JA SPE30223DS003.pdf

CUI

Source Selection Information – See FAR 2.101 and 3.104

Controlled by: DLA Troop Support Indo-Pacific Controlled by: Procurement Office Hawaii CUI Category: Source Selection Limited Dissemination Controls: FED ONLY POC: Kirk Moser

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

SUBSISTENCE SUPPLIER OPERATIONS PROGRAM

1. Defense Logistics Agency (DLA) Troop Support Indo-Pacific, Procurement Office Hawaii, is the contracting activity.

2. The action being approved is a modification to increase the contract maximum dollar value of the current Hawaii subsistence contract, SPE302-23-D-S003, awarded to Ham Produce and Seafood on a Total Small Business Set-Aside basis.

3. The proposed action is a modification to increase the contract maximum dollar value for subsistence contract SPE302-23-D-S003, which was issued to provide Fresh Fruit and Vegetables (FF&V) for the Oahu Non-DoD Schools in the Hawaii Region. The current contract with an effective date of April 9, 2023, is set to expire on April 8, 2026. The maximum dollar value established in contract SPE302-23-D-S003 is $7.5 million. It is anticipated that the current contract will prematurely reach the $7.5 million maximum by October 24, 2025, prior to the contract’s expiration date of April 8, 2026. The proposed modification will increase the maximum dollar value for the current contract from $7.5 million to $8.4 million to fulfill identified, forthcoming support requirements.

The anticipated award date of the competitive follow-on contract providing FF&V support to Oahu Non-DoD Schools is October 28, 2025. The vendor is given a thirty (30) day start-up period to begin performance on the contract, which means the expected start date of deliveries would be around November 27, 2025. Barring any unforeseen issues, an increase in the maximum dollar value equating to approximately five (5) weeks of performance is required on Contract SPE302-23- D-S003 to prevent a lapse of coverage.

The guaranteed minimum under contract SPE302-23-D-S003 of $75,000 has been met during performance under the contract. Should a new contract be issued prior to reaching the requested ceiling of $8.4 million, no further orders shall be issued under this contract.

4. SPE302-23-D-S003 was awarded under the authority of FAR subpart 13.5, “Simplified Procedures for Certain Commercial Items”. The applicable statutory authority permitting other than full and open competition is 41 U.S.C. § 1901 as implemented by FAR 13.501(a), Sole Source Acquisition.

5. The use of this authority is necessary because the required items are available only from Ham Produce and Seafood in the time frame required. Sourcing and supplying the required FF&V items for Oahu Non-DoD Schools from any other source would result in unacceptable delays in fulfilling the Agency’s requirements. Ham Produce and Seafood have customer support representatives and supplier and transportation agreements in place an understanding of Oahu Non-DoD Schools requirements and the ordering process (FFAVORs), and established systems interfacing with DLA Troop Support.

Source Selection Information – See FAR 2.101 and 3.104

The proposed contract action to increase the maximum dollar value of the contract from $7.5 million to $8.4 million is required due to increased prices for sixty-two (62) line items of produce and increased freight costs. In April 2025, efforts began for a new competitive acquisition as the contract was due to expire on April 8, 2026. At that time, a FFAVORS report was run that showed an average 72.40% price increase (including freight) from April 9, 2023 to April 6, 2025. In June 2025, it was determined that based on current and expected customer demands that will need to be supported for Oahu Non-DoD Schools soon, the dollar value for the current contract providing FF&V support to Oahu Non-DoD Schools will prematurely reach the $7.5 million maximum, prior to the contract’s expiration date of April 8, 2026. Efforts were made to expedite award of the competitive follow-on contract to the maximum extent practicable in order to limit the need for a noncompetitive action. Award of the competitive acquisition is imminent, and the proposed modification is necessary to provide support to the customer through award and implementation only. Therefore, the proposed contract action is required to increase the maximum dollar value of this contract to ensure and maintain uninterrupted support to 140 Oahu Non-DoD School customers until a new competitive contract is put into effect. Without increasing the contract maximum dollar value, DLA Troop Support Indo-Pacific will not be able to continue to support the mission on the Island of Oahu.

It is essential that DLA Troop Support Indo-Pacific maintain the ability to purchase subsistence FF&V for the Oahu Non-DoD Schools until a new contract is in place. DLA Troop Support Indo- Pacific is pursuing a competitive follow-on acquisition with a target award date of October 28, 2025, and full contract implementation anticipated by November 27, 2025. The proposed modification to the current contract to increase the maximum dollar value ensures continuous contract coverage, providing for an uninterrupted supply of vitally needed subsistence for the Oahu Non-DoD Schools. If the maximum dollar value of this contract is not increased and coverage lapses, DLA’s ability to provide much-needed subsistence will be significantly impaired since the lead time for issuing a new contract will exceed the projected date of breach of the current contract maximum dollar value.

Ham Produce and Seafood is the only established vendor capable of providing continued support for these vital FF&V items for the Oahu Non-DoD Schools. There is no other company that would be capable of assuming support without a ramp up period up to thirty (30) days after the follow-on contract award. During that period, customer support would be severely impacted. Ham Produce and Seafood’s performance on the existing contract indicates that it has the necessary capabilities to provide material and support throughout the region without delay. A new contractor would require at least a thirty (30) day ramp-up period to form relationships with local suppliers and manufacturers located in the Hawaii Region; identify potential delivery service and transportation requirements; establish adequate purchasing, distribution, and quality control systems; and implement systems that would interface with DLA Troop Support.

6. This requirement will be published to Contract Opportunities. In addition, this justification will be made available for public inspection after issuance of the modification, in accordance with FAR 6.305.