JA 2025 v4 FINAL Redacted v.1.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

J&A Tracking Number: 25-0037

Justification for Other than Full and Open Competition For Extension of Fuel Services at Ft. Carson, CO

UNDER AUTHORITY OF

10 U.S.C. § 3204 (a)(1): ONE RESPONSIBLE SOURCE

1. Summary/Introduction:

The Defense Logistics Agency (DLA) Energy (a major subordinate command of DLA), Bulk Petroleum Services Division is the contracting activity for bulk petroleum products and services for the Department of Defense (DoD). This is a justification for other than full and open competition justification & approval (J&A) is for the addition of a nine-year extension (five-year base period with four one-year option periods) on contract SPE603-23-C-5001. The original contract SP0600-04-C-5417 was awarded for a five-year base period (Years 1-5) from September 19, 2005 – September 18, 2010, with three five-year options. The last of the options was exercised, and the current term will expire on September 17, 2025. The contract transferred to SPE603-23-C-5001 due to EBS system constraints on November 18, 2022. This modification will require the contractor, Wyndham Green LLC, to continue providing contractor-owned contractor-operated (COCO) fuel storage services on Government property at Fort Carson, CO (Ft. Carson) as only one responsible source will satisfy the agency requirements under the authority found at Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(iii). The period of performance will be from September 18, 2025 through September 17, 2030 for the five-year base and from September 18, 2030 through March 17, 2034 for the four one-year options (last option period will be 7 months to not exceed the maximum 30-year period allowed under 10 U.S.C.

§2922).

The Contractor will be responsible for the management, operation, maintenance, product quality surveillance, inventory control and accounting, security, safety, and environmental protection to provide retail/bulk fuel services as described below for the fuel facilities, related structures, and property. The 5-year period value of the action being approved equals $3,329,160.00 and four one-year periods equals $2,916,260.00 with a combined total of $6,245,420.00. This modification for contract SPE603-23-C-5001 will increase the contract’s total value from $7,576,330.73 to $13,821,750.73. The five-year base period will be funded for Fiscal Year (FY) for the period of performance from September 18, 2025 to September 17, 2030, and the four one-year option periods will be funded based on yearly FYs for the period of performance from September 18, 2030, to March 17, 2034.

Justification for Other Than Full and Open Competition (Cont’d) Page 2 of 8 (SP0603-23-C-5001 – Wyndham Green LLC)

Wyndham Green LLC will provide COCO fuel storage services using best commercial standards at Ft. Carson. Wyndham Green LLC performs required tasks which include fuel operations, management and administration pertaining to the receipt, storage and handling, and issue of fuel.

In addition, the Contractor shall ensure all personnel are adequately trained to perform job tasks, maintain the security of the facility and computer systems, and comply with all applicable base, local, state, and federal laws, and regulations. The mission at Ft. Carson is dependent upon the fuel management services provided by the incumbent contractor. The current contract for these services will expire on September 17, 2025. The resulting modification will be awarded/issued prior to September 17, 2025.

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

This Justification and Approval (J&A) authorizes a negotiated bilateral modification to contract SPE603-23-C-5001 with Wyndham Green LLC. The contract extension is for a five-year base period (September 18, 2025 – September 17, 2030) with four one-year option periods (September 18, 2030 – March 17, 2034). 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 and will not exceed the maximum 30 years as authorized under 10 U.S.C. §2922, as amended.

This action will ensure the continued performance of critical performance-based fuel services at Ft. Carson, CO, encompassing surveillance, inventory control, security, safety, and environmental protection of COCO fuel facilities, as detailed in the Performance Work Statement (PWS). This modification will add the 5-year base period at an annual cost of $665,832.00 for a total of $3,329,160.00. Each of the four one-year option periods, when exercised, will be funded at $813,840.00, for a potential total option value of $2,916,260.00. If all periods are exercised, total funding, provided via PR #7012836257, will equal $6,245,420.00.

