JA Mettler Toledo Scales_Wrapping Sys New Locations FY 22Final_Signed.pdf

For Official Use Only (FOUO)

Control Number: HDEC04-18-40 Amendment 0002

ELLISON.RUSSELL.FRANK. Digitally signed by

ELLISON.RUSSELL.FRANK.1099267514

1099267514 Date: 2022.02.15 12:47:37 -05'00'

BAKER.HOUSTON.ED Digitally signed by

WARD.1111030320

BAKER.HOUSTON.EDWARD.1111030320

Date: 2022.02.15 12:37:13 -05'00'

SANDBERG.MICHAE Digitally signed by

SANDBERG.MICHAEL.ROY.1408822

L.ROY.1408822951 951 Date: 2022.02.17 15:58:07 -05'00'

BAREFOOT.REBECCA.LEE.1012927

JUSTIFICATION REVIEW DOCUMENT

DESCRIPTION OF ACQUISITION: Amend HDEC04-19-C-0018, HDEC04-19-C-0019, HDEC04- 19-C-0020, and HDEC04-19-C-0021 to add 7 new locations from May 1, 2022 to April 30, 2024 for maintenance of Mettler Toledo Brand Name Weigh/Wrap Equipment for a total of 126 commissaries located throughout the Continental United States, Alaska and Hawaii.

STATUTORY AUTHORITY: 10 U.S.C. 2304(c) (1)

ESTIMATED CONTRACT AMOUNT:

Original Estimated Contract Amount: $8,355,967.00 Estimated Amendment 0001Amount: $1,476,691.96 Estimated Amendment 0002 Amount: $129,987.00 Estimated Total Contract Amount: $9,962,646.96

PERFORMANCE PERIOD: May 1, 2019-April 30, 2024

PREPARED BY: Michael Conwell Supply Management Specialist CONWELL.MICHA Digitally signed by

Phone ext. 48251 Date/Initials:

CONWELL.MICHAEL.A.1084751797

Date: 2022.02.15 12:57:18 -05'00'

Technical: Russell F. Ellison Supply Management Specialist Phone ext. 486031 Date/Initials:

Requirements: Rebecca Barefoot Chief Equipment Branch Phone ext. 48085

Digitally signed by

BAREFOOT.REBECCA.LEE.1012927

Date: 2022.02.15 13:02:36 -05'00'

PCO: Houston E. Baker Contracting Officer Phone ext. 86257 Date/Initials:

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

Program Manager: Rebecca BBaArReEfFoOoOtT.REBECC Digitally signed by

Signature:A.LEE.1012927270 270 Date: 2022.02.15 13:03:06 -05'00'

Phone: 804-734-8000x48085 Date: 2/15/2022

Legal Counsel: Michael Sandberg Signature:

Phone: 804-734-8000x48208 Date: 2/17/2022

Division Chief: Richard Broda BRODA.RICHARD.

Digitally signed by

BRODA.RICHARD.ALAN.1080731252

Phone: 804-734-8000 x48882 2/18/2022 Signature: ALAN.1080731252 Date: 2022.02.18 07:49:59 -05'00' Date:

Competition Rhonda N. Jackson Advocate: Signature:

Phone: 804-734-8000x49816 Date: 3/3/2022

EL.A.108475179

Date/Initials: BAREFOOT.REBECC

A.LEE.1012927270

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: Modification of contracts HDEC04-19-C-0018, HDEC04-19-C- 0019, HDEC04-19-C-0020, and HDEC04-19-C-0021. This proposed modification will add Eglin AFB, Fort Rucker, Gunter AFB, Jacksonville, New London, Patuxent River and Pittsburgh for the period of performance from May 1, 2022 through April 30, 2024. All locations previously had equipment and maintenance service with Hobart Brand equipment This is a Firm Fixed Price type contract. 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 maintenance on Mettler Toledo Brand Weigh/Wrap Equipment (auto-wrappers, low-volume wrappers and scales) for the commissaries located in the Continental United States, Alaska and Hawaii.

