JA_for_45_Day_Extension_Redacted_Copy.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

SOURCE SELECTION INFORMATION—SEE FAR 2.101 AND 3.104

16-0039

7 June 2016 Justification for Other than Full and Open Competition

1. Summary/Introduction:

A. The Defense Logistics Agency (DLA) Energy is the agency and DLA Energy-FEPDB is the contracting activity. In accordance with 10 U.S.C 2304(c)(2), this Justification and Approval (J&A) documents the use of other than full and open competition to extend the period of performance of contract SP0600-13-D-9514 by 45 days from May 1, 2016 through June 15, 2016. Modification (MOD) P00029 was issued by the contracting officer on April 28, 2016 to extend the contract 45 days at a corrected estimated price of $12,507,746.30. MOD P00030 corrected the estimated value to match the actual need, which only includes a few of the contract line items on the contract. The estimated total value of contract SP0600-13-D-9514 has been increased by $12,507,746.30 from $1,228,421,645.58 to $1,240,929,391.88.

B. This contract modification extended contract number SP0600-13-D-9514 to supply and deliver fuel to various Forward Operating Bases (FOBs) in Afghanistan to various activities to support critical operations. This contract supports multiple units in the Afghanistan Area of Operation (AOR), these sources are too numerous to be listed individually in this J&A but are listed in MOD P00029 to the contract. DLA Energy awarded this contract action 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 has been approved and publicized after award, in accordance with FAR 6.303-1(e). Due to the unusual and compelling nature of this requirement, preparation and approval of this J&A prior to award would have unreasonably delayed the acquisition.

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

This 45 days extension, at the estimated amount of $12,507,746.30, was required to continue the flow of fuel to various Forward Operating Bases (FOBs) in Afghanistan. Under contract SP0600-13-D-9514, National Fuel delivered AVGAS, Turbine Fuel, MOGAS, Diesel Fuel, Kerosene Burner Fuel, Lube oil, and FSII in Afghanistan, and was the only responsible source that could perform under this strict need and critical time constraint and satisfy the war-fighters’ requirement without interruption of critical operations resulting in mission degradation. Award of this requirement was critical to current ongoing military operations in Afghanistan. This contract supported Operation Freedom's Sentinel, and prevented any interruption in fuel supply that could have caused serious degradation of U.S. military’s mission and its operations capabilities in theater. This requirement was procured through Modification P00029 to the contract on 28 April 2016 using Defense Working Capital funds.

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

A. This contract extension provided an estimated quantity of 6,217,640 gallons of various commercial fuel products, AVGAS, Turbine Fuel, MOGAS, Diesel Fuel, Kerosene Burner Fuel, Lube oil, and FSII.

Justification for Other Than Full and Open Competition (Cont’d)

(SP0600-13-D-9514)

SOURCE SELECTION INFORMATION—SEE FAR 2.101 AND 3.104

The estimated value is $12,507,746.30. FAR 2.101 defines a commercial item as any item that is of a type customarily used by the general public or by non-governmental entities for purposes other than governmental purposes, and has been sold to the general public. All the fuel types being procured are considered commercial item by this definition. Contract SP0600-13-D-9514 was awarded competitively on September 06, 2013 with an estimated value of $913,816,229.68. The contract included a two-year base period, and a provision to extend the contract for an additional six months. Prior to the expiration of the contract, on September 1, 2015, modification P000022 was issued by Contracting Officer extending the contract by three months, through December 31, 2015, for an estimated $157,302,707.95.

Modification P00023 was issued by the contracting officer to extend the contract an additional three months, through March 31, 2016, at the same estimated contract price of $157,302,707.95. The extensions were executed under the contract’s extension provision, I209.09 Extension Provisions. As a result of MOD P00029, the ordering period was extended from March 31, 2016 to 15 May 2016 and the delivery period was extended from 1 April 2016 to June 15, 2016.

B. The total estimated cost of the 45-day extension is $12,507,746.30 as reflected in the table below:

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)(2), as implemented by Federal Acquisition Regulation 6.302-2. Unusual and compelling urgency precluded full and open competition, and delay in award of a contract would have resulted in serious injury to the Government.

The urgency of the requirement and abridged delivery schedule precluded 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.

CLIN LOCATIONS PRODUCT QTY

Q per Mnth

Q for 45 Day (mnth x 1.5)

$$ per USG as of 4/29/2016

$$ per Mnth $$ per 45 days

($$/mnth x 1.5)