As detailed below, Wyndham Green LLC is the only source capable of providing highly specialized services at Ft. Carson without unacceptable delays and duplication of costs.

Extending the contract term is necessary to maintain uninterrupted support of essential mission requirements.

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

Contract SP0600-04-C-5417 for these services was competitively awarded to Southern Terminal Services on March 29, 2004. On December 6, 2022, modification P00061 was issued to incorporate a Change-Of-Name Agreement which identified the prime contractor as Wyndham Green LLC. The original award was for a five-year base period (Years 1-5) from September 19, 2005 – September 18, 2010, with three five-year options. The last of the options was exercised, and the current term will expire on September 17, 2025. The contract has transferred to SPE603- 23-C-5001 due to EBS system constraints on November 18, 2022. The total combined value is $7,576,330.73.

Justification for Other Than Full and Open Competition (Cont’d) Page 3 of 8

In order to meet the mission at Ft. Carson, it is critical that the COCO fuel services are not interrupted. Under this contract, the contractor is responsible for the bulk fuel storage system, including loading and off-loading racks with issue and receipt filtration, supplied by commercial tank trucks at the COCO facilities, and responsible for the above ground storage tanks and dispensers for retail and bulk issue of ground petroleum products that are supplied by commercial tank trucks at the COCO facilities. Additionally, the contractor is responsible for management, operation, maintenance, product quality surveillance, inventory control and accounting, security, safety, and environmental protection at the installation. The contractor provides all personnel, equipment, material, and facilities necessary for providing these services, while employing best commercial practices and complying with Federal, State, and Local guidelines & regulations. The mission at Ft. Carson is dependent upon the fuel management services, fuel facilities, labor, and equipment provided by the contractor.

The estimated value of the services under the five-year base period from September 18, 2025, through September 17, 2030 equals $3,329,160.00. The estimated value of the services under the four one-year option period from September 18, 2030, through March 17, 2034, equals $2,916,260.00. The total contract value will be increased to $13,821,750.73 if all proposed options are exercised.

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 of 10 U.S.C. § 3204(a)(1), as implemented by FAR 6.302- 1 – Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. The services sought are highly specialized and award of this requirement to another source at this time would likely result in substantial duplication of cost to the Government that is not expected to be recovered through competition and would result in unacceptable delays in fulfilling the agency’s 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)):

The mission at Ft. Carson is dependent upon the current fuel services provided under this contract by the incumbent, Wyndham Green LLC. The customer requires continuous, high quality fuels management services. Ft. Carson is an active Army Soldier installation with constant fueling services supporting the base each day. These services are critical to the support of Ft. Carson. Timely fuel support, system maintenance, and quality control in accordance with (IAW) US Army standards are required to meet the mission. The existing workforce is trained and able to conduct operations without interruption. Wyndham Green LLC performance of these services at Ft. Carson is acceptable based on the Contracting Officer’s Representative (COR) and Contractor Performance Assessment Reporting System (CPARS) assessments. Additionally, Wyndham Green LLC currently possesses the facilities, equipment, and personnel to sustain the services during the period of performance IAW contract SPE603-23-C-5001. A new contractor would need preparation time prior to beginning performance to acquire the necessary

Justification for Other Than Full and Open Competition (Cont’d) Page 4 of 8 infrastructure and permits and be willing to absorb and manage all the associated risks of the facilities and any environmental concerns to perform the contract. Furthermore, a new contractor would require time to develop and implement operations and training plans and to train personnel. Historically, newly awarded contracts for similar services have required preparation periods of up to 24 months after contract award and prior to the start of COCO fuels storage services.

The installation of new storage tanks and associated facilities is a primary cost element of the startup costs for a new contractor. Current storage tanks that are in place and serviceable eliminate 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 existing COCO facilities and continuing services under the current contract. Soliciting these services at this time would result in service interruption and mission failure. By extending the current contract as authorized by 10 U.S.C. §2922, the Government will avoid the interruption of services, will maximize the value that has already been invested in the currently available COCO facilities by extending its use, and will be saving on start-up costs that would be incurred if a new contract was awarded.

