JA Norfolk third bridg Redacted 11-25-20 (002)_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION UNDER AUTHORITY

OF 10 U.S.C. 2304(c)(1) FOR FULL FOODSERVICE PRIME VENDOR CUSTOMERS IN THE

NORFOLK, VIRGINIA LAND AREA

1. Defense Logistics Agency (DLA) Troop Support, Subsistence Supply Chain, is the contracting activity.

2. The action being approved is the ability to solicit for DLA requirements on an other than full and open competition basis.

3. The proposed acquisition will be an Indefinite-delivery, Indefinite quantity (IDIQ), fixed price with Economic Price Adjustment (EPA) bridge contract for Prime Vendor support for a period of ninety-seven (97) days. This time period will allow for an up to sixty (60) day ramp-up period by the awardee of the follow-on competitive procurement. This ramp-up period includes the time necessary for the awardee of the follow-on competitive procurement to reach full operational capability, including the implementation of a full Subsistence Total Order and Receipt System (STORES) electronic catalog.

The proposed bridge contract (SPE300-21-D-3302) encompasses Subsistence Prime Vendor (SPV) support for all authorized DLA customers located in the Norfolk, Virginia Land areas for a full-line of food and beverage items. Based on current annual usage/sales, the estimated total dollar value for the proposed bridge contract is $8,500,000.00. The guaranteed minimum dollar value is ten percent (10%) of the estimated dollar value or $850,000.00. The maximum total dollar value, including surge of 200% is $17,000,000.00.

The proposed action will result in the award of a bridge contract with US Foods Raleigh effective November 18, 2020 through February 23, 2021.

4. The applicable statutory authority permitting other than full and open competition is

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

5. The use of this authority is necessary to provide continuous, uninterrupted food supplies to

DLA customers in the Norfolk, Virginia Land area. The most recent competitive Prime Vendor contract was a fixed price EPA IDIQ with US Foods Raleigh, SPE300-14-D-3045, with an original ordering period of five (5) years consisting of a two (2) year base, a one

(1) year option, and followed by a two (2) year option, with a maximum dollar value of $325,000,000.00. SPE300-14-D-3045 was awarded on September 30, 2014 utilizing full and open competition and expired on September 28, 2019. The first bridge contract, SPE300-19-D-3236, was a 287 day bridge contract awarded September 29, 2019, and expired July 11, 2020. The second and current bridge contract, SPE300-20-D-3281, has an effective period of July 12, 2020 through November 17, 2020. The proposed action will result in a third bridge contract to US Foods Raleigh effective November 18, 2020 through February 23, 2021. This bridge contract is necessary due to the unforeseen circumstances below.

The delays necessitating the first and second bridge contracts are documented in their respective Justification and Approvals (J&As) supporting those contract actions.

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION UNDER AUTHORITY

OF 10 U.S.C. 2304(c)(1) FOR FULL FOODSERVICE PRIME VENDOR CUSTOMERS IN THE

NORFOLK, VIRGINIA LAND AREA

electronic catalog, which, alone, requires at least sixty (60) days, the total duration of the ramp-up/implementation period. Award to any other potential food supplier would cause an unacceptable break in supply.

Failure to make an award to US Foods Raleigh will result in a break in Prime Vendor support. The military customers rely on the DLA Prime Vendor contract for all of their foodservice needs. The absence of this contract for any time will result in the inability of our military customers to order food and associated supplies. Failure to feed our military servicemen and women would constitute mission failure for DLA and our military customers.

6. As required by FAR 5.2, a notice will be published in Contract Opportunities

(Beta.SAM.GOV). All information pertinent to the special notice will be available to the general public at website https://www.dla.mil/TroopSupport/Subsistence/. In addition, this justification will be made available for public inspection, after award, in accordance with FAR 6.305.

7. As the Contracting Officer, I hereby determine that the anticipated cost to the Government will be fair and reasonable based on price analysis, which will include an overall assessment of market conditions and a comparison of the distribution prices and product prices with recently awarded CONUS Prime Vendor contracts.

8. The information supporting this action is based primarily on the Government’s knowledge of the foodservice market in the region. With the exception of synopsizing this requirement, no additional market research will be conducted and no other firms will be solicited since the Government is unaware of any other firm in the region with the existing capability, including electronic STORES cataloging, to perform in the timeframe required.

9. In the Norfolk, Virginia Land region, only US Foods Raleigh has a fully implemented

STORES electronic catalog. The required foodservice supplies are available only from the current contractor in the timeframe required, and award to any other source would result in unacceptable delays in fulfilling the agency’s requirements.

10. US Foods Raleigh is the only source expected to express an interest in the proposed bridge contract.

11. The follow-on competitive solicitation SPE300-19-R-0049 was issued on August 29, 2019 on a full and open competition basis .

It is anticipated that all future acquisitions for these requirements will be competed on a full and open competition basis.