89 -- CONTRACT EXTENSION

The contract involves a two-month extension of an existing agreement for deli and bakery services at several military commissaries in North Carolina, including Camp LeJeune, Cherry Point MCAS, Fort Bragg North and South, and Seymour Johnson. The incumbent contractor, Military Deli & Bakery Services, originally awarded the contract in May 1998 through a competitive process, will continue to provide these services under the same terms and conditions. This extension, spanning from December 1, 2003, to January 31, 2004, is intended to ensure uninterrupted operations while the agency awards a new competitive contract. This is a requirements contract with a fixed percentage of savings and is being extended under the authority allowing sole-source continuation when no other suppliers can meet the agency’s needs. The Defense Commissary Agency, operating under the Department of Defense, authorized this extension in accordance with federal acquisition regulations, citing the necessity of maintaining ongoing deli and bakery resale services at the specified military locations. The contract extension decision reflects the agency’s intent to maintain service continuity without disruption during the transition period to a new contract.