JA_-_Phillips_66-Final_Redacted_-_Copy.pdf

DDEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

October 11, 2017

Justification for Other than Full and Open Competition

18-0001

1. Summary/Introduction:

The Defense Logistics Agency (DLA) Energy, a field activity of the DLA, awarded 8,400,000 gallons of via contract modification using other than full and open competition. The procurement action was for the acquisition of awarded under Inland/East/Gulf Coast (IEG). Solicitation SP0600-16-R-0714 was modified on September 15, 2017 via modification P00006, in order to award line item 0007 for 8,400,000 gallons of FOB origin via barge. The contract is fixed price with economic price adjustment indefinite-delivery/indefinite-quantity type with a period of performance of April 1, 2017 through March 31, 2018, plus a 30-day carryover period which supports critical, on-going fuel demands on an FOB origin and FOB destination basis.

The estimated contract value was increased by

This J&A has been approved and publicized after award in accordance with Federal Acquisition Regulation (FAR) 6.303-1(e). Due to the unusual and compelling nature of this requirement, delay in this acquisition in order to prepare and seek approval of this J&A prior to award would have unreasonably delayed the acquisition. This J&A is being prepared within (30) days of contract modification in compliance with FAR 6.305(b)

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

The action being approved is the award of 8,400,000 gallons of on an FOB origin basis via barge to via modification P00006 to contract , on an other than full and open competition basis due to unusual and compelling urgency.

Modification P00006 to contract was issued on September 15, 2017 to provide an

. This modification is outside the scope of the current contract therefore requiring this Justification and Approval in accordance with FAR 6.302-2.

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

The supplies required to meet the agency’s need were 8,400,000 gallons of The estimated value of the requirement was is a military specification product. The 8,400,000 gallons of was required to meet the immediate need at . Contract for procurement of with Additives

( ) was competitively awarded to on February 1, 2017.

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Justification for Other Than Full and Open Competition (Cont’d) (Modification P00006 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 precludes full and open competition, and delay in award of a contract would result in serious injury to the Government.

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)):

was the sole awardee for all under the current Inland East Gulf purchase program.

Due to the urgent nature of the requirement, DLA Energy Americas East contacted and inquired about their capabilities to provide has been performing satisfactorily under its current contract and consistently meets the fuel needs for DLA Energy. was familiar the specification and had a refinery capable of producing the that was not located in the gulf region. The refinery was also located within a reasonable travel distance to .

If the requirement for was not awarded under s’ existing contract, contract was modified to establish the item for 8,400,000 gallons on an other than full and open competition basis in order to meet the immediate need at .

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 bepublicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies (FAR 6.303- 2(b)(6)):

DLA Energy inquired of

DLA Energy proceeded with . This contract action was not synopsized due to the unusual and compelling urgency in accordance with 5.202(a) (2). These requirements were acquired on an other than full and open competition basis to ensure the continuation of the delivery of to the IEG region

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(Modification P00006 to )

DLA Energy loaded the initial barge from on September 16, 2017.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable (FAR 6.303-2(b)(7)):

proposed an offer price of per gallon from shipping point using the market index effective April 5, 2016. price was compared to prices currently being paid by the Government for . At the time of award to the Bid Evaluation Model determined the “laid down” price for delivery of

A comparison of laid down prices were made in accordance with FAR 15.404-1(b)(2)(ii), comparison of proposed prices to historical prices paid. The laid down price from respectively.

proposed price was also compared to the market low and high established under solicitation SPE600-16-R-0714 in accordance with FAR 15.404-1(b)(2)( iv), comparison with published market prices The market low and high prices for under SPE600-16-R-0714, were $0.983388 and $1.103671 respectively.

was determined fair and reasonable at the time of initial award on February 2, 2017

As shown above, proposed price is comparable to prices paid under contract for and the market range under solicitation SPE600-16-R-0714.

Based on the aforementioned, the contracting officer determined via barge as fair and reasonable.

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 formal market survey was not conducted. Due to the urgency of the requirement and the reasons identified in paragraph 5 above, could provide the only practicable means at the time to meet requirement. However, DLA Energy took the steps outlined in section 6 above to meet this unusual and compelling requirement.

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7.

(Modification P00006 to )

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.

Absent the award of , DLA Energy could not have provided an uninterrupted source of product thus, customers would have had to curtail and/or cancel operational missions which included support of . The use of other than full and open competition procedures was necessary to meet the fuel requirements

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 expressed interest in writing.

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)):

No action will be taken at this time to overcome barriers to competition. On an annual basis, the IEG program receives approximately 19 to 30 offers; thus, robust competition exists. The contracts that will replace these contracts are being competed on a full and open competition basis (with some partial small business set-asides) – as was the case for the current contracts. In addition, large businesses like have Commercial Small Business Subcontracting Plans in place.

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(Modification P00006 to )

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.

JANET CRUMP HAMIDA AHMADI

Contract Specialist Contracting Officer Date: 10/12/2017 Date: 10/12/2017

JOSHUA D. CATLIN

Division Chief Date: 10/12/2017

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.

SEAN W. LUCAS

Chief, Inventory and Distribution Date:

I have reviewed and concur with this Justification.

SANDRA S. SHEPHERD

Director, Bulk Petroleum Date:

DON POLLACK

Senior Counsel

(Modification P00006 to )

Approved:

THEODORE H. JONES

Competition Advocate