Iraq_JA_(proposed_redactions)_Redacted.pdf

Justification and Appl'Oval for Other tlrnn Full and Open Competition

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

Full Line Food Distribution Prime Vendor for Customers in fraq, Jordan and Kuwait

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 result in a 365 day, indefinite-delivery, indefinite-quantity, fixed price with Economic Price Adjustment (EPA) bridge contract with a period of pe1fo1mance from September 13, 2016, through September 12, 2017. The proposed contract duration is inclusive of a six-month ramp-down period to allow for a transition to a follow-on competitive contract.

The proposed bridge contract, SPM300-10-D-3373, will provide full line food distribution of semi-perishable and perishable food items as well as non-food Food Service Operating Supply (FSOS)'items to militaiy and other funded customers located throughout the countries of Iraq, Jordan and Kuwait (IJK). Based on sales data from Mai·ch 2015 until March 2016, the estimated dollar value of the proposed bridge contract is $164,423,748.30. The guarai1teed minimum dollai· value will be 15% of the estimated dollar value or $24,663,562.24. The maximum dollar value will be $328,847,496.60, or 200% of the estimated dollar value, which can account for the addition of new items, new customers and surge possibilities.

4. The applicable 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 Se1vices Will Satisfy Agency Requirements.

5. The use of this authority is necessaiy because of unexpected delays in the establishment of the follow-on contract to provide subsistence support to customers in the IJK region. These delays were principally caused by changes to the Government's requirements during the acquisition plamring and solicitation phase of the follow-on procurement. Challenges associated with refining the requirements for a contract that supplies critical life support items to warfighters at1d other authorized customers in a contingency environment resulted in various revisions to the Statement of Work (SOW). These revisions included the incorporation of air delivery requirements, .streamlining of distribution categories, revising private security requirements, reducing the need for manual billing, modifying customers, and incorporati011 of new CENTCOM security and registration :requirements. Some of the more substantial revisio11S are described in further detail below.

The cunent Subsistence Prime Vendor (SPV) IJK contract for food distribution supp01t, contract number SPM300-10-D-3373 with ANHAMFZCO, was awarded on April 14, 2010, with the period of performat1ce staiting September 13, 2010. The contract consisted of a base period of eighteen (18) months, three (3) one (1) year options, and the fmal option of eighteen (18) months. The final option will expire on September 12, 2016 and the follow-on acquisition will not be awarded with perfo1mat1ce implemented before the cmrent contract expires.

Justific�tion and Approval for Other than Full and Open Competition

Under Autbol'ity oflO U.S.C. 2304(c)(l)

Full Line Food Distribution Prime Vendor for Customers in Iraq, Jordan and Kuwait

A request for info1mation (RFI) regarding the follow-on procurement was posted to the Federal Business Opportunities (FBO) website on April 17, 2015, with a response date of May 18, 2015.

Approximately thirteen (13) vendors responded to the RPI with info1mation about their businesses and comments on the proposed acquisition. The input received from industly was considered as a draft SOW was prepared. Also in May of 2015, a workshop was held with vari011s Government stakeholders, , to conduct an in depth review of the draft SOW. The review resulted in significant revisions to the draft solicitation in order to more accurately reflect the Gcvenunent' s evolving requirements in the IJK region. These revisions included revised distribution price categories, price definition changes, revised product transfer language, revised airlift language, and inclusion of implementation plans and resource availability evaluation criteria.

Based on lessons learned with the transition of other OCONUS SPV contracts, it was deteimined that the incOiporation of a mandatory requirement to transition stock from the incmnbent contractor to the new contractor was in the best interest of the Government.

procedures for transferring residual stock in Kuwait. In addition to Government input, finalizing this requirement for the follow-on contract required coordination with the incumbent Subsistence Prime Vendor. The follow-on contract provisions related to the transfer of residual inventory between the inmm1bent and the new contractor

During the acquisition planning process, clause DLAD 52.216-9065, Economic Price Adjustment - Actual Material Costs for Subsistence Product Price Business Model, which defines elements of contract pricing, was also revised. This clause was revised to allow certain pricing elements, primarily the contract distribution price, to be tailored to address specific requirements of pe1fo1mance in the IJK region.

This clause revision was approved on October 22, 2015.

Acc01mting fo1· changing Government requirements with respect to the geographic scope of the customers also unexpectedly delayed the acquisition planning process.

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Justification and Approval for Otl1er than Full and Open Competition U11der Authority of10 U.S.C. 2304(c)(l)

Full Line Food Distribution Prime Vendor for Customers in It-aq, ,Jordan and Kuwait

During acquisition planning for the follow-on contract, extensive discussions were also held with the customers regarding the need for private security for deliveries into Iraq. The current contract, 8PM300-10-D-3373, was awarded with military escort for all convoys entering Iraq.

Revisions finalizing this modified acquisition strategy were completed in the full of 2015.

Solicitation SPE300, 15-R-0042, the follow-on solicitation for SPV support in the UK region, was is:med on December 18, 2015. The original elosingwas scheduled for January 11, 2016.

On December 23, 2015, amendment 0001 was issued to add and update clauses, adjust the Statement of Work, and revise the market basket used for price evaluation. Amendment 0002 was issued on December 30, 2015, extending the closing date from January 11, 2016, to January 25, 2016. On January 12, 2016, Amendment 0003 was issued to update clauses and solicitation language, make an adjustment to the market basket and address 111 pre-proposal questions. On Januai')' 15, 2016, Amendment 0004 was issued ro revise terms in various solicitation documents, add/delete clauses, make adjustment to the market basket and address 157 pre,proposal questions. On January 22, 2016, Amendment 0005 was issued extending the offeror due date to February 8, 2016. Extensions to the closing of the solicitation were necessary due to the high volume of questions received in response to the pre-proposal conference and solicitation issuance. Additionally, offerers requested additional time to complete proposals. These extimsions. served to ensure the solicitation accurately reflected the Government's requirements and addressed concerns raised by industry. The solicitation closed on Febi'uai:y 8, 2016.

