JA Final_Redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

23-0009

Justification for Other than Full and Open Competition

1. Summary/Introduction:

This Justification and Approval (J&A) is in support of a significant change of services under contract SPE600-17-C-5039 with Siege Enterprises, LLC on an other than full and open competition basis. The SPE600-17-C-5039 contract is a firm-fixed price contract for Government-Owned, Contractor-Operated (GOCO) Fuel Storage Services at Defense Fuel Support Point (DFSP) Tampa, FL. This J&A authorizes the Defense Logistics Agency – Energy (DLA-Energy) to seek services from only one responsible source to meet DLA-Energy’s requirements in accordance with (IAW) Federal Acquisition Regulation (FAR) 6.302-1. The total estimated value of the Performance Work Statement (PWS) changes is $376,363.48 and the period of performance will be April 3, 2023 through November 3, 2026.

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

The action being approved is the changes of services under contract SPE600-17-C-5039 for the remaining period of performance for the contract IAW FAR clause 52.243-1 CHANGES - FIXED-PRICE (AUG 1987) Alternate I. The proposed changes include environmental compliance (i.e. Environmental Protection, Storm Water and NPDES Permit Monitoring and Sampling, Petroleum Contact Water (PCW) disposal, and Pest and Vegetation Management) and an Oil Spill Removal Organization (OSRO) implementation which are connected to the GOCO fuel storage services at DFSP Tampa. IAW 40 CFR Appendix E to Part 112 - Section 5.8, the Contractor will be required to maintain a qualified OSRO on retainer in the event of a product release as a new part of the Contractor’s already existing Tier II and Tier III spill response. The Contractor will also include an environmental technician to keep up with all the mandatory environmental standards that the contractor is required to maintain and implement.

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

Justification for Other Than Full and Open Competition (Cont’d) (SPE60017C5039 – Siege Enterprises, LLC)

The commercial services required under SPE600-17-C-5039 for the period of April 3, 2023 through November 3, 2026 include the OSRO retainer in case of Tier II and Tier III fuel spill response, Environmental Technician, Environmental Protection, Storm Water and NPDES Permit Monitoring and Sampling, Petroleum Contact Water (PCW) disposal, and Pest and Vegetation Management. The estimated value of the added services is $376,363.48 over the length of the contract; until November 3, 2026.

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

This J&A is based upon the authority of 10 U.S.C. §3204(a)(1), as implemented by FAR 6.302- 1, and more specifically, the authority of FAR 6.302-1(a)(2). When the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for.

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)):

The contractor has performed fuel storage services at DFSP Tampa on contract SPE600-17-C- 5039 since 2017. Research in Federal Awardee Performance and Integrity Information System (FAPIIS) indicates that the contractor has performed Satisfactorily overall on multiple contracts.

The contractor has the knowledge and experience, and equally important the equipment, materials, manpower and all other resources necessary in place at DFSP Tampa to immediately meet DLA-Energy’s requirements at DFSP Tampa for the next four years.

Failure to execute the change will hinder DLA-Energy’s continued support to the Warfighter and ability to meet the operational needs for GOCO fuel storage services at DFSP Tampa in the event of a fuel spill. IAW DoDM 4140.25 Volume 8 section 3.3, DLA will manage emergency spill response and cleanup for the DFSP. If an OSRO retainer is not in place, in the case a Tier II and/or Tier III spill response is required, the DFSP will not be sufficiently prepared. Regulations require that an OSRO be on retainer, and because the contractor is in charge of fuels for Tampa, they should also oversee the fuel spill response. OSRO services are only necessary during a fuel spill, so it’s important to utilize the current contractor to provide these services to prevent excessive expenses to the government. With Siege directly involved with fuels operations, they will have the fastest response to a fuel spill and can quickly the deploy the OSRO. The duplication of efforts would also be avoided, as the contractor already has a Tier II and Tier III spill response, this change will only add an additional requirement to that spill response.

Additionally, the time and costs associated with an acquisition on a full and open competition basis under FAR Part 6 are avoided by executing the change pursuant to this J&A

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

(SPE60017C5039 – Siege Enterprises, LLC) as required by Subpart 5.2 and, if not, which exception under 5.202 applies (FAR 6.303- 2(b)(6)):

The change of scope of services under the current contract to include the additional requirement to have an OSRO retainer was synopsized and posted on sam.gov on September 29, 2022. No source expressed interest in this requirement, therefore this change of scope is using other than full and open competition to ensure continuity of services at DFSP Tampa.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable (FAR 6.303-2(b)(7)):

In accordance with FAR 15.404-1(b)(2)(v), Siege’s proposed prices were compared with the Independent Government Estimate (IGE) prepared by DLA Energy Terminal Operations.

The weighted guidelines method in accordance with DFAR 215.404-70 Weighted Guidelines, DD Form 1547 was utilized to evaluate the profit. The objective of the weighted guidelines was 10%, 2% higher than the proposed profit. The proposal profit of 8% is considered to be fair and reasonable. Based on the price comparison with the IGCE and the Weighted Guidelines, DD Form 1547 the proposed price is determined fair and reasonable.

The Contracting Officer has determined that the total anticipated cost of $376,363.48 is 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)):

Market research was conducted using the proposals received under the solicitation for the follow-on contract at DFSP Tampa (SPE600-17-C-5039). That market research shows there are multiple service-disabled veteran-owned small businesses that appear to be capable of performing the services required under the solicitation. However, as mentioned in Section 6 above, no source expressed an interest to the synopsized requirement as posted on September 29, 2022.

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.

(SPE60017C5039 – Siege Enterprises, LLC)

(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.

(iii) When 6.302-2 is cited, estimated cost, or other rationale as to the extent and nature of the harm to the Government.

Not applicable.

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

As mentioned in Section 6, no sources expressed, in writing, an interest in the proposed extension of services.

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 6.303-2(b)(11)):

There are no barriers obstructing competition at this location. Contract SPE600-17-C-5039 was competitively awarded using a total set-aside for service-disabled veteran-owned small business procedures.

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.

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.

(SPE60017C5039 – Siege Enterprises, LLC)

I have reviewed this Justification.

Approved: