Digi_-_JA_-_LEAE_Version_(7-13-16)-COMMENTSss.pdf

Control Number: HDEC04-16-34 For Official Use Only (FOUO)

JUSTIFICATION REVIEW DOCUMENT

DESCRIPTION OF ACQUISITION: Full Burden Maintenance of DIGI Brand Name Auto- Wrappers and Scales for 15 commissaries located throughout the Continental United States

(CONUS).

STATUTORY AUTHORITY: 10 U.S.C. 2304(c) (1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, as implemented by FAR 6.302-1.

ESTIMATED CONTRACT AMOUNT: The estimated cost for the base year is $263,497.00.

The base year is for the period November 1, 2016 through October 31, 2017. The estimated total cost for the base and four one-year options is $1,353,631.00.

PREPARED BY: Michael Conwell Supply Management Specialist Telephone Number: 804-734-8000 x48251

PCO: Diana Gross-Bendall Contracting Officer Telephone Number: 804-734-8000 x48185

Technical: Rebecca Barefoot Supply Management Specialist Telephone Number: 804-734-8000 x48085

Technical: Russell F. Ellison Supply Management Specialist Telephone Number: 804-734-8000 x486031

Requirements: Chris Coppler Supervisory Supply Management Specialist Telephone Number: 804-734-8000 x48023

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

Program Manager: N/A

Assistant General Counsel: Nikki Salunga Telephone Number: 804-734-8000 x48032

Signature: Date:

Chief of Contracting Office:

Name: Richard Broda Telephone Number: 804-734-8000 x48882

Signature: Date:

SALUNGA.NIKKI.RA

TLIFF.1103253485

Digitally signed by

SALUNGA.NIKKI.RATLIFF.1103253485

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DCMA, cn=SALUNGA.NIKKI.RATLIFF.1103253485 Date: 2016.07.19 13:08:27 -04'00'

BRODA.RICHAR

D.ALAN.108073

Digitally signed by

BRODA.RICHARD.ALAN.1080731252

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=BRODA.RICHARD.ALAN.10807312 Date: 2016.07.19 13:58:21 -04'00'

DECA Competition Advocate: Floyd Kirkland Telephone Number 804-734-8000 X86223

Signature: _________________________ Date: July 20, 2016

19 July 2016

19 July 2016

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. CONTRACTING OFFICE: Defense Commissary Agency Supply/Equipment Acquisition Division, LEAE 1300 E. Avenue Fort Lee, Virginia 23801-1800

2. TYPE OF CONTRACT ACTION: The type of action contemplated is a Firm Fixed Price type contract. Payment will be made using Invoicing, Receipt, Acceptance, and Property Transfer (iRAPT).

3. DESCRIPTION OF SUPPLIES/SERVICES: The Defense Commissary Agency, Logistics and Engineering Division (LELE), has an on-going requirement to obtain full burden maintenance on DIGI brand auto-wrappers and scales for 15 commissaries located in the Continental United States (CONUS). The stores include: Cherry Point, Edwards AFB, Fort Eustis, Fort Gordon, Fort Knox, Fort Meade, Fort Riley, Great Lakes, Harrison Village, Laughlin, Meridian, Moffet Field, Richards-Gebaur, Selfridge, and West Point. The anticipated base period will be November 1, 2016 through October 31, 2017. The solicitation shall include the base and four one-year option periods, which may extend the contract performance until October 31, 2021. The estimated contract value for the base and four option periods is $1,353,631.00.

In the event DeCA gains additional stores with DIGI brand equipment and requires maintenance, this J&A will be amended prior to adding the stores on the maintenance contract.

4. AUTHORITY CITED: Statutory Authority 10 U.S.C. 2304(c) (1), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. REASON FOR AUTHORITY CITED: Proprietary Maintenance/Repair. New Brunswick International (NBI) is the sole distributor of the DIGI brand auto-wrappers and scales for which DeCA seeks to procure. These DIGI retail products are manufactured in Japan by Teraoka Seiko Co, Ltd. As the sole distributor, NBI holds all rights to parts required to maintain and repair this equipment. A total of 15 CONUS commissary stores use this DIGI brand equipment. This equipment is necessary for operation of the meat, deli/bakery and produce departments. Only authorized NBI service partners/repair technicians are able to obtain NBI manufactured repair parts and the required specialized training necessary to perform maintenance on DIGI brand equipment. NBI’s comprehensive training curriculum and certification program are restricted to attendees from their partner channels. The proprietary service tools needed to repair/maintain DIGI brand equipment, software and firmware are issued solely to authorized service partners.

