LIMITED SOURCES JUSTIFICATION & APPROVAL TEMPLATE FOR FAR PARTS 8 & 16 ACQUISITIONS
Purchase Request Number:
REQUIRED FORMAT FOR JUSTIFICATION
Multiple Award Schedule (MAS)/ Multiple Award Contract (MAC)
Orders under MAS/General Service Schedules (GSA)/Federal Supply Schedules (FSS) – 8.405-6
Orders under MAC/ Fair Opportunity -16.505, DFARS 216.505-70
Note: Use the format at 8.405-6 for J&As accomplished IAW 8.405-6 and 16.505
JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)
LIMITED SOURCES JUSTIFICATION
Justification for OTFAOC Number: (Assigned by the Procuring Activity Competition Advocate (PACA))
Upon the basis of the following justification, I, as _____________________ (fill in the appropriate approval authority), hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of (For Multiple Award Schedules/Orders use Title III of the Federal Property and Administrative, Services Act of 1949 (41 U.S.C. 251, et seq.) and Title 40 U.S.C. 501, Services for Executive Agencies). (For Multiple Award Contracts/Orders use 10 U.S.C. 2304c(b).
(* Insert the appropriate statutory authority/exception permitting other than full and open competition located at 8.405-6 OR 16.505 as applicable.) Use only one exception per Justification for Other Than Full and Open Competition).
JUSTIFICATION
1. REQUIRING AGENCY AND CONTRACTING OFFICE: Specify the requiring agency and the DITCO contracting activity responsible for accomplishing the contract action. (FAR 8.405-6)(g)(2)(i))
2. NATURE/DESCRIPTION OF ACTION(S): Describe the nature of the contractual action for which approval is requested (i.e., new contract, modification). Include type of contract (e.g. FFP, CPAF) type and year of funds to be used (e.g. R&D, Procurement, O&M); and estimated share and ceiling arrangements, when applicable.
(FAR 8.405-6)(g)(2)(ii))
3. DESCRIPTION OF SUPPLIES/SERVICES: A complete description of the supplies and/or services required to meet the agency’s needs, including the delivery schedule and/or the period of performance (inclusive of all option periods), and the estimated life-cycle costs of the procurement).
((FAR 8.405-6)(g)(2)(iii))
(a) Explain the requirement, as much as possible, in layman's terms so it can be understood by a non-technically oriented reviewer who is not familiar with the requiring activity or the project
(1) If the action described is a modification to an existing contract, be sure to distinguish clearly between the work covered by the basic contract and the additional work to be obtained by the proposed modification.
(2) Identify the customer activity.
(3) State option quantities and/or performance periods:
(b) If FAR clauses 52.237-3 (Continuity of Services) and/or 52.217-8 (Option to Extend Services) will be included in your noncompetitive bridge contract action, be sure to mention each and its associated potential time period and dollar value. (These two clauses should be considered for inclusion in competitive contracts to preclude the necessity for later noncompetitive actions if the follow-on is delayed or if a phase-in/phase-out period is required.)
(c) Option quantities are not allowed in Justification for OTFAOC citing (Urgency). The philosophy (based on GAO decisions) behind this is that an "Urgent" requirement should only be for the absolute minimum quantity/period.
(1) If the total required quantity or time period exceeds that which can be justified as "urgent," it will be necessary to contract for the remainder of the requirement using procedures for full and open competition. If there is only one responsible source for the remaining item(s)/service(s), you must execute an additional Justification for OTFAOC under the appropriate exception and advertise as appropriate.
(2) The only exception to this is when an interim contract (or extension to an existing contract) is required due to receipt of a protest prior to or upon award of a follow-on service contract and it is necessary to ensure continuity of services until the protest is resolved. In this case, the J&A may be for a base period of ___ months (minimum time you expect resolution to take) plus a maximum of 3 one-month options. The Justification for OTFAOC must specifically state that each option will be exercised only if resolution of the protest does not occur during the previous period.
*4. IDENTIFICATION OF STATUTORY AUTHORITY: Identify the Justification rationale; this includes the statutory authority, FAR Citation and FAR Exception Description permitting other than full and open competition. (NOTE: Citations and Exception Descriptions are located below (select only one exception and delete all others)) ((FAR 8.405-6)(g)(2)(iv))
(a) The following exceptions apply to GSA/FSS/MAC accomplished IAW 8.405-6:
-- Of schedule contractors to fewer than required in 8.405-1 or 8.405-2. FAR 8.405-6 (a) (1).
