JA Furniture IDIQ_Final25Nov19_Redacted.pdf

NGB Control No: 20-001

JUSTIFICATION REVIEW DOCUMENT

FOR OTHER THAN FULL AND OPEN COMPETION

Program/Equipment: National Guard Bureau Furniture Supplies IDIQ

Authority: 10 U.S.C.2304(c)(1) & FAR 6.302-1(c) Amount: $9,108,104.00

Prepared by:

Contracting Officer:

Technical Representative:

Requirements Representative:

Furniture IDIQ

Reviews: I have reviewed this justification and find it adequate to support awarding the furniture IDIQ contract under other than full and open competition.

Program Manager:

Legal Counsel:

1. Contracting Activity: National Guard Bureau (NGB), Operational Contracting Division 111 S George Mason Dr., Bldg. 2, 4th Floor Arlington, VA 22204-1373

2. Description of Action: This action is a justification to acquire Haworth brand furniture, related support items and ancillary services for the office reconfiguration requirements at National Guard Bureau (NGB) locations. The NGB locations include the Herbert R. Temple Army National Guard Readiness Center (TARC), Arlington, VA, NGB Office locations at the Pentagon, and the Air National Guard Readiness Center (ANGRC), Andrews Air Force Base.

The National Guard Bureau intends to award an Indefinite Delivery Indefinite Quantity (IDIQ) Contract and issue Task Orders, utilizing appropriate fiscal year Operation and Maintenance (O&M) funding. The period of performance for this IDIQ contract will be for five (5) years.

The total estimated value of the projected IDIQ is $9,108,104.00.

3. Description of Supplies/Services: The National Guard Bureau locations utilize Haworth Furniture Systems throughout all work spaces as well as common areas. The separate NGB facilities have an ongoing need to reconfigure office layouts and workstations based upon fluctuations in workforce structure. This reconfiguration of work space and placement/replacement of furniture requires a contractor who is authorized to provide Haworth furniture as well as obtain parts and pieces to match the existing Haworth systems furniture. This requirement is primarily a supply buy with ancillary design services, installation services, warehousing, and inventory control and delivery services. Systems furniture, including monolithic, frame and tile, is a generic term for panels, work-surfaces, shelves, and other items sold by a single manufacturer as a package for furnishing offices. Cubicles are the items most often associated with system furniture, but other open plan arrangements such as office landscapes are included.

4. Authority Cited: 10 United States Code. 2304(c)(1), as implemented by FAR 6.302-1(c) — Only One Responsible Source and No Other Supplies Will Satisfy Agency Requirements (Name Brand Justification).

5. Reason for Authority Cited: The particular Haworth brand name is essential to the Government’s furniture requirement and market research indicates other companies similar products do not meet Agency needs and cannot be modified to meet Agency needs. As the Haworth brand furniture and office systems are the sole systems utilized within the NGB locations, the only products that can meet agency needs are Haworth products. Supporting this assessment are the below areas.

a. Functional Compatibility with Existing Furniture. From a functional perspective, only Haworth brand products are fully compatible with the Government existing Haworth furniture. Specifically, Haworth furniture systems consist of multiple interlocking parts that are only compatible with other Haworth furniture. The Government is not able to accept equivalent parts/systems as they are not compatible with all existing furniture within the NGB facilities.

b. Design Compatibility with Existing Furniture. Similarly, the Government’s market research indicates that only Haworth brand products are compatible with the Government’s existing Haworth furniture from a design and appearance perspective. Specifically, only Haworth furniture systems have matching panels, desktops, windows and other components that are visually consistent with existing furniture. Utilizing other brands would result in a patchwork of different furniture that is not consistent, physically compatible or aesthetically appealing. A brand-specific

c. Impacts of Managing Multiple Furniture Inventories. The Government has an inventory of existing Haworth furniture stock that will be available for use on future projects. The Government-owned Haworth components currently in stock are worth approximately $500,000.00 and their repurposing under this IDIQ results in savings to the Government. To manage multiple furniture systems would introduce unnecessary logistics and cost burdens associated with multiple furniture systems. For instance, with multiple brands, the Government would have to procure multiple sets of desktops, connectors, conduit, lower panel, glass panels, drawer sets, etc. Any savings received through competition that introduces a new brand would likely be offset by the additional costs associated with maintaining multiple inventories.

6. Efforts to Obtain Competition: Initially, the requirement was directed to the Federal Prison Industries (UNICOR) as the mandated source for supplies. UNICOR issued a waiver for the Haworth furniture systems initially in 2017 and reconfirmed the continued validity of the waiver in 2018. A total of one (1) Haworth manufacturer authorized dealer was identified for the Arlington, Virginia regional area which was verified by the Haworth company headquarters.

Only six vendors in the region are handler/installer Haworth vendors for the regional area. For projects that require only installation of Haworth products, there are currently eight (8) companies (see table) in the Metropolitan Washington DC market (out of approximately 30 companies) that are currently certified to install Haworth furniture. As the sole authorized dealer/distributor for Haworth in the region, Price Modern manages the review and approval process to allow third party contractors to become certified installers with final approval by Haworth. This certification is reviewed on an annual basis and renewed every three years.

Efforts to obtain competition will be accomplished through analyzing long-term TARC and ANGRC construction and renovation plans to determine if new buildings/structures could be supported by other furniture supplies. Although the current TARC and ANGRC furniture systems are Haworth specific, any new stand-alone structures or complete building renovations could open up the ability to utilize other than Haworth systems.

7. Actions to Increase Competition: The Government issued a sources sought on Dec 28, 2018 to determine if additional sources capable of proposing for this Haworth-specific furniture requirement were available. The Government also posted the synopsis for this IDIQ requirement on February 27, 2019 to outline the requirement and the proposed method of procurement.

8. Market Research: Market research was conducted by examining historical contracts, industry trends, Federal Supply Schedules, industry experts and by seeking response to the most recent SBA small-business award under W9133L-18-F-2000. Market research has identified one

(1) authorized Haworth regional dealer for the Arlington, VA area and six (6) Haworth, System for Award Management, and DUNS certified and listed handler installers who can provide proprietary Haworth furniture, design and installation respectively when required. Price Modern is the only dealer/distributor authorized by the Haworth Company to provide Haworth furniture products in the D.C. Metropolitan area.

10. Other Facts:

a. Procurement History: The awards prior to this proposed IDIQ acquisition were project-specific and of a limited duration. There are no previous or current contracts that cover the full range of NGB furniture supply needs. Historical awards for furniture are outlined below.

W9133L-19-P-2003, 8(a), Elocen, Award W9133L-18-F-2000, SB, Price Modern, Award 18Sep18

* W9133L-17-F-2Y09, 8(a), Omnifics, Inc., Award 30Sep17

* W9133L-17-C-0025, 8(a), Omnifics, Inc., Award date 29Sep17

* W9133L-16-P-0018, 8(a), Omnifics, Inc., Award date 29Jun16

* W9133L-16-P-0008, 8(a), Omnifics, Inc., Award date 25Apr16

* Terminated for cause and no longer a Haworth authorized dealer.

b. Acquisition Data Availability: N/A

c. Subcontracting Competition: N/A

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.

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this IDIQ contract with subsequent task order initiation action(s) will be fair and reasonable based on comparison to previous and current contract actions for similar requirements.

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

Approval

Based on the foregoing justification, I hereby approve J&A NGB Control No. 20-001 procurement of the Haworth system furniture on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1) & FAR 6.302-1(c), subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.