Hawaii Water Crisis JA 12.15.2021 CompAd Clean_Redacted.pdf

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Source Selection Information – FAR 2.101 and 3.104

JUSTIFICATION AND APPROVAL (J& A)

1. Defense Logistics Agency (DLA) Troop Support, Indo-Pacific, Procurement Office-Hawaii is the contracting activity.

2. The action being approved is the ability to solicit for DLA requirements on an other than full and open competition basis.

3. Following is a description of the supplies required to meet DLA’s needs:

Item Description: Bottled Water 896001E117753 WATER, 24/16.9 FL OZ BT (or similar) Estimated Quantity: 7,200 Cases per day (22,000 Gallons per day) Contract Modification Value: Not to exceed $7,500,000.00

This requirement resulted in the addition of Emergency Bottled Water support for a limited period of time to Joint Base Pearl Harbor Hickam (JBPHH) under Blank Purchase Agreement (BPA) SPE300-20-A-0007 with Pepsi Beverage Company. BPA SPE302-20-A-0007 generally provides for canned sodas and bottled water support for authorized DLA customers in Oahu, Hawaii. The BPA has a maximum dollar value of $600,000.00, with current obligations of approximately and expires on September 30, 2025.

This requirement will supply JBPHH with additional bottled water to support over 93,000 military servicemen and women, families, and civilians. As detailed in paragraph 5 below, the increased demand for bottled water due to the Navy water crisis has led to a severe shortage in bottled water. The need to adjust ounce sizes and or packaging in various containers including bottled and canned options may be necessary to continue support.

4. The applicable statutory authority permitting other than full and open competition is 10 U.S.C. 2304 (c)(2), as implemented by FAR Part 6.302-2, Unusual and Compelling Urgency.

5. This acquisition required use of the cited authority for the reasons set forth below:

On 28 November 2021, residents of military housing communities on JBPHH complained of fuel smell and oily sheen from their tap water. The following day, 29 November 2021, Commander, Pacific Fleet (COMPACTFLT) queried DLA Troop Support regarding DLA resources available for bottled water. On 30 November 2021, the Hawaii State Department of Health (DOH) detected petroleum products in water samples from an elementary school near JBPHH and recommended that anyone who uses the Navy water system avoid using the water for drinking, cooking, bathing, dishwashing, laundry, or oral hygiene. The Navy believes a release of 14,000 gallons of water and fuel that occurred on 20 November 2021, from a fire suppression drain line at the U.S. Navy’s Red Hill Fuel Storage Facility, may have contaminated the Red Hill well providing water to JBPHH and surrounding areas. Upon discovery of the contaminated water, base-wide support was requested for bottled water on

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Source Selection Information – FAR 2.101 and 3.104 the established BPA and DLA Troop Support Indo-Pacific received a Bottled Water Requirement from the Navy for 22,000 Gallons per day (7,200 cases of 16.9 oz Bottled Water, 24 bottles per case) with Required Delivery Date (RDD) starting 1 December 2021 for a period of thirty (30) to sixty (60) days, or until the water crisis is resolved.

Beginning 30 November 2021, DLA Troop Support Indo-Pacific Region, Procurement Office-Hawaii Team queried BPA holders and Subsistence Prime Vendor (SPV) contractors about their daily capabilities for Bottled Water to assist in meeting the sudden increase in demand.

By 5 December 2021, options for immediate support, including supplying mass water buffaloes were exhausted and unable to support the requirement. DLA Troop Support Indo- Pacific orally solicited several vendors in Hawaii and the U.S. Orders were placed with the vendors identified below to immediately procure all stock available, and Pepsi was then able to meet the ongoing daily requirement for the projected 30-60 days of this crisis.

Coca-Cola (Current BPA Vendor) - cases (Bottled Water, 16.9 fl oz, 24 bottles per case) delivered December 6, 8, and 9, 2021

Y. Hata (Hawaii Subsistence Prime Vendor) - cases of 500 ml (24 bottles per case) bottled water, and 1,760 cases of 1.5 liter (12 bottles per case) bottled water delivered December 6 and 8, 2021

FEMA - cases of 1 Liter Zip-Pak Water (12 per Cases) delivered December 4, 5, and 6, 2021

U.S. Foods San Francisco (Subsistence Prime Vendor) cases (24 btl/.5L) delivered December 5 through 9 2021

After the supply of bottled water from other viable sources was exhausted, Pepsi, a current DLA BPA holder and supplier of Pepsi brand canned sodas and water products to customers on the Island of Oahu, advised they were able to meet required customer demands for water.

Due to extreme urgency, the modification to increase the maximum dollar value of Pepsi’s BPA was signed on 6 December 2021 to increase the maximum dollar value from $600,000.00 to $7,500,000.00. Deliveries commenced immediately.

6. In accordance with FAR 5.202(a)(2), this acquisition was not synopsized in SAM.gov. This justification, however, will be made available for public inspection, after award, in accordance with FAR 6.305.

7. As the Contracting Officer, I hereby determine that the anticipated cost to the Government will be fair and reasonable based on evaluation in accordance with FAR 15.404-1(b), including favorable comparison to commercial pricing and current marketplace conditions.

8. The information supporting this action is based primarily on the Government’s knowledge of the subsistence supply chain in the Hawaii region. All available current contract holders acknowledge the limited supply of bottled water. DLA Troop Support Indo-Pacific