NBI’s exclusive service network has sole access to their technical support team. NBI does not offer a hotline or support line directly to third party service providers. NBI does offer telephone support directly to the end user to assist with basic troubleshooting. This restriction on the availability of DIGI brand parts and training limits maintenance providers to authorized dealers in the NBI network. Warranties become void if unauthorized contractors perform maintenance on NBI equipment. Since NBI exercises exclusive control over its network of service partners, the only method in which to obtain maintenance on DIGI brand equipment is to contract directly with NBI.

6. EFFORT TO OBTAIN COMPETITION: To further enhance competition and locate other sources that are capable of meeting the government requirement, the synopsis and solicitation will be posted on FedBizOps.

7. MARKET RESEARCH and INTERESTED SOURCES: Market research was conducted to determine if there were small or large businesses available to provide maintenance and repairs on DIGI brand equipment for the fifteen (15) commissary locations. There are two known large businesses, Hobart and Mettler Toledo, which perform maintenance and repairs on auto-wrappers and scales. However, both of these vendors only perform such services on their own brands of equipment. A search of the Dynamic Small Business Search using NAICS code 811219 (Other Electronic & Precision Equipment Repair & Maintenance) revealed 159 8(a) contractors, seventy-one HubZone, 415 SDVOSB contractors and over 1,700 small businesses that utilized this NAICS code. After further research, it was revealed through each contractor’s narrative, that none of companies provided maintenance and repair of highly technical auto-wrappers and scales. However; one source, Acme Scales Systems, had capabilities listed that appear as if they might be able to perform the requirements. NBI has stated that only their factory trained technicians within their service network are able to service their equipment.

Acme Scales Systems was found not to be in NBI service network and its technicians are not NBI factory trained. As previously stated, NBI maintains exclusive control over its network providers; therefore, DeCA cannot contract directly with Acme and NBI is the only source for this requirement.

8. STATEMENT OF ACTIONS: A synopsis notice for other potential sources will be submitted. If there are no interested sources, DeCA will solicit as a sole source.

9. OTHER FACTORS:

a. Procurement History - Previous contract HDEC04-10-P-0097 was awarded to NBI as a firm-fixed price contract with a base year and two 1-year option periods. It was awarded as small business set-aside. Although it was competed using Simplified Acquisition Procedures, only one offer was received. This contract only covered the Richards Gebaur location, as it was the only store with DIGI brand equipment at that time.

b. Subcontracting Competition – NBI has a network of service partners who perform maintenance on behalf of the corporate office. The service partners are considered to be subcontractors and are not considered direct employees of New Brunswick International. Therefore, subcontracting opportunities exist.

10. TECHNICAL CERTIFICATIONS: 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: Rebecca Barefoot Title: Supply Management Specialist

Signature Date

Name: Michael Conwell Title: Supply Management Specialist

Signature Date

Name: Russell F. Ellison Title: Supply Management Specialist

Signature Date

11. 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: Chris Coppler Title: Supervisory Supply Management Specialist

Signature Date

ELLISON.RUSSELL.F

RANK.1099267514

Digitally signed by

ELLISON.RUSSELL.FRANK.1099267514

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=ELLISON.RUSSELL.FRANK.1099267514 Date: 2016.07.14 08:11:51 -04'00'

CONWELL.MICHA

EL.A.1084751797

Digitally signed by

CONWELL.MICHAEL.A.1084751797

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=CONWELL.MICHAEL.A.1084751797 Date: 2016.07.14 09:04:27 -04'00'

Digitally signed by BAREFOOT.REBECCA.LEE.1012927270 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=BAREFOOT.REBECCA.LEE.1012927270 Date: 2016.07.18 11:11:43 -04'00' Adobe Acrobat version: 11.0.17

COPPLER.CHRI

S.1049284230

Digitally signed by

COPPLER.CHRIS.1049284230

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=COPPLER.CHRIS.1049284230 Date: 2016.07.18 14:06:06 -04'00'

18 July 2016

14 July 2016

14 July 2016

18 July 2016

12. FAIR AND REASONABLE COST DETERMINATION AND CONTRACTING

OFFICER CERTIFICATION:

I hereby determine that the anticipated cost for this contract action will be fair and reasonable. It will be based on price analysis comparing pricing of similar contracts and rates from other maintenance agreements for similar equipment. DIGI’s store support and past performance for Richards Gebaur has been excellent. No other history exists related to providing maintenance support.

I certify that this J&A is accurate and complete to the best of my knowledge and belief.

NAME: Diana Gross-Bendall TITLE: Contracting Officer

SIGNATURE: DATE: July 13, 2016

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of maintenance services 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 property herein described have otherwise been authorized for acquisition.

APPROVED:

Floyd Kirkland DeCA Competition Advocate

Date

GROSSBENDA

LL.DIANA.L.11

04796717

Digitally signed by

GROSSBENDALL.DIANA.L.1104796717

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=GROSSBENDALL.DIANA.L.1104796 Date: 2016.07.13 10:56:56 -04'00'

July 20, 2016