JA 26-0029 MK Airbase Romania for SAM.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6220

J&A Tracking Number 26-0029

Justification for Other than Full and Open Competition

1.6 L Eastern Europe, Contract SPE60524D9403/P00016

1. Summary/Introduction:

The Defense Logistics Agency (DLA) Energy, as the contracting activity, has prepared this Justification and Approval (J&A). This action is for the urgent procurement and delivery of 3.3 million gallons of JA1 Jet Fuel to Mikhail Kogalniceanu Airbase and Otopeni Airport Military Base, Romania, in support of Operation Epic Fury. The requiring activity is the U.S. Air Force.

The total estimated value of this action is $27,205,200.00, executed as a modification to contract SPE60524D9403 by adding a new firm-fixed-price Contract Line Item (CLIN 0059). The period of performance is from March 17, 2026, through March 31, 2027. If performance is still needed within one year of award, a second determination will be made dependent on whether there are circumstances necessitating other than full and open competition

This J&A has been approved and publicized after award, in accordance with FAR 6.103-2(d).

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 6.104-1(a)(2)):

This action is a sole-source modification to an existing contract, justified by Unusual and Compelling Urgency. DLA Energy required an immediate supply of JA1 jet fuel to support warfighter operations, and the modification was executed to ensure the uninterrupted delivery of critical fuel to military forces supporting Operation Epic Fury. Stonewin International, LLC, is the incumbent provider at the primary delivery location and was the only source identified that could secure the required fuel within the constrained timeframe. The action was awarded as a modification to contract SPE60524D9403, funded by the Defense Working Capital Fund. The modification was executed on March 17, 2026.

3. Description of supplies or services required to meet the agency’s need (including estimated value) (FAR 6.104-1(a)(3)):

This requirement is for the commercial supply of delivering approximately 3,300,000 U.S.

gallons of JA1 jet fuel to Mikhail Kogalniceanu Airbase and Otopeni Airport Military Base, Romania. The total value of this action is $27,205,200.00 for a period of performance from March 16, 2026, through March 31, 2027. The original contract is SPE60524D9403, and this action adds a new CLIN (0059) for this urgent requirement.

4. Identification of the statutory authority permitting other than full and open competition (FAR 6.104-1(a)(4)):

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

(SPE605-24-D-9403 – STONEWIN INTERNATIONAL LLC)

This J&A is based upon the authority of 10 U.S.C. §3204(a)(2), as implemented by Federal Acquisition Regulation 6.103-2. Unusual and compelling urgency precludes full and open competition, and delay in awarding a contract would result in serious injury to the Government.

5. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires using the authority cited (FAR 6.104-1(a)(5)):

The urgency of this requirement in support of Operation Epic Fury, coupled with a severely constrained regional fuel market, precluded full and open competition. The fuel is mission-critical for U.S. Air Force aviation assets, and any delay in procurement would result in the failure of essential national security missions, causing serious injury to the Government.

Stonewin International, LLC, as the incumbent contractor, was uniquely positioned to meet this demand with existing infrastructure, including registered trucks and personnel, allowing for immediate delivery. Stonewin conducted a real-time market search and confirmed this was the only available jet fuel cargo in the Mediterranean region. This ability to immediately source and deliver the fuel made them the only responsible source capable of meeting the Government's urgent requirement.

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 5.1 and, if not, which exception under 5.101(b) applies (FAR 6.104- 1(a)(6)):

This contract action was not synopsized. Pursuant to FAR 5.101(b)(2), DLA Energy did not publicize a notice because the action was executed under the unusual and compelling urgency authority. Soliciting offers from other sources was not practicable due to the extreme urgency of the requirement. A delay for a competitive solicitation would have prevented the U.S. Air Force from executing its mission, resulting in serious harm to the Government.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable (FAR 6.104-1(a)(7)):

The Contracting Officer determines that the anticipated cost to the Government will be fair and reasonable. The final negotiated firm-fixed price of $8.244/USG was determined fair and reasonable using price analysis techniques under FAR 15.404-1(b)(2)(i). The contractor's initial offers of $8.514/USG (fixed) and $8.2847/USG (escalated) were justified by extreme market volatility and product scarcity. After negotiation, the final price represented a reduction from both initial offers. The price is considered reasonable given the documented scarcity, the mission-critical need, and the savings achieved through negotiation.

8. Description of the market research conducted and the results or a statement of the reason market research was not conducted (FAR 6.104-1(a)(8)):

(SPE605-24-D-9403 – STONEWIN INTERNATIONAL LLC)

Formal market research was not conducted for this specific action because the unusual and compelling urgency of the requirement did not permit sufficient time. Any delay to execute a formal market research process would have resulted in the grounding of U.S. Air Force assets, causing serious injury to the Government.

While the incumbent contractor initially provided a real-time market assessment noting extreme scarcity, DLA Energy independently verified this assessment against current open-source market intelligence to ensure we did not rely solely on the contractor's word. Europe faces a persistent and widening deficit in jet fuel supply as its own production declines due to refinery closures, while demand continues to grow steadily. In 2025, reliance on imports hit a third of overall demand in Europe and is set to increase further.

Furthermore, the Strait of Hormuz has been closed since late February 2026, disrupting the route that supplies roughly 40% of Europe's jet fuel imports. The International Energy Agency previously warned that Europe’s jet fuel inventories were expected to dip below critical shortage thresholds.

These independent macroeconomic indicators corroborated the severe regional scarcity of JA1 jet fuel, validating that a competitive process would not have yielded alternative viable sources capable of meeting the immediate delivery timeline.

9. Any other facts supporting the use of other than full and open competition, such as (FAR 6.104-1(a)(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 6.103-1 is cited for follow-on acquisitions as described in 6.103-1(c), an estimate of the cost to the Government that would be duplicated and how the estimate was derived.

Not Applicable

(iii) When 6.103-2 is cited, estimated cost, or other rationale as to the extent and nature of the harm to the Government.

Failure to execute this award would have resulted in the grounding of U.S. Air Force assets, causing a failure of critical missions in support of Operation Epic Fury and constituting serious injury to the Government. The period of performance through March 2027 is necessary to provide an uninterrupted fuel supply for the duration of the operation.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition (FAR 6.104-1(a)(10)):

No other sources expressed written interest in the acquisition, as no synopsis or solicitation was issued

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 6.104-1(a)(11)):

The primary barrier to competition was the temporary and acute market scarcity of jet fuel combined with an unusual and compelling urgency; this is not a permanent barrier. DLA Energy will continue to monitor the fuel market in the region. For any future, non-urgent requirements for these locations, DLA Energy will utilize full and open competition procedures.

(SPE605-24-D-9403 – STONEWIN INTERNATIONAL LLC)

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.

Orlando Merritt Contracting Officer

Tonya Sterling Division Chief

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.

Norman Mitchell Chief of Requirements Division

I have reviewed and concur with this Justification.

Jastar Singh BU Director

Approved:

JAMES CLOUGH

DLA Energy Advocate for Competition