Loren Data's SAM Daily™

FBO DAILY ISSUE OF NOVEMBER 07, 2009 FBO #2905
SOLICITATION NOTICE

70 -- AOP Printers and Inserters

Notice Date

11/5/2009
 

Notice Type

Justification and Approval (J&A)
 

NAICS

511210 — Software Publishers
 

Contracting Office

Other Defense Agencies, Defense Finance and Accounting Service, Contract Services Directorate, Columbus, 3990 East Broad Street, Bldg #21, Room 2B218, Columbus, Ohio, 43218
 

ZIP Code

43218
 

Solicitation Number

KDDA9AV152
 

Archive Date

11/29/2009
 

Point of Contact

Stephanie Smith, Phone: 614-693-5574, Alan K. Luich, Phone: 614-693-8991
 

E-Mail Address

stephanie.smith@dfas.mil, alan.luich@dfas.mil
(stephanie.smith@dfas.mil, alan.luich@dfas.mil)
 

Small Business Set-Aside

N/A
 

Award Number

HQ0423-10-C-0003
 

Award Date

10/30/2009
 

Description

Reference: Test Program for Commercial Items (Section 4202 of the Clinger-Cohen Act of 1996) or the authority of the Services Acquisition Reform Act of 2003 (41 U.S. C. 428a) as stated in FAR 13.501(a) (1) (ii), which states for acquisitions over $100,000.00 using the authority of the test program for commercial items, the contracting agency is required to prepare a sole source (including brand name) justification using the format at FAR 6.303-2, as provided below. 1. Contracting Office – Defense Finance and Accounting / Contract Services Directorate, DFAS Columbus. 2. Type of Contract Action – The proposed contract type is an open market sole source contract to JD Donahue & Associates (JDDA) using simplified acquisition procedures under the authority of FAR Part 13.501 in conjunction with FAR Part 12, Acquisition of Commercial Items. 3. Description of Supplies/Services – The requirement is for the contractor to serve as the integrator of a major upgrade to the existing DFAS check printing and handling systems. Advice of payment (AOP) printers, and document inserters have exceeded their expected useful life and can no longer be supported by the manufacturer. The existing cutters are currently serviceable but must be refurbished if they are expected to function through out the life cycle of the new AOP printers and document inserters. The existing check printing and handling systems consist of multiple pieces of equipment to include check printers, loop/web controllers, unwind units, AOP printers, document inserters and postprint verification equipment. The list below represents some of the major systems generating payment files. SRD1 STANFINS REDESIGN SUBSYSTEM 1 DDS DEPLOYABLE DISBURSING SYSTEM ADS AUTOMATED DISBURSING SYSTEM CDS COMBAT DEVELOPMENT SYSTEM MOCASMECHANIZATION OF CONTRACT ADMINISTRATION SERVICES EBSENTERPRISE BUSINESS SYSTEM IATSINTEGRATED AUTOMATED TRAVEL SYSTEM DTSDEFENSE TRAVEL SYSTEM RTSRESERVE TRAVEL SYSTEM DCPSDEFENSE CIVILIAN PAY SYSTEM DJMSDEFENSE JOINT MILITARY PAY SYSTEM MCTFSMARINE CORPS TOTAL FORCE SYSTEM DRASDEFENSE RETIRED/ANNUITANT PAY SYSTEM CAPSCOMPUTERIZED ACCOUNTS PAYABLE SYSTEM IAPSINTEGRATED ACCOUNTS PAYABLE SYSTEM Services to be purchased include are the acquisition, configuration and modification of new AOP printers, integrated document stackers, and document inserters, as well as refurbishing the document cutters and modification of other existing hardware and software interfaces to integrate the new components into the existing system. Additionally, this requirement includes the installation of the new components and training for equipment operators. All of the included equipment and services must be fully integrated by JDDA due to the custom nature of the configuration and the interdependency of all of the hardware, interfaces, and the proprietary JDDA software. JDDA is the only supplier that has all of the knowledge to properly install and configure the equipment being purchased. Total estimated price for the procurement is $X,XXX,XXX.XX. 4. Authority Cited – 10 U.S.C. 2304 (c) as stated in FAR 6.301. FAR 6.302-1 permits contracting without providing for full and open competition if supplies are from a limited number of sources and no other type of supplies or services will satisfy agency requirements. The specific exception that applies to this acquisition is FAR 6.302-1(a) (2)(ii), “Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including the major components thereof, when it is likely that award to any other source would result in : (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition, or (B) Unacceptable delays in fulfilling the Agency’s requirements (se 10 U.S.C. 2304(d)(1)(B). 