SSJ_Herman_Miller_Redacted.pdf

SOLE SOURCE JUSTIFICATION

1. IDENTIFICATION OF AGENCY AND CONTRACTING OFFICE

Agency: Social Security Administration

Contracting Office: Office of the Deputy Commissioner for

Budget, Finance, and Management

Office of Acquisition and Grants (OAG)

Contracting Officer (CO): Angela Lee (212) 264-3529

Program Office: Office of Facilities and Logistics

Management

Office of Realty Management (ORM)

Division of Furniture Support

Contracting Officer’s

Technical Representative:

Sherry Solem (410) 966-9911

Title: Design, Furnish, and Installation of Herman

Miller Systems Furniture

Proposed Contractor: Herman Miller, Inc.

855 East Main Avenue

Zeeland, MI 49464

2. NATURE AND DESCRIPTION OF ACTION

We seek approval for award of a sole source, fixed-price indefinite-delivery requirements supply and services contract with Herman Miller, Inc. (HMI) for product and services to maintain agency offices with Herman Miller Action Office 2 (AO2) systems furniture customized to our specifications.

The period of performance will be nine months.

HMI will perform design and installation services, as well as provide new product or parts for HMI furnished offices that require add-on, relocation, or reconfiguration.

HMI will honor existing and new product warranties.

HMI began installing AO2 workstations in agency Offices in 1995 as part of the

Intelligent Work Station/Local Area Network deployment. At that time, UNICOR was unable to meet the agency’s install schedule requirements and granted a waiver allowing us to pursue a contract on the open market. In September 1995, we competitively awarded contract number 0600-95-22630 to HMI for design and installation of systems workstations. In September 2001, we awarded contract number 0600-01-60104 to HMI on a sole source basis for continued systems furniture design and installation. Contract number 0600-01-60104 expired on September 28, 2011.

Contract number SS00-12-60003 was awarded by OAG on January 14, 2012 for a one-year base period and four one-year option periods for a total of five-year period of performance. We utilized the six-month extension clause in the contract that expired on

July 14, 2017.

Contract #28321317D00060009 was a bridge contract awarded by OAG on August 25, 2017 for a six-month Period of Performance. We utilized the six-month extension clause in the contract but that timeframe expires August 24, 2018. We are seeking a follow-on bridge contract with HMI. We are working on a request for proposal (RFP) for a new furniture contract. We require this additional nine-month bridge contract to ensure there is no disruption of services to field and hearing office operations nationwide and in the

U.S. territories.

3. DESCRIPTION OF SUPPLIES, SERVICES, AND ESTIMATED COSTS

Design Services

We require furniture design layouts for each site. The contractor will create computer-assisted drawings as documentation of the site design including detailed specifications relating to site preparation for computer equipment.

Installation Services

Installation services include inventory of existing HMI product, disassembling, packing and transporting product to a new site, staging and reassembling product at a new site, and incorporating any new product. Installation services are, as specified in the plans, drawn up during the design service phase, certified by the agency, and performed within agency-designated timeframes.

Furniture Product

We require the contractor to provide new product for add-on workstations, relocate previously installed furniture to a new site, and reconfigure existing workstations. The furniture product must meet design specifications stipulated by the agency, and the contractor must supply the product within agency timeframes.

Pre-installation Meetings

We require the contractor to participate in pre-installation planning meetings for relocations, large-scale reconfigurations, and installations requiring two or more phases.

Pre-installation meetings are held at a time and place designated by the agency. The purpose of these meetings is to coordinate the activities of the furniture installers, electricians, lessor, and contractors involved in the preparation or installation of the furniture, wiring, cabling, or construction of the office.

Product Warranty

The contractor must honor the warranty of existing and newly installed HMI product.

Cost Estimate

The estimated value of task orders issued against the contract for the nine-month period is

$2,817,322.00.

4. ACQUISITION PLAN STATUS

The Acquisition Procurement Plan number associated with this request is

CORM-18-60067. The anticipated award date for the nine-month contract is on or before

August 25, 2018.

5. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER THAN

FULL AND OPEN COMPETITION

Statutory Authority Citation 41 U.S.C. § 3304(a)(1) and (b); FAR 6.302-1(a)(2); Only

One Responsible Source and No Other Supplies or Services Will Satisfy Agency

Requirements.

