TAB 5 JA-CS - Enterprise Contract Legal.pdf

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD FORT

BELVOIR, VIRGINIA 22060-6221

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. IDENTIFICATION OF THE AGENCY AND CONTRACTING ACTIVITY.

Requiring Activity

Defense Logistics Agency (DLA) Installation Management Fort Belvoir – (DM-FFC)

8725 John J Kingman Road

Fort Belvoir, VA 22060-6220

POC: Christopher Larsen

Phone: (571) 767-1290

Contracting Activity

DLA Contracting Services Office Philadelphia – (DCSO-P)

700 Robbins Avenue

Philadelphia, PA 19111 Contracting Specialist: Rhonda Saunders

Phone: (215) 737-9107

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED.

This justification authorizes and approves the use of other than full and open competition for the procurement of equipment purchase, equipment maintenance, mail meter leasing, software purchase, software maintenance, data residence, and software reinstall capabilities for DLA Installation

Management Battle Creek in Battle Creek, MI, DLA Installation Management Columbus in

Columbus, OH, DLA Installation Management Fort Belvoir in Fort Belvoir, VA, DLA Installation

Management Philadelphia in Philadelphia, PA, DLA Installation Management Richmond in

Richmond, VA, DLA Installation Management San Joaquin in Tracy, CA, and DLA Installation

Management Susquehanna in New Cumberland, PA on a sole source basis.

The period of performance of this acquisition will be a base year and two option years as follows:

Base Year: October 1, 2020 – September 30, 2021

First Option Year: October 1, 2021 – September 30, 2022 Second Option Year: October 1, 2022 – September 30, 2023

3. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS/ESTIMATED DOLLAR AMOUNT.

DLA has a requirement for mailroom services, equipment purchase, equipment maintenance, mail meter head leasing, software purchase, software maintenance, data residence, and software reinstall capabilities in support of DLA Installation Management Battle Creek in Battle Creek, MI, DLA

Installation Management Columbus in Columbus, OH, DLA Installation Management Fort Belvoir in

Fort Belvoir, VA, DLA Installation Management Philadelphia in Philadelphia, PA, DLA Installation

Management Richmond in Richmond, VA, DLA Installation Management San Joaquin in Tracy, CA, and DLA Installation Management Susquehanna in New Cumberland, PA as illustrated in the tables below:

Table 1 – DLA Installation Management Enterprise – Table of Requirements

DLA

Installation

Management

Field Sites

Equipment

Mail Meter

Software Package

Residence

Agency

Required

Software

Reinstall

Philadelphia

Fort Belvoir, Battle Creek, Columbus, Philadelphia, Richmond, San Joaquin, Susquehanna

Fort Belvoir, Battle Creek, Columbus, Philadelphia, Richmond, San Joaquin, Susquehanna

Fort Belvoir, Battle Creek, Columbus, Philadelphia, Richmond, San Joaquin, Susquehanna

Fort Belvoir, Battle Creek, Columbus, Philadelphia, Richmond, San Joaquin, Susquehanna

Fort Belvoir, Battle Creek, Columbus, Philadelphia, Richmond, San Joaquin, Susquehanna

Fort Belvoir, Battle Creek, Columbus, Philadelphia, Richmond, San Joaquin, Susquehanna

Purchase

Maintenance

Mail Meter

Head Leasing

SendPro

Enterprise

Purchase

SendPro

Enterprise &

SendSuite

Tracking

Maintenance

Pitney Bowes

Residence

Agency

Required

Reinstall

Contract

Line Item

Distribution

CLIN

CLINs

0002, 1002, and 2002

0003, 1003, and 2003

CLIN 0004

0005, 1005, and 2005

0006, 1006, and 2006

0007, 1007, and 2007

Base Year

Purchases

First Option

Year

DLA

Purchases

DLA

Purchases

DLA

Purchases

DLA

Purchases

DLA

Purchases

Second

Option Year

DLA

Purchases

DLA

Purchases

DLA

Purchases

DLA

Purchases

Table 2 – DLA Installation Management Philadelphia – Equipment Purchase

Seq

DLA Installation Management Philadelphia Equipment

Item

Quantity

1 Connect+ 3000 Series WOW AZBD 1

2 310/205 Letters/Minute Feature APSK 1

3 10 Inch Display Standard Apps Center MSD1 1

4 Connect+ SendSuite Interface MSPQ 1

5 Connect+ Mono Printer AZBE 1

6 Connect+ Power Stacker MSPS 1

7 Roll Tape Kit MW90650 1

8 100 Pound Tabletop Scale T310 1

9 Low to Mid Volume 4 Inch Label Printer T536 1

10 Non-Contact Programmable Wedge Scanner V320 1

11 Laser Printer T321 1

12 Installation Project Management (Outbound Area & Training) T5MB 3

Table 3 – DLA Installation Management Battle Creek – Equipment Covered By Maintenance Contract Seq Equipment Item Quantity

1 Connect+ 3000 Series WOW AZBD* 1

2 310/205 Letters/Minute Feature APSK* 1

3 10 Inch Display – Standard Apps Center MSD1 1

4 Connect+ SendSuite Interface MSPQ* 1

5 Connect+ Mono Printer AZBE 1

6 Connect+ Power Stacker MSPS* 1

7 Roll Tape Kit MW90650 1

8 Tracking Assistant Plus Win Mobile (T742) T5UM 2

9 Four Bay Cradle / Battery Charger for Tracking Assistant (T742) T51M* 1

10 Counter Signature Pad Plus J546* 1

11 100 Pound Tabletop Scale T310* 1

12 Low to Mid Volume 4 Inch Label Printer T536* 2

13 Cordless Scanner T539* 1

14 Non-Contact Programmable Wedge Scanner V320* 1

15 Laser Printer T321* 2

Table 4 – DLA Installation Management Columbus – Equipment Covered By Maintenance Contract

1 Connect+ 3000 Series WOW AZBD* 1

2 310/205 Letters/Minute Feature APSK* 1

3 10 Inch Display – Standard Apps Center MSD1 1

4 Connect+ SendSuite Interface MSPQ* 1

5 Connect+ Mono Printer AZBE 1

6 Connect+ Power Stacker MSPS* 1

7 Roll Tape Kit MW90650 1

8 Tracking Assistant Plus Win Mobile (T742) T5UM 6

9 Four Bay Cradle / Battery Charger for Tracking Assistant (T742) T51M* 2

10 Counter Signature Pad Plus J546* 1

11 100 Pound Tabletop Scale T310* 1

12 Low to Mid Volume 4 Inch Label Printer T536* 2

13 Cordless Scanner T539* 1

Table 5 – DLA Installation Management Fort Belvoir – Equipment Covered By Maintenance Contract

1 Connect+ 3000 Series WOW (Mailing System #1) AZBD* 1

2 310/205 Letters/Minute Feature APSK* 1

3 10 Inch Display – Standard Apps Center MSD1 1

4 Connect+ SendSuite Interface MSPQ* 1

5 Connect+ Mono Printer AZBE 1

6 Connect+ Power Stacker MSPS* 1

7 Roll Tape Kit MW90650 1

8 Connect+ 3000 Series WOW (Mailing System #2) AZBD* 1

9 310/205 Letters/Minute Feature APSK* 1

10 10 Inch Display – Standard Apps Center MSD1 1

11 Connect+ SendSuite Interface MSPQ* 1

12 Connect+ Mono Printer AZBE 1

13 Connect+ Power Stacker MSPS* 1

14 Roll Tape Kit MW90650 1

15 Connect+ 1000 Series (Mailing System #3) AZBA* 1

16 130 LPM Feature APSA 1

17 10 Inch Display – Standard Apps Center MSD1 1

18 Connect+ SendSuite Interface MSPQ* 1

19 Connect+ Mono Printer AZBE 1

20 Connect+ Drop Stacker MW90007 1

21 Tracking Assistant Plus Win Mobile (T742) T5UM 4

22 Four Bay Cradle / Battery Charger for Tracking Assistant (T742) T51M* 1

23 Counter Signature Pad Plus J546* 1

24 100 Pound Tabletop Scale T310* 3

25 Low to Mid Volume 4 Inch Label Printer T536* 4

26 Cordless Scanner T539* 1

27 Non-Contact Programmable Wedge Scanner V320* 3

28 Laser Printer T321* 2

Table 6 – DLA Installation Management Philadelphia – Equipment Covered By Maintenance Contract

