Amend 0001 HDEC02-12-D-0003-JA-HDEC02-19-26.pdf

Control Number: HDEC02-19-26 Amendment 0001

JUSTIFICATION REVIEW DOCUMENT

Description of Acquisition: Extend the contract performance period for HDEC02-12-D- 0003 with Military Deli & Bakery Services, Inc., to provide uninterrupted In-Store Specialty Delicatessen and Bakery Resale Operations to include Sushi, where applicable, to 10 commissary locations assigned to the Defense Commissary Agency (DeCA) West Area.

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

J&A Original Amount: $984,416.82 (EST)

Amend 0001: $656,277.92 (EST)

Total: $1,640,694.70 (EST)

Performance Period: July 1, 2019 – February 28, 2021

Prepared by: Sharon Weston Telephone (804) 734-8000, 48833

Contract Specialist Date/Initials:

Technical/: Darrell Clary CMS/Deli/Bakery Program Manager Requirements Telephone (804) 734-8000, 48866 Date/Initials:

PCO: LeAnna F. Stith Telephone (804) 734-8000, 86414

Contracting Officer Date/Initials:

Required Review Signatures:

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

Category Manager: Darrell Clary

Signature:

Telephone: (804) 734-8000, 48866

Date:

Legal Counsel: Daniel O’Connor Telephone: (804) 734-8000, 86189

Signature: Date:

Chief, Resale Contracting: Rhonda V.

McDougal, Contracting Officer

Telephone: (804) 734-8000, 48893

Signature: Date:

Competition Advocate: Floyd Kirkland Telephone: (804) 734-8000, 86223

Signature: Date:

WESTON.SHARON.K

AY.1109016264

Digitally signed by

WESTON.SHARON.KAY.1109016264

Date: 2020.08.13 16:14:18 -04'00'

STITH.LEANNA.F.

1388173889

Digitally signed by

STITH.LEANNA.F.1388173889

Date: 2020.08.13 16:20:46 -04'00'

MCDOUGAL.RHONDA.V.

1229535605

Digitally signed by

MCDOUGAL.RHONDA.V.1229535605

Date: 2020.08.13 17:11:12 -04'00'

O'CONNOR.DANIEL.

PATRICK.140882079

Digitally signed by

O'CONNOR.DANIEL.PATRICK.1408

820797 Date: 2020.08.14 10:49:16 -04'00'

8/19/2020/ ram

8/19/2020/

CLARY.DARRELL.JE

ROME.1205388474

Digitally signed by

CLARY.DARRELL.JEROME.1205388474

Date: 2020.08.19 08:54:50 -04'00'

KIRKLAND.FLOYD

.L.JR.1067833224

Digitally signed by

KIRKLAND.FLOYD.L.JR.1067833224

Date: 2020.08.24 08:09:04 -04'00'

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Office: Defense Commissary Agency (DeCA), Resale Contracting Branch, Resale Services Support Team (CCQRR), 1300 E Avenue, Fort Lee, Virginia 23801-1800.

2. Type of Contract Action: Modification of contract HDEC02-12-D-0003 with Military Deli & Bakery Services, Inc. P00010 extended the performance period for twelve (12) months from July 1, 2019 through June 30, 2020. The modification increased the estimated contract value by $984,416.82 to $9,044,598.12 (EST). Modification P00011 extended the period of performance an additional eight (8) months from July 1, 2020 through February 28, 2021 and increased the estimated contract value by $656,277.92 (EST) for a new total contract amount from $9,044,598.12 to $9,700,876.04 (EST). 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 provides labor, management, and assorted delicatessen and bakery product to include Sushi, where applicable, to 10 commissary locations within DeCA’s West Area.

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 HDEC02-12-D-0003 would have expired on June 30, 2020. In the absence of a contract extension, commissaries covered under this contract would have been without assorted deli/bakery products and the service members serviced by these commissaries would be denied their full commissary benefit provided to them by statute 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 have negatively impacted DeCA’s mission to provide for the military and their families. Without the extension discussed in this J&A, the current Contractor’s established systems would have been lost for shipping much needed products to the commissaries during the ongoing pandemic and, most importantly, our ability to provide patrons a commissary "similar to commercial grocery stores and may sell merchandise similar to that sold in commercial grocery stores" in accordance with Congress' expressed intent, 10 U.S.C. 484(a). As a result, delay in extending the deli/bakery services could have resulted in undue hardships and increased financial burden to the patrons and their families during the time in which DeCA was unable to fully extend the commissary benefit to patrons.

