JA_for_TX-OK_Award_18D3196_Redacted_Jul_2018.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION UNDER AUTHORITY

OF 10 U.S.C. 2304( c)(l) 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 of259 days which includes the one-hundred and twenty (120) day ramp-up period, including implementation of Subsistence Total Order and Receipt System (STORES) by the awardee of the follow-on competitive procurement and possible Government site visit(s).

The proposed bridge contract (SPE300-18-D-3196) 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 $17,221,047.27. The guaranteed minimum dollar value is 10% of the estimated dollar value or $1,722,104.73. The maximum total dollar value including surge of200% is $34,442,094.54. This proposed action will result in the award of a bridge contract effective July 15, 2018 through March 30, 2019.

4. The applicable statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(l), 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-l 7-D-504 l, 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 before the 120 days and ended November 8, 2017. A bridge contract was awarded for a period of251 days from November 9, 2017 through July 14, 2018. The proposed action will result in the award of a second bridge contract with US Foods Oklahoma effective July 15, 2018 through March 30, 2019.

This bridge contract is necessary due to a number of unforeseen delays in the award of follow-on contracts in the CONUS Prime Vendor Program as shown in the following paragraphs:

During initial evaluations, an amendment was developed that clarified that rebates/discounts/deviations would be evaluated for the base period only, and provided terms and conditions concerning deleting/replacing items with rebates/discounts/deviations. This amendment was issued with the first round of

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

TEXAS/OKLAHOMA AREA

negotiations, which opened December 1, 2017 and closed January 8, 2018.

All reviews were completed on March 20,2018.

The second round of negotiations opened with all offerors on March 27, 2018

Negotiations closed April 10, 2018 and evaluation of revised proposals commenced.

All reviews were completed on June 1, 2018.

A third round of negotiations commenced on June 6, 2018 with a response due back June 22, 2018 to refine issues addressed in the second round of negotiations, The target award date of the follow-on contract is November 28, 2018, 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 militaiy 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

TEXAS/OKLAHOMA AREA

www.troopsupport.dla.mil. 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 dete1mine 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 Govermnent 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 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 Oklalioma 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 November 28, 2018.

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

. PATRICIA A. GR~!'-

Contracting Officer

TEXAS/OKLAHOMA AREA

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.

G fr<z·(, 8

DAE

Chief, CONUS Prime Vendor Subsistence Supply Chain

I have reviewed this justification and do/~ recommend approval.

J&ROBERT J. PANICHELLE

.q' DLA Troop Support Competition

I hav.e reviewed this justification for legal sufficiency.. /) /J

D~jEYl Ii q o-A~~-E_F_U_RM_A_N ____ _

Supply Chain Counsel DLA Counsel - Troop Support

I have reviewed and hereby approve this justification.

i-zq-18

DATE

Executive Director DLA Troop Support Contract and Acquisition Management