JA SPE603-21-R-0503_Redacted Final_Redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

J&A Tracking Number 21-0001

Justification for Other than Full and Open Competition

1. Summary/Introduction:

Defense Logistics Agency (DLA) Energy is the executive agent for Bulk Petroleum Supply Chain Services and the contracting activity for petroleum products and services for the Department of Defense (DoD). This Justification & Approval (J&A) is hereby submitted by DLA Energy- FESDB in accordance with Federal Acquisition Regulation (FAR) 6.302-1 and 13.501(a). It authorizes the use of other than full and open competition procedures for the acquisition of petroleum laboratory testing services under solicitation SPE603-21-R-0503.

The resultant contract will be a fixed-price contract with a two-year base period (May 1, 2021 through April 30, 2023) and a two-year option period (May 1, 2023 through April 30, 2025). The IGCE includes the estimated value of a six-month extension in accordance with FAR Clause 52.217-8 Option to Extend Services. The contract will support a proficiency testing program for the DLA Energy and Military Service Petroleum Laboratories that will enable DLA Energy to improve and maintain a high level of performance in conducting routine ASTM International test methods and comparing results with other laboratories worldwide.

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

DLA Energy intends to solicit and award a fixed-price contract to American Society for Testing and Materials DBA ASTM International (ASTM) under FAR Subpart 13.5. This action is a follow-on requirement for uninterrupted continuity of services in support of the proficiency-testing program for the DLA Energy and Military Service Petroleum Laboratories.

The contract’s base period will be funded with FY 2021 working-capital funds and will be awarded as a Sole-Source under the authority of FAR 6.302-1, due to ASTM being the only available source that can satisfy the agency’s requirement.

Based on the market research conducted by the DLA Energy’s Contract Specialist, only one responsible source was identified: ASTM.

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

DLA Energy and the Military Services (i.e., U.S. Army, Navy, and Air Force) maintain petroleum product testing laboratories worldwide that support quality assurance testing of product purchased from the Defense-Wide Working Capital Fund (DWCF). The objective of this requirement is to ensure that each laboratory in the program provides and performs

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

(SPE603-21-R0503– ASTM INTERNATIONAL)

consistent test results. Thus, a laboratory test performed in Japan will yield the same results as a laboratory test performed in Alabama.

ASTM’s proficiency testing program will provide testing-related services for Aviation Turbine Fuel (F24), #2 Diesel Fuel, and Engine Oil Lubricants at thirty-five participating laboratories.

ASTM will provide each participating laboratory the testing materials and test parameters required for each laboratory to perform its tests and report its results. For this procurement, ASTM will not be responsible for OCONUS shipping costs. ASTM will use each laboratory test results and provide a statistical analysis to assess the strengths and weaknesses of each laboratory along with a comparison of the test results of the other participating laboratories, which will provide the Government with the resources to identify the differences among the laboratories and make any necessary adjustment or modifications. Lastly, participating laboratories will satisfy the required testing elements needed for laboratory accreditation. The laboratory accreditation certifies that a laboratory meets a standard of quality yielding consistently reliable test data.

The laboratory correlation program shall be conducted in accordance with the essential principles and intent detailed in the International Organization for Standardization (ISO/IEC) 17043:2010, Conformity Assessment -General Requirements for Proficiency Testing. The population statistics shall be compiled in accordance with ASTM D6300 and ISO 13528:2015.

The requirement is a follow-on for the current contract SPE60017C5008 which expires on April 30, 2021 and was also awarded through other than full and open competition.

The follow-on contract’s period of performance will include a two-year base period (May 1, 2021 through April 30, 2023) and a two-year option period (May 1, 2023 through April 30, 2025), along with a six-month extension option. The estimated value for these services 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. 2304(c)(1), as implemented by FAR 6.302-1. This J&A is based upon the requirements with respect to the acquisition of commercial items on a sole source basis found at 41 U.S.C. §1901, and follows the requirements set out by FAR 13.501(a)(1).

