JA_Platts_Signatures_Redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

December 11, 2018 J&A Tracking Number: 19-0006

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 from S&P Global, Inc., DBA Platts (Platts) for market pricing to include end-of-day data and pricing alerts. The subscription covers a 12-month period: 12/15/2018 through 12/14/2019. 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 FY19 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 S&P Global Inc., 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. The subscription includes enterprise-wide licensing, real-time news and price information, end-of-day market data, and newsletters and reports. The estimated dollar value for the yearly subscription is $484,962.00.

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): “When the supplies or services required by the agency are available from only one responsible source, or, for DoD,…from only one or a limited number of responsible sources, and no other type of 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 required by DLA Energy 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.

Justification for Other Than Full and Open Competition (Cont’d) (SP0604-19-Q-0405 – Platts)

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)):

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 that 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 27, 2018, DLA Energy-FEA posted an intent-to-sole source notice on FedBizOpps (SP0604-19-Q-0405); 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)):

The contracting officer finds that the proposed price is fair and reasonable using the techniques in FAR 15.404-1. Pursuant to FAR 15-404-1(b)(2)(iv), the contracting officer may make a “Comparison with competitive published price lists, published market prices of commodities, similar indexes, and discount or rebate arrangements.”

The price was determined fair and reasonable when compared to competitive published pricing provided to DLA Energy by Platts, which consisted of a listing of their published pricing and information on the special pricing offered to DLA Energy. The standard market pricing for the same subscription package costs The estimated price of $484,962.00 that DLA Energy will pay represents approximately than what a standard user would pay for the same subscription. Therefore, the contracting officer determines the price fair and reasonable when compared to the published price listing.

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)):

The customer (DLA Energy – RN) conducted market research and determined Platts was one of two sources that met the government’s requirement. A web search was performed, which resulted in two businesses being identified that provide global pricing for both the oil and petroleum industries on a daily basis. DLA Energy contracts with both sources due to the differences in methodologies utilized to determine daily pricing. Additionally, Platts is the only source accepted industry-wide for electricity.

(SP0604-19-Q-0405 – Platts)

Also, an intent-to-sole source notice was posted on FedBizOpps on November 27, 2018, 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.

(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.

(SP0604-19-Q-0405 – 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.

Contracting Specialist

I have reviewed and concur with this Justification.

Assistant 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.

Chief, Market Research

Approved:

JAMES E. HARKLESS

Contracting Officer

HARKLESS.JA

MES.E.128429

Digitally signed by

HARKLESS.JAMES.E.1284

292614 Date: 2018.12.11 11:54:04 -05'00'