The Agency incurred further delays in the reacquisition process after the finalized performance work statement (PWS) was provided to the contracting office in August 2019. Upon review the contracting office provided additional comments which necessitated further revisions to the PWS. The solicitation was published on January 17, 2020, with the initial offers due on February 18, 2020. Additional questions about the requirement from potential offerors required coordination with the Sales Directorate and Store Operations for responses and resulted in significant changes to the requirement and an extension of the solicitation closing date. The solicitation closed on June 9, 2020, with an expected period of performance to begin on March 1, 2021.

The additional eight (8) months are needed to allow sufficient time to complete technical evaluations of all the offers received, conduct agency level contract reviews and approvals, brief senior management and allow for a contract awardee startup period. The initial startup period allows the awardee to transition into its automated systems and to ensure the systems are functioning properly.

Military Deli & Bakery Service, Inc., has been performing this contract successfully in accordance with the contract terms and conditions. They have systems in place to continue uninterrupted service. Additionally, Military Deli & Bakery Service, Inc., is the only known source available that has the necessary infrastructure established to continue providing uninterrupted service in accordance with federal, state, and agency requirements to the DeCA commissaries given the time constraints involved for this extension period.

6. Efforts to Obtain Competition: Based on previous market research conducted and historical data, no contractor other than the incumbent was capable of providing the required services during the eight (8) month extension period without causing unacceptable delays, disruption in service, and unrecoverable duplication of costs. The Justification & Approval (J&A) HDEC02- 19-26 Amendment 0001 will be made available for public inspection on the Government’s gateway, beta.sam.gov, in accordance with FAR 6.305 and DFARS 206.305.

The solicitation HDEC02-18-R-0005 has closed and is currently being processed for award.

Support of this effort requires a contractor to provide In-Store Specialty Delicatessen and Bakery Resale Operations, to include Sushi, for ten (10) DeCA East Area commissaries, in order to meet the demands of the commissaries on a weekly basis. This would involve a significant investment and commitment from a new contractor for only 8 months, to include a minimum startup of 30 days.

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 eight (8) month extension is fair and reasonable based on historical pricing per FAR 15.404-1(b)(2)(ii), based on review of previous pricing surveys which monitor the percentage of patron savings on all core items over the selling price of the same or similar items from comparable supermarket within a 10-mile radius of the commissary location. The incumbent contractor has agreed to continue meeting the percentage of patron savings required under the proposed contract performance extension.

8. Market Research and Interested Sources: No new market research or interested sources were sought for this specific short-term extension because the new contract is currently in-process with an expected award date of January 22, 2021.

9. Actions to Increase/Foster Competition: The follow-on acquisition was solicited on a full and open competition basis. As mentioned above the extension was executed to allow time to complete the award of the contract.

Technical/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: Darrell Clary Category Manager

Signature: Date:

Fair and Reasonable Cost Determination and Contracting Officer Certification:

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

Name: LeAnna F. Stith Chief, Resale Services Support Contracting Officer

APPROVAL

Based on the above mentioned justification, I hereby approve the eight (8) month extension from July 1, 2020 to February 28, 2021, for the continuation of services of In-Store Specialty Delicatessen and Bakery Resale Operations to include Sushi, where applicable, for 10 commissary locations within the DeCA West Area, on an unusual and compelling urgency basis pursuant to the authority of 10 U.S.C.§2304(c) (2), provided funds were available and provided that the services herein described have otherwise been authorized for acquisition.

APPROVED:

Floyd Kirkland Competition Advocate

STITH.LEANNA.F.1388173889

Digitally signed by

STITH.LEANNA.F.1388173889

Date: 2020.08.13 16:21:12 -04'00'

8/19/2020/

CLARY.DARRELL.JE

ROME.1205388474

Digitally signed by

CLARY.DARRELL.JEROME.12053884

Date: 2020.08.19 08:55:17 -04'00'

KIRKLAND.FLOYD

.L.JR.1067833224

Digitally signed by

KIRKLAND.FLOYD.L.JR.10678332

Date: 2020.08.24 08:11:32 -04'00'