HCI_Sole_source_justification_Signed.pdf

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

FOR OFFICIAL USE ONLY

18 Jun 2019 FOR OFFICIAL USE ONLY Page 1 of 5

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

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: >SAT and < $700K > $700K and < $13.5M

Contracting Activity: 10 CONS/PKB

Purchase Request / Local ID Number: F4BMM00120AW01

Program / Project (and PE, if applicable): Full Food Service at the High Country Inn Dining Facility

Program Type (PEO or Other Contracting): Other Contracting

Authority: AFFARS 5313.501 - 10 U.S.C. 2302b, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901)

AFFARS 5313.501 - 10 U.S.C. 2304a, Special Emergency Procurement Authority (41 U.S.C. 1903)

Estimated Contract Cost (including options): $1,685,402.00 Justification Type: Class Individual

COORDINATION (AFFARS 5306.304(a))

Date

28 Jul 2020

Contracting Officer Dana M. Western 10 CONS/PKB, Tel: 719.333.3961

Signature

Date

29 Jul 2020

Local Legal Reviewer Mr. Scott McLauthlin USAFA/JA, Tel: 719.333.9606

Signature

Date

29 Jul 2020

10 CONS/PKP

John F. Corbett

10 CONS/PKP 333-6708

Signature

Date

29 Jul 2020

Director of Business Operations (DBO) Nicole A. Hunyadi 10 CONS, Tel: 719.333.2074

Signature

APPROVAL (AFFARS 5306.304(a) )

Date

29 Jul 2020

Competition Advocate James A. Anderson USAFA/PK, Tel: 719.333.3829

Signature

WESTERN.DANA.M.141

9517832

Digitally signed by

WESTERN.DANA.M.1419517832

Date: 2020.07.28 12:02:47 -06'00'

CORBETT.JOHN.F.10916

45005

Digitally signed by

CORBETT.JOHN.F.1091645005

Date: 2020.07.29 13:11:14 -06'00'

MCLAUTHLIN.SCOTT.BR

ADFORD.1154421390

Digitally signed by

MCLAUTHLIN.SCOTT.BRADFORD.1154421390

Date: 2020.07.29 13:37:00 -06'00'

HUNYADI.NICOLE.A.124

4112125

Digitally signed by

HUNYADI.NICOLE.A.1244112125

Date: 2020.07.29 15:45:42 -06'00'

ANDERSON.JAMES.A.11

24028252

Digitally signed by

ANDERSON.JAMES.A.1124028252

Date: 2020.07.29 16:05:50 -06'00'

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

18 Jun 2019 FOR OFFICIAL USE ONLY Page 2 of 5

I. Contracting Activity.

10 Contracting Squadron 8110 Industrial Road, Suite 200 USAF Academy CO 80840

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

Individual Justification and Approval for an exception to full and open competition.

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

This acquisition is to support the continuing need for full food services at the High Country Inn (HCI) dining facility. The HCI primarily supports the students attending the United States Air Force Academy (USAFA) Preparatory School; it also serves enlisted personnel assigned to USAFA.

In addition to providing three meals a day, seven days a week, fifty-two weeks a year, the Service Provider is responsible for facility housekeeping, immediate facility ground maintenance, and snow removal for the HCI.

The contemplated period of performance is 1 August 2020 through 30 June 2021. The contract clause 52-217-8 shall be included in the 11-month contract.

This work is governed by a collective bargaining agreement.

IV. Statutory authority permitting other than full and open competition.

Per 41 U.S.C. 1901, as implemented by FAR 13.501(a)(1)(ii) and AFFARS 5313.501.

The nature of this work is governed by the Randolph-Sheppard Act (R-SA) administered by the Rehabilitation Services Administration, part of the Office of Special Education and Rehabilitative Services (OSERS) in the US Department of Education. This regulation sets a priority for R-SA qualified vendors and under 34 CFR § 395.33(d) the statute permits direct negotiations with State licensing agencies (SLA) to afford this priority.

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 nature of this work is a priority for Randolph Sheppard Act (R-SA) qualified vendors under 34 CFR §

395.33. The program is governed by the Department of Education. Colorado is part of Region VIII and the management of the program for Colorado is through the Department of Human Services, Division of Vocational Rehabilitation, Business Enterprise Program. This activity is the SLA for Colorado. “The SLA is responsible for recruiting, training, and licensing individuals who are blind or have a vision impairment…” (Congressional Research Service, CRS Report to Congress 7/5700 dated 13 January 2011)

Furthermore, a Presidential memorandum - “Federal Support for the Randolph-Sheppard Vending Facility Program” dated 20 January 2012 asks “the federal government to support and cooperate to extend the Randolph-Sheppard priority through the State licensing agencies and directed compliance with the Act.” 34 CFR states “Federal property managing departments, agencies, and instrumentalities may afford priority in the operation of cafeterias by blind vendors on Federal property through direct negotiations with State licensing agencies 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.”

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

18 Jun 2019 FOR OFFICIAL USE ONLY Page 3 of 5

Finally, working with the SLA to support the program is identified under AFI34-206 1.1 “1.1. Randolph-Sheppard Act Program Overview. The blind have a priority right to operate vending facilities on DoD-controlled property under the provision of the Randolph-Sheppard Act when the opportunity to operate them becomes available. The priority extended allows blind licensees to be gainfully employed while primary responsibility for carrying out this intent falls upon the State Licensing Agency (SLA). It is nevertheless a responsibility of the installation commander (the on-site official) to ensure that the operator is in fact a state licensed blind person and that sighted employees or assistants are utilized only to the extent reasonably necessary.”

