A03-LSJ-Waiver-Fair-Opp-over- 150K.pdf

Control No. 14-29

LIMITED SOURCE JUSTIFICATION UNDER FAR 8.405-6

OR

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY UNDER FAR 16.505

1a. Contracting Agency/Activity: U.S. Army Contracting Command, Aberdeen Proving Ground, , Adelphi Contracting Division, ATTN: CCAP-SCA, 2800 Powder Mill Road, Adelphi, MD 20783-1197.

1b. Requiring Agency/Activity: U.S. Army Research Laboratory (ARL), 2800 Powder Mill Road, Adelphi, MD 20783-1197. Estimated value of this procurement is: $351,093.69

2. Description of Action (put an X in the space provided where applicable):

Nature: New Requirement X Follow-on Requirement

Mod to Existing Order Number (Insert task/delivery order no. : )

Order against: FSS Contract Number(fill-in):

OR

X Multiple Award ID/IQ Contract Number: W91QUZ-06-D-0002-1Y37

Contract Type: Firm Fixed Price

For Hybrid Contracts, list type and percentage of each type of pricing:

Type: Percentage: %

Funds: Operations and Maintenance, Army (OMA)

X Other Funds: Army R&D Funds

Fiscal Year of Funds: Fiscal Year (FY) 2014-2015

SUGGESTED SOURCE(s)

Name of Proposed Contractor: Dell Federal Systems LP

Street Address: 1 Dell Way

City, State, Zip: Round Rock, TX 78682-7000

Phone: 800-727-1100 x37010

3. Description of Supplies or Services:

The estimated value of the proposed action is $351,093.69

3.1 Supplies: The supplies to be provided under this delivery order are Dell desktop computers, workstations, laptops and monitors for employees located at ARL’s major operating locations and field sites (see Table 3.1). These assets were acquired under a three (3) year full payout lease (ARL will own the assets at the end of the lease period) and this award is for part of the original three (3) -year period from 16 April 2014 to end on 15 August 2014. A follow-on contract will be awarded for the period of 16

August 2014 to end on 15 January 2015. The supplies under this contract have already been delivered and are in place at ARL, pursuant to the previous Phase 17 contract, W91QUZ-06-D-0002-1Y34.

Table 3.1

CPU Type

A

L

C

A

P

G

WS

MR

A

R

O

Ot her

To tal

Desktop

Optiplex 790

1 15 1 0

Precision T1600 88

2 58 41 0

Desktop Sub Total:

3 73 42 0

Workstations

Precision T7500 60 88 16 0 0

Laptops

Latitude E6320 60 37 2 7 10

Latitude E6520 78 74 3 6 8

Precision M6600 11 25 8 0 1 45

Laptops Sub Totals:

6 13 13 19

Total

7 102 55 19

Extra Monitors

A

L

C

A

P

G

WS

MR

A

R

O oth er

To tal

22" Monitor 65 62 11 0 0

24" Monitor 63 65 0 0 8

30" Monitor 3 1 0 0 0 4

Extra Monitor Sub Total:

8 11 0 8

Grand Total

5 113 55 31

3.2 Services: This is a follow-on contract of the exact same services provided by Dell under the same

CHESS contract for Phase 17 of the Dell PC Lease Program. The services provided by the Contractor under this delivery order from 16 April 2014 through 15 August 2014 include: 1. Custom Asset Tagging, Barcoding, and Reporting, 2. Dedicated Project Management during the shipping and delivery, 3. Custom

Delivery Services (Consolidated Shipping), and 4. Next-Business Day Repair Services.

3.2.1 Custom Asset Tagging and Barcoding Services. Future shipments may be required for items needed from repairs or warranty replacement under this contract. For future shipments, the Contractor shall produce and attach customized asset tags and barcodes to shipping boxes, computers and monitors.

The asset tags and barcodes are customized and shall be applied to the computers at the Contractor’s factory in accordance with ARL Logistics labeling requirements. This service provides a cost savings to

ARL because it reduces the physical handling of boxes (touch labor) in the warehouses, automates the inventory process, and streamlines the assignment, delivery and issuance of PCs and workstations to ARL employees.

