JA_Coupons_Amendment_0002_fbo.pdf

Control No. HDEC05-16-37

AMEND 0002

JUSTIFICATION REVIEW DOCUMENT

Description of Acquisition: Modification to extend an additional 3 months and incorporate additional funding for the contract HDEC05-11-C-0001 with NCH Marketing to provide Retail Clearinghouse Services (Coupon Redemption) for the 240 DeCA commissaries worldwide.

Statutory Authority: 10 U.S.C. §2304(c) (1)

Performance Period:

Original July 1, 2016 to December 31, 2016 Amount:

Amendment 0001 January 1, 2017 to March 31, 2017 Amount:

Amendment 0002 April 1, 2017 to June 30, 2017 Amount:

New Total

Prepared by: Michael F. Barnes Contract Specialist

Telephone: (804) 734-8000, ext. 86180 Date/Initials: _______________

Technical: Wayne Davis RM Branch Chief Telephone: (804) 734-8000, ext. 86460 Date/Initials: _______________

PCO: Jill A. Craft Contracting Officer

Telephone: (804) 734-8000, ext. 86294 Date/Initials: _______________

BARNES.MICHA

EL.F.1365916868

Digitally signed by

BARNES.MICHAEL.F.1365916868

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=BARNES.MICHAEL.F.1365916868 Date: 2017.03.30 14:00:54 -04'00'

DAVIS.H.WAYN

E.1229832880

Digitally signed by

DAVIS.H.WAYNE.1229832880

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=DAVIS.H.WAYNE.1229832880 Date: 2017.03.30 14:23:35 -04'00'

CRAFT.JILL.AN

N.1299005042

Digitally signed by

CRAFT.JILL.ANN.1299005042

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=CRAFT.JILL.ANN.1299005042 Date: 2017.03.30 14:06:21 -04'00'

Signatures are required below:

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

RM Policy, System and Services Branch Chief:

Wayne Davis Telephone: (804) 734-8000, 86460

Signature:

Legal Counsel:

Ralph J. Tremaglio Telephone: (804) 734-8000, 48116

Signature:

Competition Advocate:

Floyd L. Kirkland Telephone: (804) 734-8000, 86223

Signature:

DAVIS.H.WAYN

E.1229832880

Digitally signed by

DAVIS.H.WAYNE.1229832880

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=DAVIS.H.WAYNE.1229832880 Date: 2017.03.30 14:24:01 -04'00'

TREMAGLIO.RALP

H.JOHN.III.1014492

Digitally signed by

TREMAGLIO.RALPH.JOHN.III.1014492310

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=TREMAGLIO.RALPH.JOHN.III.1014492310 Date: 2017.03.30 15:22:19 -04'00'

Digitally signed by

KIRKLAND.FLOYD.L.JR.1067833224

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=KIRKLAND.FLOYD.L.JR.1067833224

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Office: Defense Commissary Agency (DeCA), Enterprise Acquisition Division (LEAA), Fort Lee, Virginia 23801-1800.

2. Type of Contract Action: This is an amendment to J&A HDEC05-16-37 to provide approval to execute a modification of contract HDEC05-11-C-0001 with NCH Marketing. The J&A amendment and contract modification will reflect a three month extension and an increase in the estimated contract amount and funding needed to complete the performance of this contract. The extension will be from April 1, 2017 till June 30, 2017. In regards to the funding on the previous extension, DeCA calculated the original estimated usage by researching previous months’ invoices from the current contract. When determining this usage, DeCA did not anticipate an upward trend in usage since market indicators only revealed an anticipated decrease in the market’s coupon redemption usage. This estimate also did not take into consideration a higher usage as a result of holidays falling within the extension’s timeframe. The holidays bring in significantly more sales, which results in more coupon redemption. DeCA was expending money significantly faster than projected and will require in additional funding to provide for these services through the current period. .

The extension’s quantities, for April 1, 2017 through June 30, 2017, were reviewed and projected by both Contracting and Resource Management. Due to an upward trend in coupon usage at the commissaries and the anticipated case lot sales, the estimated quantities for the extension were increased by 25% from executed quantities for the same months from last year.

This new extension is funded for an additional .

3. Description of Supplies/Services: The proposed change would increase the estimated contract value as follows:

Contract Number Original Amount J & A Amount New Total

HDEC05-11-C-0001

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 or services will satisfy Agency requirements.

5. Reason for Authority Cited: The previous three (3) month extension will expire on March 31, 2017. DeCA will be without any means of processing coupons if services are not extended again. This disruption would cause beneficiaries serviced by the Commissaries to be denied their full Commissary benefit as defined by 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 this service would negatively impact DeCA’s mission to provide for the military and their families.

NCH Marketing has been performing the current contract successfully by conforming to the contractual requirements and the terms and conditions. The company has received acceptable past performance as shown in CPARS and FAPIIS throughout the contract. Due to the complexity of working with DeCA’s many systems and the large volume of coupons being processed every month, it is extremely difficult and time consuming for a company to set-up a program to successfully complete DeCA’s requirement in such a short period of time. It is in the government’s best interest to continue working with the incumbent until the new requirement has been awarded and allotted enough time to put a program in place.

6. Efforts to Obtain Competition: A request for information (RFI) or a sources sought for the current requirement will not be posted on FBO.gov due to an approval by the Head of Contracting Activity via a waiver. This justification will be made available for public inspection, within 14 days of the completion of the contract modification, in accordance with FAR 6.305. DeCA Contracting is in the process of reviewing and finalizing its solicitation for the new coupon requirement. It is anticipated to be posted on FBO.gov during the first week of April 2017.

7. Fair and Reasonable Cost Determination: No change from approved amended J&A dated December 22, 2016.

8. Market Research and Interested Sources: No change from approved amended J&A dated December 22, 2016.

9. Action to Increase/Foster Competition: No change from approved amended J&A dated December 22, 2016.

10. Commissary Locations Covered Under Contract: All Commissaries worldwide.

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: Wayne Davis Signature:

Program Manager Date:

Fair and Reasonable Price Determination and Contracting Officer Certification:

I hereby determine that the cost 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: Jill A. Craft Signature:

Contracting Officer Date: 3/30/17

DAVIS.H.WAYN

E.1229832880

Digitally signed by

DAVIS.H.WAYNE.1229832880

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=DAVIS.H.WAYNE.1229832880 Date: 2017.03.30 14:27:02 -04'00'

CRAFT.JILL.AN

N.1299005042

Digitally signed by

CRAFT.JILL.ANN.1299005042

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=CRAFT.JILL.ANN.1299005042 Date: 2017.03.30 14:06:50 -04'00'

APPROVAL

Based on the foregoing justification, I hereby approve the increase in total estimated contract cost for the Retail Clearing House Services for Commissaries worldwide under the contract HDEC05-11-C-0001, provided funds are available, or will be available, and provided that the services herein described have otherwise been authorized for acquisition.

APPROVED:

Signature: Date:

Floyd L. Kirkland Competition Advocate

March 30, 2017

Digitally signed by

KIRKLAND.FLOYD.L.JR.1067833224

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=KIRKLAND.FLOYD.L.JR.1067833224