JA Extension .pdf

Justification for Other Than Full and Open Competition (Cont’d) SP0600-12-C-0359- Kropp Holdings Inc DBA KHI

Due to the time required to and the transition time needed on these contracts, a 6-month extension with a 6-month option of the current AIR Card® and Sea Card® Contract is required to ensure that there is no mission failure in this critical program due to any gap in performance. This would change the Contract expiration date from December 31, 2022, to December 31, 2023, if the 6-month option is exercised.

Funding is provided by the DWWCF for $240,000.04 to fund this requirement for the 6 months with an option to extend for an additional 6 months. This action is sole sourced to KHI due to unusual and compelling circumstances and the urgency of need.

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

This is a performance-based requirement. Successful performance will be measured by full compliance with the Performance Work Statement (PWS). Under this card transaction service Contract, the contractor is responsible for providing AIR and SEA Card® transaction processing; customer service; a retail merchant network; and an Electronic Access System (EAS). The AIR Card® program requires issuance of charge cards. The total dollar value of the current Contract is $2,909,144.96.

In order to meet the mission under the AIR and SEA Card® Programs, it is critical the card transactional services are not interrupted. Under this Contract, the contractor is responsible for supporting over 17,000 aircraft in procuring commercial aviation fuel and ancillary services at over 3,000 commercial airports worldwide; processing over 278,000 transactions annually of combined contract and retail fuel purchases for a total of $741 million in sales. In addition, the contractor manages and maintains an online order management system that supports ships’ bunker refueling. This system electronically connects DLA Energy bunkers merchant to vessel ordering officers supporting more than 780 Department of Defense vessels in over 2,170 ports worldwide; processing over 1,869 transactions annually of combined contract and open market purchases for a total of $229 million in sales. The contractor is responsible to provide 24/7 customer support through their help desk and EAS system.

The estimated value of the services for 6-months (from January 1, 2023, through June 30, 2023) with an option to extend for an additional 6 months (from July 1, 2023, through December 31, 2023) is $240,000.04.

4. Identification of the statutory authority permitting other than full and open competition (FAR 6.303-2(b)(4)):

The circumstances are of such an unusual and compelling urgency that the authority of 10 U.S.C. § 3204(a)(2), as implemented by Federal Acquisition Regulation 6.302-2 -- Unusual and Compelling Urgency, justifies this action. DLA Energy’s need for the continued transaction processing support under the Fuel Card program is such that the Government would be seriously injured unless DLA Energy is permitted to limit the solicitation and award to the contractor currently performing. As explained below, due to the time it would take to transition to a new contract, KHI is the only capable source available in this short time frame to avoid a disruption in service.1

1 Due to the fact that this contract action is below the Simplified Acquisition Threshold, the authority of 10 U.S.C. § 3205(a)(1) and FAR 13.106(b)(1) may also apply: a contracting officer may solicit from a single source when “ the contracting officer determines that the circumstances of the contract action deem only one source reasonably available

Justification for Other Than Full and Open Competition (Cont’d) SP0600-12-C-0359- Kropp Holdings Inc DBA KHI

In addition, the Government conducted an independent cost estimate (IGCE) based on market research into shipping costs and card costs from other contracts for the same or similar services concluded the cost of is fair and reasonable. The IGCE is as follows:

Quantity Cost per Total Cost

Therefore, based on the comparison to prices obtained by market research, the negotiated price of is considered fair and reasonable.

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)):

For the follow-on AIR Card® and SEA Card® acquisitions to the current Contract, DLA Energy conducted market research that demonstrates these services are available commercially. DLA Energy supplemented the information about general market conditions for these services by reviewing the previous contract and reviewing the responses to the combined synopsis/solicitation for AIR Card® services, which was posted to SAM.gov on June 22, 2021. The Government received to the combined synopsis/solicitation for the follow-on AIR Card® competition. DLA Energy also reviewed the responses to the combined synopsis/solicitation for SEA Card® services, which was posted to SAM.gov on July 22, 2021. The Government received to the combined synopsis/solicitation for follow-on SEA Card® competition.

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.