JA HQC010-20-05 Amd 0003_Italy Maintenance.pdf

Control No.: HQC010-20-05 Amendment: 0003

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Office: Defense Commissary Agency (DeCA), Non-resale Contracting Directorate, Contracting Branch Europe (CCQRU), Kaiserslautern, Germany.

2. Type of Contract Action: Modification of contract HQC010-16-D-0001 with firm S.T.S. Servizi, Tecnologie E Sviluppo SRL. The proposed modification will extend the period of performance an additional twelve months from 01 September 2021 to 31 August 2022. The contract type is a requirements type. DeCA's surcharge funds will be provided to fund individual task orders.

3. Description of Supplies/Services: This action will provide uninterrupted preventive maintenance and routine and emergency repairs of commissary facilities and equipment at five store locations in Italy within the European Area of the Defense Commissary Agency. The proposed twelve month modification would extend the contract performance period to 31 August 2022 and increase the estimated contract value as follows:

Original Contract Amount: € 2,869,327.70 ($3,343,425.43) $1.00 = .8582

J&A Amount: € 431,375.29 ($502,651.24) $1.00 = .8582 J&A Amendment 0001: € 461,375.28 ($537,608.11) $1.00 = .8582 J&A Amendment 0002: € 784,468.67 ($922,904.32) $1.00 = .85 J&A Amendment 0003: € 920,466.10 (1,070,558.39) $1.00 = .8598 Total Bridge J&A Amount: € 2,597,685.34 ($3,033,722.05) New Total Contract Amount: € 5,467,013.04 ($6,377,147.47)

4. Authority Cited: Authority Cited: 10 U.S.C., §2304 (c)(2), FAR 6.302-2, Unusual and compelling urgency.

5. Reason for Authority Cited:

As described at FAR 6.302-2(a)(2), when the agency's need for the supplies or services is of such an unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals, full and open competition need not be provided for. Pursuant to FAR 6.302-2, the incumbent contractor is the only available source because award to any other source at this time would result in unacceptable delays in fulfilling overseas commissaries requirement and an interruption of services. Contract HQC010-16-D- 0001 with firm S.T.S. Servizi, Tecnologie E Sviluppo SRL will expire on 31 August 2021. Modification P00009 was issued pursuant to Justification and Approval (J&A) HQC010-20-05 for other than full and open competition in accordance with FAR 6.302-2(a)(2) to extend services for six months from 01 December 2019 through 31 May 2020. Modification P00010 was issued pursuant to Justification and

Approval (J&A) HQC010-20-05 Amendment 0001 for other than full and open competition in accordance with FAR 6.302-2(a)(2) to extend services for an additional six months from 01 June 2020 through 30 November 2020. Modification P00011 was issued pursuant to Justification and Approval (J&A) HQC010-20-05 Amendment 0002 for other than full and open competition in accordance with FAR 6.302-2(a)(2) to extend services for an additional eight months from 01 December 2020 through 31 August 2021.

As a result of focus on and new outcomes for facility sustainment and maintenance in DeCA's new strategic plan, issued in April 2021, as well as currently pending changes to agency systems that support the facility maintenance program agency-wide, the agency is currently engaging in implementation of a long-term acquisition plan associated with these types of services for all of DeCA's worldwide facilities.

It's a major event directly related to this contract and its implementation that occurred since the last extension. The agency believes that this process will result in a more efficient and reliable basis for making facility maintenance acquisitions and for promoting enhanced competition opportunities for facility maintenance and related services. During this time, development and issuance of a new contract was not reasonable, based on pending changes to the facility maintenance program, generally, and associated changes in the requirement.

The commissary benefit is the cornerstone of the military quality of life and it is essential that DeCA provides fully operational commissaries. Preventive maintenance and routine and emergency repairs of equipment and facilities is an essential part of providing food safety as well as a safe and secure shopping environment to the military communities in Italy. An interruption in services would negatively impact DeCA’s mission to provide for the military and their families. Due to changes in grocery shopping patterns during the COVID-19 pandemic, the use of and dependence on commissaries has increased significantly, with an enhanced need for efficient and continuous on-site availability of products and services. Any interruption in maintenance services will prevent DeCA from providing this mission critical support to military members, retirees, disabled veterans, and other authorized patrons.

