JA_Texas_-_Oklahoma_SPE30020D3251.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

TEXAS/OKLAHOMA 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 one hundred and sixty three (163) days. This time period will allow for an up to one hundred and twenty day (120) ramp-up period by the awardee of the follow-on competitive procurement. This ramp-up period includes time necessary for implementation of Subsistence Total Order and Receipt System (STORES) electronic catalog.

The proposed bridge contract (SPE300-20-D-3251) encompasses Subsistence Prime Vendor (SPV) support for all authorized DLA customers located in the Texas and Oklahoma area 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 $11,823,152.84. The guaranteed minimum dollar value is 10% of the estimated dollar value or $1,182,315.28. The maximum total dollar value including surge of 200% is $23,646,305.68. This proposed action will result in the award of a bridge contract with US Foods Oklahoma Division effective October 25, 2019 through April 4, 2020.

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 Texas and Oklahoma area. The original Prime Vendor contractual vehicle was an Indefinite Delivery Purchase Order (IDPO) with US Foods Oklahoma, SPE300-17-D-5041, with an original ordering period of 120 days and a maximum dollar value of $7,000,000.00. The IDPO was awarded on August 13, 2017 utilizing full and open competition. The contract’s maximum sales dollars were met on November 8, 2017, prior to the expected 120 days ordering period. . The competitive solicitation for this region was issued December 2, 2016 and closed on May 9, 2017. Due to solicitation revisions and protracted negotiations, bridge contracts for this region were required. The first bridge contract was awarded for a period of 251 days from November 9, 2017 through July 14, 2018. A second bridge contract was awarded for a period of 259 days from July 15, 2018 through March 30, 2019. A third bridge contract was awarded for a period of 210 days from March 31, 2019 through October 26, 2019. The proposed action will result in the award of a fourth bridge contract with US Foods Oklahoma effective October 25, 2019 through April 4, 2020.

The target award date of the follow-on contract is which will allow for adequate time to finalize the award documentation and allow for internal offices to conduct reviews. The time period requested also incorporates an up to one hundred and twenty

(120) day implementation period.

The required foodservice supplies are deemed to be 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. US Foods Oklahoma is able to meet DLA requirements starting on October 25, 2019. They are the only food supplier in the Texas/Oklahoma area region that has a fully implemented STORES electronic catalog, which, alone, requires at least a sixty (60) day ramp-up period to accomplish for any vendor other than an incumbent vendor. Award to any other potential food supplier would cause an unacceptable break in supply.

Failure to make award to US Foods Oklahoma 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. Should a competitively awarded contract be put into place ahead of the projected timeframe and the guaranteed minimum has been met under this bridge contract, no further orders will be placed against the bridge contract.

6. As required by FAR 5.2, a notice will be published in FedBizOpps. All information pertinent to the special notice will be available to the general public at website www.dla.mil/TroopSupport. 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 specific Texas and Oklahoma area region, only US Foods Oklahoma Division 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 Oklahoma Division is the only source expected to express an interest in the proposed bridge contract.

11. The follow-on acquisition solicitation was issued on December 2, 2016 on a full and open competition basis and it is anticipated that all future acquisitions for these requirements will be competed on a full and open competition basis. The follow-on award is anticipated by

12. As the Contracting Officer, I hereby certify that this justification is accurate and complete to the best of my knowledge and belief.

DATE ZAIDA CHEVERE-TORRES

Contracting Officer http://www.dla.mil/TroopSupport

I hereby certify that the requirements which form the basis of this justification are accurate, that these supplies meet the Government’s needs in accordance with applicable specifications and that this justification is accurate and complete to the best of my knowledge and belief.

DATE MARY ELLEN DOBBINS

Chief, CONUS Prime Vendor Directorate of Subsistence

I have reviewed this justification and do not recommend approval.

DATE ROBERT J. PANICHELLE

DLA Troop Support Competition Advocate

I have reviewed this justification for legal sufficiency.

DATE GALE FURMAN

Supply Chain Counsel DLA Counsel – Troop Support

I have reviewed and hereby approve this justification.

DATE WILLIAM J. KENNY

Executive Director DLA Troop Support Contracting and Acquisition Management