Defense Commissary Agency Deli-Bakery Operations – Gap in Contract Services
For 22 Store Locations in the Midwestern U.S.
Purpose: To provide information on the plans of the Defense Commissary Agency (DeCA) to acquire replacement contract for deli-bakery operations at multiple store locations. All deli-bakery operations in U.S. commissaries are contractor owned and operated. Due to recurring deficient services by an incumbent contractor, DeCA made the determination to allow an existing contract to expire on February 28, 2015. This means 22 DeCA commissaries will not be offering deli-bakery operations at these locations until a replacement contract can be awarded, and the new operator is able to provide the necessary personnel and product to resume operations. Anticipate new contractor to be in place by mid-May.
- · On January 5, 2010, DeCA awarded a formal contract to the firm of Nayyarsons Corporation, New Hyde Park, New York. This award resulted from a fully competitive solicitation to provide deli-bakery operations for DeCA facilities. The solicitation, when issued, covered a total of 22 store locations from North Dakota to western Texas. The 22 locations are as follows:
Altus AFB OK, Fort Sill OK, Sheppard AFB TX, Tinker AFB OK, Vance AFB OK, Cannon AFB NM, Fort Bliss TX, Holloman AFB NM, Kirtland AFB NM, White Sands NM, Buckley AFB CO, F.E. Warren AFB WY, Fort Carson CO, Peterson AFB CO, U.S. Air Force Academy CO, Ellsworth AFB SD, Fort Leavenworth KS, Fort Riley KS, Grand Forks AFB ND, McConnell AFB KS, Minot AFB ND, and Offutt AFB NE
- · In January of 2015, the contracting officer became aware of performance-related issues at multiple store locations serviced by Nayyarsons Corp. The specific issues ranged from in-store product shortages to rumors of contract employees threatening to walk out due to payroll- related issues. In addition, DeCA became aware of several product suppliers that had voiced concerns about being paid on time. At DeCA’s request, Nayyarsons subsequently provided DeCA with a timeline for correcting the deficiencies, which was monitored closely by the Agency. In the end, it became apparent that Nayyarsons would likely not be able to resolve its internal financial issues. Their performance in support of the patrons was suffering, and measures taken to correct these deficiencies were not resolving the recurring shortcomings.
- · The decision was made that no performance within the stores was preferable to limited or poor performance. With the expiration of Contract 10-D-0004 on February 28, 2015, the requirements for 22 store locations would be removed from Nayyarsons responsibility.
- · Nayyarsons also has two other DeCA contracts, totaling 21 stores, in the Midwest and Gulf states, and they do not expire until June 2015 and June 2016. The contractor is performing better at these locations. DeCA will continue to monitor their performance closely.
- · The decision was discussed with Nayyarsons, and they are amenable to the outcome.
- · DeCA will pursue an accelerated acquisition for replacement services in the 22 store locations. The anticipated award is mid-April and with target performance start-up in mid-May.