99--OPEX Mail Extraction Machines Maintenance Service

NOTICE OF INTENT TO SOLE SOURCE VA310-13-C-0035 OPEX Mail Extractor (Model 50) Preventative Maintenance and Repair Service This is a special notice, notifying, and the intent to sole source a contract with the OPEX Corporation, for commercial items prepared in accordance with the information in FAR Subpart 12.6, using Simplified Acquisition Procedures and as supplemented with the additional information included in this notice. This announcement constitutes the only notice; a written notice will not be issued. This notice SHALL be posted on FEDBIZOPPS. The NAICS code 333313 is and the Small Business Standard is 1,000 employees. The clauses are those in effect through Federal Acquisition Circular (FAC) 2005-66, effective 01 Apr 2013. The proposed contract action is for commercial supplies or services for which the Government intends to solicit and negotiate with only one source under the authority of FAR 13.501(a)(1)(ii). Interested persons may identify their interest and capability to respond to the requirement or submit proposals. This notice of intent is not a request for competitive proposals. However, all bids, proposals, or quotations received by the closing response date will be considered by the Government. A determination by the Government not to compete with this proposed contract based upon responses to this notice is solely within the discretion of the Government. Information received will normally be considered solely for the purpose of determining whether to conduct a competitive procurement. A justification for other than full and open competition has been prepared (attached). This procurement is for the purchase of preventive maintenance and repair service, for five OPEX mail extraction machines. This purchase is being conducted under authority FAR 6.303-1. The Government intends to award a firm fixed price contract as a result of this action. The period of performance is 10/01/13 through and including 09/30/2014, with four option years. The place of performance is 5000 Wissahickon Avenue Philadelphia PA, 19144. This announcement will close at 5:00pm eastern standard time on 06/28/2013. Contact Michael Sherick who can be reached at contact@example.gov. A determination by the Government to not compete this proposed effort on a full and open competitive basis, based upon responses to this notice is solely within the discretion of the Government. Oral communications are not acceptable in response to this notice. All responsible sources may submit a quote which shall be considered by the agency. DEPARTMENT OF VETERANS AFFAIRS Justification and Approval For Other Than Full and Open Competition VA310-13-C-0035 OPEX Mail Extraction Machine(s) Maintenance Contracting Activity: This justification is for the issuance of a contract, to be completed under an other than full and open competition basis. This action is in support of The Department of Veterans Affairs, Veteran Benefits Administration, (Philadelphia), Insurance Center, Regional Office. Purchase request 310J35021, OPEX Mail Extractors Maintenance Agreement. Nature and/or Description of the Action Being Processed: This action is for the procurement of maintenance service associated with Philadelphia's OPEX Mail Extractor Machines. There are a total of five machines located within Philadelphia's mail room. This action is for a new firm fixed priced contract, with four option years. The proposed contract number will be VA310-13-C-0035. This requirement is not available for purchase off GSA advantage. The maintenance service shall cover all labor and replacement parts necessitated by normal wear and tear form operation of the equipment, Twelve Preventive maintenance service calls, and unlimited on demand calls. The contractor for this purchase is OPEX Corporation, DUNS # 067380386 and the estimated value is $14,784 for the base year, with a 5% increase for each option year, for a total cost of $82,120.00. The length of the contract is to be one base year and four option years, for a total of five years. The government would like to include four option years, with the anticipation of the equipment's life expectancy lasting beyond the base year. The estimated award date is July 01, 2013. Description of Supplies/Services Required to Meet the Agency's Needs: This procurement is for maintenance service, on five OPEX Mail Extractor Machines, Model number 50's. The maintenances shall cover all labor and replacement parts necessitated by normal wear and tear form operation of the equipment, twelve preventive maintenance services calls (in accordance with original manufactures specifications), and unlimited on demand calls. The total estimated value, for a base and four option years, is $82,120.00. This requirements period of performance is from October 01, 2013 through and including September 30, 2014. Each option shall correspond with following years, ending September 30, 2018. Statutory Authority Permitting Other than Full and Open Competition: The Statutory authority permitting this action is FAR 6.302-1 only one responsible source and no other supplies of services will satisfy agency requirements. Demonstration that the Contractor's Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): OPEX Corporation