AEM_16R0700_Justification_for_Other_than_Full_and_Open_Competition.pdf

DDEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

JANUARY 10, 2017

17-0020 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 an additional quantity of Turbine Fuel, Aviation (JP8) on an other than full and open competition basis through the modification of contract SPE600-16-D-0488 awarded to Motor Oil (Hellas) (“MOH”) under Atlantic European Mediterranean (AEM) solicitation SPE600-16-R-0700. This contract was awarded to MOH on May 9, 2016 for provision of JP8 and F76 marine diesel and is an indefinite-delivery/indefinite-quantity type contract with a period of performance of July 1, 2016 through June 30, 2017, plus a 30-day carryover period. Delivery is on an FOB origin basis.

Based on unit prices effective April 12, 2016, the total estimated value of additional volume is Thus, the estimated contract value will be increased from . The actual amount that will be obligated pursuant to this J&A may fluctuate due to economic price adjustments in contract prices during the delivery period.

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

The action being approved is a modification to add USG of JP8 to contract SPE600- 16-D-0488 on an other than full and open competition basis. DLA Energy anticipates awarding the modification using Defense Working CapitalFunds.

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

The product needed to meet the agency’s need at is USG of JP8 (NSN:

9130-01-031-5816) to be supplied from on or about , plus a 30-day carryover. JP8 is similar to commercial fuel used by airlines world-wide, but with the addition of fuel system icing inhibitor, static dissipator additive and corrosion inhibitor.

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 FAR 6.302-2.

Unusual and compelling urgency precludes full and open competition, and delay in award of a contract would result in serious injury to the Government.

Justification for Other Than Full and Open Competition (Cont’d) Page 2 of 6

SPE600-16-D-0488 – MOTOR OIL (HELLAS)

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)):

In the time since initial AEM contracts were awarded on May 9, 2016, DLA Energy has therefore determined that increasing quantity under the existing MOH contract, which currently supplies JP8 FOB Origin is required in order to meet the increased requirement.

In addition, the timeframe to solicit and award a contract separate from the existing MOH contract without increasing the contract amount from MOH pursuant to this justification would mean that the increased requirement would not be satisfied for an extended period (see 6 below).

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)):

This contract action will not be synopsized because the existing contract under which the action will be taken was previously synopsized in accordance with FAR 5.202(a)(2). This requirement will be acquired on an other than full and open competition basis to ensure the continuation of the delivery of fuel with a 30-day carryover.

On a full and open competition basis, an average procurement for such a requirement would require seven to eight months to complete. Even with best efforts, including an expedited review process and limiting the number of offerors (e.g., MOH and CEPSA), such a procurement would still take three to four months to complete. Based on the information above, there is insufficient time to conduct even limited competition .

Justification for Other Than Full and Open Competition (Cont’d) Page 3 of 6

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 of additional quantity under the existing MOH contract was and would be fair and reasonable based on adequate price competition in accordance with FAR 15.404-1(b)(2)(i). MOH will supply the additional

USG of fuel at thereby meeting the requirements of FAR 15.404-1(b)(2)(vi). All contract prices are adjusted using market assessments contained in the economic price adjustment clause specific to the geographic region of performance. Therefore, contract prices will 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)):

A market survey was not conducted. Given the previously identified reasons in paragraph 5, the incumbent contractor provides the only practicable means to meet the stated requirements.

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.

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 howthe 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.

Justification for Other Than Full and Open Competition (Cont’d) Page 4 of 6

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

Not applicable.

11. Actions that may be taken to remove or overcome barriers to competition before any subsequent acquisition for the supplies or services are required (FAR6.303-2(b)(11)):

No action will be taken at this time to overcome barriers to competition. On an annual basis, the AEM program receives two or more competitive JP8 offers; thus, competition exists. The contracts that will replace these contracts are being competed on a full and open competition basis as was the case for the current contract.

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 Contracting Officer Date: Date:

Date:

I hereby certify that the supporting 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, Inventory and Distribution Management Date:

I have reviewed and concur with this Justification

1/12/2017

Justification for Other Than Full and Open Competition (Cont’d) Page 5 of 6

Date:

I have reviewed this Justification.

Date:

Chief Counsel Date:

I have reviewed and hereby recommend that this Justification be approved:

Competition Advocate Date:

Director, Procurement Process Support Date:

Defense Logistics Agency Energy Date:

Justification for Other Than Full and Open Competition (Cont’d) Page 6 of 6

I have reviewed this Justification:

DLA Office of General Counsel Date:

I have reviewed and hereby recommend that this Justification be approved:

DLA Competition Advocate Date:

Approved:

DLA Senior Procurement Executive Date: