J A_US_Embassy_Kabul_AFG_-_Bridge_Contract_Redacted.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION FOR SUPPLY AND DELIVERY OF AUTOMOTIVE GASOLINE AND

DIESEL FUEL TO UNITED STATES EMBASSY IN KABUL AND

CONSULATES IN HERAT AND MAZAR-E-SHARIF

UNDER THE AUTHORITY OF 10 U.S.C. 2304(c)(2)

1. Summary/Introduction:

A. This Justification and Approval (J&A) is a justification for other than full an open competition under FAR 6.303-2 whereby the Defense Logistics Agency Energy (DLA Energy) is awarding six months of a remaining requirement to supply the United States Embassy and certain Consulates in Afghanistan. DLA Energy must award a contract under other than full and open competition procedures to one ofDLA Energy's current supply contractors because of an unusual and compelling urgency as a result the original contract's termination. More specifically, DLA Energy must award this contract with other than full and open competition in order to mitigate mission failure and to give the contracting activity sufficient time to solicit a new contract for the required goods and services through the use of competitive procedures. This J&A is prepared in accordance with the noncompetitive procurement procedures contained at FAR 6.304(a)(2).

B. On August 31, 2012, DLA Energy awarded contract SP0600-12-D-1014 on a full and open competitive basis to Afghan National Petroleum Company Limited for the delivery of Automotive Gasoline and Diesel Fuel to the United States Embassy in Kabul, and the U.S. Consulates in Herat Baghe-e-Malat and Mazar-e-Sharif, Afghanistan (hereinafter "Contract SP0600-12-D-1 0 14").

Contract SP0600-12-D-1 014 was awarded with a two year base period and the ordering period was set to expire on August 31, 2014.

C. In October, 2013, DLA Energy terminated Contract SP0600-12-D-1014. However, the fuel requirements under Contract SP0600-12-D-1 014 remain and necessitate immediate support to the United States Embassy in Kabul and the U.S. Consulates in Herat Baghe-e-Malat and Mazar-e Sharif, Afghanistan. Under the authority of FAR 6.304(a)(2), the contracting officer intends to award six-months of the remaining requirement to a current DLA Energy contractor through a modification of a current DLA Energy contract (hereinafter the "Bridge Modification"). The Bridge Modification will begin in October of2013 and end on March 31,2014. The Bridge Modification is necessary because the source-selection process to solicit a new contract through full and open competition will take six-months and DLA Energy needs to prevent uninterrupted delivery and mission-failure.

D. During the Bridge Modification, DLA Energy will issue a Solicitation SP0600-14-R-0201 seeking to competitively award Automotive Gasoline and Diesel Fuel delivery to the U.S. Embassy in Kabul and the U.S. Consulates in Herat Baghe-e-Malat and Mazar-e-Sharif Afghanistan, which the. contracting officer anticipates will begin on April 1, 2014 and last for one year with a one year option (hereinafter the "Solicitation SP0600-14-R-0201"). The contracting officer anticipates that Solicitation SP0600-14-R-0201 will yield an adequate number of interested vendors because the previous solicitation yielded 126 interested vendors and 32 offers.

Justification and Approval for Other Than Full and Open Competition US EMBASSY Kabul, Afghanistan

2. Description of the Agency's Need (10 U.S.C. 2304(t)(3)(A)):

A. As a result of the termination of Contract SP0600-12-D-1014, an urgent and valid requirement remains unfulfilled and necessitates immediate support to the United States Embassy in Kabul and the U.S. Consulates in Herat Baghe-e-Malat and Mazar-e-Sharif, Afghanistan. Under the authority of FAR 6.304(a)(2), the contracting officer intends to award the Bridge Modification to a DLA Energy contractor currently performing on a DLA Energy long-term contract in the region. The urgency of the requirement and abridged delivery schedule preclude the inclusion of new offerors or offerors with unknown ability to secure the fuel allocation and transportation required to prevent delivery disruption and possible mission failure.

