JA_NAS_Key_West_Bridge_redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

March 29, 2016

16-0020

Justification for Other than Full and Open Competition

1. Summary/Introduction:

Defense Logistics Agency Energy (DLA Energy) is the contracting activity for petroleum products and services for the Department of Defense (DoD). This Justification and Approval (J&A) is for the award of a nine (9) month bridge contract to provide Government-Owned-Contractor-Operated (GOCO) and Alongside Aircraft Refueling (AAR) Services at Navy Air Station (NAS) Key West, FL on a sole source basis to the incumbent contractor, Hawthorne Services (Hawthorne), Inc., from April 1, 2016 through December 31, 2016 under the authority found at FAR 6.302-1. The award of this bridge contract will cost and will utilize FY 2016 Defense Working Capital Funds.

DLAD 2.101 defines “bridge contract” as a non-competitive contract extension with an existing contractor to bridge the time between the original end of that contractor’s contract (following exercise of all options or extension provisions meeting the requirements of FAR 17.207) and the competitive award of a follow-on contract. DLAD 16.191(b) states a bridge contract shall be used only when it is not possible to award the planned follow-on contract in sufficient time to meet the Government’s requirements. In accordance with DLAD 16.191(c)(2), this J&A shall include a detailed rationale for use of a bridge contract; an explanation why the need for a bridge contract is not due to lack of advance planning or inadequate procurement execution; a justification for the length of the bridge; and a discussion of actions taken to avoid this bridge request and additional bridge contracts. This J&A shall be processed for the approval at the required level based on the total estimated value of the contract action.

Hawthorne provides fuels management services to include alongside aircraft fuel delivery, operation and maintenance of bulk fuel facilities, inventory accountability, fuel operations, product receipts, bulk product issues, automated dispensing key management, product quality, and environmental compliance at NAS Key West, FL using best commercial standards. Hawthorne is responsible for and furnishes as required all personnel, equipment, material and/or facilities necessary for providing these services. The contract for these services under contract SP0600-07-D-5706 will expire on March 31, 2016. All options and extension provisions have been exercised

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

This is a performance-based requirement. Successful performance will be measured by full compliance with the Performance Work Statement (PWS). The contractor is responsible for accounting and administration, managing aircraft fuel services, fuel distribution and storage operations, ground fuel delivery operations, laboratory operations, used oil handling operations, and maintenance of Government-owned fuel facilities. Services include providing all technical support, personnel, supervision, equipment, tools, materials and other items as required by the PWS. Under the circumstances and as explained below Hawthorne is the only source currently capable of performing acceptable services at NAS Key West;

therefore, a sole source award is appropriate to maintain successful operations

A bridge contract is needed due to the unique and substantial revisions made by the DLA Energy Facilities Management Branch to the PWS in the current contract. These revisions included adding an Enhanced Recurring Maintenance requirement. This is a pilot program and this requirement does not exist

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

(SPE600-16-C-5006 – HAWTHORNE SERVICES, INC.)

under any other DLA Energy managed GOCO contracts. A working group of subject matter experts discussed and outlined key operational areas. These discussions resulted in a PWS that covers all facets of the new requirement and gives no ambiguity to the contractor concerning the responsibility for performance and compliance with commercial and NAVSUP Energy standards.

On October 1, 2015, solicitation SP0600-15-R0518 was issued for the requirement to provide GOCO and AAR services at NAS Key West, FL. Pre-proposal discussions were held with the potential offerors and Navy as a result of which the new PWS was further refined. This also resulted in a delay in the acquisition process. The bridge contract will ensure there is not a gap in services due to the delay.

Eight offers were received in response to the solicitation. To meet the requirement, the awardee must utilize prime-movers, tractors and specialized Navy compliant fuel vehicles in the performance of this contract. The supplier of the vehicles has a manufacturing lead time of no less than eight months. Seven of the eight offerors do not currently have the required vehicles and would require time to obtain the vehicles after award. A nine-month bridge contract is required to not give an unfair competitive advantage to the incumbent and to accommodate the awardee obtaining the compliant vehicles.

Defense Working Capital Funds in the amount of are provided via EBS PR to fund this requirement.

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

NAS Key West is a training facility and also serves as tactical range launch point. A United States Customs Service (USCS) aviation unit and the United States Coast Guard (USCG) are also assigned and supported to a varying degree ranging from aircraft services to the bulk support for the USCG and Navy ships. In support of these missions, the contractor is responsible for the following fuels management functions.

Bulk aviation fuel receipt, storage, handling, and issue operations Fuel services (issue and defuel) of aviation fuels to aircraft, ground support equipment, and facilities using mobile fuel servicing.

Fuel services (issue and defuel) of aviation fuel as ships propulsion fuel using mobile fuel servicing equipment at pier facilities.

Fuel services (issue and defuel) of JP8 as a ground fuel via mobile fuel servicing truck The testing of, collection (defuel) by truck, storage, handling, and disposal of Used Oil (Fuel) Product quality surveillance, sampling and testing, and fuel laboratory operations.

Fuel accounting and administrative functions to include the management of Fuels Automated System, Fuel Enterprise Server, and other automated accounting/data gathering chip, key, and card systems that may apply to petroleum functions.