5. Reason for Authority Cited –The check printing and document handling process is comprised of integrated, highly specialized hardware and software developed as a joint venture by DFAS, JDDA, and hardware manufacturers over a period of time exceeding 20 years. The printing and processing capabilities of the system are made possible by the integration of hardware, software and firmware customized for DFAS printing and processing requirements by JDDA and the equipment manufacturers. Unlike most mid volume check printing operations, DFAS check printing and handling systems must accept files from multiple disbursing and entitlement systems, each providing files in a different format. Specialized software has been developed to receive multiple check file formats and output the data to a U. S. Treasury approved print format. The proprietary software was designed and developed by JDDA and has been maintained by JDDA for over 20 years during which time, no competitive applications have been identified. In order to integrate replacement hardware into this processing system, JDDA must ensure that the replacement hardware and operating systems are fully compatible with their proprietary software and existing DFAS hardware. Since the software is proprietary, JDDA is the only source for these integration services. DFAS currently uses EagleVision printers, MADS software, EagleVision Post Print Verification (PPV) equipment and software interfaces supplied by JDDA. JDDA is the proprietary owner of source code for two critical software pieces of the configuration, EagleVision (controls entire printing process of the EagleVision printer) and MADS (formats all DFAS data files for both checks and documents). JDDA has specific proprietary interfaces consisting of electronic circuit boards, programmable logic controllers, firmware, and hardware. Any new hardware must be fully compatible with the existing hardware and proprietary interfaces. Only JDDA has the knowledge and access to the MADS and EagleVision software necessary to determine hardware compatibility. No other source can determine the appropriate equipment required or integrate the new hardware and resident operating system into the configuration without specific knowledge of and modification of software code within the system. The combined efforts of DFAS, JDDA, and the equipment manufacturers created the current printing/inserting system. JDDA in conjunction with DFAS and the manufacturer of the new customized equipment will ensure that the configuration meets all necessary specifications. The equipment purchased is not standard commercial off the shelf (COTS) equipment, rather it is customized hardware configured jointly by DFAS, JDDA, and the manufacturer. JDDA is the proprietary owner of the MADS software that integrates the various components of this system. JDDA recommends the appropriate hardware, based on least impact to existing system, in terms of required modifications and overall cost. 6. Efforts to Obtain Competition – This is a sole source requirement, for reasons stated in paragraph 5 above. No other source is capable of satisfying this requirement. The notice of intent to award on a sole source basis will be posted to FedBizOpps prior to award. In accordance with OUSD memorandum, “Public Disclosure of Justification and Approval (J&A) Documents for Non-Competitive Contracts” dated February 13, 2009, this J&A will be posted to FedBizOpps within 14 days of contract award. 7. Fair and Reasonable Cost Determination – In determining a fair and reasonable price, the Contracting Officer will evaluate a more detailed breakdown from a formal Independent Government Cost Estimate (IGCE). The detailed estimate will include specific equipment, the level of effort of individual service items and potential labor categories, as well as estimated labor rates. The estimate, in terms of both equipment and labor will be compared to established pricing on other Government contracts, such as the General Services Administration’s (GSA) Federal Supply Schedule (FSS) for the same equipment and labor categories and/or similar equipment and labor categories. Additionally, price comparisons will also be accomplished from as many other sources as possible, including commercially as well as any other Government-Wide Acquisition Contracts (GWAC). 8. Market Research – For reasons stated in section 5 above, it is the determination of DFAS Standards and Compliance, Tax & Disbursing Functional Area (S & C) that no source, other than JDDA, is capable of serving as the integrator of the new configuration. However, S&C did research potential equipment replacement possibilities using the internet and placing phone calls for the sole purpose of market research. Once potential providers were identified, S & C contacted manufacturer’s representatives to obtain possible equipment that may have the potential of replacing the current equipment. Equipment currently in use by the U.S. Treasury, Financial Management Service (FMS) was viewed by DFAS Disbursing and considered the capacity to be excessively large, too fast, and the cost too high to be cost efficient or compatible with existing components. Because of the proprietary nature of the existing system, only JDDA has the knowledge and access to the MADS and EagleVision software necessary to determine hardware compatibility and suitability. No other source can determine the appropriate equipment required or integrate the new hardware and resident operating system into the configuration