LNG_NSGB_JA_Pheonix_REDACTED.pdf

DEPARTMENT OF THE NAVY

NAVAL FACILITIES ENGINEERING SYSTEMS COMMAND SOUTHEAST

JACKSONVILLE, FL 32212-0030

J&A Number: N69450-26-0517

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity. The contracting activity is the Naval Facilities Engineering Systems Command Southeast (NAVFAC SE).

2. Description of the Action Being Approved. The action being approved under this Justification and Approval (J&A) is one (1) sole-source purchase order for the commercial supply and delivery of liquefied natural gas (LNG) to Naval Station Guantanamo Bay (NSGB), Cuba. The contractor is Phoenix Contracting LLC (Phoenix) 9915 Smarty Jones Dr, Ruskin, FL 33573.

3. Description of Supplies/Services. NSGB requires an estimated 50,000 MMBtu of LNG based on the estimated consumption and operation of a Combined Cycle Power Plant (CCPP) at NSGB for one delivery (4 - 8 May 2026). The cited quantity constitutes the Government's best estimate for the one delivery and is subject to variations stated in Federal Acquisition Regulation (FAR) Clause 52.211- 16, included in the purchase order.

The period of performance for this action is 4-8 May 2026. The estimated dollar value for the proposed delivery is provided below:

Delivery Period of

Performance MMBtu Total

4 - 8 May 2026 50,000

The contract is funded by FY26 Operations & Maintenance, Navy funds.

4. Statutory Authority Permitting Other Than Full and Open Competition. This acquisition will be negotiated pursuant to 10 U.S.C. 3204(a)(2), Unusual and Compelling Urgency, as implemented by FAR Overhaul 6.103-2.

5. Rationale Justifying Use of Cited Statutory Authority. The use of the authority cited above is appropriate due to the unusual and compelling urgency of the agency’s need for the supply and delivery of LNG. The existing requirements contract N6945025D1010 for the supply and delivery of LNG to NSGB expired on 10 Apr 2026. A new competitive contract, N6945026D0015, was solicited on a full and open basis utilizing lowest priced technically acceptable (LPTA) procedures, and awarded on 26 Mar 2026 to Excelerate Gas Marketing, Limited Partnership (Excelerate).

However, the contract is currently under a Stop Work Order due to a bid protest to the General Accountability Office (GAO) filed by the former supplier,, Schuyler Line Navigation Company (SLNC), whose price had been determined to be The Agency is implementing a voluntary corrective action that will include amending the solicitation and obtaining proposals for a new or revised source selection decision. Based on the corrective action, GAO dismissed the protest on 30 April 2026.

Excelerate was identified as a potential source for this requirement as the LPTA offeror under the competitive contract that is currently stopped. The protester, SLNC, was also identified as a potential source as the incumbent contractor under contract N6945025D1010; however, as previously stated herein, declined to participate in the three-order purchase order citing .

Crowley Government Services, Inc. (Crowley) also indicated interest on 4 May 2026 in the subject requirement based upon discussions with Phoenix. However, since Pheonix has been making arrangements for this delivery since they received NTP on 20 Apr 2026 under the three-delivery purchase order N6945026P0003 and as of 4 May 2026 have firm agreements with Crowley and Shell NA LNG, LLC to deliver LNG to NSGB on 6 May 2026 as well as a Foreign Flag Waiver approved by MSC for the laycan of 4-8 May 2026, they are the only source available to meet this urgent and compelling requirement in the quickest timeframe to minimize risk of base wide power disruption.

Due to the unusual and compelling urgency of the agency’s need for the supply and delivery of LNG to NSGB; it is not practical nor in the best interest of the Government to solicit additional sources.

As discussed herein, to award to any company other than Pheonix is not practicable under the exigent circumstances.

7. Determination of Fair and Reasonable Cost. The Contracting Officer has determined the anticipated cost to the Government for services covered by this J&A will be fair and reasonable. The Government will compare pricing to historical prices paid, pricing under the competitive solicitation, and the independent Government estimate to negotiate a fair and reasonable price considering the urgent and compelling nature of the requirement.

8. Actions to Remove Barriers to Future Competition. The new contract, currently stopped due to a GAO protest, was competitively solicited on an unrestricted, full and open basis. The command is taking all reasonable measures to proceed as expeditiously as possible to prevent any additional sole source contract actions. There are currently no further actions required to remove barriers to future competition.