JA_Legal_recommend_redact_NAS_JAX_BRIDGE.pdf

DDEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

J&A Tracking Number 26-0001

Justification for Other than Full and Open Competition For Bulk Fuel Services at Naval Air Station (NAS) Jacksonville

UNDER AUTHORITY OF

10 U.S.C. § 3204 (a)(1): One Responsible Source

1. Summary/Introduction:

The Defense Logistics Agency (DLA) Energy, a major subordinate command of DLA, is the contracting activity for bulk petroleum products and services for the Department of Defense (DoD). This justification & approval (J&A) is for the award of a three-month bridge action with a three-month option extension by modification on contract SPE600-15-C-5000 for alongside aircraft refueling and fuel storage services in Jacksonville, Florida. The original contract, SPE600-15-C-5000, was competitively awarded on November 28, 2014 as a five-year base period from June 1, 2015 to May 31, 2020, plus a five-year option period, and a six-month extension provision. The current term will expire on November 30, 2025. This justification will result in a contract modification that will require the contractor, United Paradyne Corporation (UPC) to continue providing bulk storage services, alongside aircraft refueling services, and the entire fuels management services, as the only responsible source that can satisfy the agency requirements under the authority found at Federal Acquisition Regulation (FAR) 6.302- 1(a)(2)(iii). This includes services to provide safe, accurate and timely handling, quality control, and accountability of Defense Working Capital Fund-owned petroleum products and to perform required maintenance to ensure facilities, associated systems, vehicles, and equipment remain operational to meet the U.S. Navy’s mission.

The new performance period will begin December 1, 2025 through February 28, 2026, with a three-month option to extend from March 1, 2026, through May 31, 2026. The total value of this bridge action is $1,387,493.94, which would increase the contract value from to

. The extension provision under FAR 52.217-8, Option to Extend Services (November 1999) was exercised under P00036 of the current contract. This action constitutes a bridge action by contract modification under DLAD 17.9601(a) and is reported at the appropriate levels in accordance with DLAD 17.9605.

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

The procurement of these services for three months, and a three-month option, is being conducted using the procedures under FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements. This J&A authorizes a bilateral modification under the authority granted by 10 U.S.C. §2922, liquid fuels and natural gas:

contracts for storage, handling, or distribution as amended by Section 881 of the National

Defense Authorization Act for Fiscal Year 2018 and will not exceed the maximum thirty years as authorized under 10 U.S.C. §2922, as amended.

The procurement for the follow-on contract for Government-Owned, Contractor-Operated (GOCO) Fuels Management Services at Naval Air Station (NAS) Jacksonville, FL experienced delays due to a confluence of factors, including staffing challenges within DLA Energy's Bulk Petroleum Supply Chain Services Business Unit (BU). The surge in staff attrition, exacerbated by inexperienced personnel, loss of senior acquisition personnel and a key critical position (Division Chief). While the BU is actively working to train a team of PaCERs and new personnel, the immediate impact of this transition has affected ~25 procurement timelines and poses a risk to maintaining bulk storage services, alongside aircraft refueling services, as well as the fuels management services at NAS Jacksonville.

Specifically, the unexpected departure of experienced acquisition personnel required the assignment of the procurement to less experienced personnel. While these individuals are receiving intensive training and support, the increased complexity of these GOCO Fuels Management Services procurements necessitates a more thorough review process to ensure the government's interests are fully protected and that the resulting contract meets all operational needs. This intensive review, while crucial for mitigating potential risks associated with an inexperienced team, has extended the projected award date. This bridge action by contract modification will ensure the continued performance of critical fuel services at NAS Jacksonville, Florida. The requirement for refueling services at NAS Jacksonville is continuing and highly specialized, and the risk of failure, to include, schedule disruptions, cost increases, other adverse impacts to the Government, or mission degradation are high.

For the fuel services at NAS Jacksonville, the customer (U.S. Navy) requires continuous, high quality bulk storage services and fuels management services. The existing incumbent is already providing these pertinent services. They have the necessary workforce and infrastructure in place, including trained personnel and transitioning to a new contractor would risk a break in service that could disrupt the mission. UPC also possesses the necessary expertise to manage the specific environmental concerns and mitigate the facility risks associated with NAS Jacksonville.

