0418C0008_JA_FINAL.pdf

Control Number: HDEC04-18-06

JUSTIFICATION REVIEW DOCUMENT

Description of Acquisition: Modification to extend the contract performance period for HDEC0-18-C-0008 with Mettler-Toledo to provide uninterrupted repair and preventative maintenance for meat wrapping systems and scales for 86 Continental United States(CONUS), Alaska and Hawaii Defense Commissary Agency stores.

Statutory Authority: 10 U.S.C. 2304(c) (1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, as implemented by FAR 6.302-1.

Estimated Contract Amount: $835,303.00

Performance Period: March 1, 2018 - August 31, 2018

Prepared By: Diana Gross-Bendall Contracting Officer Phone: 804-734-8000x86300 Date/Initials:_________

Technical: Michael Conwell Supply Management Specialist Phone: 804-734-8000x48251 Date/Initials: ________

Requirements: Rebecca Barefoot Supervisory Supply Management Specialist Phone: 804-734-8000x48085 Date/Initials: ________

PCO: Diana Gross-Bendall Contracting Officer Phone: 804-734-8000x48185 Date/Initials: ________

Required Review Signatures: We have reviewed this J&A and find the justification adequate to support other than full and open competition.

Program Manager: Not Applicable

Legal Counsel: Nikki Musick Phone: 804-734-8000 x48116 Signature: _____________________ Date: _____________

Division Chief: Richard Broda Phone: 804-734-8000 x48882 Signature: _____________________ Date: _____________

Competition Floyd Kirkland Phone: 804-734-8000 x86223 Advocate: Signature: _____________________ Date: _____________ grossbd Typewritten Text grossbd Typewritten Text 2/7/18 grossbd Stamp grossbd Typewritten Text 2/7/18 grossbd Stamp conwelma Typewritten Text conwelma Typewritten Text conwelma Typewritten Text

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JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Office – Defense Commissary Agency, Supply/Equipment Acquisition Division, LEAE, 1300 E. Avenue, Fort Lee, Virginia 23801-1800

2. Type of Contract Action – Modification of contract HDEC0-18-C-0008 with Mettler- Toledo. This proposed modification will extend the period of performance six (6) months from March 1, 2018 through August 31, 2018. This is a firm fixed price contract. Payments will be made using Invoicing, Receipt, Acceptance, and Property Transfer (iRAPT).

3. Description of Supplies/Services – This action will provide continuous repair and preventative maintenance service from Mettler-Toledo on meat wrapping systems and scales at 86 CONUS commissaries to include Alaska and Hawaii. The proposed six (6) month modification will increase the estimated contract by $835,303.00 and extend the contract performance period until August 31, 2018.

4. Authority Cited - 10 U.S.C. §2304(c)(1), in accordance with FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited – The current contract for maintenance and repair of existing Mettler Toledo equipment will expire on February 28, 2018. The requirements package for the follow-on contract required correction and additional information. However, due to other priorities, the requiring office was unable to provide that information until October 24, 2017.

The delays in receiving a current, accurate and complete requirements package altered the timeline of awarding the follow-on contract.

Furthermore, in the absence of a contract extension, 86 commissaries covered under the current contract will be without necessary repair and preventative maintenance service. Properly operating meat wrapping systems and scales are necessary to support the stores' bakery, delicatessen, meat, produce and seafood departments. The equipment currently at the stores is aging and there is not a contract in place yet to replace inoperable equipment. Therefore, it is imperative to continue the repair and preventive maintenance service contract to ensure that the equipment can be safely and properly used until such equipment can be replaced. This will avoid interruptions at the store to provide products to patrons in a timely manner. Mettler Toledo currently performs this contract successfully. It is the sole manufacturer of its equipment and holds all rights to parts required to repair and maintain the equipment.

6. Efforts to Obtain Competition – On November 29, 2017, a sources sought notice was posted on the Federal Business Opportunity site in an effort to determine if there were reliable sources in the marketplace that could provide full burden maintenance and repair services on meat wrapping systems and scales. The sources sought notice was posted for 15 days with closing date of December 14, 2017.

DeCA received a response from Remi expressing interest in providing services. However, during discussions with both Remi and Mettler Toledo, it became apparent that Remi would be able to provide services in certain regions but not on a nationwide basis. Most importantly, Mettler Toledo confirmed that while they do have partner agreements with a dedicated distributor network who sell and service their products in some territories, it "does not authorize any vendor to offer MT certified service nationally to all customers." Based upon this information, it appears that there is no source other than Mettler Toledo that can provide the nationwide service required by the current contract.

7. Fair and Reasonable Price Determination – In accordance with FAR 15.403-3(c), prices are determined to be fair and reasonable. Mettler Toledo agrees to hold current prices throughout the duration of the six (6) month extension.

8. Market Research and Interested Sources - Market research for this contract has shown that Mettler Toledo’s subcontractors may be able to contract directly with DeCA for some locations.

While many subcontractors expressed interest in performing the work, they were unable to contract directly with DeCA due to agreements they had with Mettler Toledo. Therefore, they did not submit proposals in response to the request for proposal. That may still be the policy between Mettler Toledo and its subcontractors; however, we are not certain at this time. Current market research of follow-on action will indicate if there has been a change in the market.

9. Actions to Increase/Foster Competition – The follow-on action will be solicited unrestricted in an effort to increase/foster competition.

10. Other Factors - None.

Technical Certification:

I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Name: Michael Conwell Signature: ________________________ Title: Supply Management Specialist Date: _________________________

Requirements Certification:

I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Name: Rebecca Barefoot Signature: ________________________ Title: Supervisory Supply Management Specialist Date: _________________________ bareforl

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Fair and Reasonable Price Determination and Contracting Officer Certification:

I hereby determine that the price for this contract action will be fair and reasonable. I certify that this J & A is accurate and complete to the best of my knowledge and belief.

Name: Diana Gross-Bendall Signature: _______________________ Contracting Officer Date: _______________________

APPROVAL

Based on the foregoing justification, I hereby approve the six (6) month extension from March 1, 2018 to August 31, 2018, for the continuation of repair and preventative maintenance for 86 commissaries covered under contract HDEC0-18-C-0008, on an other than full and open competition basis pursuant to the authority of 10 U.S.C. §2304(c)(1), provided funds are available, or will be available, and provided that the services and products herein described have otherwise been authorized for acquisition.

APPROVED:

Signature: ______________________________ Date:_________________________ Floyd Kirkland Competition Advocate grossbd

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8 February 2018