Willard_Bishop_JA_Final_-SIGNED_by_Competition_Advocate.pdf

Control Number: HDEC05-16-59

JUSTIFICATION REVIEW DOCUMENT

Description of Acquisition: The Product Support Division has the need for a comprehensive analysis on total store performance of the supermarket industry today, one which will address all key performance indicators. The study will provide key financial data to support category management reviews and plans.

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.

Estimated Contract Amount: approximately $77,000

Performance Period: September 29, 2016 through September 28, 2017

Prepared By: KaTyca Cathright Phone: 804-734-8000 x48812

Contract Specialist Date/Initials:

Technical: Mary Michael Phone: 804-734-8000 x48228

Requiring Office Date/Initials:

Requirements: Mary Michael Phone: 804-734-8000 x48228

Requiring Office Date/Initials:

PCO: Jill A. Craft Phone: 804-734-8000 x86294

Contracting Officer Date/Initials:

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

Chief of Special Mary Michael Phone: 804-734-8000 x48228 Programs: Signature: Date:

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

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

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

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

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

2. Type of Contract Action – The intention is to award a Firm Fixed Price contract for $77,000 for a one year period of September 29, 2016 through September 28, 2017.

3. Description of Supplies/Services – Online subscription for Willard Bishop’s Grocery SuperStudy™ and Custom Segmentation for DeCA HQ Product Support Division personnel.

The Grocery SuperStudy™ subscription contains the most comprehensive information available on total store performance in the supermarket industry today. The data is refreshed every year and provides visibility into the performance of every category, sub- category, and brand in the supermarket channel.

The Grocery SuperStudy™, which is delivered via annual subscription, features more than 230,000 SKUs, 80 financial measures, and profitability data across 270 categories. The Custom Data Segmentation, which is available with active subscription, can include brand-level attributes and/or DeCA-specific category definitions. The goal of custom segmentation is to design a Grocery SuperStudy™ product hierarchy which best aligns with how DeCA analyzes other syndicated market information.

The contract will be for a period of one year after date of award. The estimated cost of the Grocery SuperStudy™ and customized segmentation is approximately $77,000.

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 - The Agency Product Support Division requires a comprehensive study and analysis on total store performance of the supermarket industry that addresses the following key performance indicators:

• See adjusted gross margin and other profitability data

• Benchmark products against the category

• Analyze the performance of emerging categories and segments

• Evaluate company contribution to retailer profitability

• Examine trade spending, cash flow, and ROII across the entire store

• Provide rationale for increased shelf space

The Agency requires this key financial data to support category management reviews and plans.

Willard Bishop Grocery SuperStudy™ is the only provider of the material necessary to meet the Agency’s needs. These services are unique and are available from only one responsible source which can satisfy the Agency’s requirements.

6. Efforts to Obtain Competition - Market research was conducted which resulted in no other sources available which can satisfy the Agency’s requirements. Specifically, a Request for Information (RFI) was posted in May 17, 2016 for 5 days. The RFI resulted in one response.

The response was received from Red Carrot Inc. Red Carrot, Inc. provides trend and analysis on commercial grocery based on data they are receiving from Nielsen. DeCA already has access to that information from Nielsen directly. But more importantly, Red Carrot Inc.’s response to the RFI indicates that they do not provide gross profit margins.

Willard Bishop’s provided data is two part: (1) a SuperStudy™ which provides commercial grocery trends and analysis and (2) gross profit margins of commercial grocery stores at the category level. The second part is pertinent information that greatly assists DeCA’s category buyers by equipping them with the information to more accurately determine the savings DeCA’s suppliers are providing.

7. Fair and Reasonable Cost Determination – The price will be determined fair and reasonable based on market research and comparison of the prices found reasonable on previous purchases in accordance FAR 13.106-3(a).

8. Market Research and Interested Sources - Market research was accomplished via an RFI;

information gathered from customer regarding previous procurement(s) for this service; internet queries (vendors websites; SAM); and direct contact with Willard Bishop. Search of sources using the internet and trade publications resulted in no other potential vendor which can provide the same or similar service. The Grocery SuperStudy™ subscription and content is only available from Willard Bishop.

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 at this time. DeCA will continue to conduct market research for capable sources, and if other capable sources are identified, will conduct a competitive procurement in the future.

10. Other Factors - Based on market research, no other company is executing this type of performance data study. This product is a one-of-a-kind analysis and provides the most detailed reference and resource for our category management process. The requirement for the Grocery SuperStudy™ and Custom Segmentation is a continuing requirement for the Product Support Division. Previous contracts with Willard Bishop are HDEC05-10-P-0038 and HDEC05-11-P- 0032. In the past, the Agency has allowed a lapse of time between subscriptions in an effort to reduce Agency spending.

Technical 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: Mary Michael Signature:

Title: Chief of Special Programs Date:

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: Mary Michael Signature:

Title: Chief of Special Programs 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: Jill Craft Signature:

Title: Contracting Officer Date:

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of the comprehensive analysis on total store performance of the supermarket industry, 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:

Jill A. Craft Contracting Officer

Date:

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