SPRDL115R0361__Redacted_J__A_for_posting.pdf

Defense Logistics Agency J & A: SPRDL1-15-R-0361

DEFENSE LOGISTICS AGENCY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Defense Logistics Agency (DLA) Land Warren

2. Description of Action: This proposed contract action is to award a new Firm Fixed Price (FFP) contract for the Bunk Bed items as indicated in the chart below. These items are to support the Force Provider Reset and New Build programs for FY16 through FY20 in support of OIR and OUA. The total estimated contract maximum is $4,884,553.37. Army Working Capital Funds (AWCF) have been allocated for this effort. The required items will be solicited as Request for Proposal SPRDL1-15-R-0361. It is proposed to negotiate a Firm-Fixed Price 5 Year Long Term Contract with Disc-O-Beds.

AMC 3. Acquire, for the second or subsequent time, directly from the actual manufacturer.

AMSC H. The Government physically does not have in its possession sufficient, accurate, or legible data to purchase this part from other than the current source(s). This code is applicable only to parts under immediate buy requirements and only for as long thereafter as the deficiency is under review for resolution and appropriate recoding. This code is only assigned at the conclusion of limited screening, and it remains assigned until the full screening process resolves physical data questions and results in assignment of a different AMSC. If one source is available, AMCs 3, 4, or 5 are valid. If at least two sources exist, AMCs 1 or 2 are valid.

3. Description of Supplies/Services: The table below describes the essential items in support of the Force Provider Reset and New Build programs located at the Letterkenny Army Depot

(LEAD).

PRON Noun Min Qty

Max Qty

NSN MPN Est Unit Price

Est Min Value

Est Max Value

S657R4523V Bunk Bed w/o Footlocker

17 413 7105015547405 19793MB $597.08 $10,150.36 $246,594.04

S657R4513V Bunk Bed w/Footlocker

250 6,250 7105015522705 19793MBF $740.21 $185,052.50 $4,626,312.50

S657R4543V Bed End, Single Straight

8 188 7105016060126 19793MFS $16.16 $129.28 $3,038.08

S657R4533V Bed End, Single Round

8 188 7105016060114 19793MFR $16.16 $129.28 $3,038.08

S657R4553V Rail Straight 35 861 7105016060478 19843M $6.47 $226.45 $5,570.67

Est Total Minimum Value

Est Total Maximum Value

$195,687.87 $4,884,553.37

This requirement is for the procurement of Bunk Beds and Bunk Bed spares manufactured by

Disc-O-Bed LP. Each Force Provider module provides billeting for 600 personnel. Force

Provider is a specially designed modular system of housing, food service, laundry, water, fuel storage, waste water collection, showers, latrines and utilities managed by Product Manager-

Force Sustainment Systems (PM-FSS) located at the U.S. Army Soldier Systems Center in

Natick, Massachusetts implemented as a result of requirements identified during Operation

Enduring Freedom (OEF). The Force Provider modules are packaged in rigid TRICON containers as pre-configured loads. To ensure interface within the other Force Provider systems and to allow for part interchangeability, the Disc-O-Bed Bunk Bed is the only equipment that will satisfy the Government’s need. The Disc-O-Bed Bunk Bed is the only item that complies with the Program Manager-Force Sustainment System (PM-FSS) configuration.

4. Authority Cited: The statutory authority permitting other than full and open competition is 10

USC 2304 (c)(2) as implemented by FAR 6.302-1(a)(2), “Only one responsible source and no other supplies or services will satisfy agency requirements.”

5. Reason for Authority Cited: Disc-O-Bed LP is uniquely qualified to fulfill the requirement of this proposed contract based on the following:

a. Disc-O-Bed is the only responsible source that produces a Bunk Bed that complies with the technical and logistical requirements of the Force Provider system. No other type of Bunk Bed will satisfy Force Provider program requirements. Force Provider has a need for these Bunk Beds in order to facilitate new production and Reset in support of Operation Enduring Freedom, Operation United Assistance, and Operation Inherent Resolve requirements.

b. The Disc-O-Bed system is a patented system that uses a tensioned fabric sleep surface instead of a mattress-based system. As a result, Disc-O-Bed produces a product that is 58% lighter (104 lbs. vs. 247 lbs.) than the next lightest alternative and packs 78% smaller (6.23 ft³

vs. 27.82 ft³ ) than the next smallest alternative. The reduced logistical footprint reduces transportation costs and transportation time that is critical to the expeditionary capability of the entire Force Provider system. Each Force Provider system requires 320 Bunk Beds. With the Disc-O-Bed system, 320 bunks will fit in 5 TRICON containers. The next smallest alternative would require 23 TRICON containers. The additional weight adds 45,760 lbs. to each Force Provider system.

c. There will not be any cost savings realized by competing this procurement. In fact, overall costs will increase. The lowest cost alternative is $120.91 cheaper per bunk, a cost difference of $38,691.20 for one module. However, the increased weight and increase of 18 more TRICONs to ship the equipment will increase transportation costs $90K when the module is deployed. The cost of procuring 18 additional TRICONs to store and transport the equipment would cost an additional $78,300 ($4,350 each). The Care of Supplies in Storage (COSIS) cost for the 18 TRICONs would cost an additional $2,700 ($150 each) annually. There will also be additional costs of approximately $25,000 incurred for first article test and for PM-FSS to reconfigure the pack plans and update the technical manuals to reflect the new configuration. As a result, there would be a minimum additional cost of $196,000.00 even if the Government were to compete this procurement and award to a manufacturer other than Disc-O-Bed.

d. Bunk Beds are an essential component of any Force Provider module regardless of size or configuration. Lack of adequate sleeping equipment can adversely and directly impact the Warfighter’s morale and cause fatigue, severely impairing their ability to perform their mission.

e. Disc-O-Bed LP is the only responsible source actively manufacturing this item and they have the capability to deliver the requirements within time, quality, and quantity constraints at a reasonable cost. To procure Bunk Beds from another supplier would require approximately 18 to 24 months for the acquisition process and first article testing requirements to be completed at a cost an additional cost of $196,000.00 to the Government. Most bunk bed products currently available are commercial products and testing would be required to meet the weight and dimension requirements included in the pack plan for Force Provider.