The estimated dollar value for the portion of the solicitation covering Iraq, increased from $619,690.05 to $28,553,437.01 and ihe total maximum_ dollar value of the solicitation increasing from $902M to $1.36B. These changes will be incorporated into the acquisition strategy via amendment to the solicitation during negotiations. Allowing the offerol'S an opportunity to

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Justification and Approval for Other th'an Full and Open Competition Under Authority of 10 U.S.C. 2304(c)(1)

Full Line ]'ood Distribution Prime Vendor for Customers hi Iraq, Jordan and Kuwait revise proposals in order to account for this increased volume and additional requirements will add additional time to 1he acquisition/negotiation process.

offerors will need to register in JCCS and ensure all proposed subcontractors are registered .in JCCS.

This proposed bridge contract will provide coverage until the follow-on SPV IJK contract is awarded and implemented. The estimated award date of the follow-on contract is March 12, 2017. The ineumbcnt contractor, Ai"\IHAM, is the only known contractor that can meet the SPV IJK requirements in the time:frame required and eover the scope of full line food distribution necessary to continue the level of support required by our customers. It is the only food supplier in UK that has a fully implemented Subsistence Total Order and Receipt Blect:ronie System (STORES) catalog and pipeline of supply to satisfy the Government's requirements in the region. Currently, only A.NHAM has the Inventory and logistleal ,network in place to support the high volume demand of our customers. Experience with this prime vendor program has demonstrated that a significanr amount of time is required to develop the logistical soUJ·cing, storage, and delivery chain required to provide this supp01t. Integration with STORES is a critical component of the support, since STORES is used for ordering and supply management, and this integration requires time to impJement and verify. It could take a new supplier up to 180 days after award to achieve full implementation of STORES catalog and acquire the proper amount of inventory required to support this region. Award to any o1her potential food supplier would therefore eause an unacceptable break in supply.

The military customers rely on the DLA Prime Vendor contract for all of their foodserv:ice needs.

Failure to efficiently feed our milital'y service members would constitute mission failure. Fai!me

Justification and Approval for Other than Full and Open Competition Under Authority of 10 U.S.C. 2304(c)(l)

Full Line Food Distribution Prime Vend or for Custome1·s in Iraq, J ordau and Kuwait to award a bridge contract to ANH AM will result in a break ill Prime Vendor support for mu· customers. Should a competitively awarded contract be awarded and implemented ahead of the projected timeline, and the guaranteed minimum amount met under the bridge contract, no further orders will be placed against the bridge contract.

6. As required by FAR S.2, a synopsis will be published in FedBizOpps. All information perlineni to the notice will be available to the general public at website www.troopsupport.dla.mil. 1n 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 deteimine that the anticipated cost to the Government will be fair and reasonable. Price analysis will be used in determining price reasonableness, and will include an overall assessment of mru:ket conditions and a comparison of the offered distribution prices and item prices with recently awarded OCONUS Prime Vendor contracts.

8, · The infonnation supporting this action is based primarily on the Government's knowledge of the foodservice market in the region. With the exception of synopsizing the requirement, no additional market research will be conducted and no other fmns will be solicited since the Government is unaware of any other firm in the region with the existing capability, including STORES cataloging, to perform in the timeframe required. ANHAM is the only somce expected to express an interest in this proposed bridge contract ·

9. The follow-on acquisition was solicited on a full and open competition basis on December 18, 2015; the estimated award date of the follow-on contract is March 12, 2017. It is anticipated that all future acquisitions for these requirements will competed on a full ro1d open competition basis.

10. As the Contracting Officer, I hereby certify !hat the information contained· in this justification is accmate and complete to the best of my knowledge and belief.

Contracting Officer

Justification and Approval for Other thau Full and Open CO'mpetition Under Authority of 10 U.S.C. 2304(c)(1)

Full Line Food Distribution Pl'ime Vendor fo1· Customers in Iraq, Jordan and Kuwait

I hereby certify that the requirements, whichfo1m the basis of this justification, are aecurate, that these supplies and services meet only the Govei'nment's minimum need in accordance with applicable specifications, and that this justification is accurate and complete to the best of my knowledge and belief:

LOURDES VALENTIN

Chi<'£, OCONUS Region Directorate 'of Subsistence

I have reviewed this justification and recommend approval.

OBERTJ.PANICHEL~

DLA Troop Suppo1t Competition Advocate

I have reviewed this justification for legal sufficiency.

GALE FURMAN

Supply Chain Counsel DLA Counsel·- Troop Support

I have reviewed this justification and recommend approval.

WILLIAM 'frKENNY · Executive Director DLA Troop Support Contract and Acquisition Management

7/7/o010 Date

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1 /1/1(;, Date

1Dat6

Justification and Approval fol' Other than Full and Open Competition

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

Full Line Food Distribution Prime Vendor for Customers in Iraq, .Jordan and Kuwait

I have reviewed this justification and recommend approval.

DLA Competition Advocate

I have reviewed this justification for legal sufficiency.

DLA Office of Counsel

I have reviewed and hereby approve this justification.

BEEBE MAnHEW RI rngitally,igoedby

0 • ' ·, BEEBE.MAlTHEW.RICHARD.1012725473

CHARD.101272547

MATTHEW BEEBE

DN: c=US, o=U.5. Government, ou=DoD, OU7"PKI, ou=DLA, cn=BEEB,E.MATTHEW.R!CHARD.1012725473 Date: 2016.07.09 09:18:37 -04'00'

Senior Procurement Executive

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