JA-HDEC05-16-37-Amend_0001_pdf_fbo.pdf

Control No. HDEC05-16-37

AMEND 0001

JUSTIFICATION REVIEW DOCUMENT

Description of Acquisition: Modification to incorporate additional funding and extend the period of performance for 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 001 January 1, 2017 to March 31, 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. 52908 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: 2016.12.22 08:19:53 -05'00'

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: 2016.12.22 14:09:33 -05'00'

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: 2016.12.22 08:34:53 -05'00'

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, 52908

Signature:

Legal Counsel:

Nikki R. Musick Telephone: (804) 734-8000, 48032

Signature:

Competition Advocate:

Ernie A. Favale Telephone: (804) 734-8000, 48548

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: 2016.12.22 14:10:10 -05'00'

MUSICK.NIKKI.RA

TLIFF.1103253485

Digitally signed by

MUSICK.NIKKI.RATLIFF.1103253485

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=MUSICK.NIKKI.RATLIFF.1103253485 Date: 2016.12.22 13:00:51 -05'00'

FAVALE.ERNIE

.A.1182175699

Digitally signed by

FAVALE.ERNIE.A.1182175699

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=FAVALE.ERNIE.A.1182175699 Date: 2016.12.22 14:34:22 -05'00'

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: Modification of contract HDEC05-11-C-0001 with NCH Marketing. The proposed modification will extend the period of performance three (3) months from January 1, 2017 to March 31, 2017. Defense Working Capital Funds (DWCF) is provided. The previous Justification and Approval, HDEC05-16-37, originally authorized an extension on the contract for a total of six (6) months from July 1, 2016 until December 31, 2016. This proposed modification and J & A amendment will also add additional funding to the current period of performance to cover an unanticipated increase in coupon redemption services during the months of July, August, and September of 2016.

3. Description of Supplies/Services: This action will provide uninterrupted Retail Clearing Services for all commissaries worldwide. The proposed three (3) month extension and the additional funding for the unexpected increase in usage 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:

Only the incumbent (NCH Marketing) can provide full, uninterrupted retail clearing house services to the commissaries until the new contract is in place. Since this company is already providing this service to DeCA, NCH has the program and logistical processes in place to accommodate DeCA and its large quantity of coupons. Unfortunately, even after the previous extension was granted, the contracting office was still engaged with many of major requirements and had limited time and resources to procure the new requirement. As of right now, Contracting is currently finalizing the solicitation to be published on FBO.gov. The new contract will require time to be solicited and awarded; therefore, the interim contract will be extended through a bilateral modification for an additional three (3) months.

The original six (6) month extension and the additional six (6) month Justification and Approval extension will expire on December 31, 2016. 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.

7. Fair and Reasonable Cost Determination: DeCA asked NCH to provide updated processing and shipping prices based upon the anticipated total. The contractor quoted an identical processing price per coupon as well as identical shipping costs per coupon as the current contract pricing which had been previously determined to be fair and reasonable. Using this historical pricing, the new proposed prices have been determined to be fair and reasonable by the Contracting Officer using FAR 15.404-1(b)2(ii)(A).

8. Market Research and Interested Sources: Ongoing market research has not revealed any contractors having the ability to facilitate the successful performance of the services required via this action. Due to the complex nature and volume of the procurement it is unreasonable to expect that any firm other than the incumbent will be able to effectively start-up and perform the requirements in a timely manner. Several large and small firms are interested in future coupon redemption contract opportunities.

9. Action to Increase/Foster Competition: The follow-on acquisition is expected to be solicited on a full and open competition basis. A Request for Information (RFI) HDEC05-16-RFI-0003 was published through FBO.gov in March 21, 2016, to determine companies that might be interested in participating in this new requirement. Included in the RFI were a questionnaire and a draft SOW. The questionnaire asked questions involving company sizes, capabilities, and estimated pricing per 1000 coupons. Several large and small firms responded to this RFI.

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:

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: 2016.12.22 14:11:46 -05'00'

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:

APPROVAL

Based on the foregoing justification, I hereby approve additional funding to the current period of performance and the three (3) month extension from January 1, 2017 to March 31, 2017 for the continued Retail Clearing House Services for Commissaries worldwide under the contract HDEC05-11-C-0001 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 herein described have otherwise been authorized for acquisition.

APPROVED:

Signature: Date:

Ernie A. Favale Competition Advocate

12/22/2016

12/22/16

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: 2016.12.22 08:35:19 -05'00'

Digitally signed by FAVALE.ERNIE.A.1182175699 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=FAVALE.ERNIE.A.1182175699