J A Argus FY21 redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

September 17, 2020 J&A Tracking Number: 20-0038

Justification for Other than Full and Open Competition

1. Summary/Introduction:

The Defense Logistics Agency (DLA) Energy, a component of the DLA, is the contracting activity and DLA Energy Market Research (DLA Energy-BPM) is the requiring activity. The purpose of Solicitation SP060420Q0421 is for the purchase of an annual subscription to Argus Media, Inc.’s (Argus Media) Argus Global Markets, Argus US Products, Argus Jet Fuel, and Argus Petroleum publications. This requirement is for a twelve (12) month subscription from October 1, 2020 through September 30, 2021. The total estimated value of the action is $158,694.00. Justification for other than full and open competition is provided in 10 U.S.C.§ 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1.

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

The action being approved will be a contract with Argus Media to provide current and historical proprietary price data. Argus Media is the sole producer of Argus Global Markets, Argus Petroleum, Argus US Products and Argus Jet Fuel publications, and therefore is the sole responsible source for the publication, and no other publication is able to fulfill the requirement.

DLA Market-BPM uses prices provided by Argus Media in order to evaluate the market and for economic price adjustment (EPA) clauses in fuel contracts. This resultant contract will be a firm-fixed price contract and it will use funds from Fiscal Year 2021 (FY21).

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

Argus US Products, Argus Jet Fuel, Argus Petroleum, and Argus Global Markets are publications that provide DLA Energy-BPM with prices for EPA clauses in a number of current DLA Energy fuels contracts. In addition to use for contract price escalation, DLA Energy-BPM evaluates fuel prices against multiple price services in order to determine the best reflection of each market. It is essential for DLA Energy-BPM to have access to multiple independent price sources to determine which source best reflects each market and therefore which escalator clauses to use in the DLA Energy contracts.

This is a recurring requirement. The proposed contract period is from October 1, 2020 through September 30, 2021, which is in line with the current Argus contract SPE604-19-P-9317.

Contract SPE604-19-P-9317 was also awarded on the other than full and open basis, pursuant to 10 U.S.C.§ 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1.

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

Justification for Other Than Full and Open Competition (Cont’d) (SP0604-20-Q-0421 – Argus Media)

This J&A is based upon the authority of 10 U.S.C. §2304(c)(1), as implemented by Federal Acquisition Regulation 6.302-1. The supplies required by the agency are only available from one responsible source (Argus Media) and no other type of supplies will satisfy agency requirements.

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)):

Argus Media provides independent fuel pricing data that is used to adjust contract prices for fuel contracts. This data is similar to another EPA Pricing Data subscription that DLA Energy also subscribes to, but Argus Media uses a different methodology and is a direct competitor to the other company. Some DLA Energy contractors only use Argus Media’s data and refuse to use other sources of price adjustment data, therefore, it would negatively impact competition for fuel contracts if DLA Energy did not have access to this data. Having both subscriptions ensures DLA Energy uses the best available and most comprehensive information to adjust contract prices.

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)):

On August 13, 2020, DLA Energy-FEA posted an intent-to-sole source notice on beta.SAM.gov (SP0604-20-Q-0421) and it closed on August 26, 2020. No new vendors responded to the notice, resulting in no additional competition to meet this requirement. Therefore, Argus Media is the only source available to meet DLA Energy’s needs at this time.

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 finds that the proposed price is fair and reasonable using the techniques in FAR 15.404-1. Pursuant to FAR 15.404-1(b)(2)(ii), the contracting officer may make a “[c]omparison of proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items. The contracting officer may also, pursuant to FAR 15-404-1(b)(2)(vii), make a “[a]nalysis of data other than certified cost or pricing data (as defined at 2.101) provided by the offeror.”

Last year, DLA Energy paid $125,667.00 for its subscription to Argus US Products and Argus Jet Fuel. The proposed price of $158, 694.00 is consistent with last year’s price when standard inflation is considered. Additionally, Argus Media provided DLA Energy with a cost summary showing their standard pricing and the special pricing offered to DLA Energy. The standard pricing for the same subscription package costs $328,088.00. Therefore, DLA Energy pays 51.6 percent less than what a standard user would pay for the same subscription. Therefore, the

(SP0604-20-Q-0421 – Argus Media) contracting officer determines the price fair and reasonable when compared to historical prices paid and the other than certified pricing data.

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 customer conducted market research and determined Argus Media was the only source that met the government’s requirement. Additionally, the customer identified another source that provided similar information, however the pricing is not identical and there was not 100% overlap for the markets serviced by DLA Energy. Therefore, DLA Energy contracts with both sources.

An intent-to-sole source notice on beta.SAM.gov on August 13, 2020, however, there were no expectations that the notice would yield any additional sources. Research identified no other authorized vendors for this requirement. Therefore, it has been determined that Argus Media is the only source available to meet DLA Energy’s needs at this time.

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 competitor have not been developed or are not available.

The information provided by Argus Media is proprietary and; therefore, we are unable to develop a specific purchase description that would satisfy the requirements.

(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.

Not applicable.

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

No new sources replied to the Intent-to-Sole Source Notice posted to beta.SAM.gov.

(SP0604-20-Q-0421 – Argus Media)

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)):

There are no known actions that will allow DLA Energy to overcome the competition barriers for this requirement.

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.

TASHA PIRIS

Contracting Specialist

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.

JAMES REED

Chief, Market Research

Approved:

JEREMY VATTER

Contracting Officer