HDEC02-11-R-0001-0005.doc

SECTION SF 30 BLOCK 14 CONTINUATION PAGE

SUMMARY OF CHANGES

SECTION SF 1449 - CONTINUATION SHEET

The following have been modified:

ADDENDUM

ADDENDUM TO FAR 52.212-4

CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS

20. PERIODIC SURVEILLANCE REQUIREMENTS:

(a) The guaranteed minimum percentage of patron savings is the average amount the contractor will save the commissary patron on all core items over the selling price of the same or similar items from comparable commercial supermarkets within the local commuting area and/or geographical area within a 20-mile radius of the commissary location (excluding membership clubs and convenience type stores). The contractor is required to maintain the minimum percentage of patron savings on all core items for the base year of contract performance, and for each option period of contract performance, if each option year is exercised. The guaranteed minimum percentage of patron savings of ____ (filled-in at time of contract award) shall be maintained on all core items when comparing the comparing the commissary’s suggested retail selling price (selling price includes a 7% markup) to the retail selling price in comparable local civilian supermarkets during each weekly price period for the entire group. The guaranteed minimum percentage of patron savings will be monitored using Market Basket Pricing Surveys.

The contractor shall make arrangements to conduct the Market Basket Pricing Surveys jointly with the Commissary Produce Manager or designated representative. The surveys shall be conducted at least once per month at one commissary location which shall be rotated throughout the group. The survey must contain all the core items that are in season. The survey must include columns for the contractor’s catalog price, the commissary’s actual selling price (include the name of the commissary surveyed), the commissary’s suggested selling price and the retail price from at least two commercial supermarkets. The surveys shall be conducted at no cost to the Government. Multiple surveys may be required in the various geographical areas within the group in order to determine the average percentage of savings within the group.

(b) The contractor will provide the results of the Market Basket Surveys, identifying the date when the surveys were conducted, the items surveyed, the comparable store locations checked, and all comparative prices found to the Region Produce Specialist and the Contracting Officer not later than two days from the date of survey. The Government reserves the right to perform an independent survey at any time in order to monitor contractor performance or validate contractor surveys. The contractor may be required to participate jointly in these surveys.

(c) If it is determined that the minimum percentage of patron savings is not maintained on average for all core items for the entire group during a weekly pricing period, or demonstrates a trend of inconsistent failure to achieve the minimum percentage of patron savings, the Contracting Officer may increase the frequency of the contractor-conducted pricing surveys until further notice. USDA index pricing or some other index may be used to verify the contractor’s ability to provide the percentage of savings offered against the market basket pricing stated in any resulting contract issued from this solicitation. Failure to achieve or maintain the minimum percentage of patron savings may result in negative input into the contractor past performance history that may affect future contract awards, may be a part of the determination to exercise an option period, and/or may lead to termination of the contract. In addition, the contractor may be required by the Contracting Officer to take other immediate actions to ensure compliance with the savings requirements of the contract.

(d) The Government reserves the right to monitor the pricing structure on all non-core items which shall be competitive with retail pricing at all times throughout the contract period of performance.

25. LIVE POTTED PLANT PROGRAMS: In Area 5, nine (9) stores currently have a primary plant supplier (Jacksonville NAS, MacDill, Mayport, Patrick, Fort Stewart, Hunter Army Field, Moody AFB, Robins, Fort Buchanan), and twenty-five (25) stores do not have a primary plant supplier. One store, Camp Merrill currently does not require potted plant deliveries. For the fifteen (25) stores that do not have a primary plant supplier, this contract will provide a guaranteed potted plant program that guarantees the sale of the plants and ornamental produce – see paragraph (a) below. For the stores that have a primary plant supplier, the contractor may deliver potted plants and ornamental produce on a drop-ship basis only – see paragraph (b) below.

