JA SP060424Q0419 OPIS 24_Redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

June 13, 2024 J&A Tracking Number: 24-0018

Justification for Other than Full and Open Competition

1. Summary/Introduction:

The Defense Logistics Agency (DLA) Energy, a component of the DLA, is the contracting activity and DLA Energy Market Research (DLA Energy-BPM) is the requiring activity. The purpose of solicitation SP0604-24-Q-0419 is to renew DLA Energy’s online subscription/publication to Oil Price Information Service (OPIS) that provides fuel pricing data used to adjust contract prices in DLA Energy’s Bulk Fuel, Bunkers, Into-Plane, and PC&S contracts. The resultant contract will be for a twelve-month period from July 1, 2024 to June 30, 2025. The total estimated value of the action is $368,156.00. Justification for other than full and open competition is provided in 10 U.S.C. § 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1.

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

The action is for the purchase of a subscription/publication renewal with OPIS that provides DLA Energy access to OPIS Time Series – Rack – Subscription, OPIS Wholesale Rack Report (as reported, to include and/or exclude carbon compliance costs, where applicable), OPIS Jet Contract Report, OPIS West Coast Spot Report, OPIS All Alerts, OPIS East of the Rockies Spot Report, OPIS EBIS Newsletter with OPIS Biofuels Alerts, OPIS Time Series - Refined Spots Subscription, OPIS Jet Fuel Report, OPIS Intraday Alerts, and OPIS Biodiesel Rack Report . OPIS provides a year’s worth of data for dozens of cities at a time, and DLA Energy uses this information for several different functions. DLA Energy requires OPIS’ fuel commodity coverage and its historical pricing database for escalator clauses present in a number of DLA Energy Bulk Fuel, Bunkers, Into-Plane, and PC&S contracts.

OPIS’ TimeSeries database allows Market Research to get a price series for a particular terminal price (Rack) for an energy product. It also allows them to obtain individual company prices that go into the Rack average. The TimeSeries function is necessary to perform analysis when it is suspected that a given reference fails to reflect the market for the product which DLA Energy is buying. The system calculates daily, weekly, monthly, and yearly trend analyses, making this information easily accessible for DLA Energy to make quick decisions. OPIS is the only source that provides this unique subscription that meets the Government’s requirements. The continuation of OPIS’ services is necessary to ensure that DLA Energy uses and has access to the best available data to adjust contract prices.

The resultant contract will cover a twelve-month period from July 1, 2024 through June 30, 2025.

This firm-fixed price contract will use funds from Fiscal Year 2024.

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

(SP0604-24-Q-0419 – OPIS)

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

DLA Energy requires OPIS’ fuel commodity coverage and its historical pricing database for escalator clauses present in a number of DLA Energy fuel contracts. The subscription includes OPIS rack and spot Time Series historical access for all current U.S. racks and spot markets, OPIS daily EOR refined spot prices for all available market and products, OPIS West Coast Report refined spot prices for all available markets and products, OPIS standard gross closing gasoline and diesel rack prices for 13 rack locations, daily jet spot market data for all markets and products, daily intraday news alerts, and a weekly OPIS EBIS newsletter. The previous contract, SPE604- 23-P-9310, also resulted from a sole source procurement and covered a twelve-month period. The estimated dollar value for the contract is $368,156.00.

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 Federal Acquisition Regulation 6.302-1(a)(2). The supplies required by the agency are available from one responsible source (OPIS) 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 6.303-2(b)(5)):

OPIS is the only source able to provide DLA Energy-BPM fuel pricing data used to adjust contract prices. OPIS is the owner of the proprietary price history data for both “TimeSeries” Rack and “TimeSeries” spot prices and is one of two sources that collect specific market data approved by both the commercial industry and DLA Energy. Market Research already has a contract with the other source so that each fuel type and location can be evaluated against one another in order to determine the best reflection of each market. It is essential for two independent pricing sources to best gauge the market.

Neither source’s data overlaps 100% with all markets serviced by DLA Energy, requiring both subscriptions to ensure the most comprehensive coverage. The breadth of the pricing information received through OPIS’s unique subscription ensures that the Government has the necessary pricing information for the contracts utilized in all of the locations that DLA Energy is responsible for servicing. Having access to both sources also ensures that each fuel type and location serviced by DLA Energy can be evaluated against one another in order to determine the best reflection of each market. When a solicitation is issued, DLA Energy Market Research performs a statistical comparison between OPIS and the other source (as applicable), with the Department of Energy’s benchmark data to access which economic price adjustment reference is best for any given line item in a solicitation. The uniquely gathered information provided by OPIS allows DLA Energy to use the pricing reference that most closely reflects the product and location for which DLA Energy is buying.

(SP0604-24-Q-0419 – OPIS)

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)):

As required by DFARS 206.303-2(b)(i) and DFARS PGI 206.303-2(b)(i), DLA Energy-FEA posted an intent-to-sole source notice on May 24, 2024 via SAM.gov (SP0604-24-Q-0419) and the notice closed on June 10, 2024. No vendors responded to the notice, resulting in no additional competition to meet this requirement. Therefore, OPIS is still the only source available to meet DLA Energy’s needs at this time. The information and benefits that OPIS provides have been shown to fit DLA Energy’s requirements.

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 Contracting Officer determines the quote offered by OPIS to be fair and reasonable in accordance with FAR 15.404-1 (b)(2)(vii), “Analysis of data other than certified cost or pricing data … provided by the offeror.”

OPIS provided DLA Energy’s Contracting Officer with the list price for the exact same offering to a non-Government organization. A commercial subscriber would pay for the same 12-month subscription. The discounted price for DLA Energy for the same subscription is $368,156.00. This results in a price that is lower than the commercial price and equates to an discount for the same subscription. Therefore, the Contracting Officer determines the prices fair and reasonable when compared to the pricing data provided by the offeror.

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)):

Agencies must conduct market research appropriate to the circumstance. (FAR 10.001(a)(2)). This was accomplished using a two-part departmental approach. Firstly, Market Research periodically reviews the market for new companies that could provide a similar type of product that OPIS provides with its “TimeSeries” database. Second, DLA Energy Procurement issued an Intent to Sole Source SP0604-24-Q-0419 on May 24, 2024 via SAM.gov in an effort to synopsize to the market community. No vendors responded to the notice resulting in no additional competition to meet this requirement.

(SP0604-24-Q-0419 – OPIS)

9. Any other facts supporting the use of other than full and open competition, such as (FAR 6.303-2(b)(9):

As required by DFARS 206.303-2(b)(i) and DFARS PGI 206.303-2(b)(i), DLA Energy-FEA posted an intent-to-sole source notice on SAM.gov (SP0604-24-Q-0419); no vendors responded to the notice resulting in no additional competition to meet this requirement. Therefore, OPIS is the only source available to meet DLA Energy’s needs at this time.

(i) Explanation of why technical data packages, specifications, engineering descriptions, statements of work, or purchase descriptions suitable for full and open competitor have not been developed or are not available.

The information provided by OPIS is proprietary and, therefore, DLA Energy is unable to develop a specific purchase description that would satisfy the requirements.

(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) :

No sources replied to the Intent-to-Sole Source Notice posted to SAM.gov.

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 known actions that will allow DLA Energy to overcome the competition barriers for this requirement.

(SP0604-24-Q-0419 – OPIS)

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.

Contracting Specialist

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.

I have reviewed and concur with this Justification.

Assistant Counsel

Approved:

JOY C. MASSEY

Contracting Officer