JOFOC draft 3PL Services (8-12-2024)-FINAL-signed.pdf

United States Department of Agriculture Justification for Other than Full and Open Competition

Federal Acquisition Regulation (FAR) Part 6.3 Control No. (if applicable) n/a

Emergency 3PL Services Contract

1. Identification of the agency and the contracting activity.

Agricultural Marketing Service (AMS), Commodity Procurement Program (CPP), Procurement Policy and Service Contracts Division (PPSCD), Service Contracts Branch (SCB).

2. The nature and/or description of the action being approved.

USDA/AMS proposes to enter into a contract with Americold Logistics on a basis of other than full and open competition and award an indefinite delivery, indefinite quantity, commercial item, fixed-price service contract for third-party logistics (3PL) warehouse and transportation services. These services are currently being provided under a single IDIQ contract, awarded by USDA on January 11, 2024, with a base and four option years. Unanticipated logistical issues caused by the large influx of inventories during the transition from the previously contracted warehouses to the one current warehouse has caused the current contractor to become late shipping outbound loads to program recipients. Corrective actions taken to date have not remedied the situation and the contractor’s performance is impacting USDA’s ability to meet the mission of the food distribution programs served by that contract. Therefore, there is a need to immediately solicit for these services to ensure all program recipients receive food under these programs. To meet this urgent need, USDA must execute a contract immediately to cover a period of performance of six months with an option to extend for an additional six months under FAR 52.217-8 Option to Extend Services.

3. A description of the supplies or services required to meet the agency’s needs (including the estimated value).

This contract is to immediately obtain commercial 3PL services including storage and distribution of multi-temperature food products procured by USDA. The contractor will receive truckloads of USDA-procured foods, place foods in inventory (separated by program), and fulfill recipient orders by picking foods from this inventory and delivering as requested by program recipients. This contract will support the Food Distribution Program on Indian Reservations (FDPIR) and the Commodity Supplemental Food Program (CSFP) programs. Recipient locations served by this contract are not large enough to receive direct shipments of full truckloads of USDA commodities.

Familiarity with USDA food package programs and recipient locations will enable the contractor to provide services immediately. Food picked and delivered to program recipients by the contractor will contain a variety of commodities that often have different temperature requirements on the same truck (e.g., frozen, cooler and dry).

https://www.acquisition.gov/far/52.217-8 https://www.acquisition.gov/far/52.217-8

FDPIR is a federal program that provides commodity foods to low-income households, including the elderly living on Indian reservations, and to Native American families residing in designated areas near reservations. Many Native Americans participate in the FDPIR as an alternative to the Special Nutrition Assistance Program, usually because they do not have easy access to food stores.

CSFP works to improve the health of low-income elderly persons at least 60 years of age by supplementing their diets with nutritious USDA Foods.

Any degradation in service to FDPIR and CSFP program recipients undermines USDA’s ability to fulfill the mission of food distribution programs that provides food to the most vulnerable populations. There is immediate harm to program participants from late deliveries and incomplete food packages as well as harm to the programs themselves.

The estimated value of the procurement is $50 million.

4. The statutory authority permitting other than full and open competition.

41 U.S.C. 3304(a)(2), as implemented by FAR 6.302-2, titled "Unusual and compelling urgency."

5. Supporting rationale demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority.

The proposed contractor has documented experience meeting the requirements of USDA 3PL service contracts. They provided these services to USDA under previous contracts and have indicated their current capability to begin such work as well as their willingness to enter into a new contract with USDA to begin work immediately after award.

6. A description of efforts made to ensure offers are solicited from as many potential sources as is practicable.

The following exception under FAR 5.202(a) applies:

(2) The proposed contract action is made under the conditions described in 6.302-2 (or, for purchases conducted using simplified acquisition procedures, if unusual and compelling urgency precludes competition to the maximum extent practicable) and the Government would be seriously injured if the agency complies with the time periods specified in 5.203.

7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The government has recent and current contracts with the contractor for similar services to allow for the determination of fair and reasonable pricing. Additionally, an independent government estimate has been developed to support evaluation

8. A description of the market research conducted and the results or a statement of the reason Market Research was not conducted.

Market research was not conducted due to the unusual and compelling urgency of this situation.

Market research will be conducted during the follow-on acquisition to acquire these services.

9. Any other facts supporting the use of other than full and open competition.

Recipients need to receive their food packages as required by the FDPR and CSPF programs and the current delinquent performance by the incumbent contractor harms programs recipients. Delay in award of a contract for these services jeopardizes the mission of the food programs served under this contract.

10. A listing of the sources, if any, that expressed a written interest in the acquisition.

In the past, the following companies have indicated interest in providing these services to AMS:

Caribbean Produce Sanford Federal Logistics Plus OM Distribution Cord Manufacturing

11. A statement of actions, if any, the agency may take to remove or overcome any barriers to competition if subsequent acquisitions are anticipated.

Subsequent acquisitions are anticipated and will comply with FAR competition requirements.

Certifications & Approvals

Supporting data that form the basis for and included in this justification are certified accurate and complete.

Danielle Lyons, Chief Household Operation Branch Food Distribution Division Food and Nutrition Service-SNAS

USDA

The information contained in this Justification for Other Than Full and Open Competition is certified accurate and complete to the best of my knowledge and belief.

Cita D. Trice, Contracting Officer Commodity Procurement Program Agricultural Marketing Service

USDA

Additional Reviews & Approvals

Head of the Procuring Activity (if over $15 million, but not exceeding $75 million). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief.

Therefore, unless additional approvals are required as prescribed below, as Head of the Procuring Activity, I hereby approve this justification. If required, my approval constitutes clearance for submission to the Senior Procurement Executive.

Hilary (Cole) Erickson Head of the Procuring Activity United States Department of Agriculture

Senior Procurement Executive of the Agency (if over $75 million). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, as the Senior Procurement Executive, I hereby approve this justification.

Donald W. Baker, Jr.

Senior Procurement Executive United States Department of Agriculture

Christine.Gouger Text Box Christine Gouger, Contracting Officer Commodity Procurement Program Agricultural Marketing Service

USDA