4. AUTHORITY CITED: Statutory Authority 10 U.S.C. 2304(c) (1)

5. REASON FOR AUTHORITY CITED: Proprietary Maintenance/Repair. Mettler Toledo is the manufacturer of the weigh/wrap equipment and holds all rights to parts required to maintain and repair this equipment. A total of 119 CONUS, Alaskan and Hawaiian commissary stores currently use Mettler Toledo 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, produce and seafood departments. It is imperative that replacement parts are Mettler Toledo 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 Mettler Toledo service partners/repair technicians are able to obtain Mettler Toledo manufactured repair parts and the required 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. The proprietary service tools needed to repair/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. Mettler Toledo does offer telephone support directly to the end user to assist with basic troubleshooting. This restriction on the availability of Mettler Toledo parts and training limits maintenance providers to authorized dealers in the Mettler Toledo network.

Warranties become void if unauthorized contractors perform maintenance on Mettler Toledo equipment.

6. Efforts to Obtain Competition: To further enhance competition and locate other sources that are capable of meeting the government requirement, a sources sought notice was published on SAM.gov February 1, 2022. Although other sources expressed interest in this requirement, DeCA obtained a copy of the Mettler Toledo Retail Distributor Agreement, which provides justification of the sole source proprietary rights of Mettler Toledo equipment and parts and includes a non-compete agreement with its partners.

CONWELL.MICHAEL.A.10 Digitally signed by

84751797

CONWELL.MICHAEL.A.1084751797

Date: 2022.02.15 12:58:02 -05'00'

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

8. Market Research and Interested Sources: Mettler Toledo provided DeCA with its Retail Distributor Agreement which 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.

9. Actions to Increase/Foster Competition: A sources sought notice was issued February 1, 2022 and closed February 11, 2022. This resulted in one source who expressed interest in this requirement. The Remi Group, a third-party maintenance agreement group expressed interest. The Remi Group has express interest in the past, but do not have a Retail Distributor Agreement with Mettler Toledo which states that it holds proprietary rights to its equipment and repair parts. The REMI Group, LLC (Cage Code: 51LN4) is registered in SAM and provides maintenance coverage for electronic equipment in areas such as General Office, Information Technology, Medical and Imaging, Surgery, Research and Laboratory, Security and Communication, Financial and Point of Sale terminals. The company has capabilities that appear as if they might be able to perform the requirements. However, The Remi Group is not part of the Metter Toledo network group of Certified Distributors.

10. OTHER FACTORS:

a. Procurement History - The previous maintenance contract was not competed and awarded sole source to Mettler Toledo. The contract numbers were HDEC04-19-C-0018, 0019, 0020, 0021 and were awarded on 30 April, 2019 as a firm, fixed price contract with a base year and 4 option years.

b. Sub-Contracting Competition – Mettler Toledo 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 Mettler Toledo, therefore there are no sub-contracting opportunities.

TECHNICAL CERTIFICATIONS: 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 2/15/2022

ELLISON.RUSSELL.FR Digitally signed by

ANK.1099267514

ELLISON.RUSSELL.FRANK.1099267514

Date: 2022.02.15 12:48:03 -05'00'

DatDeate: 2022.02.15 12:38:03 -05'00'

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 Digitally signed by Title: Chief Equipment Branch

BAREFOOT.REBECC BAREFOOT.REBECCA.LEE.10129272

SignatureA.LEE.1012927270 70 Date: 2022.02.15 13:04:12 -05'00' Date

FAIR AND REASONABLE COST 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 Mettler Toledo contracts, the present Hobart maintenance contract which involves similar CONUS-wide support, and rates from other competitively awarded maintenance agreements for similar equipment. Mettler Toledo’s store support and past performance has been excellent.

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

Name: Houston E. Baker Title: Contracting officer

Signature BAKER.HOUSTON.EDWARD.1111030320 Digitally signed by BAKER.HOUSTON.EDWARD.1111030320

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of maintenance services on another 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 Rhonda N. Jackson DeCA Competition Advocate

2/15/2022

2/15/2022

3/3/2022