1 101KDN NKC JP8 900,000 75,000 112,500 $2.125390 $159,404.25 $239,106.38

2 101KDN DFSP National JP8 7,200,000 600,000 900,000 $2.125390 $1,275,234.00 $1,912,851.00 3 101PGN Bargram Air Base JP8 24,000,000 2,000,000 3,000,000 $1.409563 $2,819,126.00 $4,228,689.00 5 101TS1 Camp Chapman Gasoline MUM 10,000 833 1,250 $2.889532 $2,407.94 $3,611.92 6 103-KD FOB Dahlke JP8 3,000,000 250,000 375,000 $2.276810 $569,202.50 $853,803.75 7 103TS2 FOB Fenty JP8 6,000,000 500,000 750,000 $2.491918 $1,245,959.00 $1,868,938.50 8 103TS3 FOB Fenty JP8 (F34) 80,000 6,667 10,000 $2.491918 $16,612.79 $24,919.18 10 107TSP Gamberi JP8 660,368 55,031 82,546 $2.660172 $146,391.04 $219,586.56 19 128TSP Camp McGill JP8 144,000 12,000 18,000 $3.198922 $38,387.06 $57,580.60

22 131TSN HKIA JP8 1,131,500 94,292 141,438 $2.993885 $282,298.41 $423,447.61

23 131TSP HKIA DF2 2,062,250 171,854 257,781 $3.499942 $601,479.62 $902,219.42

24 107-03 Camp Eagle JP8 4,453,000 371,083 556,625 $3.078622 $1,142,425.31 $1,713,637.97 26 FOB Pamir JP8 100,000 8,333 12,500 $4.748354 $39,569.62 $59,354.43

Total Q $$ per Mnth $$ for 45 days

6,217,640 $8,338,497.54 $12,507,746.30

Pricing Table for MOD P00030 to SP0600-13-D-9514

SOURCE SELECTION INFORMATION—SEE FAR 2.101 AND 3.104

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)):

A. The purpose of the 45-day extension was to continue the flow of fuel to units in the Afghanistan

AOR necessary to support critical missions and operations. The fuel requirements are being solicited under competitive procedures; however, the requiring activity added more locations and fuel types to solicitation SP0600-15-R-0219, delaying completion and award of the follow on contract. The battlefield is very dynamic and changes in missions, goals and objectives are facets of all military operations. There was no way to predict or foresee the changes made by the requiring activity and these changes were not the result of poor planning. National has been forced to maintain a readiness posture necessary to support the warfighters in Afghanistan during these delays.

The failure to extend contract SP0600-13-D-9514 would have stopped the flow of fuel, preventing critical operations and jeopardizing critical missions and the tactical posture of United States and coalition forces in Afghanistan. For these reasons the contract was extended for an additional 45 days. The 45-day period of performance did not exceed the time necessary to meet only the unusual and compelling requirement and to enter into a contract using competitive procedures. The contracting officer anticipates awarding a new fuel supply contract through Solicitation SPE600-15- R-0219 by June 15, 2016.

B. National Fuels has a long standing and meaningful relationship with DLA Energy and with copious suppliers within Afghanistan and the surrounding region, like the Pakistani Government and State Oil Company, which enables it to exert influence and coordinate import of fuel into various ports from all over the world. National Fuels has historically been able to show how resilient they are by switching from fuel sources when needed to ensure mission requirements are met.

C. National Fuel is uniquely qualified under the authority cited having successfully performed on similar contracts delivering an estimated 167 million gallons of fuel in Afghanistan. Since receiving its first DLA Energy contract in 2007, National Fuel has demonstrated a proven and reliable performance record achieving a Satisfactory rating under two contracts that were awarded in 2011.

Additionally, National fuel has achieved a Past Performance Confidence Assessment rating of Substantial Confidence for quality of product, schedule, and business relations.

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)):):

The contracting officer determined that the most expedient method of obtaining the required fuel at a fair and reasonable price was to limit the request to National Fuel Inc. National Fuel is currently supplying fuel to the United States and coalition forces in Afghanistan. They have all the necessary equipment in place and a proven process to supply all the different types of fuel to multiple locations. Extending contract SP0600-13-D-0219 was the logical solution because no other vendor has a more developed presence in the Area of Operation than National Fuel. The time required to mobilize a different vendor would have caused unacceptable delays. This modification was issued under less than fair and open competition due the urgency need to maintain the flow of fuel in support of military operations in Afghanistan. A synopsis was not required for this Modification pursuant to FAR 5.202(a)(2) because the contract action was made under a compelling urgency pursuant to FAR 6.302-2. More specifically, the Government would have been seriously injured if

SOURCE SELECTION INFORMATION—SEE FAR 2.101 AND 3.104

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.

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 prices listed in the table in paragraph 3.B. uses National’s prices under Contract SP0600-13-D- 9514 with an economic price adjustment using published prices based on the PLATTS OILGRAM index sourced from the Northern Distribution Network (NDN) and Pakistan. These indexes were set and the prices were deemed fair and reasonable by the contracting officer at the time of contract award. The prices listed in the table above were National Fuel’s prices on 25 May 2016.