Additionally, extension of the contract for nine years is more cost effective than procurement of a new contract with a 20 to 30-year period for the same services under 10 U.S.C. § 2922. The original contract was awarded in 2004 for a period of twenty years, the maximum period authorized under 10 U.S.C. §2922 at the time. The statute has since been amended by Section 881 of the National Defense Authorization Act for Fiscal Year 2018 to authorize a total period of 30 years, commensurate with the commercial useful life for these types of COCO facilities.

In accordance with FAR 6.302-1, Wyndham Green LLC is currently the only known responsible source with the ability to meet the agency’s requirement for COCO fuel facility storage and maintenance services for additional five-year base period with four one-year option periods (i.e., a five-year base period from September 18, 2025 through September 17, 2030, and four one-year option periods from September 18, 2030 through March 17, 2034) without substantial duplication of costs or delays in obtaining such services.

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)):

A sources sought notice and a pre-solicitation notice were posted to the Contracting Opportunities website (SAM.gov) to provide notice of the continuing contract requirement and to solicit capability statements from other potential vendors. There are no records of receiving

Justification for Other Than Full and Open Competition (Cont’d) Page 5 of 8 responsible responses. A follow up sources sought notice was posted on September 11, 2025, to maximize visibility to potential offerors and increase competition and to seek small businesses with capabilities of providing the services. While two responses were received to the Sources Sought notices, a careful review of the submitted capability statements raised significant concerns regarding the offerors' understanding of the complexity and scope of the requirement.

Maytag Aircraft LLC stated their interest in the program but failed to show an understanding of the complexity and scope of the requirement. Their response gives the impression that the contractor is taking over the operation of a Government Owned, Contractor Operated (GOCO) facility rather than a facility owned by a private contractor, or they didn’t understand the requirement if they expect to have a COCO fuel facility up and running in 90-120 days. KVG LLC stated their interest in the program but failed to show an understanding of the complexity and scope of the requirement as their approach of offering cubes for fuel storage will not be an adequate approach to run the COCO fuel facility and didn’t provide an adequate plan for a timeframe for deployment, construction and commissioning of a fuel facility of this complexity. Based on the Agency’s review of historical data (including other contracts and capability statements for similar COCO fuel facilities and services), newly awarded contracts for similar services require preparation periods of up to 24 months after contract award and prior to the start of COCO fuel services. As such, an award to a new contractor at the present time would result in an unacceptable interruption to the provision of essential fuel services at Ft. Carson and would lead to a significant risk of mission failure.

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 contractor, Wyndham Green LLC’s proposed prices for services at Ft. Carson were compared to the current prices of the exercised options for awarded contracts for similar COCO optimization fuel storage services located in the US region: (i) contract SP0600-10-C-5051 at Camp Pendleton, CA for $60,959.37 per month; and (ii) contract SP0600-99-D-5939 at MCAGCC 29 Palms, CA for $62,644.62 per month. The $60,959.37 current monthly usage charge at Camp Pendleton is $5,473.37 higher than Wyndham Green LLC’s proposed $55,486.00 monthly usage price. The $62,644.62 current monthly usage charge at 29 Palms, CA is $7,158.62 higher than Wyndham Green LLC’s proposed $55,486.00 monthly usage price.

When compared against the monthly usage charges at Camp Pendleton and MCAGCC 29 Palms, two COCO contracts recently extended pursuant to the 10 U.S.C. §2922 statute, the total extension price proposed by Wyndham Green LLC is below current prices for similar COCO optimization fuel storage services. The proposed price accounts for the age, wear and tear of the facility and needing to replace grandfathered equipment that currently works but is no longer available within industry. The contractor obtained cost to update the facility and ensure its operability and compliance during the contemplated eight-year and four-month total extension.

By doing this, the contractor was able to create a base line and better determine the out-year maintenance and regulatory costs. A new solicitation is unlikely to result in better prices than Wyndham Green LLC.

