JB_MDL_Dix_Full_Food_Service_JA_for_Sole_Source_-_REDACTED_FINAL.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Choose the funding level for this J&A Document:

< $650K > $650K and < $12.5M > $12.5M and < $85.5M > $85.5M

Contracting Activity: 87th Contracting Squadron, Joint Base McGuire-Dix-Lakehurst, NJ

Purchase Request / Local ID Number:

Program / Project (and PE, if applicable): Dix Full Food Service

Program Type (PEO or Other Contracting): Other Contracting

Authority (include full title): 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2) Estimated Contract Cost (including options): J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

29 May 2015

Contracting Officer

Lynn Womack Signature

Date

29 May 2015

Project Lead / Program Mgr / Requiring Activity

Amber Sauceda Signature

Date

29 May 2015

Local Legal Reviewer

Capt Michael B. Merrell Signature

Date

29 May 2015

Chief of the Contracting Office (COCO)

Maj Aarti U. Puri Signature

APPROVAL (AFFARS 5306.304(a) )

Date

29 May 2015

Competition Advocate

Gregory S. Oneal Signature

SAUCEDA.AMBER.JADE.1

152405576

Digitally signed by SAUCEDA.AMBER.JADE.1152405576 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=SAUCEDA.AMBER.JADE.1152405576 Date: 2015.05.29 15:16:14 -04'00'

WOMACK.LYNN.M.11804

27860

Digitally signed by WOMACK.LYNN.M.1180427860 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=WOMACK.LYNN.M.1180427860 Date: 2015.05.29 15:21:55 -04'00'

MERRELL.MICHAEL.BARN

ETT.1503489011

Digitally signed by MERRELL.MICHAEL.BARNETT.1503489011 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=MERRELL.MICHAEL.BARNETT.1503489011 Date: 2015.05.29 16:02:09 -04'00'

PURI.AARTI.U.102091814

Digitally signed by PURI.AARTI.U.1020918140 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=PURI.AARTI.U.1020918140 Date: 2015.05.29 16:39:05 -04'00'

ONEAL.GREGORY.S.12303

91013

Digitally signed by ONEAL.GREGORY.S.1230391013 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=ONEAL.GREGORY.S.1230391013 Date: 2015.05.29 15:48:43 -05'00'

I. Contracting Activity.

Department of the Air Force, Air Mobility Command, 87th Contracting Squadron (87 CONS), 2402 Vandenberg Avenue, Joint Base McGuire-Dix-Lakehurst (JB MDL), NJ 08641-1712. This is a Justification for Other Than Full and Open Competition. Purchase request number: .

II. Nature and/or description of the action being processed.

Through this individual Justification and Approval (J&A), 87 CONS intends to issue a fixed price contract for continued support for full food service to the seven dining facilities on the Dix annex, JB MDL. The current one month bridge contract expires on 31 May 15; this sole source award for three months (1 Jun 15 - 31 Aug 15) will be accomplished via FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

III. Description of supplies/services required to meet agency needs.

Under the contemplated contract, Cantu Services, Inc. will provide all personnel, supervision, and equipment, unless stipulated as government furnished, necessary for full food service to the seven dining facilities at the Dix annex, JB MDL consistent with services provided under the current bridge contract which is scheduled to expire 31 May 15.

The contractor shall perform dining facility management, menu planning, food preparation, serving and replenishing food, order, receipt and storage of subsistence items, cleaning of the dining facilities, headcount, cashier duties, remote food service, inventories of subsistence, ground maintenance of government property and quality control.

The Independent Government Cost Estimate (IGCE) for the extension is (three month support at

) for the period 1 Jun 15 - 31 Aug 15. The bridge contract will be funded with FY15 Operations and Maintenance (O&M) funds and Overseas Contingency Operation (OCO) funds. The current one month bridge contract value is

IV. Statutory authority permitting Other than Full and Open Competition.

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2).