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))

A. Through market research, the contracting officer determined that the most expedient method of obtaining the required fuel at a fair and reasonable price was to limit the request to the National Fuel, which is currently supplying fuel under DLA Energy's Direct Delivery Programs in Afghanistan. Although there are other potential sources, the urgency of the requirement and abridged delivery schedule precluded the inclusion of new offerors with unknown ability to secure the fuel allocation and transportation required. Failure to deliver would seriously injure the war-fighter’s support of Operation Freedom's Sentinel in Afghanistan. No other vendors were considered for this extension because market research clearly favors the award of the extension to the incumbent supplier (National Fuel) with a highly favorable past performance verse making award to another vendor with an unknown past performance at an unknown cost to the government. The process of conducting a full and open solicitation for the 45-day extension was deemed too time consuming. A normal solicitation would have taken longer than 45 days to conduct because the requirements have to be posted, questions from the industry have to be answered, proposals have to be received, prescreened and evaluated, a competitive range has to be set, final offers from the vendors must be requested and received, negotiations have to be conducted, final proposals have to be evaluated, and after that the award can be made. Once award is made, a post-award conference with the new vendor would be coordinated, and finally the new vendor or vendors can be mobilized which normally includes staging fuel at pre-determined and strategic locations, and finally fuel can be delivered to the Forward Operating Bases (FOBs). There are no vendors other than National Fuel that had the infrastructure or equipment in place to supply the immediate needs of the warfighters with the wide variety of fuels delivered to multiple locations in the AOR. Making award of the 45-day extension to the incumbent National Fuel was deemed the only option available without causing unacceptable delays that would have resulted in mission failure and a reduced ability to extend the battleforce of US and Coalition forces.

B. The solicitation resulting in the award of Contract SP0600-13-D-9514 was issued on a full and open competitive basis. Four separate solicitations were issued broken down by the type of fuel and the regions in Afghanistan. SP0600-12-R-0224 was released on September 21, 2012 for TS-1 to procure Diesel Fuel and Unleaded, Automotive Gasoline for Bagram Airbase, FOB Kunduz, FOB Marmel, Afghanistan and DFSP National, DFSP Tryco and DFSP ZWG at Kabul, Afghanistan. SP0600-12-R-0225 was released on September 21, 2012 to procure Additized Jet Fuel (TS1) for DFSP National, DFSP Tryco, DFSP ZWG, FOB Fenty, and Camp Phoenix, SOURCE SELECTION INFORMATION—SEE FAR 2.101 AND 3.104

Afghanistan. SP0600-12-R-0229 was released on September 21, 2012 to procure Jet Fuel (TS-1) for FOB Airborne, FOB Ghazni, FOB Aryan and FOB Warrior, Afghanistan and DFSP National, DFSP Tryco and DFSP ZWG at Kabul, Afghanistan. Finally, SP0600-12-R-0230 was released on September 21, 2012 to procure Additized Jet Fuel (TS-1) for FOB Gardez, FOB Sharana, FOB Salerno and FOB Shank, Afghanistan and DFSP National, DFSP Tryco and DFSP ZWG at Kabul, Afghanistan. All responsible parties were permitted to submit a proposal. DLA Energy received adequate competition from these solicitations. In accordance with the terms of the solicitation, on September 6, 2013, DLA Energy made one contract award to supply all locations with all the required fuel types to National Fuel. Contract SP0600-13-D-9514 was awarded to National Fuel Inc. for an estimated 345.6 million gallons of fuel with an initial value estimated at $913,816,229.68.

C. As previously stated, the follow-on procurement to provide fuel supplies throughout Afghanistan is being solicited on a full and open competitive basis under Solicitation SPE600-15-R-0219. DLA Energy received competitive offers in response to Solicitation SPE600-15-R-0219 and will have adequate price competition to determine price reasonableness. No barriers to competition are anticipated for the fuel supply requirement. The contracting officer anticipates awarding a new fuel supply contract through Solicitation SPE600-15-R-0219 by June 15, 2016, with deliveries to commence immediately following award.

9. Any other facts supporting the use of other that full and open completion, such as (FAR6.303- 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.

See paragraph 3B above for the estimated cost and paragraph 5A for the nature of the harm to the government.

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

To maintain the flow of fuel, National Fuel was the only vendor solicited for the 45-day extension. No other vendors were deemed capable of meeting the immediate needs of the warfighters.

SOURCE SELECTION INFORMATION—SEE FAR 2.101 AND 3.104

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):

The follow-on requirement will be met through Solicitation number SP0600-15-R-0219, which was issued as a full and open competition with no restrictions. Over 30 vendors responded to Solicitation SP0600-15-R-0219 by providing a bid package.

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.

SHELLY BRAYBOY Augustus Patterson Jr.

Contract Specialist Contract Specialist Direct Delivery Fuels-FEPDB Direct Delivery Fuels-FEPDB Date: Date:

JASTAR SINGH

Contracting Officer Direct Delivery Fuels-FEPDB Date:

JAMAAL ROSE

Division Chief Direct Delivery Fuels-FEPD

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.

NORMAN MITCHELL

Supervisor Supply Inventory Management Specialist

I have reviewed and concur with this Justification.

DAVID W. PETERSON

Director, Direct Delivery Fuels

MATTHEW VASQUEZ

Assistant Counsel

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

ROBERT M. CELESTE

Competition Advocate Defense Logistics Agency Energy