-- To an item peculiar to one manufacturer (e.g., a particular brand name, product, or a feature of a product, peculiar to one manufacturer). A brand name item, whether available on one or more schedule contracts, is an item peculiar to one manufacturer. Brand name specifications shall not be used unless the particular brand name, product, or feature is essential to the Government’s requirements, and market research indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the agency’s need. (FAR 8.405-6 (a) (2), 8.405-6 (d). (See FAR 11.105 for brand name requirements)
FAR 8.405-6 (b) Circumstances that may justify restriction
-- Only one source is capable of responding due to the unique or specialized nature of the work. (FAR 8.405-6 (b)(1)).
-- The new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures. (FAR 8.405-6 (b)(2)). Note for logical follow on accomplished IAW 8.405-6, the mandatory requirement when using this exception is the original order must have been placed in accordance with FSS and the original order must not have been previously issued as sole source or limited sources procedures; this exception cannot be used unless these provisions are adhere to.
-- An urgent and compelling need exists, and following the ordering procedures would result in unacceptable delays. (FAR 8.405-6 (b)(3)). This would be for an immediate need.
(b) The following exceptions apply to MACs fair opportunity exceeding $3K IAW 16.505 or MACs for fair opportunity exceeding $150K IAW DFARS 216.505-70. Also follow the procedures at PGI 216.505-70 if FAR 16.505(b)(2)(ii) or (iii) is deemed to apply. Note: The FAR versus DFARS threshold differences when using MACs for fair opportunity.
-- The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays. (FAR 16.505(b)(2) (i))
-- Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized. (FAR 16.505(b)(2) (ii)). Use of this exception should be rare. It's use is appropriate when (A) no other contractor is capable of providing a supply or service of a comparable nature; and (B) no other type of supplies or services will satisfy agency requirements.
-- The order must be issued on a sole-source basis in the interest of economy and efficiency as 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) (iii)). Note for a logical follow on accomplished IAW 16.505, the mandatory requirement when using this exception is all awardees must be given a fair opportunity to be considered for the original order; this exception cannot be used unless this provision has been met. Examples of when this exception applies: (A) Award to any other source would likely result in substantial duplication of cost to the Government that is not expected to be recovered through competition. (B) Award of the order to a different source would cause unacceptable delays in fulfilling the Government’s requirements (lack of advance planning is not valid rational. (C) A contractor is already at work on a site, and it would not be practical to allow another contractor to work on the same site.
-- It is necessary to place an order to satisfy a minimum guarantee. (FAR 16.505(b)(2) (iv))
(c) The following exceptions apply to MACs fair opportunity IAW
DFARS 216.505-70 when orders exceeded $150K.
-- A statute expressly authorizes or requires that the purchase be made from a specified source. (DFARS 216.505-70(b)(1))
-- One of the circumstances described at FAR 16.505(b)(2)(i) through (iv) applies to the order. ((DFARS 216.505-70(b)(2))
*5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS: Describe how this action requires the use of authority cited. If applicable, identify the proposed or potential contractor(s) and include a discussion of the proposed contractor's unique qualifications for fulfilling the contract requirements. If the authority cited is ‘unusual and compelling urgency”, include the required delivery schedule and lead-times involved. (FAR 8.405-6(g)(2)(iv))
(a) A Justification for OTFAOC must include a full discussion of the events, history and circumstances which have led to the current situation that requires use of procedures for other than full and open competition.
(b) If "unusual and compelling urgency" is the basis for the Justification for OTFAOC, include a chronological explanation of events that caused the exigent situation. Be sure to explain any actual or apparent time lags between events. At the very least, include:
• discussion and dates for when requirement became known by the requiring activity
• the required performance/delivery date
• events that happened before the contracting office was notified of the requirement
• when the contracting office was advised of the requirement
• when the purchase request was received by the contracting office
• when vendors will be/were contacted
• when proposals are/were due
• when award will be/was made
(c) If the required delivery date could have been satisfied using competition to the maximum extent on the date the requirement first became known, an explanation for the delay in submitting the requirement should be provided. If normal contracting methods
could not have satisfied the required delivery date, describe the circumstances that caused this emergency and how they will be prevented in the future.
Justification:
(1) What are the verified minimum requirements of the Government? Include a discussion of the unique aspects of the supply/service that necessitate a noncompetitive action. Describe how the required delivery/performance date impacted the decision to restrict competition.
