HDEC05-14-31_Signage_Final.pdf

Control Number: HDEC05-14-31

JUSTIFICATION REVIEW DOCUMENT

Description of Acquisition: Various Meat and Produce Signage for DeCA Stores

Statutory Authority: 10 U.S.C. 2304(c)(1); FAR 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Estimated Contract Amount: $725,000.00

Performance Period: June 20, 2014 through May 31, 2019 (if all options are exercised)

Prepared By: Jason Reedy Contract Specialist Date/Initials:_________

Requirements: James J. Hudson, Jr. Principal Deputy, Director Store Operations Date/Initials: ________

PCO: Jill A. Craft Contracting Officer Phone: 804-734-8000 x86294 Date/Initials: ________

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

Program Manager: James J. Hudson, Jr.

Signature: _____________________

Division Chief: Michael G. Shaffer

Signature: _____________________

Legal Counsel: Ron Horn

Signature: _____________________

Competition Melissa A. Rios Advocate:

Signature: _____________________

Digitally signed by

REEDY.JASON.MICHAEL.1187587448

Date: 2014.06.17 10:50:24 -04'00'

HUDSON.JAMES.

J.JR.1042077425

Digitally signed by HUDSON.JAMES.J.JR.1042077425 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=HUDSON.JAMES.J.JR.1042077425 Date: 2014.06.18 14:43:48 -04'00'

CRAFT.JILL.ANN.1299005042

c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=CRAFT.JILL.ANN.1299005042

2014.06.18 14:52:29 -04'00'

HUDSON.JAMES

.J.JR.1042077425

Digitally signed by

HUDSON.JAMES.J.JR.1042077425

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=HUDSON.JAMES.J.JR.1042077425 Date: 2014.06.18 14:44:00 -04'00'

SHAFFER.MICHA

EL.G.1044850571

Digitally signed by

SHAFFER.MICHAEL.G.1044850571

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=SHAFFER.MICHAEL.G.1044850571 Date: 2014.06.18 15:13:30 -04'00'

CLARK.ELLIOT.J

.JR.1048587310

Digitally signed by

CLARK.ELLIOT.J.JR.1048587310

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=CLARK.ELLIOT.J.JR.1048587310 Date: 2014.06.19 06:04:48 -04'00'

RIOS.MELISSA.A

NNE.1039282069

Digitally signed by

RIOS.MELISSA.ANNE.1039282069

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=RIOS.MELISSA.ANNE.1039282069 Date: 2014.06.19 08:37:27 -04'00'

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Office – Defense Commissary Agency (DeCA), Revenue, Supplies & HQ Support Branch, Enterprise Acquisition Division, 1300 E Avenue, Fort Lee, VA 23801-1800

2. Type of Contract Action – This action will result in a new contract for meat and produce signage for grand openings and resets, as well as replacement parts for existing store signage sets. The contract will be for a base period from June 20, 2014 through May 31, 2015, with four possible one-year extensions extending the contract through May 31, 2019 if exercised. The award will be a firm fixed price, indefinite-delivery requirements type contract. The type of funding that will be used for orders placed though the contract will be DWCF by store payment using the store Government Purchase Card (GPC).

3. Description of Services and Supplies – The contract will be for various commercial off the shelf meat and produce signage items as required by stores for grand openings, resets, and replacement parts for current store signage sets. The following items will appear on the ordering guide, off which stores can order at their discretion:

Produce Item: Desciption:

2131002 1-Slot Channel - 48" 2132001 2-Slot Clip-On Channel - 48" 2138003 4-Slot Channel - 48", Tape on Back 2136010 6-Slot Channel - 48", Tape on Back 2114125 1-Slot Modern Flip Numbers, Set of 6. Includes UOM Strip 2114123 2-Slot Modern Flip Numbers, Set of 6. Includes UOM Strip B2113001 Country of Origin 1-Track TagBank Strip Set 2420034 Organic Décor Panel, 16" x 22" B2111003 1-Track Photo Produce Item Insert Set 2111099 2-Slot x 5" PhotoReal Organic Item Insert Set 2111082 2-Slot x 7.5" PhotoReal Light Buying Tips Insert Set 2111091 1-Slot x 4" PhotoReal Light Item Insert Set B3250027 USDA Organic 6-Track Topper B2121011 6-Track with 7" Sign Holder - 1/2 Wood Frame - 48" B3110031 Separate Spring Clip with Clip-On Sign Holder 3110006 3" Mounting Clip 2132024 4 ft. long 2 Slot Tracking w/Adhesive (for Europe Only)

Meat Item: Desciption:

1302001 Meat ChalkArt Intro Kit 2132001 2-Slot Clip-On Channel - 48" 2138003 8-Slot Channel - 48" 7210033 8-Slot ChalkArt Panel - Black Angus, A Cut Above

7210024 8-Slot ChalkArt Panel - Buy Select & Save 7210022 8-Slot ChalkArt Panel - Choose Chicken!

7210039 8-Slot ChalkArt Panel - Choose Choice 7210026 8-Slot ChalkArt Panel - Cold Cuts Corner 7210031 8-Slot ChalkArt Panel - Especially for You 7210025 8-Slot ChalkArt Panel - Family Size 7210027 8-Slot ChalkArt Panel - Fast Fixins 7210059 8-Slot ChalkArt Panel - Fresh For You 7210028 8-Slot ChalkArt Panel - Got Sausage 7210037 8-Slot ChalkArt Panel - Ground Beef 7210049 8-Slot ChalkArt Panel - Ham it Up 7210045 8-Slot ChalkArt Panel - Hamburger Heaven 7210047 8-Slot ChalkArt Panel - Healthy Choices 7210020 8-Slot ChalkArt Panel - Hooked on Seafood 7210038 8-Slot ChalkArt Panel - Let's Talk Turkey 7210043 8-Slot ChalkArt Panel - Like Lamb?

