HDEC02-09-D-0011-P0022_J&A_-_APR19.pdf

Control Number: HQC006-19-12

C88LA47R4Y.DARRELL.JEROME.12053

JUSTIFICATION REVIEW DOCUMENT

Description of Acquisition: Modification to extend the period of performance for contract HDEC02-09-D-0011 with Coastal Pacific Food Distributors, Inc., to provide for uninterrupted operation of delicatessen and bakery operations at commissary locations assigned to the Defense Commissary Agency in the Far East Area excluding Guam.

Authority: 10 U.S.C. §2304 (c)(2) and FAR 6.302-2, Unusual and Compelling Urgency

Justification and Approval Amount: $5,060,331.60

Performance Period: April 1, 2019 - January 31, 2020

Prepared By: Rine Maekawa Contract Specialist Date/Initials:

Digitally signed by

Telephone: (DSN) 315-634-1950 MAEKAWA.RIN MAEKAWA.RINE.1515049 E.1515049653 Date: 2019.03.26

08:03:13 +09'00'

Technical/Requirements:

PCO:

Darrell Clary Telephone: 804-734-8000,48866

Audrey Homes-Fisher Telephone:(DSN)315-634-2161

Program Manager Date/Initials:

3/25/19/Cdj

Contracting Officer

HOLMES- Digitally signed by HOLMES-

FISHER.AUDREY.10

DFaISteH:E2R0.A19U.D03R.E2Y7.11001:0785:1485883

----------------------------------------------------------------------------------------------------17-5-18-8-83-------+0-9'0-0'-

Required Signatures Are Required Below:

REVIEWS: We have reviewed the J&A and find that the justification is adequate to support other than full and open competition.

Program Manager: Darrell Clary Telephone: 804-734-8000, x48866

Digitally signed by

CLARY.DARRELL.JEROME.1205388474

Signature: Date: 2019.03.2516:28:05 -04'00' _ Date: _March 25, 2019

General Counsel: Nikki Musick Telephone: 804-734-8000, x48871

Signature: Date:

Deputy Director of Acquisition:

Michael G. Shaffer Telephone: 804-734-8000, x48681

Signature: Date: 4/1/2019

Competition Advocate: Floyd L. Kirkland Telephone: 804-734-8000, x86223

Date/Initials:

MUSICK.NIKKI.RATLIFF.11

03253485

Digitally signed by

MUSICK.NIKKI.RATLIFF.1103253485

Date: 2019.04.03 15:02:27 -04'00'

KIRKLAND.FLOYD

.L.JR.1067833224

Digitally signed by

KIRKLAND.FLOYD.L.JR.106783322

Date: 2019.04.04 08:17:06 -04'00'

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Office – Defense Commissary Agency (DeCA), Pacific Contracting Branch, Kadena Air Base, Okinawa, Japan.

2. Type of Contract Action – Modification of contract HDEC02-09-D-0011 with Coastal Pacific Food Distributors, Incorporated (CPFD). The proposed modification will extend the period of performance for ten months from April 1, 2019 to January 31, 2020. The contract type is a requirements type. The Resale Stock Fund Activity, Defense-Wide working Capital Fund, provides funding.

3. Description of Supplies/Services – This action will provide uninterrupted deli and bakery resale operations, to include sushi, in twenty five commissary locations within the Far East of the Defense Commissary Agency. The proposed ten month modification would increase the estimated contact value by $5,060,331.60 for a new contract total amount of $67,790,044.26 and extend the contract performance period until January 31, 2020.

4. Authority Cited - 10 U.S.C. 2304(c) (2), in accordance with FAR 6.302-2, Unusual and Compelling Urgency.

5. Reason for Authority Cited - Contract HDEC02-09-D-0011 expired on March 31, 2019.

Only the incumbent contractor can provide full, uninterrupted service to the commissaries until the new award is in place.

Delays have been experienced due to a completely revised deli bakery requirement, personnel turnover and the resultant transfer of contracting authority from the DeCA Pacific Contracting Team to DeCA Headquarters Resale Services Branch, which is taking over the competitive soliciting and contract award to replace the existing contract. In order to meet these new requirements, award of a follow-on contract, utilizing full and open competition, is in process and anticipated to be completed from a contract start date of February 1, 2020.

In the absence of a contract extension, the commissaries covered under this contract will be without deli and bakery resale operations, to include sushi, which will result in service members being denied their full commissary benefit provided to them by statue under 10 USC 2481 and 10 USC 2484. The commissary benefit is the cornerstone of the military quality of life and it is essential that DeCA provides a fully operational commissary. Loss of these products would negatively impact DeCA’s mission to provide for the military and their families.

