J A Hobart Scales and Wrapping Systems Final-signed.pdf

For Official Use Only (FOUO)

Control Number: HDEC04-21-45

JUSTIFICATION REVIEW DOCUMENT

Description of Acquisition: Full-Burden Preventive Maintenance (PM) and Repair of Hobart LLC Brand Name Auto Wrappers, Low-Volume Wrappers and Scales for various commissaries located throughout the Continental United States, Alaska, and Puerto Rico.

Altus, Andrews, Bangor NBK, Beale, Bolling, Camp LeJeune, Camp Pendleton, China Lake, Dahlgren, Eglin, Ellsworth, Fallon, Ft Bragg South, Ft Buchanan, Ft Detrick, Ft Hood II, Ft Irwin, Ft Leonard Wood, Ft Rucker, Ft Sill, Grand Forks, Gunter, Hunter, Jacksonville, Key West, Kodiak, Lemoore, Little Creek, Malmstrom, Minot, Mitchel Field, Nellis, New London, New River, Offutt, Pax River , Pittsburgh, Quantico, Robins, Saratoga Springs, Sheppard, Tobyhanna and Whiteman

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

Estimated Contract Amount:

Estimated Total Contract Amount: $3,856,500.00

Performance Period: Base Year -May 1, 2022 through April 30, 2023 Option Year 1- May 1, 2023 through April 30, 2024 Option Year 2- May 1, 2024 through April 30, 2025 Option Year 3- May 1, 2025 through April 30, 2026 Option Year 4- May 1, 2026 through April 30, 2027

Prepared By: Michael Conwell Supply Management Specialist Phone: ext. 48251 Date/Initials: ________

Technical: Russell F. Ellison Supply Management Specialist Phone: ext. 86031 Date/Initials: ________

Requirements: Rebecca Barefoot Chief Equipment Branch Phone: ext. 48085 Date/Initials: ________

PCO: Houston E. Baker Contracting Officer Phone: ext.86257 Date Initials: ________ BAKER.HOUSTON.EDW

ARD.1111030320

Digitally signed by

BAKER.HOUSTON.EDWARD.11110303

Date: 2021.08.04 13:08:12 -04'00'

ELLISON.RUSSELL.F

RANK.1099267514

Digitally signed by

ELLISON.RUSSELL.FRANK.109926751

Date: 2021.08.04 13:53:27 -04'00'

CONWELL.MICHAEL

.A.1084751797

Digitally signed by CONWELL.MICHAEL.A.1084751797 Date: 2021.08.04 13:59:09 -04'00'

BAREFOOT.REBECC

A.LEE.1012927270

Digitally signed by

BAREFOOT.REBECCA.LEE.1012927270

Date: 2021.08.04 14:32:00 -04'00'

Control Number: HDEC04-21-45

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

Program Manager: Rebecca Barefoot Phone: 804-734-8000 x48085 Signature: ________________________ Date: ___________________

Legal Counsel: Michael Sandberg Phone: 804-734-8000 x48208 Signature: ________________________ Date: __________________

Division Chief: Richard Broda Phone: 804-734-8000 x48882 Signature: ________________________ Date: __________________

Competition Ernie Favale Phone: 804-734-8000 x48548 Advocate: Signature: ________________________ Date: __________________

BAREFOOT.REBECC

A.LEE.1012927270

Digitally signed by

BAREFOOT.REBECCA.LEE.1012927

Date: 2021.08.04 14:32:48 -04'00'

SANDBERG.MICH

AEL.ROY.1408822

Digitally signed by

SANDBERG.MICHAEL.ROY.14

08822951 Date: 2021.08.05 10:53:39 -04'00'

BRODA.RICHARD.A

LAN.1080731252

Digitally signed by

BRODA.RICHARD.ALAN.1080731

Date: 2021.08.06 07:21:50 -04'00'

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Office: Defense Commissary Agency, Maintenance Branch, CCQSM, 1300 E.

Avenue, Fort Lee, Virginia 23801-1800

2. Type of Contract Action: A Firm Fixed Price type action is contemplated. Payment will be made using the Procurement Integrated Enterprise Environment (PIEE).

3. Description of Supplies/Services: The Defense Commissary Agency, Sales, Marketing & Logistics Group (MPLRE), has an on-going requirement to obtain Preventive Maintenance (PM) and Repair on Hobart LLC Brand Weigh/Wrap Equipment (auto-wrappers, low-volume wrappers and scales) for the commissaries located in the Continental United States, Alaska, and Puerto Rico. The solicitation shall include the base and four one-year option periods, which may extend the contract performance to 2027. The estimated contract value for the base and four option periods is $3,856,500.00.

