JA BDSC-Iraq Redacted- FINAL.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN .1 KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22

Controlled Unclassified Information (CU!)

J&A Tracking Number 24-0012

Justification for Other than Full and Open Competition under Defense Logistics Agency Energy Direct Delivery Fuels Purchase Program 1.2 CENTCOM at

Baghdad Diplomatic Support Center, Iraq

1. Summary/Introduction

Defense Logistics Agency (DLA) Energy is the Integrated Materiel Manager (1MM) for energy commodities and the contracting activity for petroleum products and services for the Department of Defense (DoD). This Justification and Approval (J&A) is for the acquisition of Aviation Turbine Fuel (JP8) on other than hill and open competition basis under 10 U.S.C. § 3204(a)(l). as implemented by Federal Acquisition Regulation (FAR) 6.302-1, Only one responsible source and no other supplies or services will satisf~’ agency requirements. Due to the time it would take to obtain access and meet the necessary storage requirements, there is only one responsible source capable of performing by the required performance date.

Based on the information received from the Department of State and based on responses to a sources sought notification, is the only vendor capable of delivering fliel to the Baghdad Diplomatic Support Center (BDSC), Iraq by May 1.2024. is currently successfully delivering fuel to BDSC. has current badge access. and has the necessary fuel storage installed at the location. Although DLA Energy is soliciting the long-term requirements for BDSC under Solicitation SPE6O7-24-R-0202 through full and open competition. DLA Energy requires performance until that contract is awarded. Due to the time it takes to secure access to BDSC and install storage at the location.

is the only available option to perform ~ithin the available time. This short-term sole source contract will be used to fulfill current mission requirements until the long4erm contract can be awarded and performance can commence.

The DLA Energy fuel contractor must supply and store contractor-owned fuel on site at BDSC. Any contractor performing the required services at this location must go through an before it can gain access and install storage equipment on site. Currently. the requirement is to maintain a minimum of 180.000 US Gallons at all times ofJP8 and a maximum of 360.000 US Gallons. The contractor is responsible for all management and maintenance of its storage facilities located on BDSC. The aviation fuel only becomes United States Government property at the time of fueling an aircraft and charging the fuel at the DLA-contracted price.

Due to unique capability to perform by May 1.2024. it is the one responsible source available to meet the requirement and DLA Energy must award it a four-month Bridge Contract ~ ith thur additional one-month options for a total period of performance ofup to eight months. The contract will have a base period of performance from May I. 2024 through August31, 2024. If all options are exercised, the contract performance would extend to December 31, 2024. The options are in included to ensure DLA Energy has sufficient time to awani the competitive long-term contract without any diswption to the• service. The estimated total dollar value for this acquisition. inclusive of the options. is $5,027,752 for delivery of 702.200 US Gallons ofJP8 for Into-plane and Into-truck modes of delivery to

BDSC.

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Justification for Other Than Full and Open Competition

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

DLA Energy requires continued support for the acquisition of JPS. on other than It’ll and open competition basis because there is only one responsible source and no other supplies or services will satisfy agency requirements. in acconlance with 10 U.S.C. § 3204(a 1). as implemented by FAR 6.302-1.

The action to be approved is the award of four-month Firm Fixed Price with an Economic Price Adjustment requirements type base contract with a period ofperfo ce from May 1. 2024 through August 31. 2024. and four. one-month options which would extend performance to December 31. 2024.

The action being approved has a total estimated value of$5,027,752. The Defense Working Capital Fund is expected to be used for this requirement.

The requiring activity has an ongoing need for delivery of PS fuel to BDSC. The mission needs of the customer also require that the contractor maintain storage onsite at BDSC. with a niinimum capacity of

180.000 US ga ons. The contractor must install and operate its own storage at the location in order to meet the customeCs requirement Additionally, the contractor must have personnel available onsite 24 hours a day. 7 days a week to manage and maintain the storage and delive the fuel as needed. Due to BDSC being a secure compound. the contractor and its employees ust undergo before they can be granted badged access to the fiucihty and the contract must be panted badged access before it can install its fiel storage at the location and begin perfonuance.