B. The total estimated cost of the Bridge Modification is as reflected in the table below:

Estimated six-month requirement table:

US Embassy 100-KD Winter Diesel 1,000,000

100-KDl Summer Diesel

US Embassy

100-PG MOGAS 220,000 AFG

US Consulate 101-KD Winter Diesel 200,000 Hcrat

US Consulate 102-KD Summer Diesel 200,000 Mazar e- Sharif

C. The contracting officer anticipates awarding a new fuel supply contract through Solicitation SP0600-14-R-0201 by April!, 2014, with deliveries to commence on May I, 2014. The Bridge Modification is necessary to avoid any delivery disruption or potential break in fuel delivery to the U.S. Embassy and Consulates. The proposed Bridge Modification performance period is as follows:

Ordering period begins October of2013 and ends March 31,2014 Delivery period begins November 1, 2013 and ends April 3D, 2014

3. Authority for Other than Full and Open Competition (10 U.S.C 2304(t)(3)(B):

A. The authority for other than full and open competition is 10 U.S.C. 2304(c)(2), Unusual and Compelling Urgency as implemented by FAR 6.302-2(a)(2), which states:

SOURCE SELECTION INFORMATION- SEE FAR 2.101 AND FAR 3 .1 04

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Justification and Approval for Other Than Fnll and Open Competition

When the agency's need for the supplies or services is of such an unusual and compelling urgency that the Goverrnnent would be seriously injured unless the agency is permitt"d to limit the number of sources from which it solicits bids or proposals, full and open competition need not be provided for.

FAR 6.302-2. See also 10 U.S.C. 2304(c)(2). Fuel delivery to the Embassy and Consulates is critical in support of Operation Enduring Freedom and the Department of State mission in Afghanistan.

Unless DLA Energy is permitted to limit offers from vendors known to have the capability and resources to meet this requirement in the unexpectedly short required time, the mission in Afghanistan could be severely damaged.

B. Any disruption of fuel delivery service would seriously endanger mission operation and could ultimately result in mission-failure. Due to the anticipated amount of time required to evaluate offers, DLA Energy has projected the time of the Solicitation SP0600-14-R-0201 's award as April 1, 2014.

C. DLA Energy plans to award the Bridge Modification to the lowest offered price from a current DLA Energy contractor from the region. More specifically, contracts respectively, using full and open competition procedures (hereinafter the "Four Contractors"). The Contractors are the only active contractors servicing DLA Energy's Direct Delivery program in Afghanistan known to have the ability to secure the fuel allocation and transportation required to prevent delivery disruption and possible mission failure

D. The contracts with the Contractors contain a military readiness clause, DLAD 52.212- 9000, Changes- Military Readiness, which will allow DLA Energy to modify the contract for the Bridge Modification. This clause provides for bilateral agreement on contract terms and conditions during normal operations, but allows unilateral changes to the method of shipment, packing, and place of delivery during contingency operations or humanitarian or peacekeeping operations. It is in the best interest of the Government to utilize the Contractors' contract provisions to create the Bridge Modification to ensure fuel deliveries to the US Embassy and Consulates while soliciting for future requirements.

4. Price/Cost Considerations (10 U.S.C 2304(t)(3)(C)):

A. The contracting officer has determined that the most expedient method of obtaining the required fuel at a fair and reasonable price is to limit the request to the Contractors, which are currently performing long term contracts for DLA Energy's Direct Delivery Program in Afghanistan. The urgency of the requirement and abridged delivery schedule precludes the inclusion of new offerors or offerors with unknown ability to secure the fuel allocation and transportation required, and because failure to deliver would seriously injure the U.S. Embassy and Consulates mission in Afghanistan.

SOURCE SELECTION INFORMATION- SEE FAR 2.101 AND FAR 3.104

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B. The Contractors' contracts were awarded as fixed-price with economic price adjustment, using full and open competition procedures, and reflect the current competitive market pricing. The prices were determined fair and reasonable at the time of award. However, the price for the Bridge Modification was not anticipated and was therefore not evaluated at the time of award.

