CUI_Eustis JA 2025_89_Redacted.pdf

Control No: 2025-89

Justification and Approval for Other than Full and Open Competition – FAR Part 6

1. Contracting Activity: U.S. Army Mission and Installation Contracting Command (MICC) – Fort Eustis, 705 Washington Boulevard, Fort Eustis, VA 23604.

2. Description of Action: The Fort Novosel Logistics Readiness Center (LRC) requests a new firm-fixed price (FFP) Purchase Order with the Alabama State Licensing Agency (SLA) who is the Alabama Department of Rehabilitation Services (ADRS), 602 South Lawrence St., Montgomery, AL 36104; CAGE Code - 1TTP8. The Government projects award for 16 June 2025 and fiscal year 2025, Operations and Maintenance funds will be used.

3. Description of Supplies/Services: Full Food Service (FFS) is required at two specified U.S. Army Dining Facilities on Fort Novosel, AL which directly provides flexible, efficient, and cost-effective FFS for tenant employees on Fort Novosel. The services for this requirement include, but are not limited to, food service management functions, food receipt, delivery and storage, food preparation, food serving, remote site feeding to support field operations (if applicable), and facility sanitation/janitorial duties.

The outcomes to be satisfied include providing FFS to the Army that promotes a healthier and stronger Army, sustaining high quality standards of food and cleanliness.

The Government plans to issue a Purchase Order with the Period of Performance (PoP) from 16 June 2025 to 15 June 2026. The total estimated value is $5.2 million.

4. Authority Cited: 10 U.S.C. 3204(a)(5) as implemented by FAR Part 6.302-5(a)(2)(i) -

- Authorized or Required by Statute.

5. Reason for Authority Cited: As described in FAR 6.302-5, full and open competition need not be provided for when a statute expressly authorizes or requires that the acquisition be made through another agency or from a specified source, or the agency’s need is for a brand name commercial item for authorized resale.

a. Background. The Randolph-Sheppard Act (R-S Act), 20 U.S.C. § 107 et seq., provides modified procurement procedures that differ from the procedures for full and open competition required by 10 U.S.C. § 3201. The R-S Act provides individuals who are blind with the opportunity to operate businesses on Federal property, through permits or contracts, with the goal of the individual becoming self-supporting. To achieve this purpose, the 20 U.S.C. § 107(b) provides a priority to operate vending facilities on Federal property to individuals who are blind. Congress has tasked the Rehabilitation Services Administration (RSA) within the Department of Education as the principal Federal agency for carrying out the R-S Act and creating implementing regulations. See 20 U.S.C. § 107a(a)(1) and (6).

b. Additionally, Congress tasked the R-S Act Commissioner to “prescribe regulations to establish a priority for the operation of cafeterias on Federal property by blind licensees when he determines, on an individual basis and after consultation with the head of the appropriate installation, that such operation can be provided at a reasonable cost with food of a high quality comparable to that currently provided to employees, whether by contract or otherwise.” See 20 U.S.C. § 107d-3(e). The regulations to implement this tasking to establish a priority are found at 34 C.F.R. §

395.33. In 34 C.F.R. § 395.33(d). These regulations state that Federal agencies “may afford priority in the operation of cafeterias by blind vendors on Federal property through direct negotiations with SLAs whenever such department, agency, or instrumentality determines, on an individual basis, that such operation can be provided at a reasonable cost, with food of a high quality comparable to that currently provided employees (emphasis added).”

c. Direct negotiations with SLAs present a compelling alternative to competitive contracts for operating cafeterias on Federal property under the R-S Act. Here are several key rationales supporting the preference for direct negotiations:

1) Alignment with Legislative Intent: The R-S Act specifically prioritizes individuals who are blind, enabling them to operate businesses in federal spaces. By engaging in direct negotiations with SLAs, federal agencies uphold this legislative intent, allowing for streamlined processes that directly benefit blind entrepreneurs. This approach emphasizes the law's goal of promoting self-sufficiency among individuals with disabilities, fostering an environment that nurtures their business endeavors rather than subjecting them to competition that might undermine this purpose.

2) Efficiency in Procurement: Direct negotiations facilitate a quicker procurement process, enabling services to commence more rapidly, which is particularly beneficial for the maintenance of cafeteria operations that require prompt and continuous service.

3) Reduced Risk of Protests and Legal Challenges: Pursuing a competitive contract process may lead to significant legal challenges and protests from other offerors who recognize that they have minimal chances of succeeding against SLAs, as substantiated by case law such as NISH v. Cohen and NISH; RCI, Inc. v. Rumsfeld.

Such protests can create delays, incur additional costs, and lead to administrative burdens. By opting for direct negotiation, the risk of pre-award disputes and subsequent arbitration can be significantly diminished, enhancing operational stability and predictability.

d. The Contracting Officer has determined that the SLA is able to continue providing the required food services at a reasonable cost, with food of a high quality that is comparable to that currently provided. Notably, the SLA is the incumbent contractor, and its employees have the proper sanitation practices, personnel, staffing, menu pricing and portion sizes, menu variety, budget and accounting practices, and proven history to perform these services.

Approval

Based on the foregoing justification, I hereby approve the procurement of Full Food Service at Fort Novosel on an other than full and open competition basis pursuant to the authority of Title 10 U.S.C. 3204(a)(5) as implemented by Federal Acquisition Regulation 6.302-5(a)(2)(i), A statute expressly authorizes or requires that the acquisition be made through another agency or from a specified source. The estimated $5.2 million will fund a Purchase Order from 16 June 2025 to 15 June 2026. The approval is subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

SCOTT D. KUKES

Alternate Advocate for Competition U.S. Army Mission and Installation Contracting Command, JBSA Fort Sam Houston, TX