CPFD has been successfully performing by providing products that conform to the contractual requirements, terms and conditions. Additionally, CPFD currently has the systems in place and has already established the necessary infrastructure to provide uninterrupted service in accordance with federal, state and agency requirements to the DeCA commissaries.

Given the time constraints involved in the follow-on requirement, it is determined that this this extension period is in the Government’s best interest.

6. Efforts to Obtain Competition: In order to further foster competition, the solicitation will be published to FedBizOpps on a full and open competitive basis, identifying the Government's intent to procure deli and bakery products and services for the Pacific region.

This justification will be made available for public inspection, after the completion of the contract modification to extend contract performance with the incumbent contractor, in accordance with FAR 6.305. A sources sought notification was not issued for this modification to extend contract performance due to time constraints involved.

7. Fair and Reasonable Cost Determination: The Contracting Officer has determined that the cost to the Government for the ten month contract extension will be fair and reasonable based on cost and/or price analysis of the contractor’s proposal. Based on the percentage of savings that has been achieved over the current contract performance period, the incumbent contractor has demonstrated the ability to meet the minimum percentage of patron savings required under the proposed contract performance extension.

8. Market Research and Interested Sources: The Contracting Officer has determined that the previous acquisition source lists and offerors, Small Business Dynamic database, FetBiz.Gov website, System for Award Management database and Google searches will be used to support and document market research for the follow-on requirement. A sources sought notification and pre- solicitation notice will be published to state the government’s intention to procure deli and bakery resale operations, to include sushi, for the Pacific Region.

9. Actions to Increase/Foster Competition: A base period of 24 months will be established to encourage competition, as the initial capital investment in labor and products is considerable. As evidenced from the performance under the current contracts, businesses find it difficult to provide the combination of services and products to meet the magnitude of effort associated with an efficient in-store specialty deli and bakery resale operation, to include sushi. Contractor management must possess business acumen, industry knowledge and analytical skills to successfully provide the right mix of products and services to support the operation. The initial startup costs are considerable for payrolls and products. The capital outlay is substantial to sustain a corporate infrastructure and field operations.

The contract awardee must have access to well known, high quality brand name products, and be able to offer the products at competitive prices. Additionally, in order to be successful, the contractor must have the proper distribution channels established to transport and deliver the products. Accordingly, this requirement will be solicited on an unrestricted basis using full and open competition as set forth in FAR Part 6.

10. Other Factors: Not applicable.

11. Commissary locations covered under contract HDC02-09-D-0011:

A. Japan Locations:

1. IWAKUNI

2. MISAWA

3. YOKOSUKA

4. YOKOTA

5. CAMP ZAMA

6. SAGAMI DEPOT

7. SASEBO

8. CAMP KURE

9. ATSUGI

10. SAGAMIHARA

11. HAROI

B. South Korea Locations:

1. OSAN

2. TAEGU

3. YONGSAN

4. CAMP HUMPHREYS

5. CAMP CARROLL

6. CAMP CASEY

7. CHINHAE NAS

8. CAMP RED CLOUD

9. KUNSAN

10. K-16

C. Okinawa Locations:

1. KADENA

2. CAMP FOSTER

3. CAMP COURTNEY

4. CAMP KINSER

1205388474

Date: 2019.04.01 10:13:56 -04'00'

Technical Certification:

I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Name: Darrell Clary Title: Program Manager

Fair and Reasonable Price Determination and Contracting Officer Certification:

I hereby determine that the price for this contract action will be fair and reasonable. I certify that this J & A is accurate and complete to the best of my knowledge and belief.

Name: Michael G. Shaffer Title: Contracting Officer

Signature: Date: 4/1/2019

APPROVAL

Based on the above mentioned justification, I hereby approve the ten month extension, from April 1, 2018 until January 31, 2020, for the continuation of services of deli/bakery operations in the DeCA Pacific region store locations covered under contract HDEC02-09- D-0011, on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304 (c)(2) and FAR 6.302-2, Unusual and Compelling Urgency, provided funds are available, or will be available, and provided that the services and property herein described have otherwise been authorized foracquisition.

APPROVED: Floyd L.Kirkland Title: CompetitionAdvocate

KIRKLAND.FLOYD.L.J

R.1067833224

Digitally signed by

KIRKLAND.FLOYD.L.JR.1067833224

Date: 2019.04.04 08:18:00 -04'00'