6. Efforts to Obtain Competition: The market research and patented technology used by Disc-O- Bed indicate that Disc-O-Bed is the only responsible source for this equipment. Based on the specialized nature of the equipment to be procured, no other efforts will be made to obtain competition at this time. Any competitive effort would result in a significant delivery delay, and would subject Warfighters to avoidable risks. The cost of testing the new products, the engineering work to change the configuration and pack plans of the system, and the increased cost of a larger deployment and transportation footprint do not outweigh any savings resulting from competition.

7. Actions to Increase Competition: No contractors are in the process of becoming qualified for the bunk bed items listed in paragraph 3 above at this time. There has not been any expressed interest by any known contractors to become a qualified source to produce these items.

Interested contractors can seek qualification through the Source Approval Program with the Competition Management Office.

8. Market Research: TACOM-Natick conducted Market Research in March of 2015 and found two other manufacturers of military quality bunk beds. A cost, weight and packaging comparison was conducted with the Disc-O-Bed product and three other options from the two manufacturers, American Bedding and Blantex. None of the three other options come close to meeting the weight and dimension requirements for the Force Provider system. The bunk bed system with the next smallest dimensions, when compared to the Disc-O-Bed systems, would require an increase in the Bunk Bed shipping container requirement of over 400%. The cube of the smallest alternate product is 27.82 square feet compared to the 6.23 square feet of the Disc- O-Bed product. Also, the weight of each Disc-O-Bed system is 143 pounds lighter than the lightest alternate bunk bed system. This equates to an additional 45,760 pounds added to each Force Provider module (320ea x143lbs.). The increase in deployment footprint makes the use of these alternate products not feasible. In addition, two of the three alternatives do not meet the load per bunk requirement of 400 pounds and none of the alternatives provide the two footlockers and two side organizers that are standard with the Disc-O-Bed Bunk Bed system.

This procurement of the footlockers and side organizers would be an additional cost to the alternate systems as well.

9. Interested Sources: These items do not appear on the TACOM Warren Competition Advocate Shopping List (CASL) or the Advanced Procurement Planning List (APPL) dated 03 June 2015 On July 22, 2015, a Sources Sought Synopsis for each of the five items was submitted and posted to the public. To date, no additional contractors have expressed a written interest in any of these items. Interested suppliers should contact the Source Approval Program though the competition management office.

10. Other Facts:

a. Procurement History: Previous contract, W56HZV-14-C-0193 with Disc-O-Bed LP was awarded 11 August 2014. The final 116 units on this delivery order were delivered on 27 March 2015.

b. Acquisition Data Available: The Government does not own or have rights to the technical data for the bunk beds or the bunk bed repair parts.

11. Technical Certification: “I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.”

Name: Addy Thomas Title: Engineer Signature: Signed Date: 7/30/2015

Name: Joseph Kleinfeldt Title: Team Leader Signature: //Signed// (Approved) Date: 7/30/2015

Name: Matthew G. Cooke Title: Branch Chief

Date: 07/31/2015

12. Requirements Certification: “I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.”

Name: Elizabeth A. Skelly Title: Inventory Management Specialist

Date: 07/31/2015

Name: Joseph Kleinfeldt Title: Force Provider Sustainment Team Leader

Date: 31 July 2015

Name: Daniel R. Galarza Title: Force Provider/Quartermaster Services (FPQS) Group Leader Signature: //Signed// (Approved)

Date: 3 August 2015

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the

Government for this contract action will be fair and reasonable. Normal acquisition procedures will be followed to determine that the contract price is fair and reasonable. The appropriate forms of cost and/or price analysis will be utilized, and negotiations will be conducted if necessary. Pursuant to FAR 15.403-4 certified cost or price data will be required as the total value of this procurement is above the dollar threshold requirement.

14. There is no procurement history for the items on PRONs S657R4533V (Bed End, Single Round), S657R4553V (Rail Straight) and S657R4543V (Bed End Single Straight). Items on PRON S657R4523V (Bunk Bed w/o Footlocker) and S657R4513V (Bunk Bed w/Footlocker) were previously solicited on W56HZV-14-R-0060. The J & A for W56HZV-14-R-0060 is filed in

PCF.

Name: Amy Robosan Title: Contract Specialist Signature: //S// Date: 8/3/2015

14. Contracting Officer Certification: “I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.”

Name: Jamal M. Brooks Title: Contracting Officer Signature: //s// Date: 08/06/2015

15. Legal Concurrence

Signature: // Darin R. Morency // Date:08/07/2015

APPROVAL OF JUSTIFICATION FOR

OTHER THAN FULL AND OPEN COMPETITION

Based on the foregoing justification, I hereby approve the procurement of items in paragraph 3 above on an other than full and open competition basis pursuant to the authority of 10 U.S.C.

2304(c)(2), as implemented by FAR 6.302-1 subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition. The estimated base value of this action is $4,884,553.37.

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Competition Advocate