JA_14D0488_P5_-_Red_Redacted.pdf

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

April 6, 2015 15-0038

Justification for Other than Full and Open Competition

1. Summary/Introduction:

Defense Logistics Agency (DLA) Energy is the Executive Agent for Bulk Petroleum and the contracting activity for petroleum products and services for the Department of Defense (DoD).This Justification and Approval (J&A) is for the acquisition of additional quantity of regular unleaded gasoline (MUR)for the period of performance 1 April – 30 June 2015, under Kuwait Petroleum Corporation (KPC) contract SP0600-14-D-0488 using other than full and open competition. 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. The dollar value of the increased quantity is $2,528,326.76 for SP0600-14-D-0488. The total estimated contract value for SP0600-14-D-0488 was increased by $2,528,326.76, from $135,008,441 to $137,536,767.76.

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

The action being approved is the addition of an additional quantity of MUR to KPC’s contract

SP0600-14-D- 0488,

This modification became effective 3 April 2015 and allowed DLA Energy to meet customer requirements without interruption.

DLA Energy awarded an indefinite-delivery, indefinite-quantity(IDIQ) contract to KPC 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)):

The supplies required to meet the agency’s need were of MUR valued at $2,528,326.76. The MUR was added to contract SP0600-14-D-0488

There were four previous J&As using other than full and open competition. Under the authority of 10 U.S.C. § 2304(c)(1), implemented by FAR 6.302-1, only one responsible source, JA1 was awarded under contract SP0600-14-D-0487 and DF2 and MUR were awarded under contract SP0600-14-D-0488 for a total estimated value of

$166,583,004.71. Under the authority of 10 U.S.C. § 2304(c)(2), implemented by FAR 6.302-2, unusual and compelling urgency, P00001 JA1under

Justification for Other Than Full and Open Competition (Cont’d) (SP0600-14-D-0488 – Kuwait Petroleum Corporation) contract SP0600-14-D-0487 and DF2 and MUR under contract SP0600-14-D-0488. The total contract amount for JA1 was increased by $34,735,407.51, from $108,474,060.96 to $143,209,468.47. The total contract amount for DF2 and MUR was increased by $23,392,338.03 ($14,595,556.15 for DF2 and $8,796,781.88 for MUR) from $58,407,923.26 to $81,800,261.29. Under the authority of 10 U.S.C. § 2304(c)(2), implemented by FAR 6.302-2, unusual and compelling urgency, P00002 JA1 under contract SP0600-14-D-0487 and DF2 under contract SP0600-14-D- 0488. The total contract amount for JA1 was increased by $29,525,661.74, from $143,209,468.47 to $172,735,130.21. The total contract amount for DF2 was increased by $11,503,503.36, from $81,800,261.29 to $93,303,764.65. Under the authority of 10 U.S.C. §2304(c)(2), implemented by FAR 6.302-2, unusual and compelling urgency, P00003 and P00004

JA1under contract SP0600-14-D-0487 and DF2 under contract SP0600-14-D-0488. The total contract amount for JA1 was increased by $47,137,382.29, from $172,735,130.21 to $219,872,512.50. The total contract amount for DF2 was increased by $41,704,676.35, from $93,303,764.65 to $135,008,441.00.

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.

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)):

KPC is a competitive oil refiner and supplier to DLA Energy customers in other Middle East procurements. KPC has demonstrated its ability to provide commercial fuel within the military specifications by performing under current contracts in the Middle East including SP0600-15-D- 0455 (WESTPAC), SP0600-14-D-0487 (Kuwait) and SP0600-14-D-0488 (Kuwait).

JA1 $108,474,060.96 $34,735,407.51 $29,525,661.74 $47,137,382.29

DF2 $50,938,352.64 $14,595,556.15 $11,503,503.36 $41,704,676.35

MUR $7,469,570.62 $8,796,781.88 $2,528,326.76

TOTALS: 166,881,984.22$ 58,127,745.54$ 41,029,165.10$ 88,842,058.64$ 2,528,326.76$

TOTAL $ VALUE: $357,409,280.26

SP060014D0487 $219,872,512.50 JA1

SP060014D0488 $137,536,767.76 DF2 and MUR

SP0600-14-D-0487 and SP0600-14-D-0488 J&A History

BASIC P00001 P00002 P00003/4 P00005

(SP0600-14-D-0488 – Kuwait Petroleum Corporation)

MUR was placed on contract SP0600-14-D-0488 for the period of performance 1 April through 30 June 2015, under the unusual and compelling urgency procedures of FAR 6.302-2(b)(1).

i.

ii.

fuel would have to be supplied either (1) by waterborne tanker deliveries into suitable terminals capable of receiving tankers, storing product

iii. On 31 March 2015, KPC confirmed its agreement to supply DLA

Energy with the additional MUR

iv. The dollar value of the increased quantity was $2,528,326.76 for SP0600-

14-D-0488. The total estimated contract value for SP0600-14-D-0488 was increased by $2,528,326.76, from $135,008,441 to $137,536,767.76.

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 was not synopsized due to unusual and compelling urgency in accordance with 5.202(a) (2). This requirement is being acquired on an “other than full and open competition” basis to ensure the continuation of the delivery of fuel within Kuwait through 30 June 2015.

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 will be fair and reasonable.

The Contracting Officer determined the price fair and reasonable in accordance with FAR 15.404-1(b)(2)(ii), comparison of proposed prices to historical prices paid for the same or similar items.

MUR:

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.

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):

No sources expressed interest in writing.

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)):

DLA Energy does not have the ability to overcome these barriers to competition due to the Kuwait Ministerial Decree Numbers 4 (1989) and 6 (1980) specifying that KPC is solely authorized to produce, store, refine and market refined petroleum products in Kuwait and restricting the import of all petroleum products without the prior approval of KPC, and the recent confirmation that these restrictions remain in effect.

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.