Signed_Mar_1_2017_Hardies_11D0010_7_mo_JA_-3s.pdf

Control Number: HDEC02-17-09

JUSTIFICATION REVIEW DOCUMENT

Description of Acquisition: Modification P00015 to extend the contract performance period for HDEC02-11-D-0010 with Hardies Fruit and Vegetables Company, to provide uninterrupted delivery of fresh fruits and vegetables to thirty-three (33) commissary store locations assigned to the Defense Commissary West Area.

Statutory Authority: 10 U.S.C. §2304 (c) (1)/FAR 6.302-1(a) (2)

Performance Period: March 4, 2017 – October 3, 2017

Estimated Contract Amount: J&A Original Amount: $12, 731,769.68

Prepared By: Irma Weaver Contract Specialist Phone: 804-734-8000 X86120 Date/Initials: ________

Technical: Bridget Bennett CMS/Produce Program Manager Phone: 804-734-8000 X48200 Date/Initials: ________

Requirements: Bridget Bennett CMS/Produce Program Manager Phone: 804-734-8000 X48200 Date/Initials: ________

PCO: Kimberly A. Cooper Contracting Officer Phone: 804-734-8000 X48920 Date/Initials: ________

Required Review Signatures: We have reviewed this J&A and find the justification adequate to support other than full and open competition.

Program Manager: Bridget Bennett Phone: 804-734-8000 x48200 Signature: _____________________ Date: _____________

Legal Counsel: Helen J. White Phone: 804-734-8000 x48207

Division Chief: Rhonda V. McDougal Phone: 804-734-8000 x48893

Competition Floyd Kirkland Phone: 804-734-8000 x86223 Advocate: Signature: _____________________ Date: _____________

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Office – Defense Commissary Agency (DeCA), Resale Contracting Division (LEAR), 1300 E. Avenue, Fort Lee, Virginia 23801-1800

2. Type of Contract Action – Modification of contract HDEC02-11-D-0010 with Hardies Fruit and Vegetable Company. The proposed modification will extend the period of performance seven (7) months from March 4, 2017 to October 3, 2017. The contract type is a requirements contract. The Resale Stock Fund Activity, Defense-Wide Working Capital Fund provides funding.

3. Description of Supplies/Services – This action will provide fresh fruits and vegetables for resale in thirty-three (33) commissary store locations within the West Area of the Defense Commissary Agency (DeCA). The proposed seven (7) month modification would increase the estimated contract value by $12,731,769.68 for a new total estimated contract amount of $34,557,660.54 and extend the contract performance period until October 3, 2017. The estimated contract extension amount was derived from the estimated quantities of High Volume Core Items (HVCI) that are expected to be delivered to the 33 commissary store locations between March 4, 2017 and October 3, 2017. ($1,818,824.24 x 7 months = $12,731,769.68).

4. Authority Cited - 10 U.S.C. §2304(c)(1), in accordance with FAR 6.302-1(a)(2), only one responsible source and no other supplies and services will satisfy Agency requirements.

5. Reason for Authority Cited - Contract HDEC02-11-D-0010 will expire on March 3, 2017.

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

The Agency incurred delays due to the revision and finalization of the produce solicitation which required higher level approval, as well as coordination with other areas in the Agency.

The solicitation package is in the process of being prepared for internal review. The additional seven (7) months is needed to allow sufficient time for the issuance of the solicitation, a technical evaluation for all offers received, Agency level contract reviews, senior management briefings/approvals and allow for a startup period for the contract awardee(s). The startup period allows for the awardee(s) to transition into its automated systems and to ensure the systems are functioning properly. The projected solicitation issue date is March 23, 2017.

In the absence of a contract extension, the availability of fresh fruits & vegetables will cease in the commissaries covered under this contract and the service member will be denied their commissary benefit provides to them by statute under 10 USC §2481 and 10 USC §2484.

Hardies Fruit and Vegetable Company has been performing this contract successfully for over five years, providing products that conform to the contractual requirements, terms and conditions. They have systems in place to continue uninterrupted service. Hardies Fruit and Vegetable Company is the only source available that has the necessary infrastructure to provide uninterrupted service in accordance with federal, state and agency requirements to the DeCA commissaries for this extension period.

6. Efforts to Obtain Competition –No contractor other than the incumbent is capable of providing the required services during the proposed extended period without causing unacceptable delays, disruption in service, and unrecoverable duplication of costs. 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 requirement due to the fact that a contractor would not be capable of providing service for only a seven (7) month period. Support of this effort requires contractors to stage inventory in produce facilities so that the demands of the commissaries can be met on a weekly basis. Any new contractor would require approximately 30 days to order and stage these requirements. In order to ensure continuity of service, the requirement to post a sources sought notice is waived by the Head of the Contracting Activity as allowed by DFARS/PGI 206.302-1.

7. Fair and Reasonable Cost Determination and Contracting Officer Certification - The Contracting Officer has determined that the anticipated cost to the Government for the contract modification for the seven (7) month extension will be fair and reasonable based on the Market Basket Pricing Surveys which monitors the minimum percentage of patron savings on all core items over the selling price of the same or similar items from comparable commercial supermarkets within a 20 –mile radius of the commissary location. The incumbent contractor has agreed to continue meeting 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 sources from the previous acquisition history, Google searches, the Small Business Administration Dynamic Search Database, FPDS-NG, will be used to support and document market research for the follow-on requirement. A pre-solicitation notice was published on the FedBizOpps website in June 2016, identifying the government’s intent to procure fresh fruit and vegetable products for the thirty-three (33) commissaries within the West Area covered under the subject contract.

9. Actions to Increase/Foster Competition - It is anticipated that the follow-on acquisition will be solicited on a full and open competition basis.

10. Other Factors – Not applicable.

11. Locations Covered Under Contract HDEC02-11-D-0010:

Area 2, Group1 Area 2, Group 2 Ellsworth AFB, SD Corpus Christi NAS, TX Fort Carson, CO Dyess AFB, TX Buckley AFB, CO Ft bliss, TX USAF Academy, CO Ft Hood 1, TX Peterson AFB, CO Ft Hood 2, TX F.E. Warren AFB, WY NAS Ft Worth, TX Offutt AFB, NE Goodfellow AFB, TX Ft Leavenworth, KS Holloman AFB, TX Ft Riley, KS Kingsville NAS, TX McConnell AFB, KS Lackland AFB, TX Altus AFB, KS Laughlin AFB, TX Cannon AFB, KS Randolph AFB, TX Sheppard AFB, TX White Sands, NM Tinker AFB, OK Ft Sam Houston, TX Vance AFB, OK Ft Sill, OK Kirtland AFB, NM Minot AFB, ND Grand Forks AFB, NB

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: Bridget Bennett Signature: _______________________________ Title: CMS/Produce Program Manager Date: _________________________

Requirements 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: Bridget Bennett Signature: _______________________________ Title: CMS/Produce Program Manager Date: _________________________

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: Kimberly A. Cooper Signature: _______________________________ Contracting Officer Date: __________________

APPROVAL

Based on the foregoing justification, I hereby approved the procurement of the continuation of deliveries of fresh fruit and vegetables for the 33 commissaries covered under contract HDEC02- 11-D-0010 for a 7-month contract performance extension, March 4, 2017 – October 3, 2017, on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1), provided funds are available, or will be available, and provided that the services and products herein described have otherwise been authorized for acquisition.

APPROVED:

Signature: ______________________________ Date: _________________________ Floyd Kirkland Competition Advocate Defense Commissary Agency

Date_8: March 2, 2017