JA_Kuwait_Supply_SPE60016R0707__Redacted(2).pdf

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

May 13, 2016

16-0024

Justification for Other than Full and Open Competition

1. Summary/Introduction:

The 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 is for the acquisition of designated petroleum products on an other than full and open competition basis from the through solicitation SPE600-16-R-0707. All fuel products are being procured for use by U.S. military in .

The anticipated period of performance for this contract is July 1, 2016 through June 30, 2017.

The estimated dollar value of these fuel supplies is

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

DLA Energy anticipates awarding a fixed price with economic price adjustment requirements contract to s for the purchase of DF2 diesel fuel, JA1 jet fuel and mid-grade, unleaded motor gasoline (“MUR”) .

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

The estimated requirements to be ordered under the proposed contract between July 1, 2016 and June 30, 2017 are as follows:

i. DF2 conforming to commercial automotive diesel.

ii. JA1 conforming to ASTM-D1655 and DEF STAN 91-91 Issue 7, Amendment 3 dated 2 February 2015.

This fuel is available commercially.

iii. MUR conforming to commercial unleaded regular gasoline.

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)(1), as implemented by FAR 6.302-

1. The supplies required by the agency are only available from one responsible source and no other type of supplies will satisfy the agency requirements.

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

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)):

specifies that is solely authorized to produce, refine, store, and market refined petroleum products in Further, regulates import and export of all petroleum products into and specifies that it is not permissible to import or export any petroleum products without the prior approval of . Agreements between the United States and are consistent with these Decrees. Therefore, is the only available source for procuring DF2, JA1, and MUR in by use for the U.S. military forces.

verified on February 15, 2016 the aforementioned Decrees are still in effect and no international agreement supersedes the Decrees.

declined DLA’s request for permission to import fuel during the anticipated period of performance of the contract.

is a competitive oil refiner and supplier to DLA Energy customers on other procurements. has demonstrated its ability to provide commercial fuel within the military specifications by performing under current contracts in the including and

If fuel and facilities are not used , would have to approve purchase and import of fuel by either (1) waterborne tanker deliveries into suitable terminals capable of receiving tankers, storing product, and loading trucks; or (2) truck deliveries directly from other refining centers in the into . Because declined to allow DLA Energy to import fuel from other sources, there are no viable alternatives to awarding a sole source contract to .

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 March 15, 2016, DLA Energy posted a synopsis of Solicitation SPE600-16-R-0707 on Federal Business Opportunities. By posting the synopsis, the Government ensured there were no other responsible sources of supply interested or available to satisfy the requirement.

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 determines that the anticipated cost to the Government will be fair and reasonable based on historical offers received under this annually recurring procurement program and on prices received for comparable products in the region.

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)):

DLA Energy confirmed that is the sole provider of fuel Because declined to grant approval to import fuel from other sources, no other sources will be contacted nor will further market research be conducted.

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 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):

is the sole interested offeror for DF2, JA1, and MUR in

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)):

DLA Energy is unable to overcome these barriers to competition due to the impact of the laws discussed above.

Contract Specialist, Bulk Petroleum Products

Contracting Officer, Bulk Petroleum Products

Division Chief, Bulk Petroleum Products

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 Inventory and Distribution

I have reviewed and concur with this Justification.

Director, Bulk Petroleum Products

Chief Counsel, DLA Energy

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

Competition Advocate, DLA Energy

Director, Procurement Process Support

Deputy Commander, DLA Energy

I have reviewed this Justification.

DLA Office of General Counsel

I have reviewed and hereby recommend this Justification be approved.

DLA Competition Advocate

Approved:

DLA Senior Procuremet Executive