JA 20-0037 Final _Redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

20-0037

Justification for Other than Full and Open Competition

1. Summary/Introduction:

This Justification and Approval (J&A) is issued to support the award of contract SPE603-20-D- 5003 using other than full and open competition by the Defense Logistics Agency Energy (DLA Energy), a major subordinate command of the Defense Logistics Agency. On July 6, 2020, DLA Energy awarded requirements contract SPE603-20-D-5003 under simplified acquisition procedures for an estimated value of $404,490.00 to Cogeco Private Limited (Cogeco) on a sole source basis due to unusual and compelling circumstances. This procurement action is for Quality Assurance Surveillance (QAS) and Supply Chain Visibility Services (SCVS) related to DLAE’s fuel supply chain in Afghanistan with a four-month contract period from July 6, 2020 through November 5, 2020. This justification supports the decision to award the four-month sole source award using other than full and open competition.

This J&A has been approved and publicized after award, in accordance with Federal Acquisition Regulation (FAR) 6.303-1(e). Due to the unusual and compelling nature of this requirement, preparation and approval of this J&A prior to award would have unreasonably delayed the acquisition.

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

The action being approved is the July 6, 2020 award of contract SPE603-20-D-5003 using other than full and open competition due to 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. DLA Energy awarded follow-on requirements contract SPE603-20-D-5002 to Cogeco on June 3, 2020 for QAS and SCVS in Afghanistan under full and open competition, with a contract period commencing on July 1, 2020 through June 30, 2023.

Cogeco had been performing services as an incumbent contractor under contract SPE600-15-D- 5000, which ended on June 30, 2020. On June 25, 2020, a protest was filed to the Government Accountability Office, protesting the follow-on contract award. As a result of the protest, performance under contract SPE603-20-D-5002 was stayed pursuant to FAR clause 52.233-3 during the pendency of the protest. DLA Energy has a continuing need for QAS and SCVS to accomplish quality and quantity verification of fuel products and supply chain visibility in Afghanistan to ensure DLA Energy receives both fuel products and services that meet specifications and contractual requirements.

Funding will be obligated via firm-fixed price

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

(SPE603-20-D-5003 – COGECO PRIVATE LIMITED)

task orders prior to the month in which services are required utilizing the Defense-Wide Working Capital Fund for fiscal years 2020 and 2021.

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

QAS and SCVS include the inspection, witnessing, and verification services of fuel products;

transportation of fuel products; and other services related to fuel and/or fuel products on behalf of the U.S. Government and DLA Energy. These types of services are competitively offered and sold in the commercial marketplace, which also include the inspection/witnessing of petroleum product tank truck issues/loads, pipeline deliveries, product procurement/acceptance and characteristic testing. Cogeco will perform QAS and SCVS to verify contract quality assurance and for the surveillance of tasks as well as verifying that all Department of Defense (DOD) petroleum product users receive and have access to products that meet or exceed quality specifications. In addition, Cogeco will verify that dedicated tank trucks are used to transport the various petroleum products and that they are clean and suitable to receive the required product.

Also, Cogeco is responsible for witnessing and verification of sampling and testing. Cogeco will verify that the product being batched/blended/received from the refineries is within the specifications of that product’s standard.

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

This J&A is based upon the authority granted under 10 U.S.C. § 2304(c)(2), as implemented by FAR 6.302-2. An unusual and compelling urgency precluded full and open competition, and delay in award of a contract would have resulted in serious injury to the Government.

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)):

On June 25, 2020, a GAO protest was filed against DLA Energy’s award of the follow-on contract SPE603-20-D-5002 under solicitation SPE603-9-R-5011, which stopped all performance under the contract. Contract performance was expected to begin on July 1, 2020.

To avoid a lengthy lapse that would impact the in Afghanistan, a sole source contract was awarded to Cogeco, who was the predecessor contractor performing services in Afghanistan, to continue services until a GAO decision on the protest was issued. GAO has 100 days to issue a decision after the protest is filed. could not have waited until a GAO decision issued, and would have been if a sole source award was not made by July 8, 2020. DLA Energy would

Service Control Points (SCP) for the

(SPE603-20-D-5003 – COGECO PRIVATE LIMITED)

Army Petroleum Center-APC), the Navy (Naval Petroleum- NAVPET), and the Air Force (Air Force Petroleum- AFPET); the DLA Energy Direct Delivery Fuel (DDF) business unit fuel delivery and transportation contracts; and the Bagram Embassy and Pipeline operations in Afghanistan would have

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)):

The proposed contract action was not synopsized due to the unusual and compelling urgency in accordance with FAR 5.202(a)(2). This J&A will be posted within 30 days after contract award in accordance with FAR 6.305(b).

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 has determined that the estimated cost of $404,490.00 is fair and reasonable in accordance with

(SPE603-20-D-5003 – COGECO PRIVATE LIMITED)

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)):

Market research was conducted using the proposals received in response to SPE603-19-R-0511 which confirmed that Cogeco is the only contractor with the fully operational capabilities to perform the required QAS and SCVS by July 8, 2020

Any new contractor would have required additional time to mobilize to the region to transition services. In addition, further difficulties include current travel restrictions in the region imposed by issued March 16, 2020, and , issued April 1, 2020. Also, anyone coming in the AOR requires an Exception to Policy (ETP), are subject to and will be required to quarantine 14 days if allowed in theater. Intra-theater travel is also not allowed during 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 competition have not been developed or are not available.

Not applicable.

(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.

If the sole source award was not awarded by July 8, 2020, the DLA Middle East Fuel Supply Chain

The service contractor witnesses all product testing in the region, provides quality surveillance on all tank truck loadings, pipeline transfers, border crossings, product certification and verifies that meters are certified. Without these functions the risk of fuel inventory theft and abuse could increase.

(SPE603-20-D-5003 – COGECO PRIVATE LIMITED)

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

The follow-on solicitation required a contractor to be able to mobilize in the AOR within 45 days and the Government believes a new contractor could not have reasonably been able to perform services beginning on July 8, 2020.

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)):

Contract SPE603-20-D-5002 was competitively awarded using full and open procedures;

however, due to a GAO protest filed against the award which statutorily stayed contract performance, the sole source contract SPE603-20-D-5003 awarded to Cogeco is necessary to maintain in Afghanistan while a GAO decision on the protest is pending. The contract period for the sole source contract is limited to four months, which covers the 100 days after the protest filing in which GAO will issue a decision.

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 Specialist Overseas Storage and Services Division Bulk Petroleum Supply Chain Services

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.

Chief, Quality Operations Division

(SPE603-20-D-5003 – COGECO PRIVATE LIMITED)

I have reviewed this Justification.

Senior Counsel DLA Counsel-Energy

Approved:

Contracting Officer Overseas Storage and Services Division Bulk Petroleum Supply Chain Services