3.2.2 Dedicated Project Manager (PM) Services. Future shipments may be required for items needed from repairs or warranty replacement under this contract. For future shipments, the Contractor shall provide a dedicated Contractor PM during the production, preparation, shipment and delivery of PCs to

ARL’s four (4) major operating sites and dozens of CONUS field elements. This will allow ARL to efficiently and effectively track PC locations and shipping status. The Contractor PM shall orchestrate the timely delivery of PCs and provides ARL with a single point of contact for requesting the status of equipment shipments, tracking and delivery.

3.2.3 Custom Delivery Services (Consolidated Shipping). Future shipments may be required for items needed from repairs or warranty replacement under this contract. For future shipments, the Contractor shall ensure that PCs, monitors and peripherals are consolidated, shipped and arrive at ARL warehouses as complete systems and not shipped piece-meal. When ordering PCs, many vendors purchase components and peripherals from multiple third-party vendors and ship them individually to the final shipping destination. This creates a tremendous amount of touch labor in the logistics’ warehouses and work for an organization’s logistical operations due to the sorting, consolidation and inventorying of multiple pieces of equipment. When using the Custom Delivery Service, the Contractor consolidates all components of the order and ships them as one complete system on a single pallet, thus reducing the logistical workload at

ARL’s receiving warehouses. Advanced email notifications, containing detailed computer and shipping information, are also sent by the Contractor when PCs are shipped from the merge center and again when they are delivered to the destination warehouses. The advanced email notifications allow the ARL

Corporate Information Office (CIO) and Logistics personnel to prepare hand receipts and Help Desk PC installation tickets in advance, greatly improving the timeliness of PC deliveries and installations.

3.2.4 Next Business Day Repair Services. Under the warranty agreement, the Contractor shall provide next business day, onsite repair services for the duration of the contract. This service is crucial to ensure that ARL’s employee productivity is not degraded due to the effects of extended computer downtime. To ensure the quickest response time to remediate hardware failures, the Contractor shall pre-position spare parts at ARL’s four (4) major operating locations.

4. Authority (put an X next to all that apply):

ORDER AGAINST FSS: Title 40 USC 501, Services for Executive Agencies; and Section

803 of the National Defense Authorization Act of 2002 (PL 107-107); and FAR 8.405-6. Mark the applicable exception:

Item peculiar to one manufacturer (e.g. brand name item, product, or feature of a product peculiar to one manufacturer (FAR 8.405-6(b)).

Limit consideration to fewer than three (3) schedule contractors (FAR 8.405-

6(a)(1)). In accordance with DFARS 208.405-70(b), mark the applicable exception:

A statute expressly authorizes/requires that purchase be made from a specified source [DFARS 208.405-70(b)(1)]

Urgent agency need precludes fair opportunity [FAR

16.505(b)(2)(i)(A)]

Only one awardee is capable because supplies or services are unique or highly specialized [FAR 16.505(b)(2)(i)(B)]

Logical follow-on, in the interest of economy and efficiency, to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order [FAR

16.505(b)(2)(i)(C)]

OR:

X ORDER AGAINST MULTIPLE AWARD ID/IQ CONTRACT: Section 803 of the

National Defense Authorization Act of 2002 (PL 107-107), FAR 16.505(b)(2) and DFARS

216.505-70(b), The contracting officer shall give every awardee a fair opportunity to be considered for a delivery/task order. Mark the applicable exception:

A statute expressly authorizes/requires that purchase be made from a specified source [DFARS 216.505-70(b)(1)]

Item peculiar to one manufacturer (a particular brand-name, product, or a feature of a product that is peculiar to one manufacturer) [FAR16.505(a)(4)].