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)):

ASTM is the only responsible source identified that can meet the agency’s requirement pursuant to FAR 6.302-1. A sources sought notice was posted in Beta.Sam.Gov from October 20, 2020 to November 4, 2020, and two responses were received. However, it was determined that both respondents did not have the required capability to meet the Government’s requirement for this solicitation.

(SPE603-21-R0503– ASTM INTERNATIONAL)

While there are other organizations that may develop or publish standards, including the International Organization for Standardization (ISO), DLA Energy was unable to identify an organization that offers a correlation / proficiency program that meets the Government’s requirements.

ASTM’s testing methods are the commercially accepted American Standards for petroleum testing. ASTM maintains a vast correlation program database which provides the most detailed analysis for its Proficiency Program.

The Government methods utilized in the MIL-STD-3004, Department of Defense Standard Practice Quality Assurance for Bulk Lubricants and Related Products, in the DoD Correlation Program are set up for use of the ASTM methods.

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)):

A sources sought notice was posted in Beta.Sam.Gov from October 20, 2020 to November 4, 2020, and two responses were received. However, it was determined that both respondents did not have the required capability to meet the Government’s requirement for this solicitation.

Additionally on December 4, 2020, a synopsis of solicitation SPE600-21-R-0503 was posted to Beta.Sam.Gov, which identified ASTM as the intended source for the subject 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 that the anticipated price will be fair and reasonable, using one or more of the following methods:

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)):

(SPE603-21-R0503– ASTM INTERNATIONAL)

The Contract Specialist conducted the following market research:

The Contract Specialist discussed this requirement with DLA Energy’s Program Manager and Technical subject matter expert. The agency’s expert verified that the ASTM is commercially accepted as the American standard for Petroleum Testing. These ASTM methods are copyrighted methods that are available to both commercial and government users. It was noted that the Military Standards, such as the MIL-STD-3004, Department of Defense Standard Practice Quality Assurance for Bulk Lubricants and Related Products, on ASTM methods and its laboratories utilize the ASTM methods. The agency’s expert was unaware of any other organization or company that could offer a correlation or proficiency testing program which could meet the Government’s requirements.

An internet search was conducted, searching for ASTM’s competitors. The searches revealed that ASTM’s significant competitors are societies for various other job industries, such as structural engineering, design, and manufacturing. The closest “competitor” identified was International Organization for Standardization (ISO), located in Geneva Switzerland. However, the agency’s expert verified that the ISO specializes in International Standards and has a variance in comparison to the ASTM methods. For example, a sample test performed using an ISO testing standard will not provide the same result using ASTM testing method. Furthermore, based on ISO website, it does not offer a correlation or proficiency testing type of program that meets the Government’s requirement.

In accordance with FAR 10.002(2) (iv) queries of Government data bases were conducted through the Inter-Agency contract directory via www.contract.directory.gov, which did not yield any results. In addition, a search of a similar directory maintained by the General Services Administration generated the names of a few companies that offered testing and analysis, but not correlation or proficiency testing type of programs that meet the Government’s requirement.

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.

Not Applicable.

(SPE603-21-R0503– ASTM INTERNATIONAL)

(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):

A Sources Sought notice was issued on BetaSam.Gov on October 20, 2020 through November 4, 2020. The agency received responses from DLA Energy’s Program Manager reviewed capability responses from each company and requested further information to clarify capability. Both companies were sent a Request for Information (RFI) to verify capabilities.

was not responsive to the RFI request, and the information that was received was not sufficient to determine capability of meeting the Government’s requirement.

Therefore, the agency determined that was not a potential source for the lab correction program.

was responsive to the RFI. However, the PM determined that did not demonstrate sufficient capability to satisfactorily perform the requirements required for this solicitation.

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)):

The ASTM Proficiency Testing Program is the only program sanctioned by the ASTM Committee DO2 on petroleum products and lubricants. ASTM is the only source that can satisfy the Government’s need. No other source currently runs a laboratory correlation program for petroleum laboratories. DLA Energy will continue to monitor the market for other potential sources that have been sponsored by the ASTM Committee DO2.