without specific knowledge of and modification of software code within the system. A preliminary assessment by S&C, shows that the XXX equipment will potentially save between $XXX,XXX and $XXX,XXX over and above other researched equipment, not including costs associated with re-engineering the existing software and hardware interfaces. In addition the interface re-engineering costs for different equipment would be an additional approximate $XXX,XXX to $XXX,XXX and would take 8 to 13 months additional time, which represents an unacceptable delay given that the age of the current equipment requires replacement before a catastrophic failure puts the DFAS mission at risk. Ultimately, for reasons established in this section above as well as section 5, it is determined that only JDDA can ultimately determine the appropriate equipment and perform the follow-on service in order to accomplish a successful integration of an updated check printing, AOP printing and inserter configuration. 9. Other Facts Supporting the Use of Other than Full and Open Competition– The equipment being replaced has an expected useful life of 10 years and has been in continual operation for 13 years. The equipment is unique and replacement parts can only be found on used equipment as salvage or by custom fabrication. Additionally, the manufacturer no longer supports the equipment. The manufacturer of some of the embedded parts in the inserters is out of business and replacement parts do not exist. The configuration and customized hardware/software integration provided by JDDA is the result of in excess of 20 years of support of the DoD printing Mission. Providing for a new supplier would also require the replacement of the existing Eagle printers, Post Print Verification, and the MADS software that is not being replaced at this time because of the proprietary nature of the existing equipment. DFAS prints 1.8 million checks annually that are sent to Federal civilian employees, retirees or their survivors, military members, vendors, and State and Local government agencies. Of the 1.8 million checks printed, 45% of those checks go to retirees. The consequences of not being able to print checks if the equipment fails, are that we will experience mission failure, and incur penalties and interest payments as dictated by the Prompt Payment Act. 10. Interested Sources – To date, no other sources has expressed an interest. 11. Actions to Increase/Foster Competition – In order to mitigate the Sole Source position, DFAS would need to take one of three actions: Identify a software developer that can provide a similar product as the solution provided by JDDA and has the expertise to provide hardware, software, and maintenance to two sites (Indy and Columbus) and has the experience in US Treasury checks and payment related document printing in a highly secured Federal Government installation. DFAS can create their own software and locate individual equipment suppliers. The development time associated with providing a total solution would expose DFAS to an increased risk of Mission Failure. DFAS can contract with the U.S. Treasury to have them take over the entire printing function. This option has been researched and rejected by XX. XX because of the reduced service that would be provided to our customers. None of the above options are viable alternatives at this time. In considering cost and schedule, it is in DFAS’ best interests to leverage 20 years of design and development of the current check and AOP configuration. 12. Other Factors When DFAS (at that time the Army Finance Center) was looking for production printing and control software, JDDA was under contract with the U.S. Treasury to provide the type of equipment and software we were looking for. Theirs was a unique solution due to the volume and security involved with the printing operation. JDDA has been supplying hardware and software for the printing operation for checks and documents at, initially, three locations now consolidated to two sites and specifically for DFAS in Indianapolis for over 20 years. DFAS Columbus has recently been added as a full COOP site. CERTIFICATIONS: I certify that the facts and representations under my cognizance which are included in this justification, and which form a basis for this justification, are complete and accurate. Contracting Officer Certification and Approval I hereby determine that the anticipated cost for this contract action will be fair and reasonable. I certify and approve this justification as accurate and complete to the best of my knowledge and belief.
 

Web Link

FBO.gov Permalink
(https://www.fbo.gov/spg/ODA/DFAS/Columbus/KDDA9AV152/listing.html)
 

Place of Performance

Address: DFAS INDIANAPOLIS, INDIANAPOLIS, Indiana, 46226, United States

Zip Code: 46226
 

Record

SN01998760-W 20091107/091105235515-25b90f52992b70582c1642a087836c43 (fbodaily.com)
 

Source

FedBizOpps Link to This Notice
(may not be valid after Archive Date)

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