SPMYM323R1100 JA _Redacted.pdf

CUI

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SOLICITATION SPMYM323R1100

DLA Land & Maritime Justification for Other Than Full & Open Competition (November 2021)

SOLICITATION SPMYM323R1100

[ X ] ORIGINAL

[ ] ADDENDUM (attach copy of original J&A for add-ons or revisions)

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

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

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

BRIEF DESCRIPTION NSN/P/N EST. VALUE AMSC

Excel System Scaffolding N/A N/A

Identify end item, weapon system, or class of item: Excel System Scaffolding (see Attachment 1: Excel Product Catalog). Also attached to this J&A are the DD1, , and build sheets (Attachment 2) that show the most common scaffolding pieces that will be needed.

The requirement is to purchase a maximum of $ dollars’ worth of Excel System Scaffolding components from Excel’s product catalog as needed to support drydock overhaul at Portsmouth Naval Shipyard. The proposed action is for the solicitation and award of a five-year Firm-Fixed Price (FFP), Requirements Contract (RC) with four option years. The five-year period is inclusive of one one-year base period and four, one-year option periods.

The estimated base value is $ The four, one-year option periods are estimated at each.

The Excel scaffolding material is manufactured by Deltak Manufacturing Inc (CAGE Code 6UL20). The proprietary design of this specific type of scaffolding entails a quick snap toolless feature that is Occupational Safety and Health Administration (OSHA) approved. 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.

Controlled by: DLA Land and Maritime Controlled by: DLA KME

CUI Category: PROCURE/SSI Distribution/Dissemination Control: FED ONLY

POC: Stephen.1.Smith@dla.mil

SOLICITATION SPMYM323R1100

DLA Land & Maritime Justification for Other Than Full & Open Competition

Portsmouth Naval Shipyard currently has approximately $ dollars of the excel scaffolding material in their possession and in use. This proposed requirements contract would support all new scaffolding requirements. However, it is not possible to anticipate all of the items due to worn components, damaged components, additional work package increases, and procuring material sets for new dry docks that may be required. A general listing is attached (See Attachment 2: ) that shows a representative sample of the types of scaffolding components that may be ordered from the Excel catalog. Other items from Excel’s product catalog may be ordered as well. Ship Alterations and work packages continuously changing and growing along with the need to support increasing safety requirements and fall protection initiatives mean additional scaffolding materials will be needed.

The scaffolding will need to support both supplemental and existing configurations. The situation is dynamic and subject to changes due to Workload and Resource Reports (WARR) changes, along with new requiring more material and different configurations. have a set of approximately million dollars of scaffolding each per .

The proprietary design of this specific type of scaffolding entails a quick snap feature that will only coordinate with the existing material on hand. Utilizing a different brand in conjunction with the proprietary excel 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 excel scaffolding design.

The impact would be enormous if not impossible under cost and schedule parameters. The Portsmouth Naval Shipyard Temporary Services Structural Branch Head has determined from a technical perspective that Excel Scaffolding is the safest and most robust engineered system scaffolding available. Converting or combining with another system would require redesigning all custom dry dock enclosures and hundreds of historical structural designs that have been evaluated and designed for personnel, equipment, seismic and destructive weather loads.

These designs are specific to the Excel proprietary brand of scaffolding. Other brands use a completely different connection system. Additionally, the user Shop would need to re-train end users to the requirement of 1,100 hours of proficiency experience (each employee) with the new system according to requirements. As the Engineering authority, and through communication with the production Shop 64 C990 leaders, the Temporary Services Branch Head does not believe it is possible to migrate to multiple systems, or migration to a different inferior system. Additionally, The cost to the shipyard to a separate brand of scaffolding (different from Excel) for whole configurations would be large. The Temporary Structures Branch Head has advised that a dedicated team of Structural Engineering resources to re-design to a new system (which would take years) and production shop agreement to retrain all of their personnel to meet requirements of the product instruction for use and installation of scaffolding would be required. Portsmouth Naval Shipyard would need to determine and consider the overall impact and risk of combining multiple scaffolding systems, and determine the ability to segregate, store, inventory, and organize two completely different scaffolding systems with hundreds of components each.

