JA 2021 REDACTED.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

21-0015

Justification for Other than Full and Open Competition

1. Summary/Introduction:

The Defense Logistics Agency (DLA) Energy is the contracting activity for petroleum products and services for the Department of Defense (DoD). This Justification & Approval (J&A) is for the addition of two option periods, a 5-year option period (May 15, 2021 – May 14, 2026) and a 2-year and 4-month option period (May 15, 2026 – September 13, 2028), under FAR clause 52.217-9 Option to Extend the Term of the Contract (Mar 2000), which were not evaluated at the time of contract award. This modification will require the incumbent contractor, TRC Government Services, LLC (TRC), to provide Contractor-Owned Contractor-Operated (COCO) fuel storage services on Government property at Marine Corps Base 29 Palms, CA (MCB 29 Palms) and Government-Owned Contractor-Operated (GOCO) services pertaining to the management, operation, maintenance, product quality surveillance, inventory control and accounting, security, safety, and environmental protection of the Marine Corps fuel facilities at MCB 29 Palms on a sole source basis under the authority found at FAR 6.302-1(a). The total value of the action being approved is $9,253,120.00 (COCO amount is $6,321,100.00 and GOCO amount is $2,932,020.00). This modification to contract SP0600-99-D-5939, will increase the contract’s total value from . The 5-year option period will be funded with Fiscal Year (FY) 2021 Defense-Wide Working Capital Funds (DWWCF), and the 2-year and 4-month option period will be funded with FY 2026 Defense- Wide Working Capital Funds (DWWCF), if exercised.

TRC provides COCO/GOCO fuel storage services using best commercial standards at MCB 29 Palms. TRC operates, maintains, manages, and provides retail/bulk fuel services while safely receiving, storing, accounting for, and issuing DWWCF fuel products. The at MCB 29 Palms is dependent upon the fuel management services provided by the incumbent contractor.

The current contract for these services will expire on May 14, 2021. The follow-on modification will be awarded prior to May 14, 2021.

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

The procurement of these services will be conducted using a negotiated bilateral modification to the contract in accordance with FAR 43.103(a)(3). The authority to extend this contract is granted under 10 U.S.C. §2922, Liquid fuels and natural gas contracts for storage, handling, or distribution, as amended by section 881 of the National Defense Authorization Act for Fiscal Year 2018. Therefore, the Government intends to extend the contract term with TRC by adding a 5-year and a 2-year and four-month option periods and exercising the five-year option period through a contract modification. The option extension was not evaluated at the time of contract award; this J&A is required to meet the requirements of FAR 17.207(f).

Justification for Other Than Full and Open Competition (Cont’d) SP0600-99-D-5939 – TRC Government Services, LLC

The installation of new storage tanks and associated facilities is a primary cost element of the startup costs for a new contractor. The fact that the existing tanks at MCB 29 Palms are covered by warranty essentially eliminates the cost risk associated with potential tank replacement. The extension of the contract term further allows the Government to maximize the value of the start-up costs expended during the base period of the contract. While the Government will ultimately need to re-procure these services using full and open competition at the conclusion of the maximum 30-year period allowed under 10 U.S.C. 2922, as amended, it is in the Government’s best interest to avoid this premature duplication of costs by taking advantage of the maximum commercial viability of the COCO facilities and continuing services of the GOCO facilities.

MCB 29 Palms has already identified a new site and begun site preparation activities, including installation of utilities, potentially extending roads, and various site surveying activities;

however, soliciting these services at this time would result in service interruption and mission failure by not including the additional option periods in the current contract. By extending the current contract as authorized by the National Defense Authorization Act for Fiscal Year 2018, the Government will avoid the interruption of services, will maximize on the value that has already been invested in the currently available COCO/GOCO facilities by extending its use, and will be saving on start-up costs that would be incurred if a new contract was awarded.

In accordance with FAR 6.302-1, TRC is currently the only known responsible source with the ability to meet the agency’s requirement for fuel storage and maintenance services for an additional seven-year and four-month option period.

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 4, 2021, a sources sought notice was posted to the Contracting Opportunities website (betaSAM.gov) to provide notice of this continuing requirement and to solicit capability statements from other potential vendors. DLA Energy received one response from, is capable of providing the required services, but the

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 anticipated cost to the Government will be fair and reasonable based on a comparison of TRC’s

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)):

DLA Energy has conducted market research that indicates these services are available commercially. DLA Energy supplemented the information about general market conditions for these services by posting a source of sought notice to betaSAM.gov on April 7,2021, to determine whether there were additional firms who would make an offer on this requirement.

The Government received one response to the sources sought notice. Although the Government received one response to the source sought notice,

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.

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)):

DLA Energy FESAB received one (1) response to the Sources of Sought Notice which came from . The capability statement submitted by

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 inherent barriers to competition for GOCO and COCO fuels services at MCB 29 Palms. The Government intends to obtain the maximum commercial use of the services at this location as authorized under 10 U.S.C. § 2922 and avoid substantial duplication of costs and delays in service that would be incurred using another contractor for the reasons stated above.

The Government has determined that TRC is the only responsible source to provide the services at MCB 29 Palms.

This modification to the contract will be executed on or before May 14, 2021, with performance beginning by May 15, 2021 under option six.

Approved:

DLA Energy, BPPA Advocate for Competition