J&A_Hart_FY19_redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

March 12, 2019 J&A Tracking Number:19-0018

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 Hart Energy’s Global Biofuels Assessment (GBA) and Global Fuel Specifications (GFS) publications. This renewal covers a 12-month period from 04/01/2019 through 03/31/2020. Hart Energy is the sole producer of this proprietary analysis and report data, therefore it is the sole responsible source for the publication. Pursuant to 10 U.S.C. 2304(c)(1), no other publication is able to fulfill this data requirement.

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

DLA Energy is approving a contract for a subscription to Hart Energy’s GBA and GFS publications.

These publications provide a variety reports about the global biofuels market, transportation fuel quality analysis, and fuel specification information for various fuel markets. The subscription serves to provide DLA Energy with the foresight needed to stay abreast of future fuel quality trends and developments around the world that may impact DLA Energy procurements. 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)):

Subscription to Hart Energy’s GBA and GFS publications allow DLA Energy to validate and research technical requirements for fuels used in conjunction with DLA Energy’s Direct Delivery fuels program in order to obtain technically acceptable products for DLA Energy customers. The GBA subscription helps forecast the impact of future regulations through its analysis of current rules and regulations that affect biofuels policies, markets and technology. DLA Energy uses the GBA to gain insight in support of procurements and customer requirements for alternative fuels. The GFS publication assists DLA Energy to better understand the global fuel market by providing quality information and concise analysis for more than 150 countries on transportation fuel quality, vehicle emissions and efficiency legislation, and fuel regulations and specifications. In addition, Hart Energy employs experts relative to the global regions who work together with DLA Energy to answer inquiries regarding fuel quality, the state of specific fuel industries, and global fuel trends. The estimated dollar value for the yearly subscription is $28,200.00.

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 FAR 6.302-1(a)(2), under the authority of 10 U.S.C. § 2304(c)(1) and 41 U.S.C. § 3304(a)(1). “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, full and open competition need not be provided for.” In accordance with FAR 6.302-1(a)(2), Hart Energy is the only source that can satisfy this requirement.

Justification for Other Than Full and Open Competition (Cont’d) (SP0604-19-Q-0407 – Hart Energy)

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)):

Hart Energy is one of the world’s largest global energy industry publishers with a vast array of analyses performed on a broad spectrum of fuel markets. Hart Energy’s GBA and GFS publications provide a robust and comprehensive analysis of fundamental market data for conventional and advanced biofuels, and a wide range of fuels to include: gasoline, diesel, ethanol, biodiesel, butanol, CNG, LNG, LPG, DME, methanol, methanol blends, marine, jet, kerosene, fuel oil, and additives.

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 January 31, 2019, DLA Energy-FEA posted an intent-to-sole source notice on FedBizOpps (SP0604- 19-Q-0407); the notice did not yield additional interest from potential vendors, resulting in no additional competition to meet this requirement. Therefore, Hart Energy 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.”

Hart Energy provided DLA Energy with a published price listing and information on the special pricing offered to DLA Energy. The standard pricing for the same subscription package costs . The price DLA Energy pays is less 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 in conjunction to the discount offered to DLA Energy.

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 conducted market research and determined Hart Energy was the only source that provides a comprehensive analysis on fuel quality and regulations, covering a broad range of fuel markets in one subscription. Market research also identified other sources that provide quality specifications, fuel quality analysis, and forecasts on the impact of fuel regulations, however, it would require multiple subscriptions at a much higher cost to the government.

An intent-to-sole source notice was posted on FedBizOpps on January 31, 2019, however, there was no expectations that the notice would yield additional sources. Therefore, it has been determined that Hart Energy is the only source available to meet DLA Energy’s needs at this time.

(SP0604-19-Q-0407 – Hart Energy)

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.

The information provided by Hart Energy is proprietary. Hart Energy is the only source that provides the GBA and GFS publications. Therefore, we are unable to develop a specific purchase description suitable for full and open competition that would satisfy the Government’s 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-0407 – Hart Energy)

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.

DAMION BIAGAS

Contracting Specialist

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.

PAMELA SERINO

Director, Quality and Technical Support Office

Approved:

MARK WARNO

Branch Chief, Contracting Officer

BIAGAS.DAMION.A

.1289971757

Digitally signed by

BIAGAS.DAMION.A.1289971757

Date: 2019.03.12 11:24:13 -04'00'

SERINO.PAMELA.M

ARIE.1011890985

Digitally signed by

SERINO.PAMELA.MARIE.101189098

Date: 2019.03.12 14:41:46 -04'00'

WARNO.MARK.C.12

71309089

Digitally signed by

WARNO.MARK.C.1271309089

Date: 2019.03.13 07:10:25 -04'00'