Kuwait_JA_P00014_Redacted1.pdf

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Justification & Approval for Kuwait Fuel Supply Federal contract opportunity
Solicitation number
SPE60220D0489-P00014
Issued by
Defense Logistics Agency Energy

About this file

This is a Justification and Approval (J&A) document for other than full and open competition under Federal Acquisition Regulation 6.103-2, issued by the Defense Logistics Agency (DLA) Energy for contract modification SPE602-20-D-0489/P00014 with Kuwait Petroleum Corporation (KPC).

DLA Energy is requesting authorization to extend its existing petroleum supply contract with KPC for twelve months, from July 1, 2026, through June 30, 2027, including a 31-day carryover period. The extension will procure three fuel products: Turbine Fuel Aviation (JA1) conforming to ASTM-D1655 and DEF STAN 91-91 Issue 17; Diesel Fuel (DF2) conforming to KPC's commercial automotive diesel specifications; and Unleaded Regular Motor Gasoline (MUR) conforming to KPC's commercial specifications. The estimated dollar value and specific quantities are redacted in the document. The justification for sole-source procurement centers on Kuwaiti law, which designates KPC as the exclusive authorized producer, refiner, storage, and marketer of refined petroleum products in Kuwait under Ministerial Decree Number 6 (1980) and Number 4 (1989), prohibiting importation or export of petroleum products without KPC approval. DLA Energy documented previous attempts since 2021 to develop alternative fuel sourcing procedures but encountered regulatory, logistical, and operational challenges. The contracting officer determined that anticipated costs are fair and reasonable based on comparable regional prices, and no market research was conducted due to the sovereign restrictions on Kuwait's fuel sourcing. Defense Working Capital Funds will finance this acquisition.

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Text version

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

J&A Tracking Number 26-0023

Justification for Other than Full and Open Competition under Kuwait Petroleum Corporation (KPC) Contract Modification SPE602-20-D-0489/P00014

1. Summary/Introduction:

Defense Logistics Agency (DLA) Energy is the Integrated Materiel Manager and contracting activity for petroleum products and services for the Department of War (DoW). This Justification and Approval (J&A) is for the acquisition of designated petroleum products on an other than full and open competition basis due to unusual and compelling urgency, in accordance with (IAW) Federal Acquisition Regulation (FAR) 6.103-2, from the Kuwait Petroleum Corporation (KPC) via extension modification P00014 to contract SPE602-20-D-0489. DLA Energy is procuring all fuel products for use by the .

The anticipated period of performance for this contract modification is July 1, 2026, through June 30, 2027. This J&A authorizes procurement of approximately U.S. gallons (USG) of Turbine Fuel, Aviation (JA1), Diesel Fuel (DF2), and Unleaded Regular Motor Gasoline (MUR) with an estimated value of based on current market value. The total estimated value of the contract, including this and all other extensions is .

2. Nature and/or description of the action being approved (FAR 6.104-1(a)(2)):

The action being approved is a J&A authorizing other than full and open competition for the extension of DLA Energy’s contract with KPC by twelve (12) months. The contract’s period of performance will expire on June 30, 2026. This J&A authorizes the extension of the period of performance to June 30, 2027, for DLA Energy to acquire fuel in Kuwait per its estimated requirements in Section 3 below. Defense Working Capital Funds will be utilized for this effort.

3. Description of supplies or services required to meet the agency’s need (including estimated value) (FAR 6.104-1(a)(3)):

The estimated requirements to be ordered under the proposed contract extension between July 1, 2026, through June 30, 2027, including an additional 31-day carryover period, are as follows:

i. JA1 conforming to ASTM-D1655 and DEF STAN 91-91 Issue 17 dated July 3, 2024.

The total estimated quantity required is USG.

ii. DF2 conforming to KPC’s commercial automotive diesel. The total estimated quantity required is USG.

iii. MUR conforming to KPC’s commercial unleaded regular gasoline. The total estimated quantity required is USG.

The estimated dollar value of this contract action is .

Justification for Other Than Full and Open Competition (Cont’d) (SPE602-20-D-0489/P00014 – Kuwait Petroleum Corporation)

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition (FAR 6.104-1(a)(10)):

See Section 6 above.

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 6.104-1(a)(11)):

There are no known actions that would enable DLA Energy to overcome these barriers to competition due to the impact of the Kuwaiti laws discussed above.

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 Officer, Bulk Petroleum Products

Approved:

Senior Procurement Executive

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