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: Proprietary Maintenance/Repair. Hobart, LLC is the manufacturer of the weigh/wrap equipment and holds all rights to parts required to maintain and repair this equipment. A total of 44 CONUS, Alaska, and Puerto Rico commissary stores currently use Hobart LLC food processing equipment such as meat auto-wrappers, low-volume wrappers and scales. This equipment is necessary for the operation of the stores’ meat, deli/bakery, and produce and seafood departments. It is imperative that replacement parts are Hobart LLC Brand Original Equipment Manufacturer (OEM) equipment in order to maintain compatibility with existing equipment and to ensure that it can be successfully integrated into the existing wireless system. Only authorized Hobart LLC service partners/repair technicians are able to obtain Hobart LLC manufactured repair parts and the required specialized training necessary to perform maintenance on Hobart LLC equipment. Hobart LLC’s comprehensive training curriculum and certification programs are restricted to attendees from their partner channels. The proprietary service tools needed to repair/maintain Hobart LLC equipment, software and firmware are issued solely to authorized service partners. Hobart LLC’s exclusive service network has sole access to their technical support team. Hobart LLC does not offer a hotline or support line directly to third party service providers. Hobart LLC does offer telephone support directly to the end user to assist with basic troubleshooting. This restriction on the availability of Hobart LLC parts and training limits maintenance providers to authorized dealers in the Hobart LLC network. Warranties become void if unauthorized contractors perform maintenance on Hobart LLC equipment.

Control Number: HDEC04-21-45

6. Efforts to Obtain Competition: To further enhance competition and locate other sources capable of meeting the government requirement, a sources sought notice was submitted in Beta SAM on June 7, 2021 and closed on June 18, 2021. There was one response, RV Global Solutions, Inc., a small business 8(a).

Although RV Global expressed interest in fulfilling this requirement, they do not have a proprietary agreement with Hobart LLC. Therefore, they would be unable to order parts and have warranty for work.

Fair and Reasonable Cost Determination: I hereby determine that the anticipated price for this contract action will be fair and reasonable IAW FAR 15.404-1(b)(2)(ii). It will be based on price analysis comparing pricing of previous Hobart LLC contracts, the present Mettler Toledo maintenance contract which involves similar CONUS-wide support, and rates from other competitively awarded maintenance agreements for similar equipment.

Market Research and Interested Sources: Hobart LLC states that it holds proprietary rights to its equipment and repair parts. As such, there are no available avenues for the competitive marketplace to obtain capability in performance of this requirement.

Actions to Increase/Foster Competition – A sources sought notice was issued June 7, 2021 and closed June 18, 2021. There was one response, RV Global Solutions, Inc., a small business 8(a).

Other Factors:

Procurement History - The previous Hobart LLC contract was solicited as unrestricted.

The contract numbers were HDEC04-17-C-0004, HDEC04-17-C-0005, HDEC04-17- C-0006, HDEC04-17-C-0007, HDEC04-17-C-0008, and HDEC04-17-C-0009 and were awarded on 01 May, 2017 was a firm fixed price contract with a base year and 4 option years. The purpose for six different contracts are to cover a specific geographical area and to accommodate DFAS pay limitations. These contracts covered 69 locations. As of May 1, 2021, the locations covered decrease to 44 due to Fair Market bidding for new equipment that went to other vendors.

Sub-Contracting Competition – Hobart LLC has a network of service partners who perform maintenance on behalf of the corporate office. The service partners are considered to be sub-contractors and are not considered direct employees of Hobart LLC, therefore, there are no sub-contracting opportunities.

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: Michael Conwell Title: Supply Management Specialist

Signature _________________________________ Date ____________________________

Name: Russell F. Ellison Title: Supply Management Specialist

Signature _________________________________ 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: Rebecca Barefoot Title: Chief Equipment Branch

Signature _________________________________ Date _______________________________

Fair and Reasonable Price Determination and Contracting Officer Certification:

I hereby determine that the anticipated cost for this contract action will be fair and reasonable. It will be based on price analysis comparing pricing of previous Hobart LLC contracts, the present Mettler Toledo maintenance contract which involves similar CONUS-wide support, and rates from other competitively awarded maintenance agreements for similar equipment.

I certify that this J&A is accurate and complete to the best of my knowledge and belief.

Name: Houston E. Baker Signature: _______________________________ Title: Contracting Officer Date:

BAKER.HOUSTON.ED

WARD.1111030320

Digitally signed by

BAKER.HOUSTON.EDWARD.1111

030320 Date: 2021.08.04 13:09:20 -04'00'

ELLISON.RUSSELL.FRANK.10

99267514

Digitally signed by

ELLISON.RUSSELL.FRANK.1099267514

Date: 2021.08.04 13:53:59 -04'00'

CONWELL.MICHAEL

.A.1084751797

Digitally signed by

CONWELL.MICHAEL.A.1084751797

Date: 2021.08.04 14:01:12 -04'00'

BAREFOOT.REBECC

A.LEE.1012927270

Digitally signed by

BAREFOOT.REBECCA.LEE.1012927270

Date: 2021.08.04 14:33:32 -04'00'

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of maintenance services on 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 property herein described have otherwise been authorized for acquisition.

APPROVED:

_________________________________ Date ___________________ Ernie Favale DeCA Competition Advocate

8/6/21