J074--NEOPOST MAIL RM PM EQUIPMENT SERVICE Limited Source Justification

Memorandum Department of Veterans Affairs Date: 3/23/2022 From: Acquisition Division, Eastern District Team Subj: Rev_Limited Source Justification, QUADIENT, Mail Room Equipment Maintenance. To: eCMS Briefcase Tag P03, FAR 8, Limited Sources Justification Orders Transaction #: Acquisition Plan: 36C10E-22-AP-0159 IPR: F36B307-22-0000011 This acquisition is conducted under the authority of Multiple Award Schedule Program (MAS). The material or service is a sole source, therefore, consideration of the number of contractors required by FAR Subpart 8.4 Federal Supply Schedules is precluded for the reasons indicated below. Restricted to the following Source: MAS Contract# 47QSMA20D08QV, QUADIENT, INC., 478 Wheelers RD, Milford, CT 0646461-9105, (281) 928-7116, s.graham@quadient.com, http://www.quadient.com. SAM UEI W6GHEB8CZQS1. Company is a large business. NAICS 811212 PSC J074. Manufacturer/Contractor: NEOPOST is now Quadient. Change of ownership took place on 23 September 2019. MAS Contract# 47QSMA20D08QV, QUADIENT, INC., 478 Wheelers RD, Milford, CT 0646461-9105, (281) 928-7116, Stacey Graham s.graham@quadient.com, http://www.quadient.com. SAM UEI W6GHEB8CZQS1. Company is a large business. QUADIENT Provided a proprietary letter dated 10 March 2022 indicating that QUADIENT maintains their rights and ownership to sell and supply parts to factory trained authorized representatives. The channel partner for QUADIENT for Erie County, Buffalo NY is Trust Lineage, they are the ONLY authorized QUADIENT factory trained representative for QUADIENT. Trust Lineage is a large business. QUADIENT Inc., is one of four vendors awarded the rights to maintain the postage meter rate header on the QUADIENT equipment. of equipment and is owned and regulated by the United States Postal Service and QUADIENT INC., is one of for companies authorized to serve as a vendor for USPS postage meters. The request service represents the minimum requirements of the Government. ( i) Agency: Department of Veterans Affairs Veterans Benefits Administration Support Services Division 130 South Elmwood Avenue Buffalo NY 14202 ( ii) Contracting: Department of Veterans Affairs Veterans Benefits Administration Office of Acquisition (20MA) 1800 G Street N.W. Washington DC 20006 NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED: This procurement is to continue maintenance services on existing mail room equipment IS6000BC Base 300 LPM (MA 1625001058) IS5000 Mixer Mail Feeder (MF 1625003424) IS6000 Large Control Panel (MC 1628000326) IS5000 IS6000 Dynamic Weighing Module (MS1625000731)IS 4, 5 6 Series 70lb Weigh Platform (281604007521) IS5000 IS6000 Exp Conv Stacker (D161961) S172 Neopost Station Folder Inserter (E 153801)5050 Neopost Letter Opener (55050) 5001 Friden Alcatel Letter Opener (015514) Monthly Cost will include: Onsite Repair or Replacement Service-quote attached Preventative Maintenance- 2 times a year. You would need to call to have a tech come out. Equipment Training hourly rate is 380.00 for first hour, then every ¼ hour Response Time Commitment- 2 hour call back, 4-hour response time QUADIENT Inc. is the manufacturer of the mailing equipment, formerly NEOPOST. The services requested include a total monthly cost for: Onsite Repair or Replacement Service-quote attached Preventative Maintenance- 2 times a year. To be scheduled by RO 307 POC to have Trust Lineage tech schedule and respond. Equipment Training hourly rate is 380.00 for first hour, then every ¼ hour. Response Time Commitment- 2 hour call back, 4-hour response time. (a) Description of Services: To procure a maintenance service contract on a Pitney Bowes DI950 Mail Inserter which is VA Owned for the Department of Veterans Affairs (VA) Buffalo Regional Office. The estimated value of the proposed action is $15,000.00 per year or 75,000.00 for five years Estimated start date is 4/1/2022 ( Base Year) In accordance with FAR 8.405-6(a) 1(B), a task order will be issued against the current applicable GSA FSS of the Multiple Award Schedule Program, Title III of the Federal Property and Administrative Services Act of 1949 (41 USC 251, et seq.); Title 40 USC 501, Services for Executive Agencies; and Section 803 of the National Defense Authorization Act of 2002 (PL 107-107) and implemented by FAR 8.405-6. The proprietary equipment rights and ownership to supply/sell parts and trained service representatives is reserved and owned by QUADIENT. Since the government prefers to only award repair or maintenance contracts to authorized repair shops. The authorized service