JA OTB JAA West Oahu 2.pdf

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

J&A Tracking Number: 23-0015

Justification for Other than Full and Open Competition

1. Summary/Introduction:

Defense Logistics Agency (DLA) Energy is the Integrated Materiel Manager (IMM) and contracting activity for petroleum products and services for the Department of Defense (DoD).

This Justification and Approval (J&A) is for the procurement of 1,680,000 USG of Turbine Fuel, Aviation (JAA) on an other than full and open competition basis from IES Downstream, LLC (IES) in support of Defense Fuel Supply Point (DFSP) West Oahu. X. The estimated dollar value is $5,800,468.80; the period of performance will be complete upon date of award.

2. Nature and/or description of the action being approved (FAR 13.5 & 6.303-2(b)(2):

DLA Energy Bulk Petroleum Services recently commissioned DFSP West Oahu with IES, a Contractor-Owned, Contractor-Operated (COCO) vendor, primarily to support the defueling and closure of the Red Hill Underground Storage facility. The storage tanks at the DFSP currently contain 1,680,000 USG of residual IES-owned JAA. This residual volume (known as “tank heels”) consists of unobtainable/residual product which cannot easily be removed from the tanks.

This volume must be purchased from IES and properly accounted for in advance of commencing operations at DFSP West Oahu. DLA Energy anticipates awarding a fixed price contract for this volume to IES using Defense Working Capital Funds.

3. Description of supplies or services required to meet the agency’s need (including estimated value) (FAR 13.5 & 6.303-2(b)(3)):

This requirement is for a one-time purchase of 1,680,000 USG of unobtainable/residual Turbine Fuel, Aviation (JAA) stored in fuel tanks at DFSP West Oahu under DLA Energy IES COCO contract SPE603-23-C-5000. The estimated dollar value of this volume is $5,800,468.80.

4. Identification of the statutory authority permitting other than full and open competition (FAR 13.5 & 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 13.5.

The supplies required by the agency are only available from one responsible source and no other type of supplies will satisfy agency requirements.

5. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited (FAR 13.5 & 6.303-2(b)(5)):

As per paragraph 2, DLA Energy recently established and commissioned DFSP West Oahu. The storage tanks at the DFSP currently contain 1,680,000 USG of residual IES-owned JAA which is typical residual volume that remains in a tank when commissioning newly built storage tanks;

Justification for Other Than Full and Open Competition (Cont’d) Page 2 of 4 this volume must be purchased from IES and properly accounted for in advance of commencing DLA Energy operations at DFSP West Oahu.

Therefore, per FAR 13.501, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, IES is the only available source for this jet fuel.

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 13.5 & 6.303-2(b)(6)):

DLA Energy must procure and account for the IES-owned JAA residual volume of 1,680,000 USG currently held in the storage tanks at DFSP Oahu in order to commence operations at this location. The required product is owned by IES; therefore, there are no other sources. In accordance with FAR 13.5 a synopsis was not posted due to the nature of the requirement.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable (FAR 13.5 & 6.303-2(b)(7)):

The Contracting Officer determines that the anticipated cost to the Government will be fair and reasonable based on prices received for comparable products in the region.

8. Description of the market research conducted and the results or a statement of the reason market research was not conducted (FAR 13.5 & 6.303-2(b)(8)):

DLA Energy did not conduct market research, as the required residual volume stored in tanks at DFSP West Oahu is owned by IES.

9. Any other facts supporting the use of other than full and open competition, such as (FAR

13.5 & 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.

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

Justification for Other Than Full and Open Competition (Cont’d) Page 3 of 4

Not applicable.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition (FAR 13.5 & 6.303-2(b)(10)):

Not applicable.

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 13.5 & 6.303- 2(b)(11)):

DLA Energy is unable to overcome the barriers to competition due to the nature of this one-time requirement, issued solely for operational purposes.

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.

MATTHEW R. PADFIELD ANTAEYAH E. SCALES

Contract Specialist Contracting Officer

CANDIS H. SCHIEFER

Deputy Director, Bulk Petroleum Products

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.

SEAN W. LUCAS

Chief, Inventory & Distribution Management

Justification for Other Than Full and Open Competition (Cont’d) Page 4 of 4

I have reviewed and concur with this Justification.

JOSHUA D. CATLIN

Director, Bulk Petroleum Products

I have reviewed and concur with this Justification.

ALEX M. MAYFIELD

Senior Counsel

Approved:

CATHERINE A. DRAPER

Advocate for Competition