J A_Axxis_FY16_Redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

May 6, 2016 J&A Tracking Number: 16-0028

Justification for Other than Full and Open Competition

1. Summary/Introduction:

DLA Energy, a component of the Defense Logistics Agency, is the contracting activity. This action is for the purchase of an annual renewal subscription with Axxis II, Inc. (Axxis) under solicitation number SP0600-16-Q-0420. The contract will support DLA Energy-Finance. The subscription covers a 12-month period starting 06/01/2016 through 5/31/2017. The value for the yearly subscription is $422,300.00. Authority for other than full and open competition is 10 U.S.C. 2304(c)(1) and 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 awarded is a firm fixed price contract to Axxis for its Annual Price Service Subscription. Axxis provides proprietary historical price data that DLA Market Research requires for market evaluation and for economic price adjustment (EPA) clauses in fuel contracts. This action will use FY16 funding.

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

DLA Energy requires the Axxis’ subscription for its proprietary historical price data to support EPA clauses in a number of DLA Energy fuel contracts. The subscription includes weekly rack averages for up to 400 cities, subscription for Enterprise Wide price history data warehouse licenses, historical pricing data for all Axxis cities and products, custom historical reports for stored queries, price history data warehouse maintenance, and professional services for installation and implementation of price history data warehouse.

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

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1) or 41 U.S.C. 3304(a)(1), as implemented by FAR 6.302-1. In accordance with FAR 6.302- 1(a)(2), Axxis is the only source that can satisfy agency requirements. “When the . . . services required by the agency are available from only one responsible source, or, for DoD . . . from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for.” FAR 6.302- 1(a)(2).

Justification for Other Than Full and Open Competition (Cont’d)

(SP0600-16-Q-0420 – AXXIS)

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)):

Axxis provides terminal loading rack fuel prices for hundreds of locations around the U.S. They are one of two companies that provide such comprehensive data that is accepted and utilized by both the commercial industry and DLA Energy. DLA Energy also has a contract with the other company. These prices are provided in a format that is fed into DLA Energy's Enterprise Business System (EBS) to adjust hundreds of contract line items daily for DLA Energy's Direct Delivery contracts. When DLA Energy-Finance chooses which price reference to use for a given line item, it performs a statistical comparison to see which data source tracks its benchmark best over time. The benchmark they use is data provided by The Department of Energy's - Energy Information Administration. DLA Energy-Finance needs to maintain a subscription with both companies in order to make adequate comparisons and ensure it chooses the best references to adjust the contract prices.

While both companies provide nationwide data, there is not 100% overlap. Over time, either company could potentially discontinue reporting prices on a particular fuel for a given city.

Having subscriptions to both sources maximizes the ability to use a pricing reference that most closely reflects the product and location that DLA Energy is buying for and provides the most comprehensive coverage.

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 April 21, 2016 DLA Energy-Installation Energy posted an Intent-to-Sole-Source Notice on FedBizOpps that closed on May 5, 2016. No potential sources responded. To date, no other sources have written to express an interest.

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 determines that the price offered by Axxis is fair and reasonable. To determine whether the proposed price is fair and reasonable, the Contracting Officer may utilize “Comparison with competitive published price lists, published market prices of commodities, similar indexes, and discount or rebate arrangements.” FAR 15.404-1(b)(2)(iv). Axxis provided a price list that shows $ as the price a commercial subscriber would pay for a 12-month Enterprise-Wide subscription. The discounted price for DLA Energy for the same 12-month subscription is $422,300.00. This results in an overall savings of $ and equates to a % discount for the same 12-month subscription.

Additionally, DLA Energy’s price for the 2015 Axxis subscription was $410,000. The 2016 subscription price is now $422,300, resulting in a 3% increase. This increase is consistent with the standard Consumer Price Index rates for 2016. In comparison to the previous price paid for

(SP0600-16-Q-0420 – AXXIS)

the same subscription, the Contracting Officer determines that the current proposed price is fair and reasonable.

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 that Axxis was the only source that provided rack averages for up to 400 cities and customized historical reports that met the Government’s requirements. Additionally, the customer identified another source that provided similar information, however the pricing information was not identical and there was not 100% overlap for the markets serviced by DLA Energy. DLA Energy, therefore contracts with both sources.

An Intent-to-Sole-Source Notice was posted to FedBizOpps on April 21, 2016. No vendors responded to the notice resulting in no additional competition to meet this requirement.

Research identified no other authorized vendors for this requirement. Therefore, it has been determined that Axxis 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.

Purchase descriptions suitable for full and open competition are not available. The information provided by Axxis is proprietary. Therefore, we are unable to develop a specific purchase description that would satisfy the Government’s 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)):

An Intent-to-Sole-Source Notice was posted to FebBizOpps on April 21, 2016. No sources replied to the Notice. Additionally, no sources have written to express an interest.

(SP0600-16-Q-0420 – AXXIS)

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.

Justification for Other Than Full and Open Competition (Cont'd)

(SP0600-16-Q-0420 -AXXIS)

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.

Digitally signed by

BISCOMBE.AVR

BISCOMBEAVRIL.A

DN: c=US, o=U.S. Government, L.A.1453914859 %�!�[fo:;;;��tt'.' Date: 2016.05.20 11 :01:53-04'00'

AVRIL A. BISCOMBE

Contracting Specialist

I have reviewed and concur with this Justification.

Digitally signed by COGSWt�L.BRANDON.R DN: c=US, o=U.5. Governmet)t, ou=DoD, ou=PKI, ou=DLA, cn=COGSWELL.BRANDQN.R.

Date: 2016.05.20 14:32:Sl-04'00'

BRANDON COGSWELL

Assistant Counsel DLA Energy Counsel

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.

Digitally signed by

REED.JAMES. C, REEDJAMEH.

ON. c-US, o-U.S. Government, E.1229662488d:f,°ft;J::;;', Date:2016.05.2015:39:53-04'00'

JAMES REED

Chief, Market Research

Approved:

Contracting Officer

Robin Mathews