S.T.S. Servizi, Tecnologie E Sviluppo SRL has been performing this contract successfully over the past four years providing services that conform to the contractual requirements and terms and conditions. The company has the intimate knowledge and resources in place to continue uninterrupted service. S.T.S.

Servizi, Tecnologie E Sviluppo SRL is the only source available that has the necessary infrastructure and quality assurance measures in place to provide uninterrupted service for the extension period in accordance with the DeCA commissary requirements.

6. Efforts to Obtain Competition: A sources sought notification was not issued for this requirement due to the fact no contractor other than the incumbent is capable of providing the required services during the proposed extended period without causing unacceptable delays, disruption in service, and unrecoverable duplication of cost.

7. Fair and Reasonable Price Determination and Contracting Officer Certification:

Contract HQC010-16-D-0001 was awarded under full and open competition. To calculate the price for the contract extension period, the Government took the price for all CLINS of the nine month extension period and prorated it to a twelve-month value and added 3% for unscheduled/emergency maintenance repairs for aging equipment. In view of the results of market research and a comparison to historical prices paid for similar efforts, the prices are still competitive and a new procurement would not yield more advantageous pricing. Based on the aforementioned, the contracting officer determines the prices offered by Servizi Tecnologie e Sviluppo Srl to be fair and reasonable.

8. Market Research: Market research did not reveal any contractors having the ability to facilitate the successful and expeditious execution of the services required via this modification. Due to the complex nature of the procurement, it is unreasonable to expect that anyone other than the incumbent will be able to effectively start-up and perform the requirements in a timely manner due to the anticipated delay in notice of a new award.

9. Other Factors: Not applicable.

10. Interested Sources: S.T.S. Servizi, Tecnologie E Sviluppo SRL is currently performing the contract and is the only known source that can perform at the required performance level while maintaining continuity of services. To date, no other source has written to express an interest in performing the twelve months interim period.

11. Action to Increase/Foster Competition: DeCA Contracting Branch Europe is actively working to award a competitive contract by 01 August 2022 with commencement on 01 September 2022. This effort is in the pre-award stage of the follow-on acquisition, which will be conducted as a full and open competition. To foster competition, obtain economies of scale in pricing, and provide long-term incentives, the performance period for the follow-on contract was increased from three years to four (24-month base period, plus two 12-month option periods in accordance with FAR l 7.202(a)).

12. Commissary locations covered under contract HQC0l0 -16-D-0001:

Aviano Commissary Aviano Air Base Livorno Commissary, Pisa, Italy Naples Commissary, Caserta, Italy Sigonella Commissary, Catania, Italy Vicenza Commissary, Vicenza, Italy

Technical/Requirement 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: Joaquin Hernandez Signature/Date: ____________________________ Chief, Facility Sustainment Division

Fair and Reasonable Price Determination and Contracting Officer Certification:

I hereby determine that the prices for this contract action are fair and reasonable. I certify that this J&A is accurate and complete to the best of my knowledge and belief.

Name: Michael G. Shaffer Signature/Date: ____________________________ Contracting Officer

APPROVAL

Based on the above mentioned justification, I hereby approve the twelve months extension from 01 September 2021 through 31 August 2022, for the continuation of preventive maintenance and routine and emergency repairs of facilities and equipment at five store locations in Italy covered under contract HQC010-16-D-0001, on other than full and open competition basis pursuant to the authority of 10 U.S.C.

§2304 (c)(2), provided funds are available, or will be available, and provided that services herein described have otherwise been authorized for acquisition.

APPROVED:

Signature/Date: ____________________________ Date: ________________________ Ernie Favale Competition Advocate

SHAFFER.MICHAEL.G.

1044850571

Digitally signed by

SHAFFER.MICHAEL.G.1044850571

Date: 2021.07.13 12:46:18 -04'00'

HERNANDEZ.JOAQU

IN.G.JR.1231177066

Digitally signed by

HERNANDEZ.JOAQUIN.G.JR.1231

177066 Date: 2021.07.14 14:06:33 -05'00'

7/28/21