A16_40588123_Sole_Source_Justification_7_12_22.pdf

IN REPLY REFER TO:

ATTACHMENT 1

JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Over SAT (FAR 6.303-2)

PR Number 40588123

1. Identification of the Agency and the Contracting Activity:

The requirement is in support of Yellowstone National Park for auto-fill deliveries of unleaded, red dye diesel and diesel #2.

2. Nature and/or Description of the Action Being Approved:

The National Park Service in Yellowstone National Park is requesting a sole source bridge contract for fuel delivery to Farstad Oil (DBA Story Distributing). A multi-year IDIQ contract is currently in the solicitation review phase and is estimated to be awarded by September 1, 2022. The current contract expired on June 20, 2022, and is in deficit for the month of June. Increased usage and increased fuel prices are factors. The recent flood near along the Gardiner to Mammoth road damaged the road, making it impassable. The NPS is currently working on the old road between Gardiner and Mammoth, which has increased fuel usage. It is imperative that a contract for the months of July and August be awarded immediately as continued fuel deliveries are essential to the operations of the park.

3. A Description of the Supplies or Services Required to Meet the Agency’s Needs, Including the Estimated

Value:

Auto-fill deliveries of unleaded, red dye diesel and diesel #2 are required for park operations. It is estimated that fuel for the months of July and August will cost $366,176.87 at the current rates (see #7 below).

4. An Identification of the Statutory Authority Permitting Other Than Full and Open Competition:

FAR 6.302.2(a)(2) – Unusual and Compelling Urgency allows for other than full and open competition when the agency’s need for the supplies or services is of such an unusual and compelling urgency that the

Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals, full and open competition need not be provided for.

5. A Demonstration That the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition

Requires Use of the Authority Cited:

United States Department of the Interior

NATIONAL PARK SERVICE

INTERMOUNTAIN REGION – NORTHERN ROCKIES

MAJOR ACQUISITION BUYING OFFICE

12795 West Alameda Parkway

P.O. Box 25287

Denver, Colorado 80225-0287

Farstad Oil (DBA Story Distributing) is located outside the park’s North Entrance at Gardiner, Montana, and has been delivering unleaded and blended diesel fuel to Yellowstone since 1970. Historically, they have been the only source of supply. A Sources Sought was posted from February 23, 2021, through

March 2, 2021. Two vendors, Mansfield Oil Company and Story Distributing (DBA Farstad Oil), responded. Mansfield Oil Company is located in Georgia.

6. A Description of Efforts Made to Ensure That Offers Are Solicited From as Many Potential Sources as is

Practicable, Including Whether a Notice Was or Will Be Publicized as Required by FAR Subpart 5.2 and, If

Not, Which Exception Under FAR 5.202 Applies:

A Sources Sought was posted from February 23, 2021, through March 2, 2021. Two vendors, Mansfield

Oil Company and Farstad Oil, responded. Mansfield Oil Company is located in Georgia, which is not a feasible source for fuel deliveries.

Additionally, a SBA Dynamic Small Business Search using NAICS Code 324110 for the states of

Montana, Idaho and Wyoming, resulted in two small businesses that have refineries. Neither of these, however, can supply fuel to Yellowstone as the park is outside their distribution territory.

7. A Determination By the contracting officer That the Anticipated Cost to the Government Will Be Fair and

Reasonable:

Current

Contract Pricing as of 5/17/2022

National

Average* as of

7/6/2022

Parkland

Pricing as of

7/12/2022

% Difference

05/17/2022 and

07/11/2022

(Current

Pricing)

% Difference

Parkland v.

National

Average

1 Diesel #2 $5.94 $6.66 $6.15 3.54% -7.66%

2 Red Dye $5.53 $5.68 $5.59 1.08% -1.58%

3 Unleaded $4.52 $5.32 $5.19 14.82% -2.44%

*Sources https://www.eia.gov/petroleum/gasdiesel/ https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EMD_EPD2D_PTE_NUS_DPG&f=W https://www.eia.gov/petroleum/heatingoilpropane/pdf/winterfuels2021.pdf https://www.eia.gov/dnav/pet/pet_pri_gnd_a_epmr_pte_dpgal_w.htm

The pricing received from Farstad Oil is based on the OPIS Diesel Rack Rates. OPIS is the most widely accepted pricing index for wholesale rack prices. This is used in fuel supply contracts to give both buyers and sellers and independent and unbiased price to reference. Their fuel pricing is lower than the National

Averages for all three types of fuel for the Rocky Mountain area.

8. A Description of the Market Research Conducted (see FAR Part 10) and the Results or a Statement of the

Reason Market Research Was Not Conducted:

A Sources Sought was posted from February 23, 2021, through March 2, 2021, for the current contract

#140P1422P0058. Two vendors, Mansfield Oil Company and Farstad Oil, responded. Mansfield Oil

Company is located in Georgia, which is not a feasible source for fuel deliveries as

Additionally, a SBA Dynamic Small Business Search using NAICS Code 324110 for the states of

Montana, Idaho and Wyoming, resulted in two small businesses that have refineries. Neither of these, however, can supply fuel to Yellowstone as the park is outside their distribution territory.

https://www.eia.gov/petroleum/gasdiesel/ https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EMD_EPD2D_PTE_NUS_DPG&f=W https://www.eia.gov/petroleum/heatingoilpropane/pdf/winterfuels2021.pdf https://www.eia.gov/dnav/pet/pet_pri_gnd_a_epmr_pte_dpgal_w.htm

9. Any Other Facts Supporting the Use of Other Than Full and Open Competition (see FAR 6.302-2 (9) (i) –

(iii) for some examples):

NA

10. A Listing of the Sources, If Any, That Expressed in Writing, an Interest in the Acquisition:

A Sources Sought was posted from February 23, 2021, through March 2, 2021. Mansfield Oil Company responded. Mansfield Oil Company is located in Georgia, which is not a feasible source for fuel deliveries.

11. A Statement of the Actions, If Any, the Agency May Take to Remove or Overcome Any Barriers to

Competition Before Any Subsequent Acquisition for the Supplies or Services Required:

Farstad Oil is located at the North Entrance at Gardiner, Montana, and has been delivering unleaded and blended diesel fuel to Yellowstone since 1970. Historically, they have been the only source of supply.

Market research will be done prior to any future requirements to determine if any other fuel vendors entered into the industry and have the capability of delivering throughout Yellowstone.

12. Certification:

I certify that any supporting data that is the responsibility of technical or requirements personnel (i.e. verifying the Government’s minimum needs or schedule requirements or other rationale for other than full and open competition) and which form a basis for the justification have been certified as complete and accurate:

(Signature)________________________________________ (Date) _7/12/2022______________

(Type or Print Name): _Jessica Richards______________________________________________

(Title):_Budget Analyst___________________________________________________________

I certify that the justification is accurate and complete to the best of my knowledge and belief:

(Signature) _______________________________________ (Date) __07/12/2022_____________

(Type or Print Name): ____Stacy L. Vallie________________ ___________________________

Contracting Officer

Reviewed/Concur/Approved by: (if applicable)

(Signature) _______________________________________ (Date) _______________________

(Type or Print Name): ___________________________________________________________

Chief of the Contracting Office

Tammy Gallegos