JA DFSP Anchorage Bridge Action - Redacted.pdf

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Attached to
Contractor-Owned Contractor-Operated (COCO) Storage Services - Anchorage, Alaska
Solicitation number
SPE603-25-C-5001
Issued by

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Summary

This is a Justification and Approval (J&A) document for other than full and open competition issued by the Defense Logistics Agency (DLA) Energy, authorizing a contract extension with Crowley Energy Alaska for contractor-owned, contractor-operated (COCO) fuel storage services at Defense Fuel Supply Point (DFSP) Anchorage, Alaska. The current contract SPE603-25-C-5001, competitively awarded to Crowley on August 20, 2015, is expiring February 20, 2026, with a total value of $163,196,797.03. The bridge action extends performance from February 21, 2026, through May 20, 2026 (three months), with three additional one-month options available through August 20, 2026, increasing the overall contract value to $172,314,139.03. The services include receipt, storage, and issuance of two grades of U.S. Government-owned fuel products, with the contractor responsible for inventory management, quality surveillance, maintenance, training, safety, and environmental compliance.

DLA justified the non-competitive award under Federal Acquisition Regulation 6.103-1, determining that Crowley is the only responsible source capable of satisfying agency requirements without incurring substantial duplication of costs or unacceptable service delays. The justification emphasizes that transitioning to a new contractor would disrupt critical fuel operations and that Crowley possesses a documented record of acceptable performance, fully trained workforce, existing equipment, and established protocols necessary for uninterrupted mission-critical services. The Contracting Officer expects the proposed pricing of $1,519,557.00 monthly usage charge to be fair and reasonable based on comparison with independent Government cost estimates in accordance with FAR 15.404(a).

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Text version

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

J&A Tracking Number 26-0014

Justification for Other than Full and Open Competition

1. Summary/Introduction:

The Defense Logistics Agency (DLA) Energy, a Major Subordinate Command of DLA, is the contracting activity for bulk petroleum supply chain services for the Department of Defense (DoD). This Justification and Approval (J&A) is intended to secure the approval for the extension of contract SPE603-25-C-5001 for Contractor-Owned, Contractor-Operated (COCO) fuel storage services at Defense Fuel Supply Point (DFSP) Anchorage, AK, for an additional base period of three months, with an additional three one-month options to exercise if necessary.

The contract provides for fuel storage services, including receipt, storage and issuance at DFSP Anchorage, AK.

The current contract, SPE603-25-C-5001 was competitively awarded to Crowley on August 20, 2015, and is expiring on February 20, 2026. The total dollar value of the current contract is $163,196,797.03. The bridge action by modification is intended to extend the period of performance from February 21, 2026, through May 20, 2026, with an additional three one-month options from May 21, 2026 through August 20, 2026 (potentially six months in total).

Crowley Energy Alaska (Crowley) is the only responsible source that can satisfy the agency requirements at this time under the Federal Acquisition Regulation (FAR) 6.103-1, Only one responsible source and no other supplies or services will satisfy agency requirements. If approved this action will increase the overall contract value to $172,314,139.03.

2. Nature and/or description of the action being approved (FAR 6.104-1(a)(2)):

The procurement of these services for three months, with an additional three one-month options, is being conducted using the procedures under FAR 6.103-1, only one responsible source and no other services will satisfy agency requirements.

at DFSP Anchorage. To prevent this contract requires a three-month extension, with three one-month options to extend if needed. Without this action,

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

Justification for Other Than Full and Open Competition (Cont’d) (SPE603-25-C-5001 – Crowley Energy Alaska)

To ensure the successful execution of DFSP Anchorage's mission, it is essential that COCO fuel services maintain uninterrupted operations at this facility. Under this contract, the contractor is responsible to receive, store, and issue two grades of U.S. Government owned products with appropriate controls to ensure adequate fuel quality, inventory accuracy and environmental compliance in accordance with DLA Energy guidance, industry standards, and best commercial practices and complying with all applicable local policies, procedures, guidance and regulations.

The contractor will perform all fuel operations, inventory management, quality surveillance, maintenance, training, safety and environmental protection functions at the bulk storage site. The contractor is responsible for safely receiving and issuing fuel without causing delay, interruption, or demurrage. When directed by DLA Energy or when required for normal operations, the contractor is responsible for transferring products between tanks to consolidate types or grades.

The mission at DFSP Anchorage is by the contractor.

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

This J&A is based upon the authority of 10 U.S.C. §3204(a)(1), as implemented by Federal Acquisition Regulation (FAR) 6.103-1. The services required by the agency are only available from one responsible source and no other source services will satisfy agency requirements. The services sought are mission-critical fuel services and an award to a new source would result in substantial duplication of costs 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 using the authority cited (FAR 6.104-1(a)(5)):

, for the performance period of February 21, 2026, through

May 20, 2026, with an additional three one-month options from May 21, 2026 through August 20, 2026. The requirement for is paramount to mission success.

Transitioning to a new contractor would disrupt service a process for which the incumbent already has established and proven protocols.

Crowley has a documented record of acceptable performance, verified by the Contracting Officer's Representative (COR) and Contractor Performance Assessment Reporting System (CPARS). They currently possess a fully trained workforce, equipment, and situational familiarity necessary for uninterrupted services. Therefore, Crowley is the only source capable of

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