HDEC05-15-19_-_Nash_Finch_-_Final_Signed_(Revised_4-9-15).pdf

Control Number: HDEC05-15-19

JUSTIFICATION REVIEW DOCUMENT

Description of Acquisition: Material Management for DeCA Europe locations

Statutory Authority: FAR 6.302-1; Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Amount: $182,141.00

Performance Period: May 1, 2015 through April 30, 2020 (Base + 4 Option Periods)

Prepared By: Heather Jarratt Contract Specialist Phone : (804)734-8000x86302 Date/Initials:________

Requirements: Thurman Brayboy Transportation Officer Phone : (804)734-8000x86050 Date/Initials: ________

PCO: Jill Craft Contracting Officer Phone : (804)734-8000x86294 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: Thurman Brayboy Phone: 804-734-8000 x86050 Signature: _____________________ Date: _____________

Legal Counsel: Ralph Tremaglio Phone: 804-734-8000 x48116

Division Chief: Michael G. Shaffer Phone: 804-734-8000 x48681

Competition Ernie A. Favale Phone: 804-734-8000 x48548 Advocate: Signature: _____________________ Date: _____________ jarrath Typewritten Text

4/7/15 HJ

jarrath Typewritten Text braybot Typewritten Text braybot Typewritten Text

4/8/15 TB

braybot Typewritten Text 4/8/15 craftja Typewritten Text

4/8/15 JC

shaffemg Typewritten Text 4/8/2015 favaleea Typewritten Text favaleea Typewritten Text favaleea Typewritten Text 4/9/15 favaleea Typewritten Text favaleea

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Office – Defense Commissary Agency, Enterprise Acquisition Division, 1300 E Avenue, Fort Lee, Virginia 23801-1800.

2. Type of Contract Action – This action will result in a new Firm Fixed Price Indefinite-delivery Indefinite-quantity (IDIQ) type contract for a base year and four option periods.

3. Description of Supplies/Services – Spartan Nash, formerly MDV Nash-Finch, fills government containers with subsistence items for overseas shipping as part of their agreement with DeCA contracted grocery manufacturers. Under the incumbent contract, Spartan Nash also maximizes Government container space for less than container loads of DeCA supplies and equipment bound for Europe. When a container is loaded with subsistence items and is not full, Spartan Nash management optimizes existing space by loading pallets or boxes of supplies and equipment. Since shipping containers must be properly loaded to prevent damage to both the containers and property within, Spartan Nash manages the load plan for safety and regulatory compliance. The estimated total value of the contract is $182,141.00 as listed below.

Year CLIN Estimate Base Year 0001 $ 35,000.00 1st Option 1001 $ 35,700.00 2nd Option 2001 $ 36,414.00 3rd Option 3001 $ 37,142.00

4th Option 4001 $ 37,885.00

Total $ 182,141.00

4. Authority Cited – 10 U.S.C 2304(c)(1); FAR 6.302-1(2)(iii) “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”.

5. Reason for Authority Cited – Material management services for goods bound for DeCA Commissaries in Europe are available only from Spartan Nash since subsistence shipments from manufacturers are managed by this firm. Spartan Nash will use “space available” to properly load the intermittent supplies and equipment bound for Europe. The supplies and equipment make up a very small portion of the government container volume loaded for DeCA Europe.

Spartan Nash employees are the only personnel authorized to manage, load, and seal containers leaving their facility for DeCA locations. As Spartan Nash employees perform all of this work on their property, no other firm can provide the service. If material management were performed at other locations, DeCA would incur exorbitant costs to ship these items. Utilizing unused container space is a best commercial practice.

6. Efforts to Obtain Competition – Competition for other freight options for the occasional equipment and ancillary supply shipments alone is impractical due to the sporadic nature of the requirement and the exorbitant costs to ship less than container loads overseas.

7. Fair and Reasonable Cost Determination – IAW FAR 15.404-1(b)(v) the Contracting Officer will evaluate proposed prices using cost and price analysis. The total government estimate is based upon prior year’s volume and stable labor rates.

8. Market Research and Interested Sources – We conducted market research and found approximately 275 companies that provide services under NAICS code 488320. Although other companies provide similar services, there is no practical business approach that provides a viable option for the management of supplies and equipment at another location without significant cost increases and delays to the Government. For instance, using DoD contracted freight costs, shipping a typical pallet from DeCA HQ in Fort Lee, VA to DeCA’s Europe warehouse in Germany is more than $700 and is delivered in 8 days whereas a pallet shipped via DeCA’s material management contract with Spartan Nash costs under $200 for a 12 day delivery.

9. Actions to Increase/Foster Competition – A notice of DeCA’s intent for sole source contract award will be posted to FedBizOps. No viable competitive option exists.

10. Other Factors – This procurement is a follow-on to existing contract HDEC05-10-C-0002 which was awarded November 14, 2009 as a sole source.

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: Signature: _______________________________ Title: Date: __________________

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.

Name: Signature: _______________________________ Contracting Officer Date: __________________ braybot

Thurman Brayboy braybot Typewritten Text Transportation Officer braybot Typewritten Text braybot Typewritten Text 4/8/15 braybot Typewritten Text craftja Typewritten Text Jill A. Craft craftja

4/8/2015

APPROVAL

Based on the foregoing justification, I hereby approved the procurement of material management for DeCA Europe locations 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: _______________________________ Date: __________________ Jill A. Craft Contracting Officer craftja

4/8/2015