Mettler_Toledo_JA_(8-14-18)_ca-sign.pdf

For Official Use Only (FOUO)

JUSTIFCATION REVIEW DOCUMENT

DESCRIPTION OF ACQUISITION: Full burden maintenance of Mettler Toledo brand name automatic wrapping systems, low volume wrapping systems and scales for 86 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 $1,615,325. The estimated total cost for the base and four one-year options is $8,355,967.

PERFORMANCE PERIOD: The base year is for the period March 1, 2019 through February 29, 2020. The final option period expires 2/29/2024.

Prepared By: Cynthia Renfroe Contract Specialist Telephone Number: 804-734-8000 x 48890 Date/Initials:_______

PCO: Diana Gross-Bendall Contracting Officer Telephone Number: 804-734-8000 x 48185 Date/Initials:_______

Technical: Michael Conwell Supply Management Specialist Telephone Number: 804-734-8000 x 48251 Date/Initials:_______

Requirements: Rebecca Barefoot Supervisory Supply Management Specialist Telephone Number: 804-734-8000 x 48085 Date/Initials:_______

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

Program Manager: N / A

Legal Counsel: Nikki Musick Phone: 804-734-8000 x48032

Signature: _____________________ Date: _____________

Division Chief: Richard Broda Phone: 804-734-8000 x48882

Signature: _____________________ Date: _____________

Competition Floyd Kirkland Phone: 804-734-8000 x86223 Advocate:

Signature: _____________________ Date: _____________ kirklafl Typewritten Text kirklafl Typewritten Text kirklafl Typewritten Text Control Number: HDEC04-18-40 kirklafl Typewritten Text 08/21/2018 kirklafl Typewritten Text 08/21/2018 kirklafl

08/24/2018

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 (FFP) type contract including a base and 4 option years. 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 Mettler Toledo brand automatic wrapping systems, low volume wrapping systems and scales for 86 commissaries located in the Continental United States (CONUS). The stores include: Andrews, Annapolis, Arnold, Bangor Maine, Bangor Washington, Barksdale, Bolling, Bremerton, Cannon, Carlisle Barracks, Charleston AFB, China Lake, Columbus, Corpus Christi, Davis Monthan, Dyess, Eielson, El Centro, Fairchild, F. E. Warren, Forest Glen, Fort Bliss, Fort Campbell, Fort Drum, Fort Greely, Fort Irwin, Fort Jackson, Fort Leavenworth, Fort Lewis, Fort McCoy, Fort Polk, Fort Sill, Fort Stewart, Fort Wainwright, Fort Worth, Goodfellow, Hickam, Hill, Holloman, Kaneohe Bay, Kings Bay, Kirtland, Lakehurst, Little Rock, Luke, Macdill, March, Maxwell, Mayport, McChord, McConnell, McGuire, Memphis, Miramar, Moody, Mountain Home, Oceana, Ord Community, Parris Island, Patrick, Pearl Harbor, Port Hueneme, Portsmouth NNSY, Portsmouth NS, Quantico, Randolph, Redstone Arsenal, Robins, Rock Island, San Diego, San Onofre, Saratoga Springs/Scotia, Scott, Seymour Johnson, Sheppard, Smokey Point, Tinker, Travis, Twenty Nine Palms, USAF Academy, Vance, Vandenberg, Whidbey Island, White Sands, Wright Patterson, Yuma P.G. The solicitation shall include the base and four one-year option periods, which may extend the contract performance period to February 29, 2024. The estimated contract value for the base and four option periods is $8,355,967.

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: Mettler Toledo is the manufacturer of the automatic wrapping systems, low volume wrapping systems and scales and holds all rights to its parts to maintain and repair this equipment. A total of 86 CONUS commissaries use Mettler Toledo brand equipment.

This equipment is necessary for operation of the meat, delicatessen/bakery and produce departments.