(2) Identify the proposed sole source contractor (if applicable) and discuss the unique capabilities, experience, expertise, etc. that the contractor has that makes the firm the only one capable of performing the required work. When 8.405-6 (b)(2) or 16.505 (b)(2)(iii) is cited for follow-on acquisitions as described in each applicable FAR citation provide an estimate of the cost to the Government that would be duplicative and how the estimate was derive, supply rationale for unacceptable delays, discuss why requirement continues, discuss why it would be of benefit to the Government for the specific contractor to continue work and specify how recent the previous competitive order was and the number of times this exception has been used.
(3) If competition would have been feasible had more time been available, discuss other factors that had an impact on the decision to solicit only one source to satisfy the requirement (e.g., cost/time to conduct a competitive procurement; time available versus time required; phase-in/phase-out time; complexity of requirement; etc.).
(4) Discuss why the other MAC holders could not meet the stated requirement.
(d) Do not indicate that your source is the "only known source” unless you fully describe the process you went through to make that determination (including "sources sought" synopses that may have been used prior during the original solicitation such as synopsize in FedBizOpps website. This is not applicable after award as only the MAC holders may be contacted to fulfill specific within scope requirements of the GSA/MAS/FSS MACs.
NOTE: You must clearly show that your source is the ONLY source.
(e) Identify the constraints of the procurement, such as schedule requirements, unique features and mandatory requirements, or the existence of proprietary data, copyrighted information or a patent which restrict competition.
(f) If the requirement is for a bridge contract (or contract extension) citing any exception to competition, or any contract citing the exception for (Urgency), include a complete justification for the minimum quantity or period of performance. If the action is a bridge requirement contingent upon some follow-on action, include a discussion of the basis for the milestones for that action. These milestones should be realistic, “firm" and proactive as possible.
(g) Was the item or service previously acquired? If so, was it from the same contractor? If this is a continuation of a previous effort by the same contractor, discuss why no other sources for services or supplies are available.
(h) Impact: Fully describe the detrimental effects to the mission of the requiring activity or to the government that would result if this J&A was not approved and the services or supplies could not be provided.
*NOTE: The information in Paragraph 4 and 5 can be consolidated into one paragraph per the format reflected at 8.405-6.
6. BEST VALUE DETERMINATION: (FAR 8.405-6)(g)(2)(v))
(a) When using GSA/MAS/MAC, a review of all the pricing options should be examined and a statement included in this paragraph that the order represents the best value to the government.
(1) For orders place IAW GSA/MAS; GSA has already determined prices of supplies and fixed price services, and rates for services offered at hourly rates under their schedules are fair and reasonable therefore no fair and reasonable determination is required when using these schedules. However, GSA cannot determine the level of effort or the mix of labor categories for agency’s requirements.
(2) Price evaluation is required by 8.405-2 (d)
(3) When using these schedules seek a price reduction. Orders exceeding the maximum order threshold must seek a price reduction: (FAR 8.405-1 (d)).
(b) When using firm fixed price contracts for orders accomplished under fair opportunity the requirements stated above in paragraph 6 (a) (1) apply.
Price evaluation is required in accordance with evaluation criteria established for each requirement.
7. MARKET RESEARCH: Describe the extent of the market research (FAR 10.002) conducted to identify all qualified sources and the results thereof. Research must have been meaningful and conducted within the previous 12 months. (FAR 8.405-6)(g)(2)(vi))
(a) Market research means "collecting and analyzing current information about capabilities within the market to satisfy agency needs. This testing of the marketplace may range from written or telephone contacts with knowledgeable federal and non-federal experts regarding similar or duplicate requirements, and the results of any market test recently undertaken, to the more formal sources-sought announcement in pertinent publications (e.g., technical/scientific journals, or the FedBizOpps), or solicitations for information or planning purposes." Historically data may aid in supporting market research.
(b) The Justification must include a detailed description and results of the market research or a statement discussing why it was not conducted.
(c) Market research should answer the questions to who, what, when, where, why, and state the outcome of the market research. The discussion should include the type of market research conducted, who conducted it, when it was done, who responded and the results. The J&A should fully analyze the alternative strategies to only one source procurement 8.405-6(b)(1). This analysis should indicate that a good faith effort was made to consider what could be done to increase the level of competition, if not for the current buy then for the future. The analysis must include actionable options to maximize competition for future acquisitions, minimize the quantities procured and the period of performance under the sole source acquisition, and obtain the technical data and Government-purpose date rights necessary to facilities competition, while maintaining an acceptable level of cost, schedule, and performance risk.
8. ANY OTHER SUPPORTING FACTS. Indicate any other facts supporting the use of limited sources justification and approval. (FAR 8.405-6)(g)(2)(vii))
(a) If technical data packages, specifications, engineering descriptions, statement of work, or purchase descriptions suitable for full and open competition have not been developed, or are not available, explain why.
(b) When using the limited sources justification and approval restriction circumstance at 8.405-6(b)(2), or the fair opportunity exception at FAR 16.505(b)(2)(iii) for follow-on procurement as described in PGI 216.505-70 (2)(i) (A) through (C) provide an estimate of the cost to the Government that would be duplicative and how the estimate was derived, unacceptable delays, discuss why requirement continues, discuss why it would be of benefit to the Government for the specific contractor to continue work and specify how recent the previous competitive order was and the number of times this exception has been used.
(c) When ‘unusual and compelling urgency’ is cited, provide data, estimated cost, or other rationale as to the extent and nature of the harm to the Government. When using this exception a determination with supporting data for an immediate need must be stated in the OTFAOC justification.
9. ACTIONS TAKEN TO REMOVE BARRIERS TO COMPEITION: (FAR 8.405-6)(g)(2)(viii))
(a) Procurement history. The following items of information are expected.
(1) Contract numbers and dates of the last several awards for this action.
(2) Competitive status of these actions.
(3) Authority previously used for less than full and open competition.
(b) If a Justification was prepared to support the prior procurement (s), briefly describe the Actions to Increase Competition mentioned in that prior J&A and explain the results thereof.
(c) If any prior award was accomplished by full and open competition, explain the changed circumstances in detail.
(d) Unusual and Compelling Urgency: When FAR 8.405-6 (b)(3) or 16.505(b)(2)(i) is cited, provide data, estimated cost or other rationale as to the nature and extent of the injury to the government. Cite the immediate need.
(e) If a requirement for first article testing is the principal reason for not awarding the contract on a full and open basis, clearly describe the reasons that first article testing is required on this procurement and why other means of assuring quality are not being used.
10. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP) PROGRAM PLAN (PP): (DARS 8.405-6(g)(2)(S-91)) (Whether or not a written Acquisition Plan (AP) is required, and if so, attach a copy of the approved AP to the limited sources justification and approval)
Put the certifications/approvals required on a separate page.
TECHNICAL CERTIFICATION: "I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief."
NAME: ______________________ SIGNATURE: _______________________
TITLE: ______________________ DATE: ________
REQUIREMENTS CERTIFICATION: "I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.”
NAME: ______________________ SIGNATURE: _______________________
TITLE: ______________________ DATE: ________
CONTRACTING OFFICER CERTIFICATION: Include the following determination:
“I certify that this justification is accurate and complete to the best of my knowledge and belief.” (Add the following and delete the “APPROVED BY” blocks below if this certification is also serving as approval: “Since this effort exceeds $150K but does not exceed $650K, this certification serves as APPROVAL.”) (FAR 8.405-6(g)(2)(ix) and FAR 8.405-6 (h)(1)).
NAME: ______________________ SIGNATURE: _______________________
TITLE: ______________________ DATE: ________
(For Approval signature select the appropriate approval level signatory and delete all others)
PROCURING ACTIVITY COMPETITON ADVOCATE APPROVAL
“I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Since this justification does not exceed $12.5M, this review serves as approval.”
APPROVED BY: (FAR 8.405-6 (h)(2))
Signature:
Printed/Typed Name and Title Organization Phone Date
HEAD OF THE CONTRACTING ACTIVITY APPROVAL
“I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Since this justification does not exceed $85.5M, this review serves as approval.”
APPROVED BY: (FAR 8.405-6 (h)(3))
Signature:
Printed/Typed Name and Title Organization Phone Date
SENIOR PROCUREMENT EXECUTIVE APPROVAL
“I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Since this justification exceeds $85.5M, this review serves as approval.”
APPROVED BY: (FAR 8.405-6 (h)(4))
Signature:
Printed/Typed Name and Title Organization Phone Date
ALL QUESTIONS REGARDING THIS JUSTIFICATION FOR OTFAOC ARE TO BE REFERRED TO THE CONTRACTING OFFICER (INSERT NAME AND PHONE NUMBER)