01 APR 20-0023 DLA Energy JA_Redacted for posting.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

20-0023

Justification for Other than Full and Open Competition

1. Summary/Introduction:

This Justification and Approval (J&A) is issued to support the award of six purchase orders using other than full and open competition by the Defense Logistics Agency Energy (DLA Energy), a major subordinate command of the Defense Logistics Agency. On January 24 and January 27, 2020, DLA Energy awarded six orders to DGCI Corporation (DGCI), SPE605-20-P- 9700, SPE605-20-P-9703, SPE605-20-P-9705, SPE605-20-P-9680, SPE605-20-P-9698, and SPE605-20-P-9683, on a sole-source basis due to unusual and compelling circumstances. These procurement actions were for the acquisition of aviation turbine fuel (JP8) and diesel fuel with 10 ppm sulfur content (SFD) for delivery to , during the month of February 2020.

The six orders were issued to procure 448,029 gallons of JP8 for a value of and 451,200 gallons of SFD for a value of . A combined total dollar value for both products is $8,961,431.08. This justification supports the decision to award the one-month purchase orders using other than full and open competition.

This J&A has been approved and publicized after award, in accordance with Federal Acquisition Regulation (FAR) 6.303-1(e). Due to the unusual and compelling nature of this requirement, preparation and approval of this J&A prior to award would have unreasonably delayed the acquisition.

2. Nature and/or description of the action being approved (FAR 6.303-2(b)(2):

The action being approved is the January 24, 2020 and January 27, 2020, award of six sole-source purchase orders SPE605-20-P-9700, SPE605-20-P-9703, SPE605-20-P-9705, SPE605- 20-P-9680, SPE605-20-P-9698, and SPE605-20-P-9683, using other than full and open competition due to unusual and compelling urgency to have continuous fuel coverage at the requiring site. The purchase orders were awarded to DGCI on a sole-source basis to procure 448,029 gallons of JP8 for a value of and 451,200 gallons of SFD for a value of which would be paid using the Defense Working Capital Fund.

DGCI was the only contractor with the capability to perform these purchase orders. DGCI was the only contractor that has permitted access to . Strategic Social and Varec had been

Justification for Other Than Full and Open Competition (Cont’d)

(DGCI, SPE605-20-P-9700, SPE605-20-P-9703, SPE605-20-P-9705, SPE605-20-P-9680,

SPE605-20-P-9698, and SPE605-20-P-9683) working to obtain, but had not received, permit access to .

3. Description of supplies or services required to meet the agency’s need (including estimated value) (FAR 6.303-2(b)(3)):

The product required under three of the purchase orders (SPE605-20-P-9700, SPE605-20-P-9703 and SPE605-20-P-9705) is a total of 448,029 gallons of aviation turbine fuel (JP8), National Stock Number 9130-01-031-5816, with a delivery period from February 1, 2020 through February 29, 2020. The JP8 procured under three of the purchased orders is Jet-A1 fuel that has been blended with additives to obtain different properties, such as a higher flash point. Jet-A1 is a commercially available fuel and can be used by commercial aircraft. The additives used to blend into JP8 are also commercially available to the public. Therefore, the JP8 procured under three of purchase orders is a commercial item as defined in FAR 2.101. The 448,029 gallons represents of the JP8 requirements for February 2020.

The product required under three of the purchase orders (SPE605-20-P-9680, SPE605-20-P- 9698, and SPE605-20-P-9683) is a total of 451,200 gallons of diesel fuel with 10 ppm sulfur content (SFD), National Stock Number 9140-01-556-9156, with a delivery period from February 1, 2020 through February 29, 2020. SFD is a commercial item as defined in FAR 2.101.

4. Identification of the statutory authority permitting other than full and open competition (FAR 6.303-2(b)(4)):

This J&A is based upon the authority to use simplified acquisition procedures for commercial items at 41 U.S.C. § 1901, and follows the requirements set out by FAR 13.501(a)(1), and upon the authority of 10 U.S.C. § 2304(c)(2), as implemented by FAR 6.302-2.

Unusual and compelling urgency precluded full and open competition, and delay in award of a contract would have resulted in serious injury to the Government.

5. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited (FAR 6.303-2(b)(5)):

6. Description of the efforts made to ensure that offers are/were solicited from as many potential sources as is/was practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies (FAR 6.303- 2(b)(6)):

The contract was not synopsized due to the unusual and compelling urgency in accordance with FAR 5.202(a)(2). This requirement was procured using other than full and open competition to ensure the delivery of fuel to from

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable (FAR 6.303-2(b)(7)):

The Contracting Officer determined that the price of per gallon was fair and reasonable based on comparison to historical prices paid for similar items in accordance with FAR 15.404-1(b)(2)(ii), (DGCI, SPE605-20-P-9700, SPE605-20-P-9703, SPE605-20-P-9705, SPE605-20-P-9680,

8. Description of the market research conducted and the results or a statement of the reason market research was not conducted (FAR 6.303-2(b)(8)):

The incumbent, DGCI, provided the only practical means to meet the stated requirements. No other contractor had the ability to obtain a and meet the requirement.

9. Any other facts supporting the use of other than full and open competition, such as (FAR 6.303-2(b)(9):

(i) Explanation of why technical data packages, specifications, engineering descriptions, statements of work, or purchase descriptions suitable for full and open competition have not been developed or are not available.

Not Applicable

(ii) When 6.302-1 is cited for follow-on acquisitions as described in 6.302-1(a)(2)(ii), an estimate of the cost to the Government that would be duplicated and how the estimate was derived.

Not Applicable

(iii) When 6.302-2 is cited, estimated cost, or other rationale as to the extent and nature of the harm to the Government.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition (FAR 6.303-2(b)(10):

No sources expressed interest in the acquisition.

11. Actions that may be taken to remove or overcome barriers to competition before any subsequent acquisition for the supplies or services are required (FAR 6.303-2(b)(11)):

DLA competitively awarded Contract Numbers SPE605-20-D-9507 and SPE605-20-D9508 to Strategic Social and Varec, respectively, for the acquisition of gasoline, diesel, and JP8 for delivery to various locations in . The contracts were awarded with a performance period from December 11, 2019 through December 10, 2022.

I hereby certify that the data which forms the basis for this justification is accurate and complete to the best of my knowledge and belief.

I hereby certify that the data which forms the basis for this justification is accurate and complete and that the purchase request covers only the minimum requirements to satisfy the needs of the Government.

I have reviewed and concur with this Justification