Seabrook_JA_Redaction_updated_Redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

20-0015

Justification for Other than Full and Open Competition

1. Summary/Introduction:

The Defense Logistics Agency (DLA) Energy, a Major Subordinate Command of DLA, is the contracting activity for bulk petroleum products and services for the Department of Defense (DoD). This Justification & Approval (J&A) is for the award of a three-month sole source bridge contract to provide Contractor-Owned, Contractor-Operated (COCO) services to the incumbent contractor, LBC Houston, L.P. (LBC Houston), to receive, store, protect, and ship one grade of government-owned petroleum product, Jet Petroleum Thermally Stable (JPTS) aviation turbine fuel, in the Seabrook, Houston, Texas area. The period of performance will be from July 01, 2020 through September 30, 2020 and for a total estimated cost of $195,000.00 under solicitation SPE603-20-R-0514. The award is made under the authority found at Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(iii). The at Seabrook, Houston is dependent upon not only the fuel management services provided by the contractor, but also the fuel labor, and equipment provided by the contractor. JPTS fuel supports the through four primary and four alternate/divert location worldwide.

This action constitutes a bridge contract under Defense Logistics Acquisition Directive (DLAD)

2.101 & 16.191, and is being reported at the appropriate levels in accordance with DLAD 16.191(c)(3). In accordance with DLAD 16.191(b)(4), this J&A is completed to provide a detailed rationale for use of a three-month bridge contract for this requirement, including an explanation as to why the need for a three-month bridge contract is not due to lack of advance planning or inadequate procurement execution. The J&A will be processed for approval at the required level based on the total value of the contract action.

The current contract for these services under contract SPE600-15-C-5001 will expire on June 30, 2020 with all options exercised. The follow-on solicitation SPE603-19-R-0514 is expected to be awarded in sufficient time to support a contract start date.

Therefore, the bridge contract to LBC Houston is required to ensure continuity of operations and to avoid disruption of operations, and will be awarded under the same terms and conditions of the current contract.

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

The procurement of these services for three months is being conducted using the procedures under FAR 6.302-1. The contractor will be responsible for COCO services to receive, store, protect, and ship one grade of government-owned petroleum product, Jet Petroleum Thermally Stable (JPTS) aviation turbine fuel, in the Seabrook, Houston, Texas area. Services include

Justification for Other Than Full and Open Competition (Cont’d) (SPE603-20-R-0514) LBC Houston L.P.

providing all technical support, personnel, supervision, equipment, tools, materials and other items as required by the Performance Work Statement (PWS).

Under the circumstances, LBC Houston is the only source currently capable of performing acceptable services at Seabrook, Texas; therefore, a sole source award is appropriate to maintain successful and continuity of operations. These services involve storage of highly specialized fuel, JPTS, at the contractor’s facility. No offers were initially received to the follow-on solicitation, which was issued on September 4, 2019. Additional time was needed to better assess industry and identify vendors in the marketplace in the area of consideration to maximize interest in the government’s continuing need. The follow-on solicitation was reissued on November 5, 2019 through December 13, 2019, and one offer was received.

JPTS must be held and operated within a dedicated system. The current incumbent, LBC Houston, did not submit an offer to the follow-on solicitation. A bridge contract is necessary due to the additional time needed to award the follow-on contract for the successful transition of these services to the new successor and new storage terminal. Additional bridge contracts are not anticipated.

Defense Working Capital Funds for $195,000.00 are provided via PR 0083253169 to fund this requirement.

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

In order to meet the DoD customer requirements and in the Seabrook, Houston, Texas area, it is critical that the COCO storage services are not interrupted. As stated in the PWS, the contractor is responsible for providing COCO services to receive, store, protect, and ship one grade of government-owned petroleum product, Jet Petroleum Thermally Stable (JPTS) aviation turbine fuel. The contractor provides all personnel, equipment, material, and facilities necessary for providing these services, while employing best commercial practices and complying with Federal, State, and Local guidelines and regulations. JTPS is a highly specialized fuel, which requires strict storage requirements, and demands a dedicated operation system.

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)(1), as implemented by FAR 6.302-1

– Only one responsible source and no other supplies or services will satisfy agency requirements, and more specifically, the authority of FAR 6.302-1(a)(2)(iii). The services sought are highly specialized and award to any other source would result in unacceptable delays in fulfilling the agency’s requirements. Further, a source-sought notice was issued on February 28, 2020 seeking sources to meet the requirements. No responses were received by the closing date.

(SPE603-20-R-0514) LBC Houston L.P.

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)):

The services required by the agency are only available from LBC Houston to satisfy agency requirements during the performance period from July 1 to September 30, 2020. The at Seabrook, Texas is dependent upon these storage services currently performed by the incumbent, LBC Houston. The existing work force is trained and able to conduct operations without interruption. LBC Houston’s performance of these services at Seabrook, Texas is

Additionally, LBC Houston currently possesses the proper tanks, equipment, and personnel to sustain the services during this short period. A new contractor would need preparation time prior to beginning performance to modify the necessary specialized tank and piping facilities to perform the contract, to develop and implement operations and training plans, and to train personnel. A new contractor would experience a substantial logistical and financial burden to perform for a short period. LBC Houston is the only source that can meet the agency’s requirements for a short period.

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)):

On February 28, 2020, a sources sought notice was posted to Beta.SAM.gov to provide notice of the three-month bridge contract requirement and to solicit capability statements from other potential vendors. No responses was received by the closing date.

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

The Contracting Officer has determined that the anticipated cost during the three-month period will be fair and reasonable in accordance with

DLA Energy anticipates the monthly price under the bridge contract to be $65,000.00, with a total estimated cost of $195,000.00. The estimated cost is based upon .

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)):

DLA Energy FESBA conducted market research as part of the procurement planning process for the follow-on solicitation SPE600-19-R-0514. No responses were initially received;

. One (1) offeror expressed interest and submitted a proposal to the follow-on solicitation. LBC Houston did not submit a proposal.

(SPE603-20-R-0514) LBC Houston L.P.

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 6.302-1(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.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition (FAR 6.303-2(b)(10)):

DLA Energy received no responses to its February 28, 2020 sources sought notice.

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)(11)):

There are no known barriers to competition at this time. The Government has procured these services competitively in the past and will award a follow-on contract under full and open solicitation SPE603-19-R-0514. The follow-on award is anticipated to be awarded prior to the expiration of this three-month sole source contract, with performance beginning July 1, 2020.

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.

(SPE603-20-R-0514) LBC Houston L.P.

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.

Contract Specialist DLA Energy- FESBA

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.

I have reviewed and concur with this Justification.

Chief, Programs & Studies Branch

Assistant Counsel DLA Counsel Energy

Approved:

Contracting Officer, DLA Energy - FESBA Bulk Petroleum Supply Chain Services CONUS COCO Storage/OCONUS GOCO/AF Optimizations Branch