JA HQC004-24-09 Mettler Toledo final (RHD)redacted.docx

A. Justification

1. Contracting Office: Defense Commissary Agency (DeCA), Maintenance Branch, CCQSM, 1300 Eisenhower Avenue, Fort Gregg-Adams, Virginia 23801-1800

2. Type of Contract Action: The intent is to solicit and award a firm fixed price contract to a Mettler Toledo authorized maintenance and repair vendor.

3. Description of Supplies or Services: The DeCA requires proprietary maintenance and repair of Mettler Toledo food processing equipment procured via full and open competition for the in- store delicatessen and bakery resale operations, in-store seafood market operations, and produce and meat departments at 116 Contiguous United States (CONUS) Alaska and Hawaii. DeCA Surcharge Funds will be utilized for this contract action.

Base Year - November 1, 2024- October 31, 2025 Option Year 1 – November 1, 2025 – October 31, 2026 Option Year 2 – November 1, 2026 – October 31, 2027 Option Year 3 – November 1, 2027 – October, 31, 2028 Option Year 5 – November 1, 2028 – October, 31, 2029 Authority Cited: 10 U.S.C. 3204 as implemented by 6.302-1 (a)(2) Only one responsible source and no other supplies or services will satisfy agency requirements. Full and open competition need not be provided for when supplies or services required by the agency are available from only one responsible source or a limited number of responsible sources, and no other supplies will satisfy agency requirements.

4. Reason for Authority Cited: Mettler Toledo is the manufacturer of the food processing equipment and holds all rights to parts required to maintain and repair this equipment. Mettler Toledo provided DeCA with its Retail Distributor Agreement which states “it holds proprietary rights to its equipment and repair parts.” It is imperative that Mettler Toledo brand Original Equipment Manufacturer (OEM) replacement parts are used in order to maintain compatibility with existing equipment and to ensure that it can be successfully integrated into the existing wireless system. Mettler Toledo authorized service partners or trained repair technicians are the only ones able to obtain Mettler Toledo manufactured repair parts. The authorized service partners and or repair technicians are required to complete specialized training necessary to perform maintenance on Mettler Toledo equipment. Mettler Toledo’s comprehensive training curriculum and certification programs are restricted to attendees from their partner channels.

Control Number: HQC004-24-09 Justification for Other than Full and Open Competition

The proprietary service tools needed to repair and maintain Mettler Toledo equipment, software and firmware are issued solely to authorized service partners. Mettler Toledo’s exclusive service network has sole access to their technical support team. Mettler Toledo does not offer a hotline or support line directly to third party service providers. Warranties are voided if service providers performing maintenance and repairs are not authorized by Mettler Toledo or parts other than OEM are used for repair, to include replacement, Mettler Toledo equipment. The equipment is not planned for replacement and until such time, sources are limited to only those authorized by Mettler Toledo.

5. Efforts to Obtain Competition: Since the requirement is specific to the equipment, changes were not able to be made to the requirement in an effort to obtain competition.

6. Fair and Reasonable Cost Determination: The Contracting Officer will ensure that contract terms, conditions, and price are commensurate with the Government’s need. Price reasonableness will be established in accordance with FAR 15.4.

7. Market Research: A sources-sought notice was published on SAM.gov November 1, 2023 through November 15, 2023. No responses were received. In addition to the sources sought, market research was completed using Systems for Award Management, Google, and Small Business Administration Dynamic Search. The goal of the market research was to determine if there were other sources available to provide maintenance to the Mettler Toledo brand equipment under NAICS 811210. No sources other than Mettler Toledo authorized service partners were identified. As such, there are no available avenues for the competitive marketplace to obtain capability for performance of this requirement.

8. Other Factors:

· DeCA’s food processing equipment is procured using full and open competition. Standard commercial practice is for maintenance and repair to be proprietary.

· The previous requirement for Mettler Toledo proprietary maintenance and repair resulted in four contracts. Each contract supported a specific geographical area.

· Mettler Toledo has a network of service partners that perform maintenance on behalf of the corporate office. The service partners are considered to be sub-contractors and are not considered direct employees of Mettler Toledo, therefore there are no sub- contracting opportunities.

9. Interested Sources: No responses were received to the sources sought notice posted from November 1, 2023 through November 14, 2023.

10. Actions to Increase/Foster Competition: Continuous market research will be conducted to stay informed of industry’s capabilities, and communications with various industry partners will be maintained.