Any new contractor would face significant delays in training personnel, leading to a gap in services. Awarding this contract to any contractor would create an unacceptable risk of mission failure due to a critical gap in service delivery. The mission at NAS Jacksonville is dependent upon the current fuel services provided by the incumbent contractor, UPC. Therefore, in accordance with FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements, a sole-source award to the incumbent contractor is the only responsible course of action to ensure continuity of critical services.

The solicitation for the follow-on procurement to contract SPE60015C5000 was issued on August 14, 2025, and closed on October 16, 2025.

The anticipated award date is January 9, 2026. There is not a contract transition schedule; however, delivery of the required fuel trucks can take from six months because they must be purchased or leased, and possess specifications as stated in the performance work statement. With the contract expiring on November 30, 2025, a bridge action by contract modification for three months with a three-month option is required to complete the detailed technical evaluation of price proposals, accomplish meaningful negotiations, and to allow the selected offeror the opportunity to provide the necessary equipment (vehicles).

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

The current contract, SPE600-15-C-5000, was competitively awarded to UPC on November 28, 2014 at a total contract value of $18,229,159.40. The bridge action by contract modification will extend the period of performance to February 28, 2026 with a three-month option through May 31, 2026, and provides bulk storage services, alongside aircraft refueling services, and fuels management services at NAS Jacksonville. This includes services to provide safe, accurate and timely handling, quality control, and accountability of Defense Working Capital Fund-owned petroleum products and to perform required maintenance to ensure facilities, associated systems, vehicles, and equipment remain operational to meet the U.S. Navy’s mission.

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(b)(B), as implemented by FAR 6.302- 1, and more specifically, the authority of FAR 6.302-1(a)(2)(iii). The services sought are highly specialized and available only from the original source for this follow-on contract. Awarding a contract to a new source would likely result in substantial duplication of costs to the Government, this 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 use of the authority cited (FAR 6.303-2(b)(5)):

The services required are available only from UPC to satisfy the Agency’s requirements. The mission at NAS Jacksonville is dependent upon the current fuel services provided by the incumbent contractor (UPC), including timely fuel support, system maintenance, and quality control in accordance with U.S. Navy standards. The existing workforce is trained and ready to conduct operations without interruption. UPC’s performance for these services is acceptable based upon assessments from the Contracting Officer Representative and ratings in the Contractor Performance Assessment Reporting System. In addition, UPC currently possesses all necessary equipment, knowledge of environmental issues, and personnel to sustain services;

thus, making them the only viable source to ensure the continuity of services.

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

On July 19, 2024, a Sources Sought Notice (SSN) was posted to the contracting opportunities website at SAM.gov, to solicit capability statements from potential vendors and provide notice of the follow-on contract. DLA Energy received nine responses:

The Program Manager reviewed the capability statements and found each capable of meeting the requirements based on their responses to the SSN. Solicitation SPE603-25-R-0508 was issued on August 14, 2025, and closed on October 16, 2025. The anticipated date of award is January 9, 2026. The potential awardee is required to obtain vehicles and based on historical data, the timeframe to procure the vehicles is six months. The current contract expires on November 30, 2025; therefore, to ensure continued performance and avoid mission failure, the Government must rely upon the incumbent’s continued performance. The Government did not issue a new notice of this requirement in accordance with FAR 5.201. The decision not to issue this notice is authorized in accordance with FAR 5.202(a)(2) because the proposed contract action is being made under the conditions described in FAR 6.302-1 and the Government has determined it would be seriously injured if DLA Energy complied with the time periods specified in FAR 5.203. With the beginning of the three-month period of performance and three-month option to extend, this bridge by contract modification, the Government intends to continue resolicitation efforts for these services using competitive procedures. In accordance with FAR 6.305(a), the Justification and Approval will be redacted and posted to the System for Award Management (SAM) website within 14 days of modification release.

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 price proposed by UPC for the bridge action is expected to remain as the monthly usage charge on the current contract of $231,248.99. Although the price for the current contract and all options to include the six one-month extensions was determined fair and reasonable ten years ago based on adequate competition under FAR15.404-1(b)(2)(i), the price for the monthly usage charge on the current contract of $231,248.99 represents the current market labor since prices have been adjusted yearly as the result of changes to prevailing labor rates provided by the Collective Bargaining Agreement between UPC and the International Association of Machinists and Aerospace Workers, AFL-CIO Local Lodge Number 759, effective June 1, 2025 to May 31, 2026. The Government does not expect the price of awarding a six-month contract to a new contractor to be recovered through competition as an award to a new contractor would include duplicated costs. An informal analysis of prices shows that awarding a bridge action is in the Government’s best interest (See Section 9). Therefore, the Contracting Officer determined the bridge action to be fair and reasonable in accordance with FAR 15.403-1(c)(1), adequate price competition.