3. Description of supplies or sen ices required to meet t e agency’s need (including estimated value) (FAR 6.303 2(b)(3))

The estimated dollar value for this contract. inclusive of options. is S5,027,752 with a Penod of Perfomiance of May 1.2024 through August 31. 2024 for die base period and through December 31.

2024 if all options are exercised The below Table 1 indicates supplies required to meet agency’s needs are estimated as follows:

4. Identification of the statutory authorit permitting othe than liii and open competition (FAR

6.303 2(b)(4))

This J&A is based upon die authority of 10 U S.C. §3204(a)( ). as implemented by FAR 6 302-1 Only one responsible source and no oilier supplies or services will satisfy agency requirement

Purchase Program 1.2

CENTCOM

ProductlFuel type Monthly Quantity

Total Quantity

Table 1

Baghdad TURBINE FUEL. 87.775 USG 702.200 S7.16/USG $5.027.752 Diplomatic AVIATION (JP8) Support Center

Unit Price Total P lice

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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)) as the only contractor cunently perfonning the required services at BDSC. has a unique ability to meet the Govenunent ‘s needs explained in Section 2 above, by the required perfonnance date. May 1.

2024. There are two ~—~--‘---nnl mr’1 ions creati”z unique_c~j~~mctqnces for JPS delivery at the location. First. I I I I Second. after obtaining badged access, the contractor must install and maintain storage on site in order to meet the requirements, is the o conti’actor that currently meets those two conditions and due to the time it would take another contractor to obtain access and install the required stora e equipment. it is the only responsible source capable ofperfonning by May 1, 2024.

Although companies responded to DEA Energy’s sources sought posted on SAM.gov fiom Febniaiy . 024 to March 12, 2024. none of the responses demonstrated an ability to meet the requirements by May 1. 2024.

D A Energy received responses to its sources sr”41 on Febniary 26. 2024, but none of the responses indicated a capa iity oil I needed to perfonn by ay

1.2024. Of thee responses.~ licated it h~ n~y experience

or current_access fri BDSC. Th I

~ty statement mdicated that it had pertonued as a subcontractor at Busu recently and that its drivers and co~esponding trucks had obtained access to deliver fuel at BDSC. However, the badged access necessary to deliver via tmcks at BDSC is substantially different from the and badging requirements to install fuel storage and maintain staff onsite at BDSC 24 linurs ~ dayjç~r”””” ~“-‘ 4iic cnntrr’- A ““-““n hi the flenartment of State.I ________ 1

Resaiding the first condition, contractors must auply for md be r”ed access to BDSC at Baghdad Airport to deliver fuel to this specific location.

tines nnt nin’entjy have the necessary badged access to BDSC.

‘~e Department of State estimates it would take a minimum of

~to complete mel and badging process. F r a new company. it is also possible r~0(X55 could take longer ifit needs to complete company registration with the Government of ‘ue to the time it may take to register the contract with the Government of Iraq.

Accordingly. iitKEn~i~’pas determined that’ would have to go through the and badging process and would not be

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capable of performing by May 1,2024.

Regarding the second condition, contractors must also have their own storage installed at the location with a minimum capacity of I 80,000 US gallons for JP8 to meet the mission requirements. Currently is the only contractor with the necessaty storage installed at BDSC. Although responses to the sources sought indicated a willingness to obtain and install the required storage at BDSC, none indicated an ability to have the storage available by May 1,2024. In order to install the fuel storage equipment, a contractor would first have to pass the required and gain badged access, which, as explained, would take a for a new contractor. After obtaining access, it would take additional time to install the required storage equipment.

