracting Officer

(X) $700,000 to $13,500,000 Competition Advocate ( ) $13,500,000 to $93,000,000 Head of Contracting Activity ( ) Over $93,000,000 Senior Procurement Executive (AQ)

Referenced Attachments:

1.) Attachment 1 - Requirement Listing and Pricing Information 2.) Attachment 2 – Additional Market Research Information

HOPSON.LILLI

.A.1230127324

Digitally signed by

HOPSON.LILLI.A.1230127324

Date: 2020.09.30 17:13:03 -04'00'