FT._HOOD,_TX_JA_Redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

January 19, 2017

17-0025

Justification for Other than Full and Open Competition

1. Summary/Introduction:

DLA Energy is a field activity of the Defense Logistics Agency (DLA) and is the acting Contracting Agency for . This Justification & Approval (J&A) for Other Than Full and Open Competition is hereby submitted in accordance with 10 U.S.C. §2304(c) (1), as implemented by Federal Acquisition Regulation 6.302-1(a). It supports a six-month extension of the performance period for contract with services provided by . The six-month extension is and the period of performance is February 1, 2017 through July 31, 2017. The contract value will increase from to .

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

The current contract expires on January 31, 2017. The follow-on contract will be awarded under solicitation SPE600-16-R-0526, and will result in a four-year follow-on contract with one five-year option and an evaluated six-month option to extend the contract in accordance with FAR 52.217-8. Award of the follow-on contract will not be prior to the current expiration date of contract . The follow-on contract is expected to be awarded by March 23, 2017 for a four-year base period of performance from August 1, 2017 - July 31, 2021 and one (1) five (5) year option (60 months), August 01, 2021 through July 31, 2026. The current contract is being extended to allow continued performance and an adequate transition time from the current contractor to the new contractor.

This six-month extension will ensure the continued and uninterrupted support of the until the follow-on contract begins on August 1, 2017. The total value of the J&A is .

In order to ensure continued support at DLA Energy and the incumbent contractor, have mutually agreed to a six-month extension of contract from February 1, 2017 through July 31, 2017 in accordance with DLA Energy Clause I209.03 EXTENSION PROVISION (STORAGE) (DESC SEP 1991) which is included in the contract. Although Clause I209.03 permits the Government to extend the contract with the same terms and conditions for up to six months it was not formally evaluated, negotiated, and determined to be fair and reasonable at the time of award. The extension will be exercised via a bilateral modification to ensure continued support at

. Fiscal year 2017 Defense Working Capital Funds will be allocated for the extension via

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

is responsible for operating and maintaining Government fixed fuel facilities, delivering ground fuel, maintaining fuel inventory and accounting, handling used oil, and managing automated service stations. The contractor provides aviation, ground, used oil, and utility vehicles, and equipment in necessary quantities to meet the aircraft and ground refueling/defueling workload

Justification for Other Than Full and Open Competition (Cont’d) requirements, including surge demands. The contractor provides aviation, ground, used oil, utilizes vehicles. Furthermore, the contractor provides all labors, equipment, tools, materials, supplies, and supervision necessary to receive, store, issue, maintain quality, and account for petroleum products.

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 Federal Acquisition Regulation (FAR) 6.302-1, and more specifically, the authority of FAR 6.302-1(a)(2)(iii)(B) - When the services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in unacceptable delay in fulfilling the agency’s requirements.

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)):

In accordance with FAR 6.302-1(a)(2)(iii)(B) it has been determined that the Agency’s requirement for continued service of highly specialized services is deemed to be available only from the original source because it is likely that award to any other source would result in unacceptable delays in fulfilling the Agency’s requirements and

These elements are highly specialized services specific to the current contract requirements. existing work force is trained and able to conduct operations without fail. They have provided acceptable contract performance for the past nine years. A new contractor would necessarily need preparation time prior to beginning performance including time required to develop and implement operations and training plans and training personnel.

In addition, contractor personnel are required to have current training in specific areas of fuel handling, hazardous waste, and other fuel-specific procedures such as: Confined Space Entry, Hazardous Waste Operations and Emergency Response (HAZWOPER), and Environmental Protection training, which are provided by DLA Energy. Further, the contractor is required to establish and maintain safety procedures and plans.

In addition, in accordance with FAR 6.302-1(a)(2)(iii)(A), an attempt to award this short term requirement through full and open competition would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. Due to the substantial logistical and financial burden required of a contractor to perform this requirement, past experience shows that few, if any, contractors would be interested in this requirement for only a six-month period of performance. If interested, their contract price would be more expensive than the extension price for the current contract because any new contractor would attempt to recover their start-up costs over a short time period. The services sought are highly specialized and award of this short term requirement to another source at this time would likely result in substantial duplication of cost that the Government is not expected to be recovered through competition and would result in unacceptable delays in fulfilling the agency’s requirements.

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)):

This six-month extension was not synopsized with the current contract in accordance with FAR 5.202(a) (11), Exceptions, which states “[t]he proposed contract action is made under the terms of an existing contract that was previously synopsized in sufficient detail to comply with the requirements of FAR 5.207 with respect to the current proposed contract action.”

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 cost to the Government is fair and reasonable.

contains DLA Energy Clause I209.03 EXTENSION PROVISION (STORAGE) (DESC SEP

1991) which permits the Government to extend the contract upon the same terms and conditions for up to six months. DLA Energy intends to exercise the extension period via bi-lateral contract modification for the six-month period permitted. The monthly price for the extension period is . The total price of this extension is and based on the monthly price of the current contract (

). The Government determined the contract price to be fair and reasonable based on comparison of the Independent Government Cost Estimate (IGCE) prepared for the follow-on solicitation IAW FAR 15.404-1(b)(2)(v).

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 follow-on contract is currently being solicited using full and open competitive procedures. For the purpose of the six-month extension, the Government contacted no other sources. For the follow-on requirement, a Sources Sought Notice was posted August 2, 2016 to the Federal Business Opportunities (FedBizOpps) website for thirty days. DLA Energy received nine responses to the Sources Sought Notice. The Program Manager conducted an informal technical assessment of the responses and determined that all were capable of performing the services outlined in the Performance Work Statement

(PWS).

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):

For the purpose of implementing this six-month extension, the Government contacted no other sources.

A synopsis of the follow-on procurement was posted to FedBizOpps, and as a result three contractors expressed interest in submitting a proposal for the follow-on contract.

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)):

Under typical circumstances, there are no barriers to competition at this location. The Government has procured these services competitively in the past and intends to do so in the future. Solicitation SPE600- 16-R-0526 was issued using full and open competition procedures. The follow-on contract is scheduled to be awarded prior to the expiration of the six-month extension. The anticipated award date is on or before March 23, 2017. Performance will commence on August 1, 2017.

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.

I have reviewed and concur with this Justification.

Approved: