Redacted JA Argus FY 25.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

September , 2024 J&A Tracking Number: 24-0022

Justification for Other than Full and Open Competition

1. Summary/Introduction:

The Defense Logistics Agency (DLA) Energy, a component of the DLA, is the contracting activity and DLA Energy Market Research (DLA Energy-BPM) is the requiring activity. The purpose of Solicitation SP0604-24-Q-0424 is for the purchase of an annual subscription to Argus Media, Inc.’s (Argus Media) Argus Global Markets, Argus US Products, Argus Jet Fuel, Argus Petroleum and Argus Oil Market Report (OMR) publications. This requirement is for a twelve

(12) month subscription from October 1, 2024, through September 30, 2025. The total estimated value of the action is Justification for other than full and open competition is provided in 10 U.S.C.§ 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1.

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

The action being approved will be a contract with Argus Media to provide current and historical proprietary price data. Argus Media is the sole producer of Argus Global Markets, Argus Petroleum, Argus US Products, Argus Jet Fuel and Argus OMR publications, and therefore is the sole responsible source for the publication, and no other publication can fulfill the requirement.

DLA Market-BPM uses prices provided by Argus Media to evaluate the market and for economic price adjustment (EPA) clauses in fuel contracts. This resultant contract will be a firm-fixed price contract and it will use funds from Fiscal Year 25 (FY25).

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

Argus US Products, Argus Jet Fuel, Argus Petroleum, and Argus Global Markets are publications that provide DLA Energy-BPM with prices for EPA clauses in multiple DLA Energy fuels contracts. In addition to use for contract price escalation, DLA Energy-BPM evaluates fuel prices against multiple price services to determine the best reflection of each market. It is essential for DLA Energy-BPM to have access to multiple independent price sources to determine which source best reflects each market and therefore which escalator clauses to use in the DLA Energy contract.

This is a recurring requirement. The proposed contract period is from October 1, 2024, through September 30, 2025, which is in line with the current Argus contract SPE604-23-P-9314.

Contract SPE604-23-P-9314 was also awarded on the other than full and open basis, pursuant to 10 U.S.C.§ 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1.

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

Justification for Other Than Full and Open Competition (Cont’d) (SP0604-24-Q-0424 – Argus Media) crude oil and refined petroleum products as well as commentary and analysis. The team will also gain access to Argus experts who can assist with specific energy market related issues.

Additionally, Argus Media provided DLA Energy with a cost summary showing their standard pricing and the special pricing offered to DLA Energy. The standard pricing for the same subscription package costs

DLA Energy pays less than what a standard user would pay for the same subscription.

Therefore, the contracting officer determines the price fair and reasonable when compared to historical prices paid and the discount provided to DLA Energy.

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 customer, DLA Energy BPM, conducted market research and determined Argus Media was the only source that met the government’s requirement. Additionally, the customer identified another source that provided similar information; however, the pricing is not identical and there was not 100% overlap for the markets serviced by DLA Energy. Therefore, DLA Energy contracts with both sources.

An intent-to-sole source notice was posted to beta.SAM.gov on July 2 , 2024, however, there were no expectations that the notice would yield any additional sources. Research identified no other authorized vendors for this requirement. Therefore, it has been determined that Argus Media is the only source available to meet DLA Energy’s needs at this time.

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 competitor have not been developed or are not available.

The information provided by Argus Media is proprietary and; therefore, we are unable to develop a specific purchase description that would satisfy the requirements.

(ii) When 6.302-1 is cited for follow-on acquisitions as described in 6.302-1(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.