TAB 5 - NMCI LSJ 06214.pdf

DEFENSE LOGISTICS AGENCY

CONTRACTING SERVICES OFFICE

5404 J AVENUE, BUILDING 404

NEW CUMBERLAND, PENNSYLVANIA 17070-5059

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY:

Requiring Activity:

Defense Logistics Agency (DLA) Document Services Equipment Management Solutions (J67E) 5404 J Ave, Bldg. 404 New Cumberland, PA 17070-5059 POC: Terri McGouey E-mail: Terri.McGouey@dla.mil

Contracting Activity:

Defense Logistics Agency Contract Services Office P-New Cumberland (DCSO P-New Cumberland) 5404 J Ave., Bldg. 404 New Cumberland, PA 17070-5059

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING REQUESTED:

This justification for other than full and open competition requests approval for a sole source contract to OMNI Business Systems for a 7-month contract with a 4-month option and 4 one month option periods (up to 14 months total). The purpose of this sole source contract is to maintain DLA’s requirement for the continued leasing support of the existing 411 multifunctional devices (MFDs) for the Norfolk Naval Shipyard. This sole source contract will have its own pricing and terms and conditions based on order SP7000-17-F-0008, which expired on 31 March 2022 and SP7000-22-P-0051, which expires on 31 March 2023.

The Navy Marine Corps Intranet (NMCI) requires that all devices attached to their network be tested and certified before they can be placed on the Certified Device List (CDL) for use on the NMCI network. The new PRTNR contract that will fill the requirement for this customer has 17 families of MFDs that are required to be tested and certified by the Navy to be added to the CDL. NMCI services have transitioned from Perspecta to Leidos, CDWG and World Wide Technologies. The NMCI Lab, previously on contract with Perspecta, ended on July 31, 2021 and was shutdown Dec 31, 2021.

World Wide Technologies opened a significantly smaller lab in January 2022 but it is not online or capable of testing SIPR. It will be 30-60 days before testing will be able to begin on one family at a time. Funding for testing was submitted and approved to start testing on February 1, 2023. The estimated time to complete testing and certification to the CDL is 9 months.

Keeping the current OMNI Business Systems Ricoh NMCI certified equipment in place will enable our customers to ensure continuity of operations and effective support of their critical missions during the lengthy certification process.

3. A DESCRIPTION OF THE SUPPLIES AND SERVICES REQUIRED TO MEET

THE AGENCY’S NEEDS/ESTIMATED DOLLAR AMOUNT:

SP7000-17-F-0008 procured 413 devices with full-service maintenance and all consumable supplies (excluding paper) for Norfolk Naval Shipyard from OMNI Business Systems. Lease support with OMNI Business Systems is requested to allow continuation of performance until the new MFDs are NMCI Certified, delivered and installed on the network. The estimated dollar amount of the requested sole source action with OMNI Business Systems is $725,867.10 for 411 MFDs (2 not being replaced).

There are 411 Ricoh MFDs currently in place that support Navy customers who are predominately engaged in warship overhaul, engineering, construction, facility support/management functions and special operations. These Commands must have NMCI Certified devices with the capability of producing large format documents up to a maximum size of 11" x 17" to perform daily work, quality assurance checks and job signoffs.

4. IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING OTHER

THAN FULL AND OPEN COMPETITION:

The Statutory authority permitting other than full and open competition is Title 10, U.S.C. 2304 (c) (1) as implemented by the Federal Acquisition Regulation 6.302- 1(a)(2)(iii)(B) – Only one responsible source and no other supplies or services will satisfy agency requirements.

41 U.S.C. § 1901

5. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES

USE OF THE CITED AUTHORITY:

Although other vendors are available to supply MFDs with consumables and services, the MFDs required must be tested for compliance with Network Security which involves comprehensive testing which will take up to 9 months for new equipment. Additionally, the typical device delivery time of 60 days must be accounted for. Therefore, there are no vendors that would be able to deliver devices in time for an April 1, 2023 start date. Due to this situation, the devices in the order must remain in place and need to be extended on a sole source contract. Also, since the devices in place are under a lease, no other vendor can service the lease of another vendor without violating the lease terms. The only way to ensure uninterrupted support to the Warfighter is to issue a contract to the current vendor.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE:

The follow-on contract will go against the PRTNR contract with open competition between six vendors at reverse auction (3 large and 3 small business).

The solicitation and Limited Source Justification will be posted to SAM.gov in accordance with FAR 5.202(a)(2).

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT REPRESENTS THE BEST

VALUE TO THE GOVERNMENT BASED ON RECOMMENDED ACTION:

The pricing for the current order SP7000-17-F-0008 compared to current PRTNR IDIQ pricing for similar devices is as follows:

- CLIN 0001/ VB-4 Color NIPR - the price of $126.15 is considered fair and reasonable compared to $271.38, which is the average current PRTNR IDIQ pricing for devices similar to VB-4 Color NIPR.