SOLICITATION SPMYM323R1100

DLA Land & Maritime Justification for Other Than Full & Open Competition

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.

ESTIMATED BASE VALUE

ESTIMATED TOTAL VALUE (BASE + OPTIONS)

MAXIMUM CONTRACT VALUE

FOR ADD-ONS, PROVIDE VALUE OF OPTION YRS REMAINING

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

[X] 10 U.S.C. 3204(a)(1) - Available from only one or a limited number of sources.

Brief narrative supporting the situation and weapon system:

This material is required to work with existing PNS owned Excel Scaffolding components, which must match in form, fit, and function. Due to the proprietary interlocking design of the scaffolding and the fact that this scaffolding must be compatible with existing inventory, and other brands will not be compatible.

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

This material is in accordance with a brand name description per FAR 6.302-1(c)(1) to Excel (Manufacturer:

Deltak Manufacturing Inc CAGE Code 6UL20), due to the proprietary nature of the material, and the need for it to be compatible with existing inventory. Deltak Manufacturing Inc. is the only source approved for this acquisition because Deltak Manufacturing retains the data rights, manufacturing knowledge, or technical data that is not economically available to the government, and the data or knowledge is essential to maintaining the quality of the part.

The proprietary design of this specific type of scaffolding entails a quick snap feature that will only coordinate with the existing material on hand. Utilizing a different brand in conjunction with the proprietary Excel 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 Excel scaffolding design.

The impact would be enormous if not impossible under cost and schedule parameters. The Portsmouth Naval Shipyard Temporary Services Structural Branch Head has determined from a technical perspective that Excel

SOLICITATION SPMYM323R1100

DLA Land & Maritime Justification for Other Than Full & Open Competition

Scaffolding is the safest and most robust engineered system scaffolding available. Converting or combining with another system would require redesigning all and hundreds of historical structural designs that have been evaluated and designed for personnel, equipment, seismic and destructive weather loads.

These designs are specific to the Excel proprietary brand of scaffolding. Other brands use a completely different connection system.

Excel Manual Excel Modular Scaffolding Code of Safe Practices (EMSLC-TSM-100) is available online and clearly states the following: “Scaffolds must be designed and used in accordance with the manufacturer’s specifications and recommendations. Do not intermix different brands of scaffold, unless authorized by the manufacturer.”

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

[ X ] The acquisition will be synopsized on or about April 21, 2023 for three days.

[ ] Manufacturers of similar products identified in the market research will be solicited.

[ ] Dealers of the manufacturers will be solicited.

[ ] A synopsis exception cited in FAR 5.202 applies. (explain)

[ X ] Other. (Explain): The acquisition will be solicited on SAM.GOV to encourage potential supplier participation.

Any interested party that requests a copy of the solicitation will be provided with one. The solicitation will be posted for a minimum of 30 days. 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. A sources sought was posted for this requirement, additional details can be found in paragraph 8.

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

In accordance with FAR 15.404, the Procuring Contracting Officer will make a determination of fair and reasonable pricing based upon comparison of the proposed price with prices found fair and reasonable on previous contracts, as well as other cost, price, and buyer analysis. Information from market research, governmental sources, and Producer Price Index Industry (PPI) Data will also be used to help establish price reasonableness when needed.

Certified cost and pricing data is not required due to Contracting Officer commerciality determination.

8. Market Research/Efforts to Obtain Competition:

The following methods were used to conduct market research for this requirement:

A. Discussion with knowledgeable Government Employees/Engineering B. A sources sought notice C. Analysis of previous procurements D. Internet Research

SOLICITATION SPMYM323R1100

DLA Land & Maritime Justification for Other Than Full & Open Competition

A. Discussion with knowledgeable Government Employees/Engineering:

During the initial days of this procurement, a meeting was conducted with the engineering department responsible on 11/18/2021. In attendance were the following individuals:

Attendance 11/18:

An additional meeting was held on 11/30/2021

Attendance 11/30:

Evidence of these meetings and attendance summaries are attached to this J&A (See Attachment 3: Minutes from initial meetings with engineering). During these meetings the scope of requirement, Statement of Work, contract duration, funding procedures, and the use of a requirements contract rather than an IDIQ were topics of discussion.