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

The proposed three month bridge contract is for the continuation of full food service, which will provide additional time necessary to resolve a post-award GAO Protest B-411032.2 filed by FSIG on Solicitation No. FA4484-15- R-0005 that included a mandatory Competition in Contracting Act stay of performance, and an agency protest filed by received on 4 May 15. The projected award date for this bridge contract is 1 Jun 15. This requirement involves operating up to seven dining facilities serving over 3,400 combined meals per day (1.2 million meals annually) to support the Army's training mission which includes mobilization, de-mobilization, Guard and Reserve weekend training and special events. Without the dining facilities at Dix annex, JB MDL does not have the organic capacity to feed the troops participating in Army training activities. These services are required on a continuous basis and require a comprehensive knowledge of food service to ensure compliance with all federal, state, local and base health regulations. This firm fixed priced contract was solicited as a competitive acquisition 100% small business set-aside with a Randolph-Sheppard Act priority utilizing FAR 15, Performance Price Trade-off without technical factors.

Cantu Services, Inc. has been providing uninterrupted service since 1 May 15. Therefore, this acquisition is for continued performance of specialized services. Due to the substantial logistical efforts to transition employees, inventory government furnished equipment and the establishment of office space necessary to run this operation, Cantu Services, Inc. is the only contractor who can perform the duties required by JB MDL during the protest period.

Cantu Services, Inc. not only possesses the capability but is currently mobilized. This three month bridge contract will eliminate serious impacts and a delay to the mission of the Army and JB MDL.

Solicitation No. FA4484-15-R-0005 was advertised from 17 Dec - 30 Dec 14. Nine responsive offers were received and a source selection decision was made to award the contract to Cantu Services, Inc. under a best-value approach where past performance was significantly more important than price. Cantu Services, Inc. was notified of the award on 24 Apr 15 with a performance start date of 1 May 15. The expiring contract, FA4484-15-D-0007, ended on 30 Apr 15. The protest was filed with the GAO on 30 Apr 15 under case number B-411032.2. On 1 May 15 the contracting officer notified the prospective awardee, Cantu Services, of the protest and issued a stay of performance.

The outgoing contractor on FA4484-15-D-0007, KCA Corporation, was the food service contractor from 1 Feb 14 - 30 Apr 15. KCA Corporation was initially provided the opportunity to continue services on this contract during the protest period however, they were unable to continue operations for reasons stated in a 30 Apr 15 email to the contracting officer; the lease for their off base office space expired on 30 Apr 15 and was transferred to Cantu Services, all supplies were sold to Cantu Services, Inc. utilities at the dining facilities were transferred to Cantu Services, all employees and supervisors were transferred to Cantu Services, Inc. Therefore, on 30 April 15, the 87 CONS awarded a one month sole source contract to Cantu Services under Contract No. FA4484-15-P-0022 with a period of performance from 1 May 15 - 31 May 15. At that time, Cantu Services was the only source able to mobilize in order to keep the dining facilities operational.

Cantu Services provides critical services supporting the Army and JB MDL. A lapse in service would cause a complete cessation of food service operations with an immediate and catastrophic impact to mobilization and demobilization operations, contingency training operations and the health and welfare of warfighters of all services.

Cantu Services will serve over 3,400 meals per day and will be required to respond to short notice troop surges which entail opening, staffing and operating one or more additional dining facilities on several occasions.

Cantu Services is in place and able to continue the required level of support which necessitates uninterrupted service through 31 Aug 15. The company possesses on-site personnel, equipment and an in-depth knowledge of food service at JB MDL.

The government has determined that award to any other source would result in unacceptable delays in fulfilling JB MDL's requirement. Award to a new contractor for this three month period would not allow for a transition period.

If any other contractor were used to provide the support required by the government, it would be necessary to provide overlap to enable effective turnover of government property which includes inventory of almost 2,000 individual pieces of equipment located throughout 7 different buildings taking an estimated 8-10 hours per building. Also, the incoming and outgoing contractors are required to spend another 2-3 hours on inventory of dining facility small-wares (plates, cups, utensils, etc.) which then need to be restocked based on the requirements of JB MDL. The incoming contractor will be required to interview and transfer approximately 200 employees operating under a collective bargaining agreement, a process which recently took 7 full days to adequately complete. The incoming contractor must also establish an off-base office to conduct all company related administrative duties; a process which took that last contractor weeks to locate office space, complete a background check, and sign a lease. A new contractor must also become familiar with a unique and volatile scheduling environment during the summer period of increased training tempo. Furthermore, it would be difficult for a new contractor to quickly acquire the specific program expertise without adequate phase-in time to prevent a delay or unacceptable degradation in performance.

Finally, a new contractor would incur costs associated with sending in a phase-in team, employee uniforms, initial company specific employee training, supplying initial stock of consumables and cleaners, office lease and utility transfer fees. It is likely a cost prohibitive effort for a contractor to commit the resources required to assume this contract for a three month period.