All associated inspections, preventive maintenance, and operator maintenance applicable to the petroleum systems and documentation of all inspections, PM/OM, maintenance, and repair actions. These actions may include the installation, administration, and upkeep of an automated preventive maintenance program and other software as may be specified herein.

The current contract for these services was awarded based on full and open competition to Hawthorne on June 18, 2007. The current contract consists of a four-year base period from October 1, 2007 through September 30, 2011 and with one four-year option from October 1, 2011 through September 30, 2015.

An option to extend the services for six months IAW FAR 52.217-8 was exercised extending the contract expiration date to March 31, 2016. The total dollar value of the current contract is .

(SPE600-16-C-5006 – HAWTHORNE SERVICES, INC.)

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 Federal Acquisition Regulation (FAR) 6.302-1 – Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, and more specifically, the authority of FAR 6.302-1(a)(2)(iii). The services sought are highly specialized and available only from the original source for this follow-on contract. Award to a new source would likely result in substantial duplication of cost that the Government is not expected to be recovered through competition and would result in unacceptable delays in fulfilling the agency’s requirements.

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)):

The mission at NAS Key West is dependent upon the fueling services provided by the Hawthorne. The customer requires continuous, high quality fuels management services. NAS Key West is an active flying base with many sorties flown per day. Alongside aircraft refueling services are critical to the training mission. Timely fuel support, system maintenance, quality control in accordance with Navy standards is required. Hawthorne’s performance of theses services at NAS Key West has been consistently rated as “Very Good” in Contractor Performance Assessment Reporting System (CPARS). Additionally, Hawthorne currently possesses the vehicles, equipment, and personnel to sustain the services during the period of performance for the bridge contract.

Utilizing full and open competition for this bridge contract is not in the best interest of the Government.

Therefore, the Contracting Officer has determined that Hawthorne is currently the only known responsible source with the ability to meet the agency’s requirement. A nine-month bridge contract will ensure the continued and uninterrupted support of the fuel service mission at NAS Key West, FL until the follow-on contract begins on January 1, 2017.

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)):

In accordance with DFARS PGI 206.302-1(d), on March 15, 2016 the Contracting Officer posted a Request for Information (RFI) on FedBizOpps (FBO) for a total of five (5) days in order to ascertain how many vendors are capable of providing the services required under contract SP0600-07-C-5706. DLA- Energy received no response to the RFI. Based on receiving no responses to the RFI, it is determined that there is only one responsible source, Hawthorne, who is capable of providing the services required by the Government.

In accordance with FAR 5.202(a) (11), the proposed contract action is made under the terms of an existing contract that was previously synopsized in sufficient detail to comply with the requirements of FAR 5.207 with respect to the current proposed contract action.

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

(SPE600-16-C-5006 – HAWTHORNE SERVICES, INC.)

The cost for this nine-month bridge contract, as proposed by Hawthorne, will be at the current firm fixed monthly price of the current contract. The cost of the nine-month bridge contract to Hawthorne is

, calculated by multiplying the current monthly use charge of by nine-months.

This monthly use charge price was determined fair and reasonable based on adequate competition at time of award under the current contract. Therefore, in accordance with FAR 15.404-1(b)(1), the Contracting Officer has determined that the bridge contract price proposed by Hawthorne is considered 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)):

In August 2014, DLA Energy FESAB conducted market research as part of the procurement planning process for the new solicitation SPE600-15-R-0518. SPE600-15-R-0518 is the follow-on contract which will be awarded for the period after this bridge contract, SPE600-16-C-5006. This follow-on contract under solicitation SPE600-15-R-0518 is being competed using other than full and open competition as a Small Business Set-aside. Eight (8) small businesses expressed interest in providing proposals to the follow-on contract. Eight (8) offers have been received and are being evaluated.

For the purpose of awarding a nine-month bridge contract, a request for information (RFI) was posted to FBO to ascertain if another source could perform the GOCO and AAR services at NAS Key West. The notice was posted for five (5) days and received no responses.

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):

DLA Energy FESAB received no response to a request for information (RFI).

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)):

(SPE600-16-C-5006 – HAWTHORNE SERVICES, INC.)

There are limited barriers to competition at this location. The Government has procured these services competitively in the past and intends to do so in the future. Solicitation SPE600-15-R-0518, the follow-on contract, was issued for other than full and open competition as a Small Business Set-aside and is scheduled to be awarded prior to the expiration of the nine-month bridge contract. The anticipate award date is on or before June 1, 2016 with a period of performance beginning by January 1, 2017. In an effort to remove future barriers caused by the lead time needed to obtain vehicles, DLA Energy is conducting market research on procuring specialized military fuel vehicles.

12. Contracting officer certification that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief.

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.

ANGEL L. BUCKNER SHANDRA HERROD

Contract Specialist Contracting Officer Date: Date:

PATRICIA A. LITTLEJOHN

Division Chief 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.

DAVID POINDEXTER

Chief, Facilities Management Branch Date:

(SPE600-16-C-5006 – HAWTHORNE SERVICES, INC.)

I have reviewed and concur with this Justification.

FRANK PANE

Director, Bulk Petroleum Supply Chain Services Date:

DON POLLACK

Senior Counsel Date:

Approved:

ROBERT M. CELESTE

Competition Advocate Date: