SPMYM120Q0138_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION: SPMYM1-20-Q-0138

[ X ] ORIGINAL

1. The Defense Logistics Agency, DLA Maritime Norfolk, is the contracting activity.

2. The action being approved is the acquisition of supplies on other than a full and open competition basis. The procedures in FAR subpart 13.5 will be used in accordance with 41 U.S.C. 1901.

3. The supplies required to meet the using activity’s needs are described as follows:

CLIN DESCRIPTION P/N QUANTITY EST. UNIT

PRICE

EST. TOTAL

VALUE

0001 SQUARE CLAMPLS, TC CLAMP

RIGID 1.9 X 1.9" MS2R 2,000

0002 SHIPPING RACK

SYS SHIPPING RACK SRO 5

0003 WIRE BIN

SYS SHIPPING WIRE BIN SRB 5

0004 BEAM CLAMPS 2" - FORGED (FC) CRA2B-FC 2,000

0005 SHIPPING RACK

SYS SHIPPING RACK SRO 4

0006 WIRE BIN

SYS SHIPPING WIRE BIN SRB 4

0007 SWIVEL CLAMPS

TC CLAMP SWIVEL 1.9 X 1.9" MIL-S MS2S 2,000

0008 SHIPPING RACK

SYS SHIPPING RACK SRO 6

0009 WIRE BIN

SYS SHIPPING WIRE BIN SRB 6

0010 SHIPPING RACK

SYS SHIPPING RACK SRO 400

0011 WIRE BIN, SYS SHIPPING WIRE BIN SRB 200

0012 SCAFFOLD PIPE

TC STL TUBE 6' W/WTG ST6SG 300

0013 SCAFFOLD PIPE

TC STL TUBE 8' W/FTG ST8SG 200

0014 SCAFFOLD PIPE,

TC STL TUBE 10' W/FG ST10SG 100

0015 SCAFFOLD PIPE,

ST STL TUBE 13' W/STG ST13SG 300

0016 SCAFFOLD PIPE

TC STL TUBE 4' W/FTG ST4SG 300

0017 CLAMPS, TC CLAMP RIGID 1.9 X 1.9"

MIL-S MS2R 500

0018 SHIPPING RACK,

SYS SHIPPING RACK SRO 8

0019 WIRE BIN, SYS SHIPPING WIRE BIN SRB 2

0020 SCAFFOLD PIPE,

TC STL TUBE 16' W/FTG ST16SG 200

EST. TOTAL AMOUNT

The subject requirement is for the procurement of the identified parts and components of the scaffolding material shown in the table above. The scaffolding material is sole source and proprietary to US Equipment Holding LLC (CAGE Code - 6X1M1).

ESTIMATED BASE VALUE:

ESTIMATED TOTAL VALUE (BASE + OPTIONS): Not Applicable

MAXIMUM CONTRACT VALUE:

4. The statutory authority permitting other than full and open competition is:

10 U.S.C. 2304(c)(1) - Available from only one responsible source and no other type of property or services will satisfy the needs of the agency.

5. If restricted to the only source(s) of supply, include source(s) and CAGE code:

US Equipment Holding LLC, Cage Code - 6X1M1.

US Equipment Holding LLC (USE) owns the proprietary rights to the scaffolding design. The proprietary design of this specific type of scaffolding entails a quick assembly process that uses a rosette system that does not use nuts and bolts and is Occupational Safety and Health Administration (OSHA) approved. At this time, there is no other known source of supply capable of providing the required scaffolding material that would be compatible with this proprietary design and the scaffolding already in use.

The Norfolk Naval Shipyard currently has an extensive inventory of the USE scaffolding material on hand and in place to support overhauls and availabilities of carriers, destroyers, submarines, and other U.S. Navy vessels. The use of any other scaffolding brand or product would be incompatible with the existing material on hand, and could also lead to catastrophic failure at the docks when assembled.

