JA_Kingsville_Bridge_OPSEC_Redacted.pdf

DDEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

FEBRUARY