JA_Platts_FY16_Redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

November 16, 2015 J&A Tracking Number: 16-0006

Justification for Other than Full and Open Competition

1. Summary/Introduction:

The Defense Logistics Agency (“DLA”) Energy, a component of the DLA, is the contracting activity. This action is for the purchase of a subscription renewal of Platts Newsletter, end-of-day Market Data, and real-time Alerts. The subscription covers a 12-month period: 12/15/2015 through 12/14/2016. Platts is the sole producer of the proprietary pricing data, therefore it is the sole responsible source for the publication, and no other publication is able to fulfill the requirement for this data pursuant to 10 U.S.C. 2304(c)(1).

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

The action being approved will be a contract with Platts to provide multiple pricing publications and reports that are used in order to evaluate the market and for economic price adjustment (EPA) clauses in energy contracts. This action will use FY16 funding.

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

Platts, a division of McGraw Hill Corporation, provides real-time pricing and news information for oil, natural gas, electricity, coal, and petrochemicals. Platts publishes news, research, commentary, market data and analysis, and more than 12,000 price assessments daily that are widely used as benchmarks in the physical and futures markets. These products and services include real-time news and price information, end-of-day market data, and newsletters and reports. The estimated dollar value for the yearly subscription is $400,431.75.

4. Identification of the statutory authority permitting other than full and open competition (FAR 6.303-2(b)(4)):

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(l), as implemented by FAR Part 6.302-1 (a)(2): “Only one responsible source and no other supplies or services will satisfy agency requirements.” Platts is the only source that can customize and analyze various add-on data tailored to DLA Energy’s specific petroleum, distribution and shipment needs. Platts provides quick access to reliable data DLA Energy requires to conduct detailed industry analysis and make critical business decisions. Additionally, since these publications are the agreed-to indexes in ongoing DLA Energy contracts, no other product or service would satisfy DLA Energy’s need. Therefore, in accordance with 10 U.S.C. 2304(c)(1), Platts is the only source that can meet this specific agency requirement.

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)):

PROCUREMENT SENSITIVE

SOURCE SELECTION INFORMATION – SEE FAR 2.101 AND 3.104

Justification for Other Than Full and Open Competition (Cont’d) (SP0600-16-Q-0403 – Platts)

Platts is the world’s preeminent energy pricing service. The prices for a majority of energy products procured by DLA Energy are adjusted based on Platts published pricing. In addition, Platts is the only source that can customize and analyze various add-ons tailored to DLA Energy’s specific petroleum distribution and shipment needs. There are no other companies who can currently provide the comprehensive data covering over 12,000 real-time and future price assessments for various energy markets that are customized for DLA Energy’s computer systems.

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)):

On November 6, 2015, DLA Energy-FEA posted an intent-to-sole source notice on FedBizOpps (SP0600-16-Q-0403); no vendors responded to the notice resulting in no additional competition to meet this requirement. Therefore, Platts is the only source available to meet DLA Energy’s needs at this time.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable (FAR 6.303-2(b)(7)):

Under the predecessor contract SP0600-15-M-9307, DLA Energy paid $386,994.25 for the same items for the 12-month subscription. The current subscription costs $400,431.75, an increase of 3.5%. Based on market research, it has been determined that the subscription price is the same as paid by Government and other than Government entities, therefore the Contracting Officer anticipates the price offered by Platts to be fair and reasonable for the same or similar items in accordance with FAR 15.404-1(b)(2)(iv), “Comparison with competitive published price lists, published market prices of commodities, similar indexes, and discount or rebate arrangements.”

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)):

DLA Energy-FEA posted an intent-to-sole source notice on FedBizOpps, however, there were no expectations that the notice would yield any additional sources. Therefore, it has been determined that Platts is the only source available to meet DLA Energy’s needs at this time.

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.

The information provided by Platts is proprietary and; therefore, we are unable to develop a specific purchase description that would satisfy the requirements.

(SP0600-16-Q-0403 – Platts)

(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 replied to the Intent-to-Sole Source Notice posted to FedBizOpps.

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)):

There are no known actions that will allow DLA Energy to overcome the competition barriers for this requirement.

(SP0600-16-Q-0403 – Platts)

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.

JEREMY VATTER

Contracting Specialist

I have reviewed and concur with this Justification.

LOUISE HANSEN

Deputy Chief Counsel

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.

JAMES REED

Chief, Market Research

Approved:

ROBIN MATHEWS

Contracting Officer

VATTER.JEREMY

.E.1300845149

Digitally signed by

VATTER.JEREMY.E.1300845149

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DLA, cn=VATTER.JEREMY.E.1300845149 Date: 2015.11.30 10:18:49 -05'00'

REED.JAMES.E

.1229662488

Digitally signed by

REED.JAMES.E.1229662488

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DLA, cn=REED.JAMES.E.1229662488 Date: 2015.12.04 09:31:26 -05'00'

HANSEN.LOUISE.E.

1229185663

Digitally signed by HANSEN.LOUISE.E.1229185663 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DLA, cn=HANSEN.LOUISE.E.1229185663 Date: 2015.12.04 15:28:42 -05'00'

MATHEWS.RO

BIN.R.1230349

Digitally signed by

MATHEWS.ROBIN.R.1230349289

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=DLA, cn=MATHEWS.ROBIN.R.123034928 Date: 2015.12.08 10:51:49 -05'00'