JA_6.302-2_SP060015D0460_(redacted).pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

March 17, 2016

16-0021

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. Summary/Introduction:

The Defense Logistics Agency (DLA) Energy is the contracting activity for petroleum products and services for the United States (U.S.) Department of Defense (DoD). This Justification and Approval (J&A) is for the acquisition of additional quantities of fuel on an other than full and open competition basis and supports quantity increases through the modification of Husky Supply & Marketing, Co. (Husky) contract SP0600-15-D-0460 awarded under Inland/East/Gulf Coast (IEG) solicitation SP0600-14-R-0061. This contract is an indefinite-delivery/indefinite-quantity type with a period of performance of , plus a 30-day carryover which supports critical, on-going fuel demands on an FOB origin basis.

Based on award prices effective April 29, 2014, the total estimated value of the additional volume is . Thus, the estimated contract value will be increased from

. The actual amount that will be obligated pursuant to this J&A may fluctuate due to economic price adjustments in the contract prices occurring after April 29, 2014.

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

The action being approved is the addition of 2,192,400 US gallons (USG) of JAA to Husky’s contract SP0600-15-D-0460 for FOB Origin deliveries from Lima, OH on an other than full and open competition basis due to current delays in awards under IEG solicitation SPE600-15-R- 0719.

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

The supplies required to meet the during the period of , plus a 30-day carryover.

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 precludes full and open competition, and delay in award of a contract would result in serious injury to the Government.

Justification for Other Than Full and Open Competition (Cont’d) (SP0600-15-D–0460 –Husky)

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)):

DLA Energy determined that increasing quantity under the existing Husky contract, which currently supplies JAA FOB Origin from Lima, OH, would be most advantageous to the Government. Husky has been performing this contract since February 20, 2015 and consistently meets the fuel needs for DFSP Indianapolis, IN.

In order to avoid that outcome, Husky’s existing contract must be modified to add quantity on an other than full and open competition basis.

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 contract action will not be synopsized due to the action being made under the terms of an existing contract that was previously synopsized in accordance with FAR 5.202(a)(2). This requirement will be acquired on an other than full and open competition basis to

, with a 30-day carryover.

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 determines that the anticipated cost to the Government of the additional quantity under the existing Husky contract SP0600-15-D-0460 is fair and reasonable based on comparison of proposed prices to historical prices paid by the Government for the same or similar items in accordance with FAR 15.404-1(b)(2)(ii). Husky will supply the additional quantity of fuel at the price awarded under the existing contract line item (CLIN 0001) for 2,191,400 USG at per USG, effective April 29, 2014. Prices were determined fair and reasonably at the time of initial award on the basis of competition in accordance with FAR 15.404-1(b)(2)(i). Additionally, Husky’s price for CLIN 0001 was also favorable in comparison with the established market range, , thereby meeting the requirements of FAR 15.404-1(b)(2)(vi). All contract prices are adjusted using market assessments contained in the economic price adjustment clause specific to the geographic region of performance.

Therefore, contract prices under SP0600-15-D-0460 continue to reflect the current market price of fuel.

(SP0600-15-D–0460 –Husky)

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 market survey was not conducted. Given the previously identified reasons in paragraph 5, the incumbent contractor provides the only practicable means to meet the stated requirements.

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.

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.

DLA Energy is supplying JAA from DFSP Indianapolis, IN to support flying and aviation units at four separate locations in two states.

The use of other than full and open competition procedures is necessary to meet the JAA fuel requirements for DFSP Indianapolis, IN and ensure continued delivery of fuel through .

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

Not applicable.

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)):

No action will be taken at this time to overcome barriers to competition. On an annual basis, the IEG program receives approximately 19 to 27 offers; thus, robust competition exists. The

(SP0600-15-D–0460 –Husky) contracts that will replace these contracts are being competed on a full and open competition basis (with some partial small business set-asides) – as was the case for the current contracts.

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.

W

Contract Specialist Contracting Officer Date: Date:

Division Chief Date:

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.

Date:

I have reviewed and concur with this Justification.

D

(SP0600-15-D–0460 –Husky)

Assistant Counsel Date:

Approved:

Competition Advocate Date: March 21, 2016