JA Redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

November 18, 2019

20-0003

Justification for Other than Full and Open Competition

1. Summary/Introduction:

Defense Logistics Agency (DLA) Energy is the contracting activity for petroleum products and services for the Department of Defense (DoD). This Justification & Approval (J&A) is for the addition of one five-year option (December 14, 2019 - December 13, 2024), one three year and ten month option (December 14, 2024 - October 13, 2028), and a six month extension (FAR 52.217-8) (October 14, 2028 – April 13, 2029) which were not evaluated at the time of contract award. This modification will require the incumbent contractor, Southern Terminal Services, LLC. (STS), to provide Contractor-Owned Contractor-Operated (COCO) fuel storage services on leased Government property at Fort Jackson, SC on a sole source basis under the authority found at FAR 6.302-1(a)(2)(iii). The value of the action being approved is $4,456,800.00. This modification to contract SP0600-99-D-5941, will increase the contract’s value from to The five-year option will be funded with FY 2020 Defense Working Capital Funds (DWCF); the remaining options will be funded at time of exercise.

STS provides COCO fuel storage services using best commercial standards at Fort Jackson, SC.

The contractor operates, maintains, manages, and provides retail/bulk fuel services while safely receiving, storing, accounting for, and issuing DWCF fuel products. The at Fort Jackson, SC is dependent upon the fuel management services provided by the contractor. The current contract for these services will expire on December 13, 2019. The follow-on modification will be awarded prior to , 2019.

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

The procurement of these services for the three option periods totaling nine years and four months is being conducted using a negotiated bilateral modification to the contract in accordance with FAR 43.103(a)(3) and contract clause 52.217-9 Option to Extend the Term of the Contract (Mar 2000). The authority to extend this contract is granted by section 881 of the National Defense Authorization Act for Fiscal Year 2018 as codified in 10 U.S.C. § 2922. This is a performance-based requirement. Successful performance will be measured by full compliance with the Performance Work Statement (PWS). Under this COCO contract, the contractor is responsible for furnishing all labor and materials to perform the fuel services including accounting and administration, storage and distribution operations, and maintenance of the COCO facility. As explained below, STS is the only responsible source currently capable of performing acceptable services at Fort Jackson without delays, additional costs, or other to the Government. Therefore, a contract modification is crucial to maintain successful operations in order to continue to meet requirements.