Sole Source Justification Approval_Signed Complete.pdf

United States Department of Agriculture Sole Source Justification under

Simplified Procedures for Certain Commercial Items (FAR 13.5)

1. Identification of the agency and the contracting activity.

United States Department of Agriculture (USDA), Food and Nutrition Service (FNS), Household Operations Branch (Agency)

United States Department of Agriculture (USDA), Agricultural Marketing Service (AMS), Proteins, Grains, and Oilseeds Procurement Division (Contracting Activity)

2. The nature and/or description of the action being approved.

The USDA has a requirement provided by a single source and will enter into a firm fixed-price contract with Star-Kist Co., using the simplified acquisition procedures for certain commercial items under Federal Acquisition Regulation (FAR) Part 13.5.

3. A description of the supplies or services required to meet the agency’s needs (including the estimated value).

USDA, FNS, Household Operations Branch has a requirement for following.

Tuna Chunk Light Can-24/12 OZ – Estimated total quantity - 140,400 cases / 78 truckloads Estimated value of this procurement through September 30, 2025, is $7.5 million. It is the anticipated that two awards will be made April – June, and July – September.

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

41 U.S.C § 1901 - Simplified Acquisition Procedures up to $7.5 million, as authorized by FAR 13.500(a) and implemented by FAR 13.501(a).

5. Supporting rationale demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority.

The Agricultural Acquisition Regulation (AGAR) 470.103 requires that commodities acquired for use by the Food and Nutrition Service shall be a product of the United States, except as may otherwise be required by law, and shall be considered to be such a product if it is grown, processed, and otherwise prepared for sale or distribution exclusively in the United States except with respect to ingredients. Ingredients from non-domestic sources will be allowed to be utilized as a United States product if such ingredients are not otherwise:

(1) Produced in the United States; and

(2) Commercially available in the United States at fair and reasonable prices from domestic sources.

The USDA, Food and Nutrition Service, has a requirement to provide tuna fish as part of their entitlement program. Tuna assists in meeting the overall food package requirements, when available.

This is a highly desirable product by program participants and assists in offering a nutritious lean protein option. It is one of only a few shelf stable protein meat/fish options and it’s important that program participants are offered a variety of options across all categories. The cost and quantity projected align with other items offered through the USDA Foods offered.

Through market research, it has been determined that Star-Kist Co is the only processor of 100% domestically sources canned tuna.

6. A description of efforts made to ensure offers are solicited from as many potential sources as is practicable.

Sources Sought Notice for the commercial availability of canned, domestically produced tuna for USDA Food Programs was sent via GovDelivery and posted on SAM.gov. Notice ID 12-3J14-Notice- 24-048 No responses were received from vendors.

Notice of Intent to issue a sole source award to Star-Kist Co. will be posted on SAM.gov stating that any responsible sources capable of providing the required products may identify interest and technical capability to meet this requirement. If any company shows interest, information will be considered before the award stage.

7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

Prior to awarding this contract, AMS will use a combination of historical prices paid for the same item, published prices, and recommendations from the Agriculture Marketing Service, Livestock Poultry program economist to determine if the price offered is fair and reasonable. (FAR 15.404-l(b)(2).

8. A description of the market research conducted and the results or a statement of the reason Market Research was not conducted.

Sources Sought Notice for the commercial availability of canned, domestically produced tuna for USDA Food Programs was sent via GovDelivery and posted on SAM.gov. Notice ID 12-3J14-Notice- 24-048 The response period was September 5 - 15, 2024. No responses were received from qualified vendors.

Food Safety and Technology Branch (FSTB), Standards and Specifications Division (SSD) conducted a survey of the market for any additional vendors and determined Star-Kist Co. was the only company that meets the domestic origin requirements of AGAR 407.103.

Alternatively, market research was conducted for Albacore Tuna as a possible substitute product.

Albacore is considered a “premium” product, and prices are significantly higher than Chunk Light

Tuna. It was also found that Albacore is only available in limited supply. Due to price and supply constraints, Albacore Tuna is not a suitable alternative to Chunk Light Tuna at this time.

9. Any other facts supporting the use of other than full and open competition.

None

10. A listing of the sources, if any, that expressed a written interest in the acquisition.

1. Star-Kist Co

11. A statement of actions, if any, the agency may take to remove or overcome any barriers to competition if subsequent acquisitions are anticipated.

1. Government will continue to monitor market for future competition.

2. The agency may consider buying Albacore Tuna in the future should market prices change.

Certifications & Approvals

Supporting data which form the basis for and included in this justification are certified accurate and complete.

Danielle Lyons Household Operations Branch Chief

The information contained in this Justification for Other Than Full and Open Competition is certified accurate and complete to the best of my knowledge and belief.

Carrie Meyers Contracting Officer Livestock, Poultry and Fish Branch AMS Commodity Procurement Program

DANIELLE LYONS Digitally signed by DANIELLE LYONS Date: 2025.01.22 14:16:14 -05'00'

Additional Reviews & Approvals

Advocate for competition for the procuring activity (if over $750,000). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as advocate for competition for the procuring activity/MASCO, I hereby approve this justification.

Howard Price Mission Area Senior Contracting Official