J A_Signed_Redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

September 02, 2016

16-0048

Justification for Other than Full and Open Competition

1. Summary/Introduction:

Defense Logistics Agency (DLA) Energy is the Executive Agent for Bulk Petroleum and the contracting activity for petroleum products and services for the Department of Defense (DoD). This Justification and Approval (J&A) is for the acquisition of a designated petroleum product on an other than full and open competition basis through the modification of contract , , awarded under the under solicitation SPE600-15-R-0703.

The contract type for this procurement is an Indefinite Delivery Indefinite Quantity (IDIQ) contract in support of . The current contract is fixed price with economic price adjustment (EPA) using Defense Working Capital Funds. The period of performance is from June 29, 2015 to October 31, 2016, plus a thirty-day carryover.

There was an urgent and time sensitive need for an additional at due to increased demand. The estimated dollar value of the additional quantity is

$672,192.00. This estimated value is equal to the current award price ) of the subject contract multiplied by the additional requirement of . Thus, the additional quantity on the original contract was increased from via modification P00004, with the value increasing from

This J&A has been approved and publicized after award, in accordance with FAR 6.303-1(e).

Due to the unusual and compelling nature of this requirement, preparation and approval of this J&A prior to award would have unreasonably delayed the acquisition.

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

A modification to current contract, to add an additional quantity of , was executed on August 11, 2016 in accordance with FAR 6.302-2, Unusual and Compelling Urgency.

DLA Energy saw an as a result of the . The Program Manager for the requested additional gallons moving forward, which DLA Energy could not accommodate unless additional gallons were incorporated into contract .

Further, the use of full and open competition or limited competition would not have been appropriate in this circumstance because it would not have allowed adequate time to meet

Justification for Other Than Full and Open Competition

Source Selection Information- See FAR 2.101 and 3.104

August deliveries. Therefore, was the only source that could provide J during this time frame to sustain current mission requirements.

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

The additional fuel under modification P00004 for this requirement was delivered for use at . The acquisition of was on an other than full and open competition basis through a modification of contract .

The current award price of the subject contract is including the additives of FSII, SDA, and CI. The applicable escalator is , effective September 30, 2014 for the West Coast JP8 EPA area. The original awarded quantity was

. Prior to the modification, had been delivered with a remaining balance of on the contract. Delivery is FOB Destination by

. The period of performance for the subject contract is from June 29, 2015 to October 31, 2016, plus a thirty-day carryover.

’s contract, , was modified to add additional quantity as follows:

ITEM EST QTY/USG MODE BASE UNIT PRICE

(September 30, 2014)

NSN:

0002 with FSII, SDA, & CI

FOB DESTINATION

DLA Energy supply planning coordinated with DLA Energy West to determine the quantity needed until the follow-on contract begins in October 2016. The total quantity of CLIN 0002 was increased by from . The total estimated dollar value of CLIN 0002 was increased by from to

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

This J&A is based upon the authority of 10 U.S.C. §2304(c)(2), as implemented by Federal Acquisition Regulation 6.302-2—Unusual and Compelling Urgency. The that is the subject of this J&A is for on-going fuel operations in the located at

. The modification of the contract was necessary in order to assure that critical fuel deliveries continued without interruption.

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)):

DLA Energy had an unforeseen need for , to support . needed an additional because the expanded from four to five aircraft in July 2016. This resulted in significantly increased fuel consumption. Due to the extremely short timeline of this unanticipated requirement, the additional for contract was procured under FAR 6.302-2—Unusual and Compelling Urgency.

The use of full and open competition or limited competition was not appropriate in this circumstance because it would not have allowed adequate time to meet August deliveries.

Further, this J&A will not exceed the time necessary to meet the unusual and compelling requirements, and for the agency to enter into a contract using fully competitive procedures in accordance with FAR 6.302-2(d)(1). At the time of this modification, DLA Energy was negotiating requirements under the Rocky Mountain/West Coast program that would cover this demand starting October 1, 2016. Therefore, the increased quantity on the current contract was the only method of providing product on a timely basis to our customers to sustain current mission requirements.

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)):

A full and open competition solicitation would have taken an estimated five months to solicit and award. Utilizing limited competition would have required the same amount of time, and selecting another contractor for a sole source would have taken up to sixty days for award and commencement of deliveries to . The additional requirement of was needed for August 2016. Thus, full and open competition, limited competition, and award of a new sole source contract to another contractor was not practicable. Additionally, in accordance with FAR 5.201(b)(1) and FAR 5.202(a)(2), a synopsis of the contract action did not need to be publicized on the Federal Business Opportunities website, https://www.fbo.gov, because the Government would have been seriously injured had DLA Energy complied with the time period specified under FAR 5.203.

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 determined that the anticipated cost to the Government is fair and reasonable. Contract prices for ’s current contract, , were previously determined fair and reasonable when contract award occurred. The determination was made on the basis of adequate price competition in accordance with FAR 15.404-1(b)(2)(i), based on a comparison of proposed prices received in response to the solicitation. Additionally, in accordance with FAR 15.404-1(b)(2)(v) the price was fair and reasonable in comparison to an independent Government cost estimate of $3.183680 per U.S. gallon. This price was an estimate of what it would cost the Government to move

All contract prices were adjusted using market assessments contained in economic price adjustment clauses specific to the geographic region of performance. Therefore, contract prices under the modified contract continue to reflect the current market price of fuel.

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)):

’s existing contract price was originally determined fair and reasonable when was awarded. This requirement was required on an other than full and open competition basis to ensure the continuation of the delivery of through October 30, 2016, with a 30-day carryover period. Modification of ’s contract was the only economically viable means of continuing deliveries. Thus, was the only supplier of able to supply in the time frame required. Market research and efforts to obtain competition were not warranted in this situation and would only compound the urgent and compelling need for fuel at .

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

Failure to increase the quantity on the existing contract would have seriously injured the Government as it would not have been able to meet the customer’s increased demand, leading to a halt in which in turn would have delayed delivery to operational flying units.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition (FAR 6.303-2(b)(10)):

No additional sources expressed an interest in writing; however, the additional quantity requested was not publicized in accordance with FAR 5.202 (a) (2).

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)):

Due to the urgency of this requirement, no action needs to be taken at this time to overcome barriers to competition. The follow-on contract that will replace contract and will be competed on a full and open competition basis.

Source Selection Information- See FAR 2.101 and 3.104

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.

Contract Specialist Date:

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 of Requirements Division Date:

I have reviewed and concur with this Justification.

Senior Counsel

Approved:

Contracting Officer