JA_-_Extension_of_JP-10_Contract_-_Redacted.pdf

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

FOR PRODUCTION OF JET PROPELLANT 10 (JP-10) AND PRIMING FLUID 1 (PF-1)

UNDER AUTHORITY OF

10 U.S.C. 2304 (c)(1) ONLY ONE RESPONSmLE SOURCE

1. Summary and Introductions: This justification is executed by the Defense Logistics Agency- Energy Aerospace Energy (DLA Energy- FEM), as the contracting activity for the extension modification for continued production of High Density, Synthetic Hydrocarbon Type Jet Propellant 10 (JP-1 0) and Priming Fluid, Air Launched Cruise Missile/ Air Cruise Missile (ALCM/ACM) Engine Propellant, Grade PF-1 (PF-1) in Bulk and Drum. The current contract, SP0600-09-D-1518, with Dixie Chemical Company, Pasadena, Texas, is set to expire on January 19, 2014. The modification will extend the period of performance for three and one-half months from January 20, 2014 through March 31,2014, with a total estimated cost of$10,500.00. The extension is being executed pursuant to contract clause I209.9 EXTENSION PROVISION (DESC APR 2003) and under the statutory authority of 10 U.S.C. 2304 (c)(1), Only One Responsible Source.

2. Description of Agency's Needs (10 U.S.C. 2304(t)(3)(A)): JP-1 0 and PF-1 are missile fuels/propellants used in support of various Navy and Air Force Cruise Missile programs such as and other Research and

Development programs. Some of the current DoD and commercial customers for these products include

. Based on the preceding, continuing supply of JP-10 is critical to National Defense and the U.S. Cruise Missile Programs.

3. Authority for Other than Full and Open Competition (10 U.S.C. 2304(t)(3)(B)): As stated under FAR 6.302-1 , statutory authority for this contracting action is 10 U.S.C. 2304 ( c)(1) Only One Responsible Source, the current incumbent, Dixie Chemical Company. As allowed DoD in accordance with FAR Part 6.302-1 (b )(1 )(i) which states: "When there is a reasonable basis to conclude that the agency's minimum needs can only be satisfied by unique supplies or services available from only one source or only one supplier with unique capabilities."

Currently, Dixie Chemical is the only known only domestic production facility capable of producing JP -1 0/PF -1.

a. Procurement History: The original contract SP0600-03-D-1509 was competitively awarded to Dixie Chemicals on February 20, 2003. At the time of award of that contract, Under the current production contract SP0600-09-D-1518, . Dixie's facility in Pasadena, Texas, is now the only production facility capable of producing JP-10/PF-1 in the United States. In addition, DLA Energy- FEM requires a domestic production facility for its source of JP-10/PF-1 as all

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Typewritten Text orders are rated under the Defense Production Act System (DP AS). The current contract was originally scheduled to end January 19,2014.

b. Current Procurement/Award: DLA Energy - FEM received offers under solicitation SPE601-13-R-0324 for the follow on JP-1 0/PF-1 requirements. Though DLA Energy- FEM structured the solicitation to result in a timely award, resulting in a procurement timeline beyond what was reasonably foreseen. After further discussions

, and the follow-on contract was awarded to Dixie Chemicals. However, due to the new contract's requirements the period of performance cannot begin until April1, 2014, leaving a three and one-half-month performance gap.

The current contract does include the Clause 1209.9 EXTENSION PROVISION (DESC APR 2003); however, the MMF was not evaluated at award, thus DLA Energy - FEM is executing this Justification.

4. Price/Cost Considerations (10 U.S.C. 2304(0(3)(C): The contract is for commercial product therefore certified cost and pricing data will not be obtained. Prices for the extension will be firm-fixed price at . DLA Energy- FEM has determined that the anticipated cost to the Government is fair and reasonable based on comparison to the MMF prices under the new contract, SPE601-14-D-1502, which was recently awarded with full and open competition.

, which were determined fair and reasonable based on adequate price competition.

5. Market Research/Efforts to Obtain Competition (10 U.S.C. 2304(0(3)(D & E): The offeror is the sole domestic supplier of JP-1 0/PF-1 and has indicated an interest in continuing to distribute the product under this contract. Dixie Chemical has an active production and storage facility capable of meeting the Government' s needs. Dixie Chemicals has just been competitively awarded the follow-on contract for these products and services and will continue to be the distributor for the next five years. There is no other known source that currently has the infrastructure in place to meet our JP-1 0 needs for this gap extension period. While there is no other known source, DLA Energy- FEM's recent solicitation included line items to allow new offerors to propose construction of additional facilities capable of producing JP-1 0.

6. Actions Being Taken to Overcome Barriers to Competition (10 U.S.C. 2304(0(3)(F):

The Government is actively sought competitive prices for the follow-on contract action. The follow-on procurement was synopsized on the Government's e-commerce web site, www.fedbizopps.gov and a Pre-Proposal was held with several offerors to attending.

offers were received, . The follow-on was competitively awarded to Dixie Chemicals after evaluation.

Based upon the preceding, it is necessary to extend Dixie Chemical's contract for three and one half-months to March 31,2014 using the Clause 1209.9 EXTENSION PROVISION (DESC APR 2003) included in the contract. This additional three-and-one-half-month timeframe will match up the current contract with the newly awarded contract with no lapse ofDFSP services.

I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief.

BARBARA M. PETERSON

Contracting Officer Date:

I hereby certify that the data which forms the basis for this justification is accurate and complete and that the contract extension covers only the minimum requirements to satisfy the needs of the Government.

KENNETH GRAMS

Director, Customer Operations Date: ------------------

I have reviewed and concur with this justification.

DLA Energy Counsel Date: l(p 12ti Wt3;>

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