3PL Services Extension_Final for ASA (004).pdf

United States Department of Agriculture Determination of Exceptional Circumstances

Federal Acquisition Regulation (FAR) Part 6.302-2(d)(2) Control No. (if applicable)

Emergency Third Party Logistics (3PL) Services Contract

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).

Background

USDA’s Agricultural Marketing Service contracts for 3PL warehouse and distribution services to provide services to several household food distribution programs administered by USDA’s Food and Nutrition Service including the Commodity Supplemental Food Program (CSFP) and Food Distribution Programs on Indian Reservations (FDPIR). On August 23, 2024, USDA/AMS executed a letter contract and awarded an indefinite delivery, indefinite quantity, commercial item, firm fixed-price service contract for 3PL warehouse and transportation services to Americold, Inc. These services were needed to provide surge capacity to serve a portion of program recipients following a single award IDIQ contract, awarded by USDA in early 2024 with a base and four option years. Under that single award contract, unanticipated logistical issues resulted in failure to timely service all to program recipients; therefore, to ensure continuity of subsistence food delivery to program recipients, AMS awarded the emergency letter contract to Americold Inc. to provide this surge capacity. The letter contract covered a period of performance of 6-months from August 23, 2024, through February 22, 2025, with a 6-month option to extend services under FAR 52.217-8. A sole source Justification and Approval was posted to sam.gov on September 27, 2024.

Proposed Action

USDA intends to modify the Americold Contract to remove the 6-month service extension and replace it with a 14-month option under 52.217-9 authority (representing a cumulative increase of 8 months for the awarded sole source contract). In accordance with 41 U.S.C. 3304(a)(2), as implemented by FAR 6.302-2(d)(2), this document serves as the determination of exceptional circumstances.

Exceptional circumstances determination

The base period of the referenced contract, as originally structured, allowed for the stabilization of nationwide food distribution for FDPIR and CSFP Program recipients while USDA identified logistics and supply chain issues in food distribution systems supported by USDA. Having performed that analysis, USDA has determined it to be in the Government’s best interest to implement acquisition structure changes that support long-term improvements to the FDPIR/CSFP 3PL procurement, and to incorporate those changes into this requirement as part of the recompete. The additional 8 months beyond the original 6-month base and 6-month service extension is needed to solicit, evaluate, and award the recompete acquisition. USDA could need to hold discussions with offerors and potentially multiple rounds of proposal revisions. Additionally, USDA will use the additional time to ensure effective transition from the current contracts to future awarded contracts (including but not limited to the movement of food inventories, if required).

The contract with Americold involves storing significant quantities of USDA procured commodities and delivering those commodities on demand to program recipients throughout the United States. It is impracticable for a new source to be solicited and awarded to successfully serve these programs in the one-year total time initially contemplated in the initial award to Americold. Extending Americold’s period of performance will ensure continuity of services to CSFP and FDPIR program recipients during the timeline needed to complete the recompete.

In accordance with, 6.302-2(d)(2), I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, as Assistant Secretary for Administration, I hereby approve this justification.

Malcom Shorter Assistant Secretary for Administration (AGAR 402.101) United States Department of Agriculture