OPSEC_Redacted_J&A.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

APRIL 17, 2017

Justification for Other than Full and Open Competition

1. Summary/Introduction:

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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- FESBC in accordance with FAR 6.302-1. It supports an extension of the performance period for contract SP0600-12-C-5208, with service provided b

. Inc., using other than full and open competition. The contract is a hybrid fixed pnce contract with cost reimbursable line items for Defense Fuel Support Point (DFSP) services in Port Mahon, DE (Dover). Specifically, the contract provides Contractor-Owned Contractor Operated (COCO) Jet-A fuel storage/transportation services in the area of Dover AFB/ Port Mahon, Delaware. DLA-Energy-FESBC hereby submits Justification for Only One Responsible Source or Limited Sources for an extension of six months.

). New funds in the amount are in place and will be obligated to the contract. The period of performance will be May 1, 2017- October 31, 2017. The contract value will be increased by from

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

DLA Energy - FESBC is seeking to extend contract SP0600-12-C-5208 for a period of six months IA W INT-I209.03 Extension Provision (STORAGE) (DLA ENERGY SEP 1991). The price of the extension will remain the same as the monthly price stated on the contract for the base period ($205,717.18). The government will execute a bilateral modification for the six month exte sion and FY 2017 workin -ca ital funds will provide funding for the award.

Contractor provides Contractor Owned Contractor Operated (COCO) services and ancillary facilities for the receipt, storage, protection and shipment of turbine fuel aviation grade Jet-A with Fuel System Icing Inhibitor (FSII), Corrosion Inhibitor (CI), and Static Dissipater Additive (SDA). The period of performance is set to expire April 30, 2017 and has the aforementioned extension clause to which DLA Energy elects to execute six -one-month extensions consecutive! extending the period of performance to end October 31, 2017. . is currently the only teclmically acceptable source with the capability to meet the Government's need via pipeline service for the requirements in the Port Mahon, DE area to service Dover AFB, DE. Market research, via FBO posting of a sources sought notice and synopsis for current solicitation SPE600-17-R-0510, has proven that there is a capability of competition but limited sources are able to provide pipeline transportation.

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

(SP0600-12-C-5208

Historically has been the only offeror for past solicitations for Port Mahon area requirements. The extension of six months is required for continued services at Port Mahon, DE area to prevent a lapse in service and additional costs the government may incur by changing the mode of service from pipeline to trucking. Efforts to increase competition for the current solicitation and prevent delays were made by posting both a source sought and synopsis via Federal Business Opportunities (FBO) website for the follow-on solicitation (SPE600-17-R-0510) on August 25, 2016 and January 24, 2017 respectively. Although responses were received via phone calls and emails, all sources indicated they were not able to provide pipeline transportation.

Alth h 1 tential sources have been identified, only once source can meet the requirement via pipeline. Changing the mode of p ks adds hidden costs to which the Quality Regional Manager was able to provide both data and risk the contract would pose. Should the government seek to make such change, Dover AFB would incur additional costs for security and unloading personnel for approximately 300 trucks per month vs. 12 pipeline shipments. Not to mention, built-in costs for fueling and staffing the trucks, congestion from the 300 trucks on the militaiy installation, and the increased environmental risk of fuel spills.

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

Contract SP0600-12-C-5208 was awarded on April 30, 2012 under full and open competition for the acquisition of Defense Fuel Support Point (DFSP) commercial services in Port Mahon, DE (Dover). The contract's period of performance is for five years (May 1, 2012- Apr 30, 2017) with a six-month extension option period (May 1, 2017- Oct 31, 2017). The service requirement is for a Contractor-owned, Contractor-operated (COCO) fuel storage terminal. The requirement calls for services and ancillary facilities for the receipt, storage, protection and shipment of U.S.

Government-owned turbine fuel aviation grade Jet-A (with or without additives: FSII, CI, SDA) within a 25 mile radius of Dover Air Force Base, Delaware. The terminal shall have a tank storage capacity of 433,000 barrels of Jet-A (with or without additives) with a minimum of two interconnected tanks capable of being isolated from other facilities and products handled within the tank farm. The facility shall have the capability to receive by tank truck and barge, and ship via tank truck and pipeline to Dover AFB. The throughput is for 1,857,000 barrels per year. The contractor is also required to inject additives to re-grade the Jet-A product to F-24 on outbound shipments. In addition, the contractor is required to provide the following: 1) tank cleaning and inspection; 2) inventory control and systems record; 3) a computer capable of operating the Government provided software and an unrestricted telephone line; 4) dock and berthing facilities; 5) pipeline facilities; 6) filtration facilities; 7) laboratory facilities; and 8) backup power.

The six-month extension from May 1, 2017- October 31, 2017 will allow for the continued DFSP services at Port Mahon while allowing time to award the follow-on contract. The six month extension will be for a total price of

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Justification for 0th

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

This J&A is based upon the authority of 10 U.S.C. §2304(c)(l), as implemented by Federal Acquisition Regulation (FAR) 6.302-1, and more specifically, the authority of FAR 6.302-l(a)(2). When the supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for.

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)):

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is the only responsible source available to meet the agency's requirement per FAR 6.302-1. As confirmed by market research, there is currently no other company with the required facilities in place (within 25 miles of Dover AFB) to provide DFSP services to Dover AFB for the period of May 1, 2017-October 31, 2017.

l/llllllfawas the only offeror for the previous solicitation.