Urgent agency need precludes fair opportunity

[FAR16.505 (b)(2)(i)(A)]

Only one awardee is capable because supplies or services are unique or highly specialized [FAR 16.505(b)(2)(i)(B)]

X In the interest of economy and efficiency, the order is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order [FAR

16.505(b)(2)(i)(C)]

It is necessary to place the order to satisfy a minimum guarantee [FAR

16.505(b)(2)(i)(D)]

5. Rationale/explanation to support cited authority: This order is issued in the interest of economy and efficiency, and also constitutes a logical follow-on to previous orders with Dell Federal Systems LP. Currently, the computers covered under this contract with Dell are located at ARL and are being used throughout its facilities, although there is currently no contract in place. This would have been the third year for the Dell Phase

17 lease, after which ARL would own the computers, but the second option year was not exercised prior to the expiration of the contract. A ratification is being processed for the unauthorized period of January 16, 2014 to

April 16, 2014, at which time the Contracting Officer authorized Dell to provide equipment under this prospective effort. At this point, switching vendors would not be in the best interest of the Government. The

Government is already obligated to pay Dell for the period of time during which the computers have remained in its possession. Additionally, to return the computers and seek replacements from a different vendor would result in a large fee owed to Dell. Due to the financial burdens that would be created otherwise, going with another vendor is not in the Government’s best interest, due to still owing Dell the remaining funds from the

Phase 17 lease.

6. Market Research: No market research was conducted for this effort because the Government remained in possession of the Dell computers from the previous Phase 17 contract, W91QUZ-06-D-0002-1Y34.

Option 0002 under the Phase 17 contract was not extended prior to expiration which caused an unauthorized commitment. Remaining with Dell in this situation provides the best interest to the government due to having the existing equipment from the previous Phase of the lease program, which is still efficient for use.

7. Actions to Increase Competition: No efforts were made to increase competition for this contract because the Government made an unauthorized commitment to Dell before this prospective contract could be put in place. This unauthorized commitment makes competing this current acquisition infeasible because the Government owes Dell twelve (12) months of payments (three (3) months will be paid under the ratification process). However, the Government plans to re-compete this requirement at the end of this contract.

8. Any other facts supporting the justification: A contract was awarded to Dell Federal Systems LP on 23

December, 2011, for Phase 17 of the Dell PC Lease Program under a CHESS delivery order with contract number W91QUZ-06-D-0002-1Y34. The justification for the original Phase 17 contract was based on FAR

16.505(b)(2)(i)(C) -- The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract. That delivery order contained a base (17 January 2012 thru 16 January 2013) with two option years, which in total would carry out the three (3) year lease program, at the end of which ARL would own the computers. The first option year was exercised on

17 January 2013, under the contract number W91QUZ-06-D-0002-1Y3402. In order to exercise the second option year of the contract, the Government must have done so before the expiration date of the prior contract.

Although the Government intended to exercise the second option year, it failed to do so before the contract expired on 16 January, 2014. The period of time between when the previous contract expired and when this contract goes into effect constitutes an unauthorized obligation by the Government and will require ratification and is being processed separately. This contract is to fulfill the requirements in lieu of the remainder of Option

2, which did not get extended in time.

9. Technical / Requirements Certification: I certify that the supporting data under my cognizance which is included in this limited sources justification is accurate and complete to the best of my knowledge and belief.

Signature: {tech}

Name: {tech.capturename}

Title: Technical Certifier (Tech) [Division Chief or higher]

Date: {tech.date}

10. Contracting officer’s determination that the order represents best value (FAR 8.404(d) or FAR

16.505(b)(5)), to include the basis for determination of a fair and reasonable price per FAR 15.402:

Signature: {ko}

Name: {ko.capturename}

Title: Contracting Officer (KO)

Date: {ko.date}

11. Review: I have reviewed this justification and have no legal objection.

Signature: {legal}

Name: {legal.capturename}

Title: Legal Advisor

Date: {legal.date}

12. Approval: I hereby certify that this limited source justification is accurate and complete to the best of my knowledge and belief. Based on the foregoing, I approve this limited source justification subject to availability of funds, and provided that the services and supplies herein described have otherwise been authorized for acquisition.

Signature: {ko}

Name: {ko.capturename}

Title: Contracting Officer (KO)

Date: {ko.date}