N00178_250047.pdf

This document is a Justification and Approval (J&A) for a sole source Blanket Purchase Agreement (BPA) issued by the Naval Surface Warfare Center, Dahlgren Division. The contract is with Merrimac Petroleum, Inc. for the continued rental and delivery of five 1,000-gallon propane tanks located at Wallops Island. The BPA will cover a 12-month base period with four additional option years, with delivery required to begin on 11 December 2025.

The procurement is critical to maintaining continuous propane services for heating office spaces and other sites. The government determined that switching to a new vendor would incur substantial additional costs, including gas reclamation, tank removal and setup, and line testing. The estimated contract value is partially redacted, but will be priced with a 3% annual escalation. The Contracting Officer has deemed the anticipated costs fair and reasonable, and the Dahlgren Contract Department has no immediate plans to compete future contracts for this type of equipment unless a potential alternative source emerges.