Sources were sought through the Federal Business Opportunities website for the follow-on solicitation (SPE600-17-R-0510) from Augus�h September 9, 2016; three responses were received. Only one company,__,, submitted their capabilities report in response to the Sources Sought for SPE600-l 7-R-0510. However, their capability report indicated that they would not be able to meet the requirement via pipeline but could potentially fulfill the requirement using trucks as the mode of transportation. Changing the mode of transportation increases the environmental and costs risks to the Government. Additional security, unloading personnel, and increase in shipments of fuel from 12 per month via pipeline to 300 per month via trucks will incur additional built in and hidden costs while increasing the risk of fuel spills. The company also stated it would require a three-mont�rio� other so�spo-the August 25, 2016 sources sought were�ndlllllllll, Neither-nor provided a capability report but were contacted for additional information. Both companies are research firms and do not have the capability to fulfill the government requirement. On January 24, 2017, a synopsis of the government r�nt was

�Federal Business Opportunities website. As a result, two contractors,1111111Pand .... contacted our office by telephone. Both contractors inquired about the mode of transportation and were willing to provide service to the area of consideration by truck, but neither have the capability to provide service via pipeline. Additionally, sources were sought for the six-month period of performance (May 1, 2017- Oct 31 2017 throu h FBO om March 13, 2017 to March 16, 2017. One response was received fro . The contractor provided a capabilities report that indicated they specialize in jet fuel supply chain infrastructure, have experience acquiring and building tank farms, terminals, and pipelines. Yet, the report did not indicate they have a pipeline or storage facility within the area of consideration. The Program Manager responsible for technical review did not find the report technically acceptable.

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Exercising this option to extend will allow . to continue providing DLA-Energy with uninterrupted Defense Fuel Support Point (DFSP) services to the Dover, DE area within the Americas East region. Continued services are needed in Port Mahon to support Dover Air Force Base. The current contractor is the only technically acceptable source with the capability to transport fuel to Dover AFB via pipeline, which is the most efficient, cost effective, and risk averse method of transportation. Operations in the region will be jeopardized if the contract is not extended.

Pipeline services from Port Mahon is the only available mode of re-supply to the area of operation that includes Dover AFB, Delaware.

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)):

Sources were sought through the Federal Business Opportunities website for the follow-on solicitation (SPE600-l 7-R-0510) from August 25, 2016 through September 9, 2016. Only one response was received. submitted their capabilities report in response to the Sources Sought for SPE600-l 7-R-0510, however, their report did not demonstrate having the required facilities in place (within 25 miles of Dover AFB) to provide DFSP services to Dover AFB for the period of May 1, 2017- October 31, 2017. Furthermore, the company stated it would require a three-month phase-in period. In addition, sources were sought for the six-month period of performance (May 1, 2017- Oct 31, 2017) through FBO from March 13, 2017 to March 16, 2017. One response was received from but their capabilities report did not indicate they are capable of fulfilling the government reqmrement.

The six-month option was not synopsized. The contract is exempt from this requirement under the provisions of FAR Subpart 5.202(a) (11). DLA Energy originally posted solicitation SP0600- 1 l-R-0513 to the Federal Business Opportunities (FBO) website.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable (FAR 6.303-2(b)(7)):

· cipated cost to the Government of for the six-month extension is fair and reasonable m accordance wit FAR 15 .404-1 (b )(2)(ii); comparison of proposed prices to historical pri�her by the Government or other than the Government, for the same or similar items�is the same monthly price that was determined fair and reasonable at the time of contract award. The price also compares very favorably to that found in other contracts for COCO storage services within the Americas East Region: 1) Port Everglades, FL (SPE600-15-C-5015) priced a 2) Bordentown, NJ (SP0�iced a and 3) Moundville, AL (SP0600-14-C-5414) priced a.._.

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Justification for Other

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)):

The Contract Specialist conducted market research and found no other source with the capability of providing DFSP services to Dover AFB (within a 25-mile radius) with pipeline transportation for the period of May 1, 2017- October 31, 2017. A general search through the internet for COCO DFSP services in Delaware utilizing NAICS code #493190 brought no results other than the incumben In addition, the Pro na er who is familiar with the location due to historical knowledge confirmed tha is the only responsible source available and technically acceptable to meet t e reqmrement was also the only source that submitted an offer as a response to the previous solicitation for contract SP0600-12-C-5208.

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-l{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}(l0):

One source submitted a capabilities report expressing interest in the acquisition of the services for the six-month period of May 1, 2017 through October 31, 2017. The information they provided did not indicate that they have a facility or pipeline in the area of consideration.

Addifionall an on requirement. In spite of the number o

Page S of7 ex ressed interest in the follow was the only source that

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Justification for Ot

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provided capabilities in writing. On September 2, 201�ontacted the Contract Specialist in response to the DLA-Energy Sources Sou��-R-0510. They provided a detailed capabilities report, but after the Government's review, they were determined not capable of meeting the Government's requirement for the period of May 1, 2017- October 31, 2017. Their report did not demonstrate they had the required facilities in place (within 25 miles of Dover AFB) to provide DFSP services to Dover AFB for the period of May 1, 2017- October 31, 2017. The company also stated it would require a three-month phase-in period.

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)(ll)):

There are no barriers obstructing competition at this location. The follow-on solicitation SPE600-17-R-0510 was issued based on full and open competition. The follow-on contract is scheduled to be awarded prior to the expiration of the requested six-month extension.

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.

Chief, Facilities Manager Date:

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(SP0600-12-C-5208 - DELAWARE STORAGE & PIPELINE CO.)

I have reviewed and concur with this Justification

Assistant Counsel Date:

Competition Advocate Date:

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