CAO-21-0178_redacted J A.pdf

Control No: CAO-21-0178 Contractor: Lexmark International, Inc.

Program/Equipment: Maintenance Support and Lease of Multifunctional Devices

Version – September 2018

CONTROLLED UNCLASSFIED INFORMATION (See FAR 2.101 and 3.104-4)

FAR 8.405-6 Limited Sources Justification Under the General Services Administration

Federal Supply Schedule Program

1. Contracting Activity: US Army Contracting Command - New Jersey, 5418 S. Scott Plaza, Joint Base, McGuire Air Force, Fort Dix, Lakehurst (JB-MDL), 08640.

2. Description of Action: The 99th Readiness Division (RD) requests a firm-fixed price bridge modification under the General Services Administration (GSA) Federal Supply Schedule (FSS) Program with Lexmark International, Inc., 740 W. New Circle Road, Lexington, Kentucky 40550-0001. The Government will execute a new work modification against FSS order W15QKN-15-F-1034. The projected award is February 2021. Fiscal year 2021, Operations and Maintenance, Army Reserve funds will be utilized.

An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).”

3. Description of Supplies/Services: Maintenance, support and lease of seven-hundred fifty Multi-functional Devices (MFDs) to support the facilities within the 99th’s 13 state Area of Responsibility (AoR). The devices are needed to ensure that all facilities have adequate coverage while ensuring the support of the Secretary of the Army print directive and the United States Army Reserve Center (USARC) print policy.

Performance Period: February 18, 2021 through February 17, 2022 Estimated Total cost: $2,075,648.04

4. Authority Cited: Title III of the Federal Property and Administrative Services Act of 1949 (41U.S.C. 251, et. Seq) and Title 40 U.S.C 501, Services for Executive Agencies, as implemented by FAR 8.405-6 and substantiated by the following:

FAR 8.405-6(a)(1)(i)(C). In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with applicable Federal Supply Schedule ordering procedures. The original order was not previously issued under a sole-source or limited-sources procedures.

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Program/Equipment: Maintenance Support and Lease of Multifunctional Devices

5. Reason for Authority Cited:

During Calendar Year 2020, many facilities within the 99th’s 13 state AoR were restricted to limited staffing of Government personnel because of the contagious pattern of COVID-19. While COVID-19 continues to be a concern and travel restriction on installations or reserve facilities are in place, the Government cannot guarantee a transition of devices without disruption within the 13 state AoR prior to order expiration.

As the facilities begin to re-staff in the coming months, Multi-functional Device (MFD) capabilities will be required to meet the mission of the 99th RD. The Government therefore requires that the current equipment stay in place and be maintained and supported for a period of 12 months, with a total contractual value of $2,075,648.04 until a new order can be awarded.

The initial order W15QKN-15-F-1034 was awarded in accordance with the current Federal Supply Schedule 36, Category 51 ordering procedures to Lexmark International, Inc. on July 29, 2015, for the lease and maintenance support of 700 Lexmark X792dtfe and 50 Lexmark CX820dtfe, for a total of 750 MFDs. The order award was a result of full and open competition among all schedule holders. Four offerors submitted proposals in response to the Request for Proposal dated May 1, 2015.

Order W15QKN-15-F-1034 was awarded on July 29, 2015, with a final delivery date of September 28, 2020. The final delivery date was extended to February 17, 2021 due to an agency protest. The total value of this order was $10,111,556.20. This is the first time that FAR 8.405-6(a)(1)(i)(C), follow-on orders has been used.

The requirement for 750 MFD’s is still needed to ensure all facilities have adequate coverage, while providing support to the Secretary of the Army print directive and the United States Army Reserve Center (USARC) print policy. The 750 MFD’s, to include configuration maintenance, is required to support the various missions each unit has within the 13 State AOR which is comprised of over 400 facilities.

The current MFDs are in place and configured through the Army Reserve Network in accordance with Homeland Security Presidential Directive 12, DOD Security Technical Implementation Guide, and the policy which requires Common Access Card (CAC) capability for controlled print release and scan/fax functions. The MFD’s are currently configured to meet the USAR’s mission, whereas installation of any other MFD’s by another vendor would require ordering of the devices and configuration of the machines to meet the USAR’s requirement for CAC capability. Prior contracts had a minimum of a 60 day phase in period. The contractor would have to account for ordering and delivery of equipment (4-6 weeks); Scheduling of personnel, coordination with each facility, travel to the multiple facilities; access and coordination with IT network systems administrator and configuration of 750 MFDs. Lexmark is the only contractor capable of providing these 750 MFDs in time to avoid a break in service.

Program/Equipment: Maintenance Support and Lease of Multifunctional Devices

Any follow-on contract will be required to be procured through full and open competition under a multiple award schedule. The Procurement Action Lead Time (PALT) for this dollar value is 180 to 270 days, and the customer estimates an additional 60 days will be required before a follow-on competitive acquisition requirements package will be completed. A 60 day phase in period is also required to ensure the MFD’s are properly configured to the network. Based on the time the customer still needs to complete the requirements package, PALT and phase in period, a 12 month bridge extension is required. The delay in delivery of the devices would be detrimental to the unit’s mission.

Failure to have the capacity to print vital documents will negatively impact mission requirements to an unacceptable level.

6. Actions to Increase Competition: The follow-on order will be procured through full and open competition under a multiple award schedule.

7. Market Research: Market Research was conducted by Thomas Pacheco, of the 99th RD, Information Management Office during December 2020 through January, 2021.

Mr. Pacheco met with representatives from Ricoh, Lexmark, Konica/Minolta and Xerox in December 2020. The intent of the meeting was to identify solutions offered with MFD contracts that will maintain network security requirements. In addition, the Contract Specialist, Deborah Terrell conducted market research in February 2021 utilizing GSA website gsa.advantage@gsa.gov on Schedule 36 “The Office Imaging and Document Solution,” Category 51 100 “Copiers,” seeking potential sources for the Leasing of MFDs. Market research indicates all these companies can meet the 99th’s requirement for MFD’s, however, only Lexmark can meet the required schedule due to time constraints that are detailed above.

8. Other Facts:

a. Procurement History Contract: GS25F0059M Order: W15QKN-15-F-1034 Contractor: Lexmark International, Inc.

Award Date: July 29, 2015 Order Total: $10,111,556.20 Competitive Status: Unrestricted