JA_NAESB_Redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

November 3, 2016 J&A Tracking Number: 17-0014

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. The action is for the purchase of a membership renewal with the North American Energy Standards Board (NAESB). The membership covers a 12-month period: 01/01/2017 through 12/31/2017. The estimated dollar value for the yearly membership is $7,000.00.

Justification for other than full and open competition is 10 U.S.C. 2304(c) (1).

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

DLA Energy has been a member of NAESB since 2001. NAESB is responsible for developing industry standards for the wholesale and retail sectors of the natural gas and electricity industry.

DLA Energy membership pertains to the gas wholesale sector with particular emphasis on the development of industry standards for natural gas pipelines. DLA Energy has a need for the NAESB membership to allow access to and utilization of these industry standards for its natural gas acquisition program.

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

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2): “only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements...” The membership is proprietary to NAESB and no other source can provide the required membership. The estimated dollar value for the yearly membership is $7,000.00. Therefore, in accordance with FAR 6.302-1(a) (2), NAESB is the only source that can satisfy agency requirements.

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 for this intended procurement is 10 U.S.C. 2304(c) (1), which allows the head of an agency to use other than competitive procedures when “the property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or services will satisfy the needs of the agency.” As required, DLA Energy posted the intent to sole source notice on FedBizOpps (SP0600-17-Q-0408). However, since NAESB is the only source available for this membership, there was no expectation that other sources would be identified. 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.

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

(SP0600-17-Q-0408 – NAEBS)

Therefore, in accordance with 10 U.S.C. 2304(c) (1), NAESB 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)):

The Contracting Officer determines the price offered by NAESB to be fair and reasonable in accordance with FAR 15.404-1(b) (2)(ii), “Comparison of proposed prices to historical prices paid, whether by the Government, for the same or similar items...” The price for the same contract for membership in 2016 was $7,000.00. The annual membership dues of $7,000.00 are the same price for all members, i.e. commercial and government. DLA Energy uses the best available and most comprehensive information to adjust contract prices.

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)):

DLA Energy has been a member of NAESB since 2001. NAESB is responsible for developing industry standards for the wholesale and retail sectors of the natural gas and electricity industry.

DLA Energy membership pertains to the gas wholesale sector with particular emphasis on the development of industry standards for natural gas pipelines. DLA Energy has a need for this membership in NAESB to allow access to and utilization of these industry standards for its natural gas acquisition program.

On October 18, 2016, DLA Energy-FEA posted an intent-to-sole source notice on FedBizOpps (SP0600-17-Q-0408); no vendors responded to the notice resulting in no additional competition to meet this requirement. Therefore, NAESB 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)):

The Contracting Officer determines the price offered by NAESB to be fair and reasonable in accordance with FAR 15.404-1(b) (2)(ii), “Comparison of proposed prices to historical prices paid, whether by the Government, for the same or similar items...” The price for the same contract for membership in 2016 was $7,000.00. The annual membership dues of $7,000.00 are the same price for all members, i.e. commercial and government. In addition, NAESB has chosen not to increase the price of its membership for the last four years (the price has remained the same since January 1, 2013). Therefore, the current proposed price is fair and reasonable in comparison to previous prices for the same item.

(SP0600-17-Q-0408 – NAEBS)

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)):

NAESB is the only source available for the required membership. Therefore, DLA Energy has no expectation that market research or other efforts will result in future competition.

9. Any other facts supporting the use of other than full and open competition, such as (FAR 6.303-2(b) (9):

DLA Energy-FEA posted an intent-to-sole source notice on FedBizOpps (SP0600-17-Q-0408);

no vendors responded to the notice resulting in no additional competition to meet this requirement. Therefore, NAESB is the only source available to meet DLA Energy’s needs at this time.

(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.

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 FedBizOps.

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.

(SP0600-17-Q-0408 – NAEBS)

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.

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.

Approved:

KEITH CARVALHO

Contracting Officer

CARVALHO.KEITH.

ANDREW.1233637

Digitally signed by

CARVALHO.KEITH.ANDREW.12

33637811 Date: 2016.11.03 13:45:14 -04'00'