H.12 FAR 13 Sole Source J&A- Propane - Redacted.pdf

UNITED STATES MARINE CORPS

MARINE CORPS INSTALLATIONS NATIONAL CAPITAL REGION

MARINE CORPS BASE QUANTICO

3250 CATLIN AVENUE

QUANTICO VIRGINIA 22134 5001

Determination that Only One Source is Reasonably Available (Including Brand Name) – FAR Part 13 Acquisitions under the SAT

DISTRIBUTION: DoD COMMUNITY ONLY

MEMORANDUM TO THE FILE

Subj: DETERMINATION THAT ONLY ONE SOURCE IS REASONABLY AVAILABLE FOR

A FAR PART 13 ACQUISITION UNDER THE SIMPLIFIED ACQUISITION THRESHOLD

I. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY.

The Contracting Activity is the Marine Corps Installations National Capital Region – Regional Contracting Office (MCINCR-RCO), located at 2010 Henderson Road, MCB Quantico, VA. The requiring activity is Facilities Maintenance Services (FMS) located at MCB Quantico, VA

II. DESCRIPTION OF ACTION BEING APPROVED:

The action being approved is an exception to fair opportunity for the solicitation of a Sole Source specific requirement requires the procurement of twenty-thousand (20,000) gallons of Propane Gas be delivered to various locations across Marine Corp Base Quantico (MCB)

The intent of this action is to issue a sole source action on a purchase award.

III. DESCRIPTION OF SUPPLIES/SERVICES:

Marine Corps Base Quantico’s Facilities Maintenance Branch (FMB) requires the procurement of twenty thousand (20,000) gallons of propane to ensure continuous heating and hot water services across the installation. This supply is critical to maintaining operational readiness, supporting daily quality-of-life needs for personnel, and sustaining essential base facilities that depend on propane-fueled systems.

The Government intends to issue a Firm Fixed Price (FFP) award with fixed-price CLINS. This requirement is for one (1) twelve (12) month base.

The total estimated value for this procurement is $XXXX, inclusive of all option periods. Marine Corps Operations and Maintenance (O&M) appropriations will be used to fund this requirement as outlined in the table below:

FY26 Total Base

O&M Funding $ XXX $ XX

V 1.6 (20 December 2023)

Base Period

Part Number Part Number/Description QTY Unit Price

Extended Price

N/A Propane Gas HD-5 20,000 gal

TOTAL $

IV. THE DETERMINATION FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

IS BASED ON THE FOLLOWING (select all that apply):

A. X ONLY ONE RESPONSIBLE SOURCE (select all that apply):

1. ___ RESTRICTIVE RIGHTS. The source has established proprietary rights, limited rights in data, patent rights, copyrights or secret processes in the item or service required.

2. ___ EXCLUSIVE LICENSING AGREEMENTS. The item or service is only available from the Original Equipment Manufacturer (OEM), or there is only one authorized distributor or technical representative for the OEM.

3. X OTHER REASONS.

Marine Corps Base Quantico’s Facilities Maintenance Branch (FMB) requires the procurement of twenty thousand (20,000) gallons of HD-5 propane to ensure continuous heating and hot water services across the installation. This supply is essential to maintaining operational readiness, supporting daily quality-of-life needs for personnel, and sustaining critical base facilities that rely on propane-fueled systems.

Under Code of Virginia § 18.2-494, only the legal owner of a liquefied petroleum gas (LP) container—or a supplier explicitly authorized in writing by that owner—may fill, refill, deliver, or otherwise service that container. Because the propane tanks installed across Marine Corps Base Quantico are owned and marked by AmeriGas Propane L.P., no other vendor is legally permitted to fill or service these tanks unless a qualifying emergency is declared. This statutory restriction precludes competition and creates a legally mandated sole-source environment.

On 29 December 2025, the Contracts Office contacted AmeriGas Propane L.P. to verify their exclusive capability to supply HD-5 propane to the installation. On 05 January 2026, AmeriGas provided a formal sole-source letter confirming that they are the creator and sole-source provider of HD-5 propane gas, and the only entity authorized to deliver propane to multiple sites across Marine Corps Base Quantico. AmeriGas further affirmed that they maintain full proprietary rights to the propane being delivered and that the tanks and delivery infrastructure currently in place on the installation are owned and labeled by AmeriGas, reinforcing their exclusive servicing authority.

V 1.6 (20 December 2023)

AmeriGas also confirmed that they do not maintain any contractual relationships with third parties to resell, distribute, or provide HD-5 propane gas to the U.S. Federal Government or any other entity. As a result, no alternative suppliers exist who can legally or contractually provide propane to government facilities utilizing AmeriGas-owned tanks.

Based on the statutory limitations governing LP gas containers, the proprietary ownership of the tanks, and the vendor’s exclusive servicing rights, only AmeriGas Propane L.P. is capable of meeting the Government’s requirement. Therefore, award under FAR 6.302-1, Only One Responsible Source, is justified.

4. DESCRIPTION OF EFFORTS MADE TO SOLICIT OFFERS FROM AS MANY

OFFERORS AS PRACTICABLE.

Under Code of Virginia § 18.2-494, only the legal owner of a liquefied petroleum gas (LP) container—or a supplier explicitly authorized in writing by that owner—may fill, refill, deliver, or otherwise service that container. Because the propane tanks installed across Marine Corps Base Quantico are owned and marked by AmeriGas Propane L.P., no other vendor is legally permitted to fill or service these tanks unless a qualifying emergency is declared. This statutory restriction precludes competition and creates a legally mandated sole-source environment.

5. DETERMINATION OF FAIR AND REASONABLE COST.

The Contracting Officer will determine the anticipated price covered by this justification to be fair and reasonable by ensuring quoted pricing is consistent with prices list and other adequate price competition. Should the prices available via other commercial means be more advantageous to the Government, the procedures at DFARS PGI 208.7403 will be invoked.

6. ACTIONS TO REMOVE BARRIERS TO FUTURE COMPETITION.

For the reasons set forth in Paragraph 4, FMB has no plans at this time to compete future contracts for this type of supplies/services covered by this document. If another potential source emerges, FMB will assess whether competition for future requirements is feasible.