Through the assistance of general counsel, DeCA obtained a copy of Mettler Toledo’s Retail Distributor Agreement, proving its sole proprietary rights on its equipment and parts and a non-compete agreement with its partners. As a result of this discovery it was determined that are no avenues available under this requirement for the competitive market place. Mettler Toledo’s comprehensive training curriculum and certification program are restricted to attendees from their partner channels. The proprietary service tools needed to repair/maintain Mettler Toledo brand equipment, software and firmware are issued solely to authorized service partners. Mettler Toledo’s exclusive service network has sole access to their kirklafl

Control Number: HDEC04-18-40 technical support team. Mettler Toledo does not offer a hotline or support line directly to third party service providers. Mettler Toledo does offer telephone support directly to the end user to assist with basic troubleshooting. This restriction on the availability of Mettler Toledo brand parts and training limits maintenance providers to authorized dealers in the Mettler Toledo network. Warranties become void if unauthorized contractors perform maintenance on Mettler Toledo equipment. Since Mettler Toledo exercises exclusive control over its network of service partners, the only method in which to obtain maintenance on Mettler Toledo brand equipment is to contract directly with Mettler Toledo.

6. EFFORT TO OBTAIN COMPETITION: To further enhance competition and locate other sources that are capable of meeting the government requirement, a sources sought notice was published on FBO on December 5, 2017. Although other sources expressed interest in this requirement, DeCA obtained a copy of the Mettler Toledo Retail Distributor Agreement, which provides justification of the sole source proprietary rights of Mettler Toledo equipment and parts and includes a non-compete agreement with its partners.

7. FAIR AND REASONABLE PRICE DETERMINATION: Prices will be determined fair and reasonable in accordance with FAR 15.403-3(c). Comparisons will be made with the current Mettler Toledo contract, as well as with contracts for similar service from Hobart and NBI Digi.

8. MARKET RESEARCH and INTERESTED SOURCES: Mettler Toledo provided DeCA with its Retail Distributor Agreement which states that it holds proprietary rights to its equipment and repair parts. As such, there are no available avenues for the competitive marketplace to obtain capability in performance of this requirement.

9. ACTIONS TO INCREASE/FOSTER COMPETITION: A sources sought notice was issued on December 5, 2017. This resulted in sources who expressed interest in this requirement. However, Mettler Toledo holds proprietary rights on its equipment and repair parts, as well as a non-compete agreement with its distributors. As there are no available avenues for the competitive marketplace, DeCA will solicit this requirement as sole source.

10. OTHER FACTORS:

a. Procurement History: Previously, this requirement was solicited under HDEC04-13-R-0028 under an unrestricted, firm- fixed price action. It was determined that Mettler Toledo holds proprietary rights on repair and spare parts that only authorized Mettler Toledo dealers have access to. Market research revealed that there were multiple authorized dealers who were interested in the previous requirement. However, Mettler Toledo was the only company that submitted a proposal. The solicitation resulted in one contract, HDEC04-14-C- 0003, to Mettler Toledo.

Since the above referenced action, it was discovered that DFAS has payment limitations on contracts, which forced LEAE to create a "new" contract. The "new" contract is simply a new contract number that allows DFAS to issue additional payments. The terms and conditions from the original, HDEC04- 14-C-0003, contract remained in effect. The new contract number, HDEC04-18-C-0008, started performance on September 1, 2017 and contained a six month performance period through February 28, 2018. A J&A was approved to extend the contract for an additional six months, through August 31, 2018.

Another J&A is currently in process to extend the contract through February 28, 2019.

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Also, as a result of DFAS limiting the number of payments issued on a contract, this requirement was restructured in November 2017 into 6 geographical groupings, three for the East and three for the West areas, allowing for 6 separate contract awards, to avoid future payment issues.

b. Subcontracting Competition: Mettler Toledo has a network of service partners who perform maintenance on behalf of the corporate office. The service partners are considered to be sub-contractors and are not considered to be direct employees of Mettler Toledo, therefore subcontracting opportunities exist.

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TECHNICAL CERTIFICATIONS: I certify 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: Michael Conwell Title: Supply Management Specialist

Signature ______________________________ Date ______________________________

REQUIREMENTS CERTIFICATION: I certify 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: Supervisory Supply Management Specialist

Signature ______________________________ Date ______________________________

FAIR AND REASONABLE COST DETERMINATION AND CONTRACTING OFFICER

CERTIFICATION:

I hereby determine 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. Mettler Toledo’s store support and past performance have been acceptable. I certify this J&A is accurate and complete to the best of my knowledge and belief.

Name: Diana Gross-Bendall Title: Contracting Officer

Signature: ______________________________ Date: ______________________________

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:

______________________________ Date: ______________________________ Floyd Kirkland DeCA Competition Advocate

8/14/18

8/15/18

8/15/2018 kirklafl Typewritten Text Control Number: HDEC04-18-40 kirklafl

08/24/2018