provider in Buffalo New York is Trust Lineage, who is designated as a large business. Buffalo, NY Veteran Benefits Administration (VBA) Regional Office (RO), Support Services Division (SSD) has the existing inventory in place and the equipment is government owned. QUADIENT will provide the requested repair and maintenance in accordance with the terms and conditions of their MAS GSA FSS 47QSMA20D08QV through Trust Lineage. QUADIENT is the only company that can provide factory trained employees and repair parts on the equipment if needed as mentioned in paragraph 1 in accordance with FAR Part 6.302-1(b)1(i). Having the equipment serviced by the manufacture and is required as previously stated the postage meter was awarded to QUADIENT by USPS as it is a regulated device. This action is in the best interest of the VA as without having this equipment in working condition will experience substantial delays in providing mail services to the staff and veterans in a timely manner. The equipment is an essential element of Buffalo s RO mailing operations. In accordance with FAR 8.404 (d) the order will represent the overall best value. A comparison to previous contract and prices of similar services, although ordering activities are not required to make separate determination of fair and reasonable pricing, except for a price evaluation as required by FAR 8.405-2(d). This is not a brand name ITEM. This is a Service provided by QUADIENT Inc. and is not available through any other GSA schedule holder. Posting to E- Buy will not result any additional quotations beside the one expected from QUADIENT. Therefore, the posting requirement is N/A and FAR 8.405-6(a)(2) is being followed. The value of the acquisition is below the Simplified Acquisition Threshold (SAT). Market Research was conducted via GSA and schedule were viewed but determination was no other GSA Holder could perform these types of services without QUADIENT authorization. QUADIENT maintains their own staff and inventory of replacement parts is for QUADIENT equipment. The Contracting Officer spoke with Stacy Graham, 281-928-7116 of QUADIENT and requested a proprietary confirmation from QUADIENT formerly NEOPOST mailing equipment and services provided. Other Pertinent Facts than the facts provided within this justification. The existing equipment is government owned. There are three pieces of equipment, specifically models 5001, 5050 and SI72 which are obsolete and quote to be submitted by QUADIENT will not include cost to repair they are obsolete ( end of life) . RO 307 SSD has been aware of these obsolesced pieces of equipment and has elected to not yet seek replacement and disposal of these items. The postage meter will be paid for via PCard in accordance with quoted price submitted for each year and the cost is not a part of the eventual Task Order for maintenance services stated in par 2 above. There is no warranty therefore it is NOT mentioned. A warranty would apply if action was a first-time purchase, and the time period is only for 90 days at time of purchase or a lease. USPS regulates the postage meter rates and they assigned the rights to maintain their header in QUADIENT mailing machines. USP awarded only four no other OEMs to maintain their postage rate meter in their equipment. RO307 SSD did conduct their own market research and decided to keep current inventory by requesting a service contract to keep the active equipment in full and compliant operating status. REQUIRMENTS CERTIFICATION: I certify that the requirement outlined in this justification can only be provided by QUADIENT Inc., a large business and their Erie County, Buffalo New York , QUADIENT factory trained channel partner. Trust Lineage, also a large business is the only representative authorized to acquire parts and perform maintenance on existing mail room equipment for the Department of Veteran Affairs, Support Services Division in Buffalo New York, and that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge. I understand that processing of this limited sources justification restricts consideration of Federal Supply contractors to fewer than the number required by FAR Subpart 8.4. Monica Benz Chief, Support Services Division North Atlantic District In accordance with FAR 8.405-6 ( a) (1) (B) Only one source is capable of providing the services required at the level of quality required supplies and services are proprietary to QUADIENT Inc. In accordance with FAR 8.405-2 (c) ( 2) ( ii) SDVOSB/VOSB is dissolved and as certified in par 9 above. Raymond Tracey Contracting Officer Acquisition Division Easter District Contracting Team