Utilizing a different brand in conjunction with the required design could pose a significant safety hazard to employees and contractors. If the shipyard were to use another type of scaffolding, they would be required to purchase or rent an entire new set of material, as no other known type of scaffolding is compatible with the USE scaffolding design. This would result in the duplication of resources, cost, and time to the Government that would not be recovered through competition. The usage of any other type of scaffolding would require the shipyard to completely rewrite and change all work process instructions and procedures in place, to include items such as; boat scaffolding enclosures, equipment removal procedures, rigging requirements, dry dock arrangements, and equipment clearances. The instructional rewrite process would take several years to complete, which is not practical or cost effective.

Additionally, the shipyard’s safety office would hinder all work from being performed until any process or instructional changes were approved and finalized. The work stoppage losses and labor hours involved for such an endeavor would not be justifiable or beneficial to the Government.

6. Efforts to ensure that offers are solicited from as many sources as practicable are:

The acquisition will be solicited on beta.SAM to encourage potential supplier participation. Any interested party that requests a copy of the solicitation will be provided one. The Government will continue to conduct market research to see if changes occur in the marketplace that would enable future actions for these items to be competitive.

7. I hereby determine that the anticipated cost to the Government will be fair and reasonable.

In accordance with FAR 13.106-3(a), the Procuring Contracting Officer will make a determination of fair and reasonable of pricing based upon comparison of the proposed price with prices found fair and reasonable on previous purchases, as well as other cost, price, and buyer analysis. There is ample product in the related industry/commercial marketplace to compare the scaffolding parts and component costs to, as well as substantial rental and purchase history to perform analysis on and utilize for comparison of proposed prices with prices found reasonable on previous purchases.

8. Market Research/Efforts to Obtain Competition:

A Sources Sought notice was posted to beta.SAM on 9 July 2020 with a closing date of 16 July 2020.

One (1) response was received as a result of this notice. STVA Scaffold (Cage Code - Unknown), responded to the sources sought notice. After further review of STVA’S response and company website information, limited ability to satisfy the requirement was demonstrated. Due to safety requirements and to ensure compatibility with existing scaffolding, the requirement is limited USE’s product; STVA’s product cannot be used as it would be a serious risk to safety and is not guaranteed to be compatible with existing scaffolding.

Prior purchase history, awarded to the same manufacturer (USE), for the same and similar scaffolding parts and components was obtained. The same material was identified by the same manufacturer part number reference and nomenclature. Similar material item determination is based off of manufacturer part number, size, other material dimensions, and description. DLA Maritime Norfolk awarded contract SPMYM1-20-P-1222 for the same and similar material as the current requirement on 20 March 2020, in the total amount of $9,995.00. DLA Maritime Norfolk awarded contract SPMYM1-20-P-0726 for the same and similar material as the current requirement on 30 December 2019, in the total amount of $63,782.23. DLA Maritime Norfolk awarded Contract SPMYM1-19-P-1042 for the same and similar material as the current requirement on 26 April 2019, in the total amount of $46,341.60. The U.S. Navy, Norfolk Naval Shipyard awarded Contract N42158-19-P-E135 for the same and similar material as the current requirement on 9 April 2019, in the total amount of $14,892.00

The Norfolk Naval Shipyard, Defense Logistics Agency (DLA), and numerous other Department of Defense activities have also done business with USE. Supporting information was located by querying Government databases that provide information relevant to agency acquisitions to include EDA and the Navy contracting system utilized by DLA Maritime Norfolk, Standard Procurement System (SPS).

Catalogs and other generally available published product literature available via the internet were also reviewed. USE is active in the System for Award Management (SAM) database, with no exclusions indicating history of debarment or suspension. The Acquisition Specialist contacted knowledgeable individuals within the Government regarding market capabilities, published a Sources Sought Notice via beta.SAM, analyzed same and similar past procurement history requirements, queried Government-wide databases, and also reviewed catalogs and other product information available on the internet.

APPROVAL REQUIREMENTS

[ X ] Up to $700,000 Contracting Officer

[ ] $700,000 to $13,500,000 Competition Advocate

[ ] $13,500,000 to $93,000,000 Head of Contracting Activity (HCA)

[ ] over $93,000,000 Senior Procurement Executive (AQ) (DLA General Counsel signature line required when sending to AQ)