6. CONTRACTOR’S UNIQUE QUALIFICATIONS

HMI is uniquely qualified to provide and maintain the agency’s existing and future product and service needs for offices currently furnished with HMI systems furniture.

HMI is the manufacturer and has sole access to the replacement parts required for maintenance.

The custom product that we require is not available in HMI’s standard offerings.

Because of various Memoranda of Understanding and arbitration agreements, we require a variety of specific panel heights, panel widths, radiused edges on work surfaces, depth and width of panel hung work surfaces, file pedestals, fabric colors, and textures. HMI has customized portions of its AO2 product line to meet our requirements.

HMI is the only source able to provide component parts that are uniform with the existing configurations while maintaining the warranty of the existing furniture product. There is no other known supplier of the required product, thereby making HMI a uniquely qualified contractor.

7. EFFORTS TO SOLICIT OFFERS FROM OTHER POTENTIAL SOURCES

A synopsis of the proposed contract action to sole source was posted on Federal Business

Opportunities from June 22, 2018 to June 29, 2018. No responses were received.

8. DETERMINATION THAT THE COST WILL BE FAIR AND REASONABLE

The CO will perform applicable and appropriate price evaluation as required by FAR

15.403-3(c) to determine the eventual awardee’s proposed price to be fair and reasonable.

9. MARKET RESEARCH

See Section 7 above.

10. OTHER FACTS SUPPORTING USE OF OTHER THAN FULL AND OPEN

COMPETITION

We are unable to easily divide the required services, as one phase is required before the next can begin. For example, design services yield drawings, floor plans, and bills of materials utilizing proposed HMI furnishings. Installation services utilize drawings created in the design phase and often include the use of customized product.

11. LIST OF SOURCES EXPRESSING INTEREST IN THE ACQUISITION

No other sources have expressed an interest in this acquisition.

12. PROCUREMENT HISTORY

We competitively awarded contract number 0600-95-22630 to HMI for design and installation of systems workstations in September of 1995. We awarded contract number

0600-01-60104 to HMI on a sole source basis on September 29, 2001 for continued systems furniture design and installation. We awarded contract number SS00-12-60003 to HMI on a sole source basis on January 14, 2012 for continued systems furniture design and installation. We awarded contract number 28321317D00060009 on August 25, 2017 for a six month bridge contract while work continues on an RFP.

13. ACTION TAKEN TO REMOVE COMPETITION BARRIERS

Services under this contract are limited to offices with existing HMI furniture that require add-ons, relocations, de-install, re-install or reconfigurations. HMI will perform services to include design and installation as well as to provide new product necessary for additional workstations or workstation parts. HMI will continue to honor the warranty on existing and new product. HMI furniture has a 12-year warranty.

In addition, as HMI systems furniture reaches the end of its life, we will acquire new, complete replacements of office furniture via a different competitive procurement vehicle. ORM and OAG are working to finalize the new RFP. In addition, the agency currently has an Interagency Agreement in place with UNICOR for the provision of new systems furniture. This agreement will be phased out once a new competitive furniture contract has been awarded.

CERTIFICATION BY THE CO AND OTHER CONTRACTING OFFICIALS

The CO and other contracting officials hereby certify that the information provided in support of this justification for sole source is accurate and complete to the best of their knowledge and belief.

RECOMMEND: __________ DATE: 07/27/2018__

Angela Lee

Contract Specialist

Division of Western Regional Contracts (DWRC)

Office of Operations Contracts (OOC)

OAG

CONCUR: ____________ DATE: 07/27/2018___

Andrew Argiro

CO

Division Director, DWRC, OOC, OAG

/s/ John T. Andrews 07/31/2018

CONCUR: _________________________________ DATE: _____________

John T. Andrews

Office Director, OOC, OAG

CONCUR: ___ ______________ DATE: _08/06/2018_

Christian Hellie

Deputy Associate Commissioner, OAG

8/6/18

CONCUR: _________________________________ DATE: _____________

Seth Binstock

Associate Commissioner, OAG

8/8/18

APPROVE: _________________________________ DATE: ______________

John Simermeyer

Competition Advocate