SSJ_Final_redactions_4_Oct.pdf

Control No: Knox-2019-48 Contractor: Neilson Company

Program/Equipment: TV Monitoring

Version - September 2018 FOR OFFICIAL USE ONLY

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JUSTIFICATION REVIEW DOCUMENT

FAR PART 6 JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Program/Equipment: The requirement is for services to monitor, track and analyze Army television commercials against media reach and frequency. The contractor shall provide reports to the US Army Marketing and Research Group (AMRG). The estimated Period of Performance (PoP) is 30 September 2019 through 29 September 2020 with two (2) one-year option periods. Government estimate: $607,439. NAICS code - 541910 Marketing Research and Public opinion Polling and Federal Supply Code (FSC) code - R422 Market Research and Public Opinion Services.

Authority: 10 U.S.C. 2304(c)(1) as implemented by FAR Part 6.302-1 - Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Amount: .

Prepared by:

Contracting Officer: Heather Green-Trueblood Contracting Officer

Technical:

Requirements:

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Program Manager:

Date: See electronic signature

Small Business Specialist:

Date: see electronic signature

Legal Counsel:

FAR Part 6 Justification and Approval for Other than Full and Open Competition

1. Contracting Activity: Mission and Installation Contracting Command - Fort Knox, 199 6th Avenue, Fort Knox, KY 40121-5720

2. Description of Action: This justification and approval (J&A) is for a firm-fixed-price (FFP) contract for a one-year base period with two one-year option periods with the Nielsen Company, 40 Danbury Rd., Wilton, CT 06897. The Government projects award for 30 September 2019 through 29 September 2020 with two one-year option periods.

Fiscal year 2019 Operations and Maintenance funds will be used for the base year.

3. Description of Supplies/Services: The contractor provides the government with reports that provide analysis and/or data that contain estimates of television watching and viewing in the United States for Army Marketing and Research Group (AMRG), 2530 Crystal Drive, Suite 4150, Arlington, VA 22202-3934. This data measures what housing units watch US Army commercials by time, day of the week and television media channel and allows the AMRG to determine if Army commercials were aired in the intended spot as well as track the Army's return on investment (ROI) of the advertising purchased.

The period of performance is as follows:

Base Period: 30 September 2019 to 29 September 2020 Value:

Option Period 1: 30 September 2020 to 29 September 2021 Value:

Option Period 2: 30 September 2021 to 29 September 2022 Value:

Total Value:

4. Authority Cited: 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: As described at FAR 6.302-1(a)(2), when the supplies or services required by the agency are available only from one responsible source, or, for DoD, NASA and the Coast Guard, from only one or a limited number of responsible sources, and no other types of supplies or services will satisfy agency requirements, full and open competition need not be provided for. Nielsen is the industry standard for advertisement tracking. There are no other companies that provide the robust tracking that Nielsen does. Nielsen was awarded a previous contract to track Army advertisements in 2016 (W9124D-16 C-0035) and all option years have been used.

b. Alternatives. There are no other known comparable services available to the Government. Suspending operations is not a viable option because the government would not be able to verify if the Army advertisements aired as the Army required or be able to determine the ROI which was a best practice identified in GAO Report GAO-16- 396, dated 12 May 2016. Using in-house personnel/expertise is not an option because AMRG does not have the tools or manpower to validate that advertisements aired at the appropriate time or determine the ROI. Although the current contracted advertisement agency uses Nielsen to track the airing of their clients' ads before they pay the networks, the Army is not a part of that agreement between the advertisement agency and Nielsen, and therefore does not receive any of that data. The Army must have a separate, independent contract with Nielsen to obtain the data necessary to ensure its ads actually run on the networks, prior to approving invoices payable to the contracted advertisement agency. A third party vendor, outside of the advertising agency, such as Nielsen, is necessary to provide the non-biased data and accountability needed by the Army. There are no known similar products that have the full capability that Nielsen does.

c. Justification.

1) There are no known similar products that have the full capability that Nielsen provides.

2) GAO Report GAO-16-396 (DOD Advertising: Better Coordination, Performance Measurement, and Oversight Needed to Help Meet Recruitment Goals) recommends measuring marketing ROI with data available per industry tracking standards in order to quantify and qualify the appropriate goals, performance data, and performance measures be used to assess the performance of all advertising activities.

d. Impact. If this J&A is not approved, ROI tracking for all advertisement spend would discontinue and the Army would be unable to adequately track this spend. This places the Army in a poor position to defend its marketing spend plan and budget.