7210030 8-Slot ChalkArt Panel - Make it Bacon 7210040 8-Slot ChalkArt Panel - Prefer Pork?

7210041 8-Slot ChalkArt Panel - Ready for Roast?

7210042 8-Slot ChalkArt Panel - Simply Steak 7210034 8-Slot ChalkArt Panel - Wanna Talk Turkey?

7210044 8-Slot ChalkArt Panel - Zeal for Veal 7210060 8-Slot ChalkArt Panel - Go Lean with Protein 7210061 2-Slot ChalkArt Panel - Go Lean with Protein

Other meat and produce signage items that are available through the Washington Poster Company (DBA: WP Sign Systems) catalog or website (www.blancind.com) may be ordered by store personnel after obtaining authorization from Store Operations. (Please note that Andrea Coyle, Lead Commissary Management Specialist, is the Store Operations signage order approving authority at the time this J&A was written and approved.)

The following shows the estimated cost of the contract:

Estimated cost per year:

5 Grand Openings @ $12,000.00 = $60,000.00 10 Resets @ $6,000.00 = $60,000.00 Various Store Requirements = $25,000.00 Total per year: $145,000.00

CLIN 0001 - Base Period: $145,000.00 CLIN 1001 - 1st Option Year: $145,000.00 CLIN 2001 - 2nd Option Year: $145,000.00 CLIN 3001 - 3rd Option Year: $145,000.00 CLIN 4001 - 4th Option Year: $145,000.00 Total Estimated Contract Value: $725,000.00

4. Authority Cited - 10 U.S.C. 2304(c)(1); FAR 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited – DeCA has a requirement to maintain the current meat and produce signage and supplement current systems for grand openings and resets. Signage purchased for new stores, store resets, and replacement parts must be interchangeable with current systems.

As the sole manufacturer and distributor of the type and artistic design of meat and produce signage systems currently installed in our stores, WP Signs is the only source available to fulfill DeCA’s signage requirements. In order to maintain consistency, all signage must be from the same producer. Changing the system or design would involve a complete change out of all store signage for all stores, which would cost in excess of $1.5M (250 stores at $6000.00 est).

6. Efforts to Obtain Competition – DeCA competed signage requirements for new stores and reset projects in the past. WP Sign Systems is the only company that offers a complete package of commercial off the shelf meat and produce signage.

7. Fair and Reasonable Cost Determination –

In accordance with FAR 12.209, the contracting officer will ensure that the anticipated cost or price to the Government will be fair and reasonable. The Contracting Officer will negotiate the lowest price possible for volume purchasing. The determination of fair and reasonable pricing will be included in the decision summary documentation.

8. Market Research and Interested Sources –

A Sources Sought was published in FedBizOpps as a supplement to the research completed by this department over the past few years. That market research has shown that WP Sign Systems is the only company that offers a complete package of commercial off the shelf meat and produce signage. Other companies, though interested in DeCA’s signage requirement, are not able or willing to enter the market for commercially available signage.

Three companies responded to the sources sought notice in FedBizOps. All three companies stated that they have the capability to create any signage that DeCA requires, but they do not offer a commercially available off the shelf meat and produce grocery signage package. In order for the companies to be able to meet the requirement, they would have to invest significant resources in design, sampling, and production before they could produce the quantities and variety of signage required. The capital outlay that would be required to fulfill the requirement is currently too great a risk for the companies to assume in order for them to enter the current market that is dominated by WP Sign Systems.

9. Actions to Increase/Foster Competition –

Although companies have expressed an interest in providing DeCA with signage for meat and produce, once the requirement has been discussed, they indicated they would only be able to meet the requirement if all signage is replaced at the same time and if DeCA provided the required artwork for the signage.

For future requirements, Store Operations will be asked to investigate whether the current signage packages continue to meet the Agency’s needs. A new sources sought announcement will be posted at least 6 months prior to expiration of the contract to discover if any companies are capable of providing the type of signage required by DeCA should there be any changes to the requirement.

10. Other Factors –

N/A

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.

James J. Hudson, Jr. Signature:

Principal Deputy, Director Store Operations

Fair and Reasonable Price Determination and Contracting Officer Certification:

I hereby determine that the price 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.

Jill A. Craft Signature:

Contracting Officer

APPROVAL

Based on the foregoing justification, I hereby approved the procurement of signage 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 products herein described have otherwise been authorized for acquisition.

APPROVED:

Signature:

Melissa A. Rios Competition Advocate

HUDSON.JAMES

.J.JR.1042077425

Digitally signed by

HUDSON.JAMES.J.JR.1042077425

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=HUDSON.JAMES.J.JR.1042077425 Date: 2014.06.18 14:44:20 -04'00'

CRAFT.JILL.ANN.1299005042

c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=CRAFT.JILL.ANN.1299005042

2014.06.18 14:53:07 -04'00'

RIOS.MELISSA.A

NNE.1039282069

Digitally signed by

RIOS.MELISSA.ANNE.1039282069

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DECA, cn=RIOS.MELISSA.ANNE.1039282069 Date: 2014.06.19 08:41:26 -04'00'