(a) GUARANTEED SALE POTTED PLANT PROGRAM: The contractor shall provide potted plants and ornamental produce under a guaranteed sale potted plant program to the 25 Area 5 stores under any resultant contract. The contractor guarantees that the potted plants and ornamental produce ordered and received by the government under the resultant contract will be sold through the front-end register. The contractor guarantees credit will be issued for any plant and/or ornamental produce product ordered and received by the government that do not sell through the front-end register. Each commissary will provide adequate display space and fixtures to support the guaranteed sale plant program. The contractor is encouraged to feature its guaranteed sale plant program during special events such as Farmers Markets, Truckload Sales and/or Road Show events at those store locations that do not have a primary plant supplier. Additional store locations in Area 5 may be moved from drop-ship to the guaranteed sale potted plant program during the contract performance period utilizing the modification process.

(i) PLANT SUPPORT and LABELING: The contractor will provide the store locations with merchandising visits 3 days a week to care for the plant products. With minimal assistance from the government, the contractor’s representative will maintain and merchandise the plants to ensure they remain attractive for resale to commissary shopper. The contractors will provide any supplies required for maintaining and merchandising the products to include price stickers and promotional signs. The contractor shall label each product with a sticker that contains a description, the price, and a Universal Produce Code (UPC). The contract will assign UPC’s to products based upon a price point system rather than assigning codes based upon plant type and/or variety. The Government shall be responsible for updating its pricing system as price changes may occur.

(ii) PRE-ORDERS and DELIVERIES: Pre-orders for the products must be in full case quantities. The contractor will provide a pre-order form and plant order guide to the produce manager or authorized ordering official by 12:00pm Wednesday of each week. The produce manager or authorized ordering official will complete the pre-order form and return it to the contractor not later the 12:00pm (Noon) every Tuesday. Both the government ordering official and the contractor’s representative shall sign the pre-order designating approval by both parties. In lieu of assigning a separate call order number to the pre-ordered plants, the contractors will ensure the pre-order for plants coincides with a produce call order that already exists with the contractor’s web ordering system. Potted plants or ornamental produce will be delivered to the store a minimum of once a week, and will accompany one of the produce deliveries in accordance with the required contract delivery schedule. Additional deliveries may be warranted as sales and operational needs increase. Further, the contractor must use the same (one) call order number to invoice potted plants and produce. The contractor may recommend order quantities to government ordering officials.

(iii) MARKDOWN and CREDITS: The contractor’s representative and the produce manager will jointly apply markdown price to plants that need to be reduced for quick-sale. The contractor’s representative and produce manager will both sign an official credit document that is to be turned in to the contractor each Tuesday along with the next weeks plant order. The contractor will issue weekly credits that will be applied to the next delivery ticket invoice. The contractor shall pick up plants that do not sell and will ensure proper disposal by removing them from the commissary store.

(b) DROP-SHIP PROGRAM: For the 9 stores that have primary plant suppliers, the contractor shall drop-ship live, fresh potted plants and/or ornamental produce to those store locations only in the event the primary supplier is unable to support a particular type of product or special events such as Holiday, Seasonal, Farmers Market, Truckload Sales or Road Show events. All drop-shipments shall be in accordance with the contract delivery schedule. The contractor shall not impose a minimum shipment requirement for drop-ship orders.

ATTACHMENTS: The following attachments are incorporated as part of this solicitation/contract:

Attachment A – DeCA’s Technical Data Sheet (TDS) for Fresh, Fruits and Vegetables (FF&V), dated November 2008

Attachment B – Area 5 FF&V Delivery Schedule

Attachment C – Delivery Schedule Compliance Certification

Attachment D – Business Reference Letter and Past Performance Survey (Attached under separate cover)

Attachment E – Pricing Spreadsheet/Schedule of Supplies for Area 5 (Attached under separate cover)

Attachment F – Historical sales data for the DeCA East locations

Attachment G – Offeror’s Market Basket Survey Form Attachment H – List of Stores with/without Plant Suppliers for Area 5

(Attached under separate cover) (End of Summary of Changes)