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 performed for the follow-on contract, SPE603-25-R-0508, was also used for this bridge action. A SSN was published on the SAM website by DLA Energy – FESAB on July 19, 2024, to solicit capability statements from potential vendors and provide notice of the follow-on contract. DLA Energy received nine responses:

The program manager reviewed the capability statements and found each capable of meeting the requirements based on their responses to the SSN. Solicitation SPE603-25-R-0508, which was competed using full and open competition, was issued on August 14, 2025, and closed October 16, 2025. Given the unusual and compelling need to have a follow-on contract in place at NAS Jacksonville to ensure continued performance and avoid mission failure.

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.

Solicitation SPE603-25-R-0508 was issued on August 14, 2025, and closed on October 16, 2025. The anticipated date of award is January 9, 2026. The potential awardee is required to obtain vehicles and based on historical data, the timeframe to procure the vehicles is six months. The expiration of the current contract is November 30, 2025.

The services sought are mission critical and an award to a new source would likely 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. If contractual services at NAS Jacksonville, FL cease, the impact would be immediate and severe, disrupting the receipt, storage, and distribution of critical military fuels (JP5 and lubricants) across a high-volume Department of War fuel complex in the continental U.S. This would jeopardize fuel support to numerous fleet and industrial customers, including Navy, Marine Corps, and joint service operations, halt replenishment of naval vessels and aircraft, and cripple operational readiness. With millions of barrels of fuel being moved annually through numerous tanks, pipeline, and multiple refueling points, any lapse in service would compromise mission continuity, national defense readiness, and regional energy security. The risk of service disruption also outweighs any potential cost savings from a competitive award.

The cost for the current contract is approximately $1,387,493.94 per year. Cost to the Government would be duplicated if another contractor provided the service. The total estimated duplicated costs is $338,700 which includes costs for Administrative, Insurance, maintenance, personal protective equipment, and personnel training.

Estimates were reached through market research, reviewing the Independent Government Cost Estimate (IGCE) provided by the program manager, and reviewing data from Florida Department of Environmental Protection (FDEP), City of Jacksonville, FL, Florida Statutes, and Florida Administrative Code (Underground and Aboveground Storage Tank Systems).

Awarding this contract to any source other than the incumbent, UPC, would create an unacceptable risk of mission failure due to a critical gap in service delivery. Furthermore, the Government estimates that awarding a contract to a new contractor would result in approximately $340,000 in duplicated costs. A new contractor would face significant delays in acquiring the necessary infrastructure, permits, and training personnel, which would lead to a gap in services.

The mission at NAS Jacksonville is dependent upon the current fuel services provided by the incumbent contractor, UPC. The customer requires continuous, high quality bulk storage services and fuels management services. Timely fuel support, system maintenance, and quality control IAW U.S. Navy standards are required to meet the mission. The incumbent is already providing these services, and transitioning to a new contractor would risk a break in service that could disrupt the mission. The incumbent has the necessary workforce and infrastructure in place, with the personnel already trained and prepared to handle the operations. A new contractor would face significant delays in acquiring the necessary infrastructure, permits, and training personnel, which would lead to a gap in services. Awarding this contract to any source other than the incumbent, UPC, would create an unacceptable risk of mission failure due to a critical gap in service delivery.

(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)):

DLA Energy FESAB received nine responses to the SSN published on July 19, 2024, for the follow-on contract:

The solicitation for the follow-on procurement closed on October 16, 2025. Proposals were received from eight interested offerors.

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 to competition at this location. The Government has procured these services competitively in the past and intends to continue to do so. Solicitation SPE603-25-R- 0508, the follow-on contract, was issued using full and open competition, and is scheduled to be awarded prior to the expiration of the six-month bridge action. The anticipated award date is on or before January 9, 2026, with performance beginning on June 1, 2026.

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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.

Contract Specialist

Contracting Officer

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:

Chief of Requirements Division

I have reviewed and concur with this Justification

I have reviewed and hereby recommend that this Justification be approved:

DLA Energy Alternate Advocate for Competition