C. In accordance with FAR 6.303-2(b )(7), the contracting officer determines that the anticipated cost to the Government for the Bridge Modification will be fair and reasonable pursuant to FAR 15.404-l(b)(2)(i), by performing a comparison of proposed prices from the Contractors, FAR 15.404-l(b)(2)(ii), by performing a comparison of historical prices paid, and FAR 15.404- 1 (b )(2)(vii), analyzing other than certified cost and pricing data received from the offerors. The product being sought is a commercial item as defined under FAR 15.403-l(c)(3) and therefore, no certified cost or pricing data is required.

5. Marl•et Research/Efforts to Obtain Competition (10 U.S.C. 2304(f)(3)(D)&(E)):

A. A synopsis will not be required for the Bridge Modification pursuant to FAR 5.202(a)(2) because the contract action is being made under a compelling urgency pursuant to FAR 6.302-2. More specifically, the Government would be seriously injured if DLA Energy were forced to comply with the time periods of FAR 5.203 because of the urgency of the delivery schedule and requirements described above. DLA Energy's market research of vendors who had offered on recent solicitations and those receiving awards demonstrated that the best chance to obtain the required fuel at a fair and reasonable price and within the required delivery schedule is to limit awarding the Bridge Modification to the Contractors because they are the only experienced contractors who are currently performing long-term contracts for DLA Energy's Direct Delivery Program in Afghanistan.

The urgency of the delivery schedule precludes the inclusion of new offerors or offerors with unknown ability to secure the fuel supply and make deliveries with such an abbreviated delivery schedule as the process of soliciting offers and analyzing the capabilities of new offerors would take longer than the delivery schedule allows and risk mission failure. More specifically, the failure to deliver would seriously injure and endanger mission operation and could ultimately result in mission failure.

B. A synopsis for Solicitation SP0600-14-R-0201 will be issued on the FedBizOpps website as soon as possible to obtain a contract through full and open competition to take place after the Bridge Modification.

C. DLA Energy anticipates receiving sufficient competitive offers once Solicitation SP0600-14-R- 020 1 is released and anticipates a new contract under full and open competition will be awarded beginning April!, 2014. The previous solicitation SP0600-12-R-0204 delivering fuel to the U.S.

Embassy and Consulates in Afghanistan was issued on January 10, 2012 and resulted in the award of Contract SP0600-12-D-1014 on a full and open competitive basis. DLA Energy fully expects to award a competitive contract under the forthcoming Solicitation SP0600-14-R-0201 because the previous solicitation yielded 126 interested vendors and 32 offers.

SOURCE SELECTION INFORMATION- SEE FAR 2.101 AND FAR 3.104

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6. Actions Being Taken to Overcome Barriers to Competition (10 U.S.C. 2304(f)(3)(F)):

A. As previously stated, the follow-on procurement to provide fuel delivery to the U.S. Embassy and the Consulates in Afghanistan will be solicited on a full and open competitive basis under Solicitation SP0600-14-R-0201. DLA Energy expects to receive competitive offers in response to the Solicitation SP0600-14-R-0201 and will have adequate price competition to determine price reasonableness. No barriers to competition are anticipated for the fuel delivery requirement.

(See Next Page)

SOURCE SELECTION INFORMATION- SEEFAR2.101 AND FAR3.104

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I hereby certifY that the information contained in this justification is accurate and complete to the best of my lmowledge and belief.

Contract Spec~t Date: ~(D ~f..3

Contracting Officer Date: 3 'U-t 20/ J;!.

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.

DLA Energy Item Manager Date:_? oej ,;lof..~

(See Next Page)

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Justification and Approval for Other Than Full and Open Competition·

I have reviewed and concur with this Justification.

Director, Direct Delivery Fuels Date: t OCT IS

I have reviewed and concur with this Justification.

Assistant C7nsel} Date: 10 '}+(3

I have reviewed and hereby recommend that this Justification be approved:

Competition Advocate

Date: 01 Od- · ZD 13

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