DLA ENERGY JA_F76 JP5_Redacted.pdf
PDF 2 MB Posted
- Solicitation number
- SPE60226P0466
- Issued by
-
Defense Logistics Agency Energy
About this file
This is a Justification for Other Than Full and Open Competition (J&A) document issued by the Defense Logistics Agency (DLA) Headquarters for a spot buy petroleum products procurement.
The DLA Energy's Bulk Petroleum Products Division awarded a combined split cargo contract valued at approximately $134,931,900.60 to BP Products North America Inc (BPPNA) for delivery of Turbine Fuel, Aviation (JP5) and Fuel, Naval Distillate (F76) via FOB Destination tanker delivery. The contract performance period runs from March 27, 2026 to April 30, 2026, with award executed on March 20, 2026. Two separate purchase orders were issued: SPE602-26-P-0464 for JP5 fuel totaling $66,266,398.80 and SPE602-26-P-0467 for F76 fuel totaling $68,665,501.80. Both products are commercially available items shipped from BP Cherry Point in Washington. The procurement was justified under 10 U.S.C. §3204(a)(2) and 41 U.S.C. §3304(a)(2) based on unusual and compelling urgency that precluded full and open competition, with no synopsis posted due to the urgency of the requirement. Pricing was determined by comparing BPPNA's submitted prices against March 20, 2026 commodity price indices—Platts Jet Kero FOB Spoke Cargo 10-Day Prior Average for JP5 and Platts Gasoil .001%S (10ppm) FOB Spoke Cargo 10-Day Prior Average for F76—which the Contracting Officer determined to be fair and reasonable considering current market conditions, geopolitical tension, supply chain disruptions, and heightened energy demand. DLA Energy's existing supplier relationship with BPPNA and intimate knowledge of the fuel supply chain, combined with limited delivery options and a short suspense date, precluded further market research.
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Justification for Other Than Full and Open Competition (Cont’d)
(SPE602-26-P-0466/0467 - BP PRODUCTS NORTH AMERICA INC)
Not applicable
(ii) When 6.103-1 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 6.103-2 is cited, estimated cost, or other rationale as to the extent and nature of the harm to the Government.
See Section 2 and 5.
10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition (FAR 6.104-1(a)(10)):
The company identified in Section 6 above expressed in writing 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 6.104-1(a)(11)):
There are no known actions that will allow DLA Energy to overcome the competition barriers for this requirement as this was a contingency operation that could not be anticipated.
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.
Contracting Officer
Approved:
Senior Procurement Executive
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