J and A Mettler Toledo -September 2026 -Redacted.pdf

Justification for Other than Full and Open Competition Control Number: HQC04-26-14

A. Justification

1. Contracting Office: Defense Commissary Agency (DeCA) Supply and Equipment Maintenance

Branch (CCQSM)

2. Type of Contract Action: A sole source single firm fixed price contract award for a base performance period of 12 months and four optional performance periods of 12 months each will be executed upon approval of this justification.

3. Description of Supplies or Services: DeCA has a requirement for proprietary preventive maintenance and full burden maintenance and repairs of Mettler Toledo brand scales, labelers, and wrapping systems. Currently, the requirement is for the following 18 commissary locations:

Cherry Point, Edwards, Fort Belvoir, Fort Eustis, Fort Gordon, Fort Knox, Fort Meade, Fort Riley, Great Lakes, Harrison Village, Laughlin, Meridian, Mitchel Field, Moffett Field, Picatinny Field, Selfridge, West Point, and Yuma MCAS. This requirement spans a five-year period during which the service footprint will adjust to meet evolving life cycle and warranty demands. We expect to add locations to this contract as active equipment warranties expire, existing maintenance contracts end, or when older systems fail and cannot be economically repaired or maintained.

At the same time, we may remove locations from this scope if we replace current proprietary equipment with alternative systems, acquired via competitive, full and open acquisitions or as otherwise appropriate in accordance with existing law and regulations at time of acquisition.

Worldwide, DeCA has 237 commissary locations. Departments at 130 locations are currently equipped with Mettler Toledo equipment. See attached list. Some equipment is on another contract for same services provided by Mettler Toledo. Some equipment continues to be under warranty. Services include maintenance and repair, software updates and patches, diagnostics and calibrations, and Original Equipment Manufacturer (OEM) – certified parts replacement.

The total cost for the current 18 locations base and four option years is .

4. Authority Cited: 10 U.S.C. 3204(a)(1) as implemented by 6.103-1(b) Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: Although DeCA initially competed this requirement under full and open procedures to procure the automatic weighing, wrapping, and labeling systems, the resulting best-value awardee, Mettler Toledo, subsequently submitted a restrictive retail distributor agreement. This agreement legally confirms that Mettler Toledo maintains exclusive, proprietary rights over all integrated hardware, software, and replacement parts, effectively rendering them the sole source for post-award support. Mettler Toledo equipment warranties are voided if maintenance, repairs, or component replacements are performed by service providers not explicitly authorized by the manufacturer, or if non-OEM parts are utilized.

Furthermore, because these proprietary restrictions are inherent to the equipment's manufacturing ecosystem, an award to any other quoter in the full and open competition would have ultimately resulted in the same proprietary manufacturer restrictions.

Accordingly, soliciting these services competitively would introduce severe operational risks, including the immediate voiding of existing equipment warranties valued at , compromised software data integrity, and a violation of Legal-for-Trade calibration standards across DeCA commissaries. Therefore, Mettler Toledo is the only source capable of satisfying the

Government's requirement without causing unacceptable delays or substantial duplication of costs that cannot be recovered through competition.

6. Efforts to Obtain Competition: A sources sought was posted May 15, 2026 and closed May 22, 2026. DeCA received one response from a company that failed to demonstrate the technical capability required to perform the services. Notice will be publicized as required by

Revolutionary FAR Overhaul Part 5 – Publicizing Contract Actions as implemented by DoD

Deviation 2026-O0003 to the Governmentwide point of entry (GPE) at https://www.sam.gov .

7. 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 Department of Defense (DOD) Deviation

2026-O0048 Defense Acquisition Regulation Supplement (DFARS) Procedures, Guidance, and

Information (PGI) 215.402-70(b).

8. Market Research: The goal of the market research was to determine if there were additional sources able to provide maintenance and repair, as applicable, for the Mettler Toledo manufactured equipment. Market research verified that Mettler Toledo exclusively controls all access to OEM parts, proprietary diagnostic software patches, training, and licensing, limiting these critical resources—along with direct technical support and hotline access—solely to independent contractors and service partners bound by formal Mettler Toledo channel partner agreements.

9. Other Factors: The estimated cost to the Government that would be duplicated is of replacement. This was derived from the cost of new equipment exclusive of the Government cost attributed to the acquisition process.

10. Interested Sources: Mettler Toledo LLC, 1900 Polaris Pkwy, Columbus, OH 43240-4035, , other than small business,

11. Actions to Increase/Foster Competition: DeCA will conduct comprehensive market research annually prior to exercising any optional period of performance and prior to a modification to add commissary locations to the existing contract. The market research objective will be to verify whether market conditions have changed. In the event that new competitors have emerged, DeCA will conduct a formal business case analysis comparing the benefits of a new solicitation against the existing contract baseline. If market research reveals that emerging competitors cannot offer significantly lower service pricing, or that the associated transition costs to switch vendors would exceed any projected competitive savings, exercising the pre-priced option year or adding commissary locations to the existing contract will remain the most advantageous course of action. DeCA will continue to monitor the market to identify any newly authorized service channels capable of safely competing for these requirements in future procurement cycles.

Control Number:

D. Approval

Based on the foregoing justification, I hereby approve this justification for other than full and open competition pursuant to the authority cited provided the funds are available, or will be available, and provided that the supplies or services herein described have otherwise been authorized for acquisition.

Printed Name Signature

Title Date

Competition Advocate September 17, 2026

HQC004-26-14