B. Sources Sought Notice

A sources sought notice was posted to SAM.gov on 9 December 2021 with a close date of 9 January 2022 to identify potential sources of the required material. The Contract Specialist extended the close date to 18 January 2022 when no responses were received during the initial period. Only one response was received, from BHI Energy ), the known authorized distributor of Excel System Scaffolding, indicating their interest via phone (conversation was conducted on 1/18/2022). During these communications another Excel scaffolding requirement was completed by DLA KME (SPMYM322P3121). During that requirement’s pre-solicitation phase it was made clear by Excel that as of 31 May 2022 BHI Energy would no longer have a distribution agreement for providing any Excel scaffolding material. All future scaffolding orders would be distributed directly by Excel Scaffolding. As a result of this notice, it has been identified that the only interested party for this requirement is Excel Scaffolding.

SOLICITATION SPMYM323R1100

DLA Land & Maritime Justification for Other Than Full & Open Competition

C. Analysis of Previous Procurements

Previous history was looked at while performing market research on this requirement. Specifically, there was one recent large purchases researched.

1. SPMYM322P3121 was issued to Excel on 9/29/2022 in the amount of $972,332.28. The contract was issued for a configuration of scaffolding not too different from what would be ordered under the requirements contract. The J&A supporting this contract is attached to this J&A (see Attachment 5 Prior J&A SPMYM322P3121). It was learned under this acquisition that Excel is now the only approved seller for this scaffolding, as a result of BHI Energy (their previous seller) no longer being an authorized seller. The language from that J&A has been extracted and provided below:

“The response from Excel (93D98) stated that Excel is the only company “legally capable of providing and manufacturing Excel scaffold standard & custom components for rental or purchase.” As of May 2022, BHI Energy / Bartlett Services Inc. (Cage 7AN38) no longer has a distribution agreement for providing Excel scaffold material to any of the US Navy Nuclear Shipyards.”

Under this contract, additional contracts for excel scaffolding were analyzed and the research extracted is as follows:

“Prior acquisition history reviewed includes SPMYM3-16-M-3056, SPMYM3-15-M-3111, and SPMYM3-15-D-3080. Solicitation SPMYM3-18-Q-1051 was synopsized and solicited on FedBizOpps (FBO). The requirement was synopsized to FBO from 7 June 2018 to 15 June 2018. Solicitation SPMYM3-18-Q-1051 was posted to FBO from 14 June 2018 through 21 June 2018. As a result of the solicitation, contract SPMYM3-18-P-1051 was awarded on 27 June 2018, on a sole source basis to BHI. Planned actions to remove any barriers to competition cited on the previous justification include posting a Sources Sought notice to the Government Point of Entry (FedBizOpps) prior to any future solicitation. If the determination is made that there is another possible source of scaffolding compatible with the proprietary design established by Excel, future acquisitions will allow for manufacturer competition.

As previously conveyed; prior to publicizing and posting the solicitation (SPMYM3-19-Q-0004) for the current requirement; a Sources Sought notice was posted to Federal Business Opportunities (FBO) on 7 June 2019 with a closing date of 11 June 2019. One (1) response was received as a result of this notice. Architectural Metals LLC (Cage Code -87G97), a small disadvantaged business concern, responded to the sources sought notice. After further review of the capability statement submission provided by Architectural Metals LLC, there is no clear indication that Architectural Metals LLC would have the resources and/or capabilities available to successfully support this requirement. Therefore;

the determination has been made that there are no other possible source(s) of the scaffolding material and or components compatible with the proprietary design established by Excel, at this current point in time.”

SOLICITATION SPMYM323R1100

DLA Land & Maritime Justification for Other Than Full & Open Competition

During the solicitation phase of SPMYM315D3080 (an Excel scaffolding delivery order contract over $4 million awarded to BHI Energy), BHI submitted pricing information showing it had previously quoted and delivered Excel scaffolding items to Graybar (CAGE 90176), a commercial entity. The material is considered Commercial Off the Shelf (COTS), and therefore Certified Cost and Pricing Data is not required.