The GAO has 100 days to render a decision on the protest. The current bridge contract expires on 31 May 15. Cantu Services is the only firm capable of providing the services described in Section III above without JB MDL experiencing unacceptable delays in fulfilling this mission critical requirement.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

A sources sought notice (JB_MDL_FULLFOODSVC) was posted to FedBizOpps (FBO) on 15 May 15 and closed on 19 May 15 at 1200 hours. A total of eight responses were received. Additionally, a synopsis was posted on 19 May 15 that notified all interested parties of the government's intent to negotiate on a sole source basis with Cantu Services, Inc. for full food service, Dix annex, JB MDL, NJ.

. is a small business and responded with a capability statement that included five recent food service contracts at DoD facilities. is a small business and provided a capability statement with five recent DoD food service contracts. . is a small business and provided three recent contracts with their capability statement for food service at state run facilities. . is a small business and submitted a capability statement with six references; two of which were food service to city run facilities, two which served college campuses and two at DoD facilities. . is a small business and also submitted four food service references with their capability statement which served DoD facilities.

a government entity operating as the State Licensing Agency (SLA) under the Randolph-Sheppard Act. The SLA provided a capability statement which referenced three food service contracts held in New Jersey at DoD facilities. is a small business and provided one DoD food service contract for the same location in their capability statement. is a large business and referenced four large DoD food service contracts.

The contracting officer and technical representative reviewed the capability statements. Although the respondents demonstrated efforts performing full food service, there were no respondents who expressly stated they had the capability to provide uninterrupted services beginning 1 Jun 15. As such it was determined that the mobilization and logistical efforts necessary to provide such service could not be met by any other contractor for the period of 1 Jun 15

- 31 Aug 15 other than the current contractor, Cantu Services, Inc. A synopsis was subsequently posted on 19 May 15 that notified all interested parties of the government's intent to negotiate on a sole source basis with Cantu Services, Inc. for full food service, Dix annex, JB MDL, NJ.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

This bridge contract will be accomplished utilizing the authority as implemented by FAR 6.302-1(a)(2). The contracting officer will analyze proposed price as described in FAR 15.404-1(b)(2)(ii) and (v), comparison of proposed historical prices, and the IGCE to negotiate a fair and reasonable price and document the final price negotiation memorandum.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

As described in Section VI above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.

Market research was also previously conducted within the last 18 months and determined current, accurate, and relevant, consistent with FAR 10.002(b)(1). That research consisted of sources sought notices posted to FBO on 19 Feb 14, 7 Oct 14, and 1 May 15.

A sources sought notice was posted to FBO on 15 May 15 and a subsequent notice was posted notifying all interested parties of the government's intention to negotiate on a sole source basis with Cantu Services, Inc. for full food service Dix annex, JB MDL, NJ. Capability statements were received from eight companies in response to the sources sought notice. None of the interested parties stated they were able to transition to the required service in the limited time available. The contracting officer and technical representative determined that the logistical effort necessary to provide uninterrupted service could not be met for the period of 1 Jun 15 - 31 Aug 15.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

None.

X. List of sources, if any, that expressed interest in the acquisition.

See Section VI above.

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

A sources sought notice entitled “Dix Full Food Service” was posted to FBO on 19 Feb 14 for Solicitation No.

FA4484-15-R-0005. The posting sought information from interested parties who could provide these services.

Capability statements were received from sixteen vendors, ten of which were small businesses. All of these small businesses currently have or have had contracts similar to this requirement and all stated that they are capable of meeting the full food service program requirement. On 16 Jun 14, the draft PWS for Solicitation No. FA4484-15- R-0005 was posted to FBO requesting interested parties to provide comments and/or questions on the requirement.

Four companies, all small businesses under the proposed North America Industry Classification System code, responded to the request. To update the market research, a sources sought notice was posted to FBO on 15 May 15 which returned eight capability statements.

A firm fixed price contract which included a base year and four option years was solicited as 100% small business set-aside with a R-SA priority and awarded on 30 Apr 15. Nine responsive proposals were received in response to that solicitation. Current market research indicates that adequate competition exists in the commercial marketplace for full food service. Future procurements for these services will be competed.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my signature above, I certify that any supporting data contained herein, which is my responsibility, is both accurate and complete.