1 Connect+ 3000 Series WOW AZBD* 1

2 310/205 Letters/Minute Feature APSK* 1

3 10 Inch Display – Standard Apps Center MSD1 1

4 Connect+ SendSuite Interface MSPQ* 1

5 Connect+ Mono Printer AZBE 1

6 Connect+ Power Stacker MSPS* 1

7 Roll Tape Kit MW90650 1

8 100 Pound Tabletop Scale T310* 1

9 Low to Mid Volume 4 Inch Label Printer T536* 1

10 Non-Contact Programmable Wedge Scanner V320* 1

11 Laser Printer T321* 1

Table 7 – DLA Installation Management Richmond – Equipment Covered By Maintenance Contract

1 Connect+ 3000 Series WOW AZBD* 2

2 310/205 Letters/Minute Feature APSK* 2

3 10 Inch Display – Standard Apps Center MSD1 2

4 Connect+ SendSuite Interface MSPQ* 2

5 Connect+ Mono Printer AZBE 2

6 Connect+ Power Stacker MSPS* 2

7 Roll Tape Kit MW90650 2

8 Tracking Assistant Plus Win Mobile (T742) T5UM 5

9 Four Bay Cradle / Battery Charger for Tracking Assistant (T742) T51M* 1

10 Single Bay Cradle / Battery Charger for Tracking Assistant (T742) T51S* 1

11 Counter Signature Pad Plus J546* 1

12 100 Pound Tabletop Scale T310* 2

13 Low to Mid Volume 4 Inch Label Printer T536* 3

14 Cordless Scanner T539* 1

15 Non-Contact Programmable Wedge Scanner V320* 2

16 Laser Printer T321* 3

Table 8 – DLA Installation Management San Joaquin – Equipment Covered By Maintenance Contract

1 Connect+ 2000 Series (Mailing System #1) AZBB* 1

2 180/115 Letters/Minute Feature APSF* 1

3 10 Inch Display – Standard Apps Center MSD1 1

4 Connect+ SendSuite Interface MSPQ* 1

5 Connect+ Mono Printer AZBE 1

6 Connect+ Drop Stacker MW90007 1

7 100 Pound Tabletop Scale T310* 1

8 Low to Mid Volume 4 Inch Label Printer T536* 1

9 Non-Contact Programmable Wedge Scanner V320* 1

10 Laser Printer T321* 1

11 Connect+ 1000 Series (Mailing System #2) AZBA* 1

12 160 Letters/Minute Feature APSB* 1

13 10 Inch Display – Standard Apps Center MSD1 1

14 Connect+ SendSuite Interface MSPQ* 1

15 Connect+ Mono Printer AZBE 1

16 Connect+ Drop Stacker MW90007 1

17 100 Pound Tabletop Scale T310* 1

18 Low to Mid Volume 4 Inch Label Printer T536* 1

19 Non-Contact Programmable Wedge Scanner V320* 1

20 Laser Printer T321* 1

Table 9 – DLA Installation Management Susquehanna – Equipment Covered By Maintenance Contract

1 Connect+ 3000 Series WOW AZBD* 1

2 310/205 Letters/Minute Feature APSK* 1

3 10 Inch Display – Standard Apps Center MSD1 1

4 Connect+ SendSuite Interface MSPQ* 1

5 Connect+ Mono Printer AZBE 1

6 Connect+ Power Stacker MSPS* 1

7 Roll Tape Kit MW90650 1

8 Tracking Assistant Plus Win Mobile (T742) T5UM 4

9 Four Bay Cradle / Battery Charger for Tracking Assistant (T742) T51M* 1

10 Counter Signature Pad Plus J546* 1

11 100 Pound Tabletop Scale T310* 1

12 Low to Mid Volume 4 Inch Label Printer T536* 2

13 Cordless Scanner T539* 1

The Government contemplates award of a firm-fixed price contract as a result of this solicitation. The estimated dollar value for the above requirement, including equipment purchase, equipment maintenance, mail meter head leasing, software purchase, software maintenance, data residence, and software reinstall is:

Base Year: $ 291,486.80

First Option Year: $ 129,109.42

Second Option Year: $ 130,749.11

Total: $ 551,345.33

4. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER THAN FULL

AND OPEN COMPETITION.

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1).

Contracting officers may solicit from one source if the contracting officer determines that the circumstances of the contract action deem one source reasonably available (e.g. urgency, exclusive licensing agreements, brand-name or industrial mobilization). The services are deemed to be available only from one responsible source because the requirement is for unique supplies or services available from only one source or only one supplier with unique capabilities.

5. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF THE

AUTHORITY CITED.

Pitney Bowes is the manufacturer and the brand name of the required items and services. There are only two main manufacturers left in the production of mailing machine equipment, Neopost and

Pitney Bowes. Pitney Bowes is the only U.S. manufacturer approved by DISA PPMS System and is based in the United States. Neopost systems communicate to Neopost servers located in France. To protect the postal currency funds, Pitney Bowes and Neopost systems cannot communicate with each other. The entire system, including packaged equipment and software purchased, software updates, equipment maintenance, and mail meter rental is peculiar to Pitney Bowes. In accordance with USPS guidance (Quick Service Guide 604c, Postage Meters and PC Postage Systems), Pitney Bowes is the only authorized vendor which provides both physical and PC Postage meter capabilities to its customers. According to the Quick Service Guide, there are other vendors listed, but they do not offer the complete package offered by Pitney Bowes as shown in the Authorized Providers table.

- Pitney Bowes is the only vendor that can supply both physical postage meters and computer-based postage meters operating as one system.

- Data-Pac Mailing Systems Corp., FP Mailing Solutions, and Neopost can supply physical postage meters only.

- Endicia.com (PSI Systems) and Stamps.com can supply computer-based postage meters only.

The DLA Installation Management sites require both styles of meters to complete their daily outbound mail operations. The physical meter is required to process first class mail. The computer based postage meter is required to process mail falling under the Commercial Plus Pricing (Schedule

48). DLA has a requirement for both physical and computer-based postage meters at each site. It is necessary to purchase both physical and computer-based postage meters from a single vendor in order to have a complete, functional system. Currently, Pitney Bowes is the only vendor that offers both the physical and computer-based postage meters running on one system. Pitney Bowes is currently the only vendor authorized by the USPS to sell and lease the entire system including the packaged equipment, mail meters, service, maintenance as well as software and hardware capable of processing mail.

A search on the internet, as well as on the GSA schedule, indicated that there are resellers available to offer Pitney Bowes systems. However, authorized Pitney Bowes resellers have geographical territory coverage in which they are allowed to market certain Pitney Bowes products. No reseller has approval for national coverage or marketing outside their territory. In addition, some accounts within a reseller’s territory are restricted from the reseller marketing to them. In the case of the Department of Defense, Pitney Bowes resellers are not authorized by Pitney Bowes to offer its products or solutions to the Department of Defense due to the global support required by the Department of

Defense. In addition, the Pitney Bowes GSA Schedule customers are serviced by Pitney Bowes directly and not through the resellers. Lastly, SendSuite Live, SendPro Enterprise, and SendSuite

Tracking products are not marketed by any of the Pitney Bowes resellers. These three product lines are only available from the Pitney Bowes direct channel. Pitney Bowes direct is the only source to obtain the required DLA functionality and global support needed to fully comply with the DLA

PWS.

6. A DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED

FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE INCLUDING

WHETHER A NOTICE WAS OR WILL BE PUBLICIZED AS REQUIRED BY SUBPART

5.2 AND, IF NOT, WHICH EXCEPTION UNDER 5.202 APPLIES.

IAW FAR subpart 5.2 – Synopses of Proposed Contract Actions, the Government intends to post a synopsis via BetaSam

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED

COSTS TO THE GOVERNMENT WILL BE FAIR AND REASONABLE.