May 1,2024 is the required date for performance based on the expiration date for access to BDSC and based on the timing for receiving a fuel allocations from the Government of Iraq. which is the only means to obtain fuel in this region of Iraq. Since none of the responses to the sources sought indicated an ability to obtain the required level of badged access, install the required fiiel storage equipment. and be capable of performing by May 1,2024. DLA Energy has determined that is the one responsible source capable of performing and meeting the Government’s mission requirements.

DLA Energy estimates it will take approximately six months to issue a competitive solicitation for a long-term contract to perform these services and make an award. This estimate is based on DLA Energy’s experience awarding similar contracts, but it is merely an estimate. Due to the possibility of delays, the four-month base contract and four, one-month option periods al-c necessaiy to ensure continuity offliel supply. DLA Energy does not intend to exercise any options if it is able to award the contract prior to those option periods.

6. Description of the efforts made to ensure that offers are/wet-c 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))

For the reasons discussed in Section 5, the sole-source award to is the only option to support the needs of the Government under these conditions.

Pursuant to FAR 5.202(a)(l I) and DFARS PGI 206.302-1. DLA Energy did publicize a source sought notification and synopsis for an intended contract between DLA Energy and to provide Into-plane deliveries of JP8 conducted under the FAR 6.302-I. exception to fill and open competition. The sources sought notification and synopsis was posted to SAM.go~’ on Februaiy 26, 2024. It notified prospective offerors of DLA Energy’s intention to award a sole soul-ce contract to as the one responsible source capable of performino but invited interested parties to submit capability statements by March 12, 2024. DLA Energy received~ res onses to the sources sought notification, but for the reasons explained in Section 5, none of the responses demonstrated a capability of performing by the required performance date, May I, 2024.

Based on the responses to the sources sought notification and the capabilities of as the currently performing contractor, DLA Energy determined that is the only responsible source capable of performing by May 1,2024. Therefore. DLA Energy only solicited an offer from

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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 the price offered by to be fair and reasonable in accordance with FAR 15.404-1 (b)(2)(ii), comparison of the proposed prices to historical prices paid, whether by the Government or other than Government, for same or similar items. The price offered by was also determined fair and reasonable in accordance with FAR 15.404-I (b)(2)(vi). comparison of proposed prices with prices obtained through market research for the same or similar items within the same market range.

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 through the issuance of the sources sought notification and synopsis posted to SAM.gov on February 26, 2024. As explained in Sections 5 and 6 above, although DLA Energy receiveda responses to the sources sought, based on the information provided by respondents and based on information from the , currently is the only contractor with the proper BDSC badges for access to all required locations within BDSC. Additionally, is the only contractor that has on site storage at BDSC with a minimum of 180,000 US Gallons of JP8. with the ability to store up to 360,000 US Gallons.

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-JjaX2)(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.

There are no other facts beyond the ones set forth above.

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

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11. Actions that may be takeu to remove or overcome barriers to competition before any subsequent acquisition for the supplies or services are required (FAR 6.303 2(b)(l 1))

DLA Energy will issue solicitation SPE6O7-24-R-0202 for this requirement under flail and open competition and anticipates competitively awarding all line items under long term contract(s) prior to this Bridge Contract ending. DLA Energy anticipates that solicitation SPE6O7-24-R-0202 will result in an award based on full-and-open competition once any negotiations between offemrs are completed. DLA Energy anticipates that this Bridge Contract will allow sufficient time to make the competitive award and allow a new contractor to meet the badgmg. and storage mstallation requirements necessary to perform at this location. Acconluigly. it is not expected that the badging, and storage installation will be a barrier to competition on the sub equent co npetit’ve acqui •tion.

I hereby certi~’ that the data wluch forms the basis for di sjustificatio is accurate and complete to the best of my know edge and belief

Thereby certif~’ that the data which forms the basis for this justifica on is accurate, complete.

and that the purchase request covers only the nüniniuin re irements to satisfy the needs of the Government.

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I have reviewed and concur with this justi±ication:

I have reviewed this justification:

I have reviewed and appio~edthisjustifieation:

DLA Energy Advocate for Competition

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