Redact_P000026 Whiting Field_Bridge.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

J&A Tracking Number: 26-0028

Justification for Other than Full and Open Competition Bulk Fuel Services at United States Naval Air Station Whiting Field, FL

1. Summary/Introduction:

The Defense Logistics Agency (DLA) Energy, a major subordinate command of DLA, is the contracting activity for bulk petroleum products and services for the Department of War (DoW).

This justification and approval (J&A) document is for the award of a six-month bridge action with a six one-month options by modification on contract SPE600-17-C-5037 for government-owned contractor-operated (GOCO) fuel services in Santa Rosa, Florida under the authority found at Federal Acquisition Regulation (FAR) 6.103-1(c)(2)(i) and (ii). The original contract, SPE600-17-C-5037, was competitively awarded to Maytag Aircraft, LLC on September 28, 2017 for a four-year base performance period from December 1, 2017 to November 30, 2021 plus a four-year option period with a performance period from December 1, 2021 to November 30, 2025, and a six-month extension provision with a performance period from December 1, 2025 through May 31, 2026. The extension provision is authorized under FAR 52.217-8, Option to Extend Services (November 1999) and was exercised under P00021 and P00024 with the current period of performance expiring on May 31, 2026. The new performance period will begin June 1, 2026 through November 30, 2026, with six one-month options to extend the contract through May 31, 2027. The initial value of this six-month bridge action is $2,132,077.62 with each month afterward priced at per month, for a twelve-month total of This would increase the total contract value from . This action constitutes a bridge action by contract modification under DLAD 17.9601(a). This bridge action justification will result in a contract modification that will require the contractor, Maytag Aircraft, LLC, to continue providing GOCO alongside aircraft refueling and/ fuel storage services, including operation, maintenance, and entire fuels management services, as the only responsible source that can satisfy the agency requirements under the authority found at FAR 6.103-1(c)(2)(i) and (ii). This includes services to provide safe, accurate and timely handling, quality control, and accountability of Defense Working Capital Fund-owned petroleum products and to perform required maintenance to ensure facilities, associated systems, vehicles, and equipment remain operational to meet the U.S. Navy’s mission. The new performance period will extend the contract from June 1, 2026 to November 30, 2026.

Justification for Other Than Full and Open Competition (Cont’d) (SPE600-17-C-5037 – Maytag Aircraft, LLC)

2. Nature and/or description of the action being approved (FAR 6.104-1(a)(2)):

The bridge by modification of these GOCO fuel storage services, for six months with six one-month options, is being conducted using procedures under FAR 6.103-1(b), Only One Responsible Source. Awarding a contract to a new source would result in substantial duplication of costs to the Government, this is not expected to be recovered through competition and would result in unacceptable delays in fulfilling the agency’s requirements. The services sought are highly specialized and available only from the incumbent while a full and open competitive follow-on is solicited. The incumbent is already providing these services, and transitioning to a new contractor would risk a break in service that could disrupt the mission. The incumbent has the necessary workforce and infrastructure in place, with the personnel already trained and prepared to handle the operations. A new contractor would face significant delays in acquiring the necessary infrastructure, permits, and training personnel, which would lead to a gap in services. Any interruption in these services would result in mission failure, and as such, the agency cannot afford the risks associated with bringing in a new contractor. This bridge by modification will utilize defense working capital funds for fiscal year 2026. This justification authorizes a bilateral modification under the authority granted by 10 U.S.C. 3204(a)(1).

3. Description of supplies or services required to meet the agency’s need, including estimated value (FAR 6. 104-1(a)(3)):

The mission at NAS Whiting Field is crucial and depends on the alongside aircraft refueling services, fuels management services and facilities, labor, and equipment provided by the contractor. Under this contract, the contractor is responsible for retail and bulk fuel dispensing.

The fuel operations at the bulk and retail fuel facility must be safely and efficiently conducted to receive, store, and issue petroleum products with appropriate controls to ensure adequate fuel quality, inventory accuracy and environmental compliance in accordance with DLA Energy guidance, the highest industry standard, and best commercial practice and complying with federal, state, and local guidelines & regulations. Overall, the contractor is responsible for the performance of all fuel operations, inventory management, quality surveillance, maintenance, training, safety and environmental protection functions at the ground fuel service stations and bulk storage sites. Additionally, the contractor is accountable for safely receiving and issuing fuel without delays, interruptions, or any demurrage charges. When directed by DLA Energy or as required for normal operations, the contractor is responsible for transferring products between tanks to consolidate types or grades. This need will continue at current levels for the six months with six one-month option periods. After this action, the new total contract value will increase to from this J&A.

4. Identification of the statutory authority permitting other than full and open competition (FAR 6.104-1(a)(4)):

This J&A is based upon the authority of 10 U.S.C. §3204(a)(1), as implemented by Federal Acquisition Regulation (FAR) 6.103-1, and more specifically, the authority of FAR 6.103- 1(c)(2). 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

(SPE600-17-C-5037 – Maytag Aircraft, LLC) of cost to the Government, this 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 6.104-1(a)(5)):

The services sought are highly specialized and available only from the incumbent while a full and open competitive follow-on is solicited. The incumbent is already providing these services, and transitioning to a new contractor would risk a break in service that could disrupt the mission.