Justification for Other Than Full and Open Competition (Cont’d) Page 6 of 8

Historical awards for COCO storage services typically experience a significant price difference between the base period and the option period is because COCO operations require a substantial startup capital cost, which is typically amortized across the base period. A new COCO operation includes building the fuel facility from ground up to successfully meet the specific requirements listed in the PWS. As such, an award of a contract to a new contractor at Ft. Carson would result in start-up costs to build a new facility from ground up, which will include a substantial amount of engineering cost, construction cost, and permit cost, as well as a significant amount of time to resolve environmental concerns and obtain prior approvals from the local, state and federal government agencies or authorities. The new contractor would also be required to operate/maintain the COCO site; hire skilled labor; and be required to factor both site unfamiliarity and uncertainty of its success into proposed prices, which would result in increased or duplicative costs to the Government. The Government does not expect that these costs would be recovered through competition. Therefore, an informal analysis of prices indicates that the proposed monthly prices of $55,486.00 per month from 2025 to 2030 and $67,820.00 per month from 2030 to 2034 will result in greater savings to the Government as compared to current prices available in the market. The proposed pricing includes estimated maintenance repair for the upcoming extended period. The Government did not negotiate alternate pricing arrangements for price elements such as major repair pricing and demolition of the facility. The total price submitted by Wyndham Green LLC is $6,584,520.00 for the base and option periods contemplated under this J&A (i.e., the five-year base period from September 18, 2025 through September 17, 2030 and the four one-year option periods from September 18, 2030 through March 17, 2034) is determined to be fair and reasonable based on a comparison with the historical prices paid by the Government IAW FAR 15.404-1(b)(2)(ii).

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 proposed contract action is made under the terms of an existing contract that was previously synopsized in sufficient detail to comply with the requirements of 5.207 with respect to the current proposed contract action. 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 Sources Sought and Pre-Solicitation Notice to the Contracting Opportunities website (SAM.gov). A follow up Sources Sought was posted on September 11, 2025, to maximize visibility to potential offerors and increase competition and to seek small businesses with capabilities of providing the services. While two responses were received to the Sources Sought notices, a careful review of the submitted capability statements raised significant concerns regarding the offerors' understanding of the complexity and scope of the requirement. Additionally, a comprehensive review of agency historical data, including information from previous contracts and capability statements for similar COCO fuel facilities and services, was conducted. This review aimed to identify potential vendors with experience in providing comparable services and to understand the specific challenges and requirements associated with managing a COCO fuel facility. This review reinforced the conclusion that phase-in period of up to 24 months is standard for establishing a

Justification for Other Than Full and Open Competition (Cont’d) Page 7 of 8 new COCO facility. As a result of the market research efforts, including the analysis of the Sources Sought responses, it was determined that awarding a contract to a new contractor at the present time would result in an unacceptable interruption to the provision of essential fuel services at Ft. Carson and would lead to a significant risk of mission failure. Therefore, pursuing full and open competition at this time, given the existing circumstances and the lack of responsible responses to the Sources Sought, would not be in the best interest of the Government.

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)):

Not applicable.

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 COCO fuels services at Ft. Carson. The Government intends to obtain the maximum commercial use of the services currently provided 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 Wyndham Green LLC is the only responsible source to provide the services at Ft. Carson without delays, additional costs, or other adverse risks to the Government. The modification to the contract will be executed on or before September 17, 2025, with performance beginning on September 18, 2025.

Justification for Other Than Full and Open Competition (Cont’d) Page 8 of 8

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.

DUSTIN ZENO YALIER FUSTER

Contracting Specialist Contracting Officer/Division Chief

WILMER C. VARNER

Chief of Requirements Division

I have reviewed and concur with this Justification.

GORDON W. BRAXTON

for PATRICIA A. LITTLEJOHN BU Director

Approved:

JAMES CLOUGH

DLA Energy Advocate for Competition