20220314 JA SPE603-18-D-5003 Final_Redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

J&A Tracking Number 22-0015

Justification for Other than Full and Open Competition

1. Summary/Introduction:

Defense Logistics Agency (DLA) Energy is the executive agent for bulk petroleum and the contracting activity for petroleum products and services for the Department of Defense (DoD).

This Justification & Approval (J&A) is hereby prepared by the Commercial Lab Testing and Alongside Aircraft Refueling Branch (DLA Energy- FESDB) in accordance with (IAW) Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements to support an award of a sole source modification under contract SPE603-18-D-5003 for Fuel Investigations Laboratory Testing Services. DLA Energy FESDB will award a sole source fixed-priced bilateral modification to the incumbent contractor, Southwest Research Institute Inc. (SWRI), reducing the negotiated and evaluated option to extend the contract from a two-year period to a one-year period. The resultant contract modification and exercise of the option will extend the period of performance from March 1, 2022 through February 28, 2023 and increase the potential contract value from $85,659.40 to $110,018.44 for the revised five (5) year contract performance period.

This action will provide support for continued laboratory investigation services of Government-owned petroleum products in the following locations: continental U.S. (CONUS), Alaska, Hawaii, U.S. Territories, Central and South America, locations in Asia and the Western Pacific (from Diego Garcia Atoll eastward to Japan) and Australia.

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

The action being approved is a modification to the contract, changing the second and final option, as awarded under the contract, from a two (2) year period to a one (1) year option period.

DLA Energy FESDB intends to exercise this revised option under contract SPE603-18-D-5003, Fuel Investigation Services, with the current contractor, SWRI under the authority of FAR 6.302- 1 – Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Contract SPE603-18-D-5003 was awarded on March 27, 2018 for a two year base period, and two, two-year option periods. The contract is currently operating in the first, two-year option period and will expire on February 28, 2022. While preparing to award the Option 2, IAW FAR 52.217-9 OPTION TO EXTEND THE TERM OF CONTRACT (MAR 2000), the Government determined that exercise of the option would extend the total term of this contract to six (6) years. IAW FAR 17.204(e) and DLAD 17.204(e)(1), the total of the base and option periods of a service contract shall not exceed 5 years absent an approval from the Head of the Contracting Activity (HCA). The HCA has not authorized the term of this contract to exceed 5 years.

Justification for Other Than Full and Open Competition (Cont’d) (SPE603-18-D-5003 – Southwest Research Institute (SWRI))

(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.

(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):

DLA Energy FESDB released a Sources Sought Notice on February 7, 2022, stating the intention to issue a sole source modification to SWRI under the current Fuel Investigations Services Contract SPE603-18-D-5003, and seeking sources that can provide the required laboratory investigation services response was received from See also Section 8.

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 Energy FESDB intends to issue a solicitation for the follow-on requirement under full and open competition. The follow-on requirement will be awarded prior to the expiration of this one-year option term. DLA Energy FESDB will continue to monitor the market for other potential sources capable of performing the required fuel investigations services in future procurements.