As the Contracting Officer, I hereby determine that the anticipated cost to the Government will be fair and reasonable.

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS

NOT CONDUCTED:

The sole source order is being put in place long enough to resolve the NMCI testing timeline associated with the replacement order that will be competed and awarded for a Period of Performance (POP) start date no later than April 1, 2024.

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

OPEN COMPETITION.

Neither a lack of advanced planning nor inadequate procurement execution caused DLA’s need for this sole source contract. As documented in the contract file and noted in § 5, above, competitive follow-on award is pending and will require NMCI testing which is estimated to be completed in 9 months and need to include 3 months for the RFQ to include one month for award and then 60 days for delivery based on the Procurement Administrative Lead Time (PALT) timeline. Pending funding, approved models on the PRTNR IDIQs will begin testing. Only one vendor can be tested at a time due to the size of the lab. Testing includes fourteen family models across four OEMs and NIPR and SIPR testing must be done separately.

DLA Document Services requires that the existing equipment remain in place under a sole source extension until new equipment that meets our customer requirements has been added to the NMCI Certified Device List. Keeping this equipment in place will ensure compliance with Department of Navy (DoN) policies and/or regulations that require any device placed on the NMCI network to be on the NMCI CDL. This requirement was established to secure the DoN computer infrastructure and its vital assets. Due to the vital assets that the military installations store on DoN's network, it is essential that all networked devices have been tested, certified and placed on the NMCI Certified Device List. Failure to place the current contract on a sole source extension contract would result in our customers operations and effective support of their critical missions.

The SIPR environment needs to be set up to test for SIPR token and interoperability testing on the NMCI SIPR enterprise. There are differences in the tokens used for log on and encryption and transport settings used in authentication and scanning from NIPR and SIPR and is why separate testing is required.

The NMCI Test Lab was transitioned from Perspecta to World Wide Technologies from August to December 2021. The long-standing Sherman Street lab that has been used for NMCI equipment testing for 20 years was shut down on Dec 31, 2020. All NMCI hardware testing was shifted to a facility in Point Loma, upgrades to the existing much smaller facility to facilitate Hardware testing on NIPR were not complete until the end of February 2022 and the SIPR test environment is not completed. NMCI testing includes SIPR and NIPR in the price.

NMCI notified EMS on March 29, 2022 that they would have to pay NAVWAR (PMW-

205) via MIPR to place all of their orders. It was originally said the system would be set up for DLA as a customer to be allowed to order direct so the need for a GT&C would not be necessary. The MIPR is in process and the 7600A is in the review process.

In effort for a smooth transition from Perspecta to the new contractor Leidos, we have held weekly meetings for updates on the NMCI testing process. The meetings include J67E/J67D leadership (Division Directors, Branch Chiefs), DON representatives (Michele Boswell, Don Jean), PMW-205 representatives and lead contractor (Cindy Glotfelty, Greg Madruga), Testing POC from Perspecta/Leidos (Billy Sobalvarro).

The testing schedule was delayed as it could not be scheduled due to a change of contractor. DLA has asked every week since April 2021 how this changeover from Perspecta to Leidos would affect the testing process. Other than eventually telling us when the testing would stop under Perspecta, it is still unclear as to when they will accept devices from DLA for testing and appears the Navy is not ready for testing.

Testing could not be scheduled due to a change of contractor and not having processes in place. Recently the testing lab moved to a smaller location where only a few devices can be tested at a time and that is still being set up and logistics figured out where they can stage overflow of devices needing testing. According to Leidos, they have in-house projects ahead of ours and could not start until FY23 once they had the 7600A and funding in place to pay for the SLINs for testing. During the months of October 2022 through January 2023 the 7600A and funding had been submitted, refined and resubmitted for approval. Funding was accepted and PEO entered the CLINs to their task order and work projected to start February 1, 2023. Currently waiting on delivery date to send Xerox C8100 to the lab for testing. We expect nine months to test all MFD families.

10. A LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THE FUTURE ACQUISITION:

In accordance with DFARS PGI 206.302-1 a request for information (RFI) was posted on SAM.gov on 17 March 2022 and closed on 18 March 2022. No vendors showed interest in the RFI.

11. STATE THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR

OVERCOME ANY BARRIERS THAT PRECLUDE THE AGENCY FROM

MEETING FUTURE REQUIREMENTS FOR COMPETITION:

Although each major manufacturer of MFDs may have acceptable NMCI hardware/software, Leidos provides the testing certification for the NMCI program and controls the schedule and when testing takes place. EMS will continuously monitor the NMCI approval process. When the testing is completed for devices to be on the NMCI network, all future requirements are anticipated to meet the requirements for competition.

As documented in the contract file and noted in above, competitive PRTNR follow-on award will be competed with a start date no later than April 1, 2024.

12. CERTIFICATIONS:

Requirement/Technical 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.

Terri McGouey DATE

East EPC Branch Chief, J67E

Contracting Certifications:

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

Marissa M. Jackson DATE Contracting Officer DCSO P-New Cumberland East