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

A sources sought was posted on www.Beta.SAM.gov with a closing date of 21 February 2020, and the market research report was approved by the Requirements Owner (10 FSS/Sustainment Services Flight) on 5 May 2020. The results of the sources sought, as reported in the market research report, garnered responses from four large businesses, eight small businesses and the incumbent (SLA).

Vendor Name, Socio-Economic Status:

Acorn Services, Inc., Minority; Women-Owned Small Business; 8(a) Program Bobsaith, LLC, Women-Owned Small Business Avery Group, Inc., Women Owned Small Business Bayou Cajun Enterprise, LLC, Small Business; Graduated from 8(a) Program Fanfare Events, Inc., Women Owned Small Business; Small Disadvantaged C2 Enterprises, LLC, Minority; Small Disadvantaged; Woman-Owned Small Business SLA (Worley Enterprises, Inc.), Small Disadvantaged; 8(a) Program HoneyPott Catering, Minority; Small Disadvantaged Business Sodexo Management, Inc., Large Business Rice Services, Inc., Large Business Pentad Corporation, Large Business Taher, Inc., Large Business

The full market research report can be found in KT File Share element "Market Research - 143."

The reacquisition for this service contract has already begun, and the Contracting Officer intends to use and build on the current market research to determine the best method of acquisition. The SLA, per the mandates in the R- SA, will be invited to submit a proposal.

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

After the receipt of preliminary pricing from the SLA, a pre-price negotiation memorandum (P-PNM) was prepared ahead of negotiations with the SLA. Documented in the P-PNM was the process to determine the price fair and reasonable. As stated in the P-PNM, under R-SA, the evaluation basis for direct award is based upon the assurance “the operation can be provided at a reasonable cost, with food of a high quality comparable to that currently provided employees.” The price shall be determined fair and reasonable, and per FAR 13.106-3, the determination shall be included in the contract file. Methods to determine the price fair and reasonable include:

• Market research;

• Comparison of the proposed price to the current contract prices and adjusting the proposed price for escalation (typically trending at 2.5% for the food service industry);

• Comparison of the proposed price with prices for other full food service contracts in the Department of Defense;

• The contracting officer's personal knowledge of the item being purchased; and

• Comparison to the independent Government estimate.

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

18 Jun 2019 FOR OFFICIAL USE ONLY Page 4 of 5

• Wage rates for hourly employees are determined by the collective bargaining agreement (CBA) between the Industrial, Technical, and Professional Employees Union, OPEIU Local 4873, AFL-CIO and RMC Exemplar. This CBA went into effect 1 March 2019; it was signed by all parties as of 13 March 2020.

Section 395.33 states, “(a) Priority in the operation of cafeterias by blind vendors on Federal property shall be afforded when the Secretary determines, on an individual basis, and after consultation with the appropriate property managing department, agency, or instrumentality, that such operation can be provided at a reasonable cost, with food of a high quality comparable to that currently provided employees, whether by contract or otherwise. Such operation shall be expected to provide maximum employment opportunities to blind vendors to the greatest extent possible.”

The SLA elected to stay with its current blind vendor, Worley Enterprises, and Worley's teaming partner, Blackstone Consulting, for this 11-month contract. By retaining the incumbent blind vendor, the customary 30-day phase-in period is not needed.

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

Market research was conducted in accordance with FAR Part 10.

A sources sought was posted on www.Beta.SAM.gov with a closing date of 21 February 2020, and the market research report was approved by the Requirements Owner (10 FSS/Sustainment Services Flight) on 5 May 2020. The results of the sources sought, as reported in the market research report, garnered responses from eight small businesses and the incumbent (Worley Enterprises).

The market research report contained market information based on recently awarded contracts at Peterson AFB and Schriever AFB. Market Research supports pursuing a fixed-priced commercial contract under FAR 12 and FAR 13 procedures using the standard terms and conditions governing FAR 12 actions.

The full market research report can be found in KT File Share element "Market Research - 143."

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

N/A

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

Colorado Department of Human Services, Division of Vocational Rehabilitation, Business Enterprise Program (the SLA for the State of Colorado responsible for implementation of RSA). Their blind vendor is Worley Enterprises, and Worley's teaming partner is Blackstone Consulting, Inc.

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.

The application of the R-SA (20 USC 107) in DoD contracting spans two different agencies, the Department of Defense (DoD) and Department of Education (DoE) with application under 34 CFR § 395, Vending Facility Program for the Blind on Federal and Other Property. There are continuing efforts to clarify intersection of R- SA with other Acts such as Competition in Contracting Act.

The award of this action as a sole source does not preclude further competitive efforts as 34 CFR § 395.33

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

18 Jun 2019 FOR OFFICIAL USE ONLY Page 5 of 5 permits the use of competitive action or direct award. If direct negotiations do not result in a contract for service at a reasonable price and quality, the option remains to pursue a competitive acquisition. The reacquisition for this service contract has already begun, and the Contracting Officer intends to use and build on the current market research to determine the best method of acquisition. The SLA, per the mandates in the R-SA, will be invited to submit a quote.

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 (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.