The incumbent has the necessary workforce and infrastructure in place, with the personnel already trained and prepared to handle the operations. A new contractor would face significant delays in acquiring the necessary infrastructure, permits, and training personnel, which would lead to a gap in services. Any interruption in these services would result in mission failure, and as such, the agency cannot afford the risks associated with bringing in a new contractor. This action is required to ensure the continued performance of critical performance-based aircraft refueling services at NAS Whiting Field, FL. This requirement for fueling services, including but not limited to the contractor-furnished labor and materials, performing accounting and administration, storage and distribution operations, and maintenance of the facilities. The existing workforce is trained and ready to conduct operations without interruption. Maytag has continued to successfully provide these services at an acceptable level in accordance with assessments from the Contracting Officer Representative (COR) and ratings recorded in the Contractor Performance Assessment Reporting System (CPARS). In addition, Maytag currently possesses all necessary equipment, knowledge of environmental issues, and personnel to sustain services; thus, making them the only viable source to ensure the continuity of services.

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 5.1 and, if not, which exception under 5.101(b) applies (FAR 6.104-1(a)(6)):

On January 24, 2025, the sources sought notice (SSN) was posted to the contracting opportunities website at SAM.gov to solicit capability statements from potential vendors and provide notice of the follow-on contract. DLA Energy received

The program manager reviewed the capability statements and found each capable of meeting the requirements based on their responses to the SSN, however they have not submitted proposal packages to fully evaluate or determine their capability to successfully perform the required services within the time restrictions. The services sought are highly specialized and available only from the incumbent while a full and open competitive follow-on is solicited. The incumbent is already providing these services, and transitioning to a new contractor would risk a break in service that could disrupt the mission. The incumbent has the necessary workforce and infrastructure in place, with the personnel already trained and prepared to handle the operations. A new contractor would face significant delays in acquiring the necessary infrastructure, permits, and training personnel, which would lead to a gap in services. Any interruption in these services would result in mission

(SPE600-17-C-5037 – Maytag Aircraft, LLC) failure, and as such, the agency cannot afford the risks associated with bringing in a new contractor.

The solicitation, , is expected to be available via SAM.gov to ensure as many offerors as practicable will have an opportunity to compete. The anticipated date of award is

The potential awardee will be required to obtain vehicles and based on historical data, the timeframe to procure the vehicles ranges from one to six months. The current contract expires on May 31, 2026; therefore, to ensure continued performance and avoid mission failure, the Government must rely upon the incumbent’s continued performance. The Government issued a Notice of Intent posted to SAM.Gov on April 10, 2026 to inform industry of the Government’s intent to sole source a bridge extension to the current contractor Maytag Aircraft LLC. to prevent a lapse in the critical GOCO alongside aircraft refueling and fuel storage services, including operation, maintenance, and entire fuels management. The proposed modification to the contract will be executed under the conditions described in FAR 6.103-1 to prevent mission failure.

The Government is currently in the procurement process under solicitation number SPE603-26- R-0507, with the follow-on contract estimated to be awarded on September 16, 2026. In accordance with FAR 6.301(b), the justification and approval document will be redacted and posted to the System for Award Management (SAM) website within 14 days of modification release.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable (FAR 6.104-1(a)(7)):

The expected cost for the evaluated services is monthly, confirmed by the contractor. This amount reflects the incorporation of Maytag’s wage determination / collective bargaining agreement (CBA) and the additional fuel operation hours in support of the T-6B aircraft established in modification P00022 and executed in modification P00024 on March 10, 2026. Although the price for the current contract and all options were determined fair and reasonable at the time of award based on adequate competition under FAR 15.404-1(b)(1), the price for the monthly usage charge of represents the current market labor based on annual adjustments in accordance with the prevailing labor rates as agreed in the CBA between Maytag and International Association of Machinist and Aerospace Workers AFL-CIO Local Lodge 2777. The last CBA adjustment was effective December 1, 2025 and is applicable through November 30, 2028. The Government does not expect the price of awarding a twelve-month period to a new contractor to be recovered through competition, since a new contractor would include duplicative costs. An informal analysis of prices shows that awarding a bridge action is in the Government’s best interest based on historical prices as displayed in Table One as follows.

(SPE600-17-C-5037 – Maytag Aircraft, LLC) competition. If contractual services at NAS Whiting Field, FL cease, the impact would be immediate and severe, disrupting the receipt, storage, and distribution of critical military fuels across a high-volume Department of War fuel complex in the continental United States. This would jeopardize fuel support to numerous fleet and industrial customers, including , halt replenishment of naval vessels and aircraft, and cripple operational readiness. With millions of barrels of fuel being moved annually through numerous tanks, pipelines, and multiple refueling points, any lapse in service would compromise mission continuity, national defense readiness, and regional energy security.

The risk of service disruption also outweighs any potential cost savings from a competitive award. The total dollar value for the six-month bridge action and the six one-month options is

The mission at NAS Whiting Field is dependent upon the current fuel services provided by the incumbent contractor, Maytag. The customer requires continuous, high quality bulk storage services and fuels management services. The timely fuel support, system maintenance, and quality control per United States Navy standards are required to meet the mission and is already being provided by the incumbent. The incumbent has the necessary workforce and infrastructure in place, with the personnel already trained and prepared to handle the operations. A new contractor would face significant delays in acquiring the necessary infrastructure, permits, and training personnel, which would lead to a gap in services and an unacceptable level of risk to national security.

(iii) When 6.103-2 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 6.104-1(a)(10)):

DLA Energy FESAB received to the sources sought notice (SSN) published on January 24, 2025, for the follow-on contract:

Actions that may be taken to remove or overcome barriers to competition before any subsequent acquisition for the supplies or services are required (FAR 6.104-1(a)(11)):

There are no barriers to competition for the GOCO services at NAS Whiting Field, Florida. The Government will continue to work on the follow-on to ensure services are competitively procured using full and open competition.