JA SP060425Q0413 OPIS 25Signed_Redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

June 4, 2025 J&A Tracking Number: 25-0021

Justification for Other than Full and Open Competition

1. Summary/Introduction:

The Defense Logistics Agency (DLA) Energy, a component of DLA, is the contracting activity and DLA Energy Market Research division (DLA Energy - BPM) is the requiring activity. The purpose of solicitation SP0604-25-Q-0413 is to renew DLA Energy’s online subscription/publication to Oil Price Information Service (OPIS), which 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, 2025 to June 30, 2026. The total estimated value of the action is . 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 with OPIS that provides DLA Energy access to OPIS Ethanol and Biodiesel Information Service, OPIS Biofuels Daily Report, OPIS Time Series Rack Subscription, OPIS Time Series - Refined Spots Subscription, OPIS West Coast Spot Report, OPIS East of the Rockies Refined Spot Report, OPIS Jet Fuel Report, OPIS Jet Contract Report, OPIS Wholesale Rack Report – Both, OPIS Biodiesel Rack Report, and OPIS Intraday Alerts. OPIS provides at least twelve months of data for dozens of cities at a time, OPIS’ fuel commodity coverage, and its historical pricing database that are used for escalator clauses present in a number of DLA Energy Bulk Fuel, Bunkers, Into-Plane, and PC&S contracts.

OPIS’ Time Series databases is a tool that provides Market Research to get a price series for a particular terminal price (Rack) for an energy product. It also provides individual company prices that go into the Rack average. The Time Series 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 purchasing. The system calculates daily, weekly, monthly, and yearly trend analyses, making this information easily accessible for DLA Energy to make decisions in a fast-paced environment.

OPIS is the only source that provides this type of subscription. The continuation of OPIS’ services is necessary to ensure that DLA Energy has access to this data to order to adjust contract pricing.

The resultant contract will cover a twelve-month period from July 1, 2025, through June 30, 2026.

This firm-fixed price contract will use funds from Fiscal Year 2025.

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

(SP0604-25-Q-0413 – 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 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, SPE604-24-P-9308, also resulted from a sole source procurement and covered a twelve-month period. This procurement has an estimated dollar value for the contract is

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

The statutory authority permitting other than full and open competition is 10 U.S.C. 3204(a)(l), as implemented by FAR Part 6.302-1(a)(2). The supplies required by the agency are available from only one responsible source (OPIS) and no other type of supplies will satisfy the agency’s requirements. Due to the proprietary nature of the membership, OPIS is the only source available for the required subscription. Therefore, in accordance with FAR 6.302-1(a)(2), OPIS is the only responsible source that 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’s fuel pricing data used to adjust contract prices. OPIS is the owner of the proprietary price history data for both “Time Series” Rack and “Time Series” spot prices and is one of two sources that collect specific market data approved by both the commercial industry and DLA Energy. DLA Energy-BPM currently has a contract with the secondary 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 to access two independent pricing sources to best gauge the market.

Neither source’s data overlaps 100% with all markets serviced by DLA Energy, thereby requiring both subscriptions to ensure the most comprehensive coverage. The breadth of the pricing information received through OPIS’s unique subscription service 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-BPM 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

(SP0604-25-Q-0413 – OPIS)

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.

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 May 6, 2025, DLA Energy-Installation Energy posted an Intent-to-Sole-Source Notice on SAM.gov; this Notice closed on May 21, 2025. One source Vesequ LLC (Vesequ), CAGE 9W5F2, responded to the Intent-to-Sole-Source Notice on May, 07, 2025. Vesequ indicated they could provide OPIS or an alternative to OPIS through their platform at a lower rate, but provided no further information. OPIS indicated they do not sell their subscription to third-parties.

Therefore, it was determined that Vesequ could not fulfill this requirement.

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 price offered by OPIS to be fair and reasonable in accordance with FAR 13.106-3 (a)(2)(iii), comparison of offered price with "current price lists, catalogs, or advertisements."

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

. 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 in accordance with FAR 10.001(a)(2)). This was accomplished using a two-part departmental approach. First, DLA Energy- BPM periodically reviews the market for new companies that could provide a similar type of product that OPIS provides with its “Time Series” database. Second, DLA Energy’s Contracting Office issued an Intent-to-Sole-Source SP0604-25-Q-0413 on May 6, 2025 via SAM.gov in an effort to synopsize to the market community. One potential vendor, Vesequ, responded to the notice with a capabilities statement. Additional market research was performed, and it was determined that the potential vendor would not be able to acquire the technical capabilities required to fulfill this requirement. Therefore, it has been determined that OPIS is the only source available to meet DLA Energy’s needs at this time.

(SP0604-25-Q-0413 – OPIS)

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 competitor have not been developed or are not available.

Purchase descriptions suitable for full and open competition are not available. The information provided by OPIS is proprietary and not sold by third party resale. Therefore, we are unable to develop a specific purchase description that would satisfy the Government’s 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) :

An Intent-to-Sole-Source Notice was posted to www.sam.gov on May 6, 2025. On May 7, 2025, one vendor, VESEQU, responded, to the notice with a capabilities statement. Additional market research was performed, and it was determined that the potential vendor would not be able to acquire the technical capabilities required to fulfill this requirement. No other sources responded.

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.

(SP0604-25-Q-0413 – 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.

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.

Approved: