Hawaii_Bridge__C1_JA_Revised_12_8_14_(final)_docx_Redacted.pdf

SOURCE SELECTION INFORMATION SEE FAR 2.101 AND 3.104 Page 1

Justification for Other than Full and Open Competition

Under Authority of 10 U.S.C. 2304(c)(1)

Full Foodservice Prime Vendor for Customers in Hawaii

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 acquisitions will be indefinite-delivery, indefinite quantity (IDIQ), fixed price with

Economic Price Adjustment (EPA) bridge contracts for a period of 56 days to provide perishable and semi-perishable subsistence supplies to authorized customers in the Hawaii Area of

Responsibility (AoR) (Land and Ships). The supplies to be acquired are commercial food items, which are distributed to ordering facilities through the Prime Vendor Contractor (PVC). Under the proposed bridge contract for Land, SPE300-15-D-4006, the estimated dollar value is

$2,259,383.84. The guaranteed minimum is $225,938.38 or 10% of the estimated dollar value and the maximum dollar value is $6,778,151.52 or 300% of the estimated dollar value. Under the proposed bridge contract for Ships, SPE300-15-D-4007, the estimated dollar value is

$4,098,825.92. The guaranteed minimum is $409,882.89 or 10% of the estimated dollar value and the maximum dollar value is $12,296,477.76 or 300% of the estimated dollar value. The necessary funds have been set aside for the guaranteed minimums and will be obligated upon award of the contracts. The proposed (c)(1) action will result in the award of the first bridge contracts effective December 15, 2014 through February 9, 2015 for a period of 56 days.

4. The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), as implemented by FAR 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 Hawaii AoR. The original prime vendor for food service support contracts

(SPM300-12-D-3519 for Land customers and SPM300-12-D-3521 for Ships’ customers) with

Y.Hata & Co. LTD were awarded on November 30, 2011 and each consisted of a two-year base period and a 12-month option. The final options will expire on December 14, 2014. The follow-on competitive contracts have not yet been awarded. The proposed action will result in the award of the first bridge contracts to Y.Hata effective December 15, 2014 through February 9, 2015.

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. These bridge contracts are necessary due to a number of unforeseen delays in the award of the follow-on contracts as described in further detail in the following paragraphs.

Extensions of the closing date of the follow-on solicitation. The solicitation was issued on May

30, 2014, and the original closing was scheduled for June 30, 2014; however, this closing date was extended two times in response to industry requests for extension to address proposal questions, update customer demand requirements, and correct the schedule of items attachments.

The solicitation subsequently closed on July 29, 2014.

SOURCE SELECTION INFORMATION SEE FAR 2.101 AND 3.104 Page 2

Initially, when proposals were received, the Invoicing Team had to review more than 6,000 items

(1,600 items for each of the offerors) and each item had a specification sheet and an invoice or quote to be reviewed.

. During this process, some of the documentation showed that some items were delivered to Hawaii (FOB Hawaii) and some were from the west coast (FOB CONUS), making direct comparison of offers impossible.

Amendment 0012, issued on November 6, 2014, subsequently incorporated two separate

Distribution Categories, one for FOB Hawaii and one for FOB CONUS, to rectify the problem.

Numerous rounds of negotiations were conducted with offerors. Although negotiations opened on October 24, 2014, there were several additional rounds on technical, price clarification and price deficiencies; with the latest closing on November 19, 2014. Final Proposal Revisions were received on November 20, 2014 and are currently under evaluation.

Although award of the follow-on contracts are anticipated on December 11, 2014, a 60 day contract implementation period is required for the new awardee. This period includes the time necessary to establish new STORES electronic catalogs, conversion of current product pricing to new product pricing, and prime vendor inventory ramp up.

These proposed bridge contracts are necessary to ensure uninterrupted food service to customers in Hawaii until the follow-on solicitation is awarded and implemented. The effective period for the proposed bridge contracts will be from December 15, 2014 through February 9 2015, or 56 days. This period of time will allow for implementation of the follow-on contracts.

Implementation is the transition of operations period that includes, but is not limited to, establishing new catalogs, conversion of current delivered pricing to the new product pricing requirement, and inventory ramp up. In order to assure customers uninterrupted, continued foodservice support after December 14, 2014 (expiration date of the existing Hawaii contracts), the effective date of the bridge contracts will be from December 15, 2014 through February 9, 2015 for a period of 56 days. Should the ramp-up of the new Prime Vendor contracts be completed ahead of the projected 56 day timeframe and the guaranteed minimum met under these bridge contracts, no further orders will be placed against the bridge contracts.

The military customers rely on the DLA Prime Vendor contracts for all their foodservice needs.

The required foodservice supplies are deemed to be available only from the current contractor in the time frame required, and award to any other source would result in unacceptable delays in fulfilling the Agency’s requirements. Y.Hata is able to meet DLA requirements starting on

December 15, 2014. They are the only food distributor in Hawaii with existing inventory and warehouse management systems, to include STORES electronic catalogs, already in place to support the customers in the area. Award to any other potential food supplier would cause an unacceptable break in supply. Failure to make award to Y.Hata Distributors will result in a break in prime vendor support. The absence of these contracts for any time will result in the inability of our military customers to order food. Failure to efficiently feed our military service members would constitute mission failure for DLA and our military customers.

6. As required by FAR 5.2, the proposed requirements will be synopsized in FedBizOpps. All information pertinent to the special notice will be available to the general public at website

SOURCE SELECTION INFORMATION SEE FAR 2.101 AND 3.104 Page 3 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 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

8. The information supporting this action is based primarily on the Government’s knowledge of the foodservice market in this region. With the exception of synopsizing the requirement, no additional market research will be conducted and no other firms will be solicited since the required foodservice supplies are only available from the incumbent contractor in the timeframe required as they have no need for ramp-up time and have already established interface with DLA

Troop Support.

9. In the Hawaii region, only Y.Hata has the fully implemented STORES electronic catalog. It could take a new supplier up to 60 days, after award, to achieve full implementation of the

STORES electronic catalog and acquire the proper amount of inventory required to support this region. 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. Y.Hata is the only source expected to express an interest in the proposed bridge contracts.

11. The follow-on acquisition was solicited on a full and open competition basis on May 30, 2014.

The anticipated award date is December 11, 2014. It is anticipated that all future acquisitions for these requirements will be competed on a full and open competition basis.

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

Date

Contracting Officer

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

Acting Chief, OCONUS Region

Directorate of Subsistence http://www.troopsupport.dla.mil/

SOURCE SELECTION INFORMATION SEE FAR 2.101 AND 3.104 Page 4

I have reviewed this justification and recommend approval.

DLA Troop Support Competition Advocate

I have reviewed this justification for legal sufficiency.

DLA Supply Chain Counsel – Troop Support

I have reviewed and hereby approve this justification.

WILLIAM J. KENNY Date

Executive Director

DLA Troop Support Contract and Acquisition Management