Justification and Approval for Other Than Full and Open Competition

This is a Justification and Approval (J&A) document for a sole-source contract modification under the Inland/East/Gulf Coast (IEG) contract SPE602-25-D-0471 issued by the Defense Logistics Agency (DLA) Energy.

The document authorizes an increase in the quantity of Naval Distillate (F76) fuel to be delivered by Phillips 66 Company (P66) to Defense Fuel Support Point (DFSP) Craney Island via Free on Board (FOB) origin pipeline delivery. The modification, valued at $20,306,328.00, was awarded on March 31, 2026, with a performance period ending April 30, 2026. The F76 fuel must conform to the latest version of ASTM D1655 standards and meet Quality Assurance Provision QAP C16.23 FUEL, NAVAL DISTILLATE (F-76). The justification cites unusual and compelling urgency under 10 U.S.C. §3204(a)(2) and FAR 6.103-2, as DFSP Craney Island experienced an unpredicted, significant demand for F76 driven by mission requirements. Phillips 66 is identified as the only refiner capable of providing F76 with FOB origin pipeline capability to meet the compressed delivery timeline, as no other refiner has direct pipeline access to Craney Island. The contracting officer determined the unit price is fair and reasonable based on historical pricing under the existing contract SPE602-25-D-0471 and comparison to an industry pricing index. No competitive solicitation was conducted due to the urgent nature and limited delivery options, and no synopsis was posted pursuant to FAR 5.101(b)(2)(a) exception for unusual and compelling urgency.