is the original manufacture of this equipment. They have positioned themselves to be the sole providers of maintenance service on their model 50 mail extractors. Because they're the manufacture, they control all equipment and replacement parts. OPEX Corporation is the sole source for sales, parts, and service on its equipment. No third party has been authorized to act on the behalf of OPEX. All equipment support, replacement parts are handled directly through the OPEX world headquarters in Moorestown, New Jersey. The Philadelphia Veterans Benefits Administration currently has these machines working within their mailing operations. These machines are an important function, and are functioning within a productive manner. Consideration had been given on the cost associated with procuring new machines. Research determined that the cost of purchasing new machines, therefore allowing for competitive quotes, would exceed the cost of maintenance on the current machines. Furthermore, expected delays would be encountered providing for unacceptable interruptions in Philadelphia mailing operations. The current machines were purchased in the past, under another contract, and continue to work as required. Replacing the machines, without them malfunctioning, would extended substantial duplication of cost to the Government. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A sources sought synopsis was not issued, as the original manufacture was contacted (OPEX). They have provided a (signed) sole source letter, informing of their position as the only provider of this maintenance service. They also indicated they do have a GSA schedule, with the model 50 mail extractors on its price list, but it's only for purchase of equipment, and doesn't support maintenance. Before the issuance of a contract, a special notice will be issued on FBO, informing the commercial market of the intent to sole source this requirement to OPEX. Vendors who can satisfy this requirement will be encouraged to provide quotes, which will be evaluated, and considered if applicable. Determination by the Contracting Officer that the Anticipated Cost to the Government will be fair and Reasonable: It's always the intent of the procuring contract specialist to award a contract with fair and reasonable pricing. In order to do so, on this action, because this requirement is unique to one vendor, price comparisons will be used. Prices from other vendors for similar maintenance services will be used. In addition, the original purchase price will be compared to insure the cost of its maintenance support reflects what the government would expect to pay, within industries standards of the same or similar requirement. ? Description of the Market Research Conducted and the Results or a Statement of the Reasons Market Research Was Not Conducted: Market research was conducted in accordance with FAR Part 10. GSA advantage was searched for purchase availability, and the original manufacture was contacted to gain commercial catalogs and price lists. The GSA advantage search did not reveal any sources available, and a phone conversation with OPEX's representative, John Aversa, concluded that OPEX was the only provider of this maintenance service, and OPEX did not have it on GSA schedule (See Sole Source letter from OPEX). Alternate equipment was discovered, both open market and GSA, but it was concluded that purchasing new equipment is not advantageous to the government's needs. Any Other Facts Supporting the Use of Other than Full and Open Competition: There are no other facts. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: No sources expressed their interest in this acquisition. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to Competition before Making subsequent acquisitions for the supplies or services required: The continuation of monitoring the usefulness of these machines will continue. As these machines draw closer to end of life, acquisition planning will consider new machines, and how those machines will be supported. Also, OPEX's business strategy will be evaluated (before exercising options) to insure they are not offing other service providers' access to their replacement parts, or that their proprietary diagnostic software patents and copyrights have not expired, giving market entry to competitors. If this occurs, options will not be exercised, and a new contract will be competed. Requirements Certification: I certify that the requirement outlined in this justification is a Bona Fide Need of the Department of Veterans Affairs and 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. _____________________________ ________________________ Name: Jennifer Lipshultz Date Title: Insurance Specialist Facility: Philadelphia VAROIC ? Approvals in accordance with FAR 6.304 a. Prepared By: I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief. _____________________________ ________________________ Name: Michael Sherick, CFCM Date Title: Contract Specialist Facility: VBA Eastern Area Contracting Team b. Contracting Officer's Certification: (required) I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief. _____________________________ ________________________ Name: Bonnie Robison Date Title: Contracting Officer Facility: VBA Eastern Area Contracting Team