JA-Amend 2-HDEC0209D0012--signed_Redacted.pdf

Control Number: HQC006-19-13, Amend. 0002

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Office: Defense Commissary Agency (DeCA), Pacific Contracting Branch, Kadena Air Base, Okinawa, Japan.

2. Type of Contract Action: Modification of contract HDEC02-09-D-0012 with Coastal Pacific Food Distributors, Incorporated (CPFD). The proposed modification will extend the period of performance for an additional five (5) months and 3 days from August 1, 2021 to January 3, 2022.

This is a requirements type contract. The Resale Stock Fund Activity, Defense-Wide working Capital Fund, provides funding.

3. Description of Supplies/Services: This action will provide uninterrupted deli and bakery resale operations, to include sushi, in DeCA Pacific commissary locations:

Guam: Andersen and Orote

The proposed modification would increase the estimated contact value by for a new contract total of and extends the contract performance period until January 3, 2022.

4. Authority Cited: 10 U.S.C. 2304(c) (2), in accordance with FAR 6.302-2, Unusual and Compelling Urgency.

5. Reason for Authority Cited: Contract HDEC02-09-D-0012 expires on July 31, 2021. Delays in awarding a new contract have been experienced due to the transfer of contracting authority from the Pacific Contracting office to Headquarters; extensive revisions to the requirements for DeCA deli bakery operations; a higher than normal (twenty-one) potential bidders asking numerous, diverse questions; and the language barrier. However, the most prominent reason for the delay are the complications related to the COVID 19 pandemic. With more people teleworking in CONUS and OCONUS, it has become more difficult to contact and communicate with people: DeCA employees, potential bidders, industry, and partners. Executing the new deli bakery requirements, awarding a follow-on contract, utilizing full and open competition, is in process and anticipated to be completed for a contract start date of January 4, 2022.

In the absence of a contract extension, the commissaries covered under this contract will be without deli and bakery resale operations, to include sushi, which will result in service members being denied their full commissary benefit provided to them by statue under 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 these products would negatively impact DeCA’s mission to provide for the military and their families.

CPFD has been successfully performing by providing products that conform to the contractual requirements, terms and conditions. CPFD has the systems in place and has already established the necessary infrastructure to provide uninterrupted service in accordance with federal, state and agency requirements to the DeCA commissaries. Given the time constraints involved in the follow-on requirement, it is determined that this this extension period is in the Government’s best interest.

Control Number: HQC006-19-13, Amend. 0002

6. Efforts to Obtain Competition: The follow-on solicitation was published to Contract Opportunities on a full and open competitive basis on November 18, 2020, identifying the Government’s intention to procure deli and bakery products to include sushi and related services for the Pacific region.

This justification will be made available for public inspection, after the completion of the contract modification to extend contract performance with the incumbent contractor, in accordance with FAR 6.305.

A sources sought notification was not issued for this modification to extend contract performance due to time constraints involved.

7. Fair and Reasonable Cost Determination: Based on the percentage of savings that has been achieved over the current contract performance period, the incumbent contractor has demonstrated the ability to meet the minimum percentage of patron savings required under the proposed contract performance extension. The incumbent contractor has agreed to continue meeting the minimum percentage of patron savings required under the proposed contract performance extension. It is the contracting officer’s determination that the market conditions have not changed substantially since the time of the contract award and thus the price of this extension is fair and reasonable.

8. Market Research and Interested Sources: The previous acquisition source lists, along with offerors located using Small Business Dynamic database, VetBiz.Gov website, System for Award Management database and Google searches, were used to support and document market research for the follow-on requirement. Twenty-one potential bidders showed interest in the requirement. The solicitation was released to the public on November 18, 2020, and it closed on April 1, 2021.

9. Actions to Increase/Foster Competition: A base period of 24 months for the new contract will be established to encourage competition, as the initial capital investment in labor and products is considerable. As evidenced from the performance under the current contract, businesses find it difficult to provide the combination of services and products to meet the magnitude of effort associated with an efficient in-store specialty deli and bakery resale operation, to include sushi.

Contractor management must possess business acumen, industry knowledge and analytical skills to successfully provide the right mix of products and services to support the operation. The initial startup costs are considerable for payrolls and products. The capital outlay is substantial to sustain a corporate infrastructure and field operations. The contract awardee must have access to well known, high quality brand name products, and be able to offer the products at competitive prices.

Additionally, in order to be successful, the contractor must have the proper distribution channels established to transport and deliver the products. Accordingly, the follow-on requirement was solicited on an unrestricted basis using full and open competition as set forth in FAR Part 6.

10. Other Factors: Not applicable.

11. Commissary Locations covered under HDEC02-09-D-0012

1. ANDERSEN

2. OROTE