As the Contracting Officer, I hereby determine that the anticipated cost to the Government will be fair and reasonable based on pricing analysis in accordance with FAR 15.404-1. It is anticipated that the

Government will use various price analysis techniques including, but not limited to, comparison of proposed prices to historical prices paid for the same or similar items in accordance with FAR

15.404-1(b)(2)(ii) and a comparison of proposed pricing with the independent Government cost estimate in accordance with FAR 15.505-1(b)(2)(v).

8. A DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS OR

A STATEMENT OF THE REASON MARKET RESEARCH WAS NOT COMPLETED.

Market research was performed to determine if other sources were available to provide the required service. A search on the internet, as well as on the GSA Schedule, indicated that there are resellers available to offer Pitney Bowes systems. However, authorized Pitney Bowes resellers have geographical territory coverage in which they are allowed to market certain Pitney Bowes products.

No reseller has approval for national coverage or marketing outside their territory. In addition, some accounts within a reseller’s territory are restricted from the reseller marketing to them. In the case of the Department of Defense, Pitney Bowes resellers are not authorized by Pitney Bowes to offer its products or solutions to the Department of Defense due to the global support required by the

Department of Defense. In addition, the Pitney Bowes GSA Schedule customers are serviced by

Pitney Bowes directly and not through the resellers. Lastly, the SendSuite Live, SendPro Enterprise, and SendSuite Tracking products are not marketed by any of the Pitney Bowes resellers. These three product lines are only available from the Pitney Bowes direct channel. Pitney Bowes direct channel is the only source to obtain the required DLA functionality and global support needed to fully comply with the DLA PWS.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION.

DLA Installation Management has been working on an enterprise solution to standardize mail processing throughout all of the agency’s sites. Pitney Bowes is the only vendor with the technology available to make the solution work in the future.

The DLA Enterprise Mailroom Solution is an effort by DLA Installation Management to combine the mail operations of the DLA Installation Management sites into one system, which will save the agency money. The process began in FY16 at DLA Installation Management Fort Belvoir. The savings will come by ending the practice of leasing equipment at each site. When the agency purchases the equipment, it is cheaper over the expected lifetime of the equipment then leasing. The software purchase will allow the agency to save money by not having each site lease their own software.

The software and data residence for use by all the DLA Installation Management sites was purchased or leased by DLA Installation Management Fort Belvoir in October 2015 as the first part of the enterprise solution.

10. LIST THE SOURCES, IF ANY THAT EXPRESSED, IN WRITING, AN INTEREST IN THIS

ACQUISITION.

None

11. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE

OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT

ACQUISITION FOR THE SUPPLIES OR SERVICES REQUIRED.

DLA has and continues to exercise competition as often as possible and is required to conduct ongoing reviews to keep abreast of new technology, both in industry, and in the Government as a continuing effort within DLA. DLA uses a variety of vendors, manufacturers, and contracts to fulfill its requirements and will continue its practice of surveying the market to ensure future full and open competition. At this time, the requirement will be solicited on a sole source basis; however, market research will continue to be done for future acquisitions to determine the availability of alternate sources.

12. CONTRACTING OFFICER’S CERTIFICATION

Requirements Certification:

I hereby certify that the support data provided for which I am responsible and which form a basis for this justification are complete and accurate.

CHRISTOPHER LARSEN DATE

DLA Enterprise Official Mail Manager

HER.A.1229463566 566

Date: 2020.06.01 09:21:28 -04'00'

Contracting Officer Certification:

I hereby certify that this justification is accurate and complete to the best of my knowledge and belief.

I have reviewed and approve this justification.

HINKSON.DONALD.C.1229

144428

Digitally signed by

HINKSON.DONALD.C.1229144428

Date: 2020.09.01 11:16:59 -04'00'

DONALD HINKSON DATE

Contracting Officer