6. Efforts to Obtain Competition: Sources Sought notice PANMCC-19-P-0000-025546 posted 7 July 2019 and closed on 12 July 2019 with only one response.

Act2 Communications, Inc.

DBA: Connect360 Multimedia 170 Old Country Road, STE 301 Mineola, NY 11501-4310

DUNS: 079174463

Act2 Communications response to the sources sought notice: "We have an extensive relationship with the Nielsen Company and other marketing research companies that focus on broadcast data (such a SQAD and Precision Track). Over the course of a typical year, we probably measure and analyze more Nielsen SIGMA projects than any other company. We receive daily downloads of Nielsen airing data, combine this with our full access to Nielsen audience data, and merge it with SQAD data of market prices the nation's largest media buyers pay for spot advertising, and analyze this using our proprietary media measurement and valuation systems. This allows us to generate monthly by station, geo/DMA, daypart, and demographic analyzes for both television and radio campaigns".

While the company appears to exhibit possible capability to perform the requirement in its response, this capability depends heavily on Nielsen data and tools. Act2

Communications would not be capable of meeting this requirement at all if they didn't receive daily downloads of Nielsen airing data and have access to Nielsen audience data. It is not essential to the Army, nor does the Army require, repackaged data that composes of reports and/or data for analysis for the best practice ROI. While the Army does not have the technology to collect the data, the Army does have the skills to use Nielsen's raw data, analyze it, and report to senior leaders as necessary. The Government would benefit the most by dealing directly with Nielson which is the source of information used by Act2 Communications, rather than dealing with a third party using repackaged information.

7. Actions to Increase Competition: No subcontractors are used as Nielsen does all of their work from within their company. Army Marketing and Research Group (AMRG) and MICC - Fort Knox will continue to research companies to determine if there are any other organizations that enter the marketplace and who can provide these services.

8. Market Research: A Sources Sought Notice was posted and only one response was received. The one response was received from Act2 Communications. In their response they noted they depended heavily on receiving daily downloads of Nielson airing data and audience data, which could increase the requirement cost by utilizing a third party vendor. It was determined that it would be in the Government's best interest to deal directly with Nielson, which is the source of information used by Act2 Communications, rather than dealing with a third party using repackaged information. Based upon the market research results and the information herein, there is not sufficient capability, outside of the Nielsen Company to meet this requirement. Therefore, this requirement will be awarded sole source to The Nielsen Company (US), LLC, 85 Broad Street, New York, NY 10004-2334 (DUNS #959738261).

9. Interested Sources:

Act2 Communications, Inc./DBA: Connect360 Multimedia 170 Old Country Road, STE 301 Mineola, NY 11501-4310

While the company exhibits possible capability to perform the requirement in its response, this capability depends heavily on Nielsen data and tools. Act2 Communications would not be capable of meeting this requirement if they didn't receive daily downloads of Nielsen airing data and have access to Nielsen audience data. It is in the Government's best interest to deal directly with Nielson, rather than dealing with a third party using repackaged information.

To date, no other sources have written to express interest in the acquisition.

10. Other Facts: a. Procurement history as follows:

Contract: W9124D-16-C-0035 Contractor: The Nielsen Company LLC Award Date: 30 Sep 2016 (base period with two one-year option periods)

Competitive Status: Restricted Authority: 10 U.S.C. 2304(c)(1), Only one responsible source

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Contract: W9124D-11-C-0002 Contractor: The Nielsen Company LLC Award Date: 18 Feb 2011 (base period with four one-year option periods)

Competitive Status: Restricted Authority: 10 U.S.C. 2304(c)(1), Only one responsible source

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.

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.

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13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable.

This determination will be made using the following: □ cost analysis □ price analysis

□ should cost IX IGCE □ audit: □ other:

As a part of this basis, certified cost or pricing data:

□ will be required.

IX will not be required and the following exception applies (FAR 15.403):

□ Prices that will be agreed upon are based on adequate price competition.

□ Prices that will be agreed upon are based on prices set by law or regulation.

IX A commercial item is being acquired.

□ A waiver has been granted by the head of the contracting activity (HCA) in accordance with DFARS PGI 215.403-1.

□ The contract action is a modification to a contract or subcontract for commercial item(s).

□ The estimated cost of the contract action is less than the threshold for certified cost or pricing data.

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Division Chief

Approval Based on the foregoing justification, I hereby approve the procurement of TV monitoring for the estimated amount of $607,439 on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1) Only one responsible source and no other supplies or services will satisfy agency requirements, subject to availability of funds, and provided that the services or property herein described have otherwise been authorized for acquisition.

Heather Green-Trueblood