Additionally, the Government has evidence from previous procurements that BHI has quoted this material to non- Government entities.

This previous J&A is provided as Attachment 4: J&A SPM YM315D3080 .

D. Internet Research

The Portsmouth Naval Shipyard procures items directly from the Excel product catalog, as Excel offers them. They do on occasion order a piece that has been modified from its original catalog version, but it is assigned a separate P/N and added to the catalog. The material is offered to the general public via their website, including the option for customized parts from their catalog. Their catalog is available to the general public for ordering. This material is Commercial Off the Shelf (COTS).

After review of all of the above market research the Contracting Officer has determined this item to be commercial.

9. Additional facts supporting other than full and open competition are:

[X] Based upon the attached technical certification, technical data is not available and cannot be developed to permit full and open competition. The data presently available reflects the minimum needs of the Government.

10. A listing of sources, if any, indicating an interest in the acquisition is: (If none, so state)

Excel Scaffolding: Cage Code 93D98

11. The following actions are being taken to identify additional sources:

[X ] Solicitation contains DLA Procurement Note, L04 Offers for Part Numbered Items [X] Solicitation contains DLA Procurement Note, M06 Evaluation of Offers for Part Numbered Items [ ] VE Bailment Program [ ] Source Development Review [ ] Reverse Engineering [ X] Other (Explain): Should the solicitation result with an alternate offer identifying another manufacturing source of supply of a different brand of scaffolding and makes claim to be compatible with the Excel Scaffolding Design;

the interested parties will be invited to the Portsmouth Naval Shipyard to provide a demonstration of the product’s compatibility and prior successful history of the product use. If the determination is made that there is another possible manufacturing source of scaffolding compatible with the proprietary design established by Excel, future acquisitions will allow and provide for manufacturer competition. The Government will also continue to conduct market research, to see if changes occur in the marketplace that would enable future actions for these items to be

SOLICITATION SPMYM323R1100

DLA Land & Maritime Justification for Other Than Full & Open Competition (November 2021)

CUI

competitive. Additionally, Sources Sought notices will continue to be posted to SAM.GOV prior to any future solicitations.

TECHNICAL/REQUIREMENTS PERSONNEL

I certify that the facts and representations under my cognizance which are included in this justification are complete and accurate.

RAMSEY.JASON.MIC

HAEL.1005560949

Digitally signed by

RAMSEY.JASON.MICHAEL.1005560949

Date: 2023.04.17 04:59:18 -04'00' 4/17/2023

Technical Cognizance (Requirements Originator) Date

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 $750,000, this signature serves as the approval.

Date Contracting Officer

APPROVAL/CERTIFICATION

I have reviewed and approve this justification:

Competition Advocate Signature Date

APPROVAL REQUIREMENTS

[ ] Up to $750,000 Contracting Officer

[X] $750,000 to $15,000,000 Competition Advocate

SPENN.AMA Digitally signed by

NDA.R.1283 283715090

SPENN.AMANDA.R.1

715090 Date: 2023.04.18 13:25:40 -04'00'

SHEARER.MARY.E.

1250702449

Digitally signed by

SHEARER.MARY.E.1250702449

Date: 2023.04.25 14:14:19 -04'00'

SOLICITATION SPMYM323R1100

DLA Land & Maritime Justification for Other Than Full & Open Competition

[ ] over $15,000,000 to $100,000,000 Head of Contracting Activity (HCA)

[ ] over $100,000,000 Senior Procurement Executive (AQ) (DLA General Counsel signature line required when sending to AQ)

Referenced Attachment(s):

A t t a c hmen t 1: Exc e l P roduc t Ca t a l og A t t achmen t 2: Bui ld Shee t s A t t a c h m en t 3: Minu t e s f rom i n i t i a l m e e t i n gs wi th e n g i n e e r i n g At t a c h men t 4: P rev ious J&A S P M Y M 3 1 5 D 3 0 8 0 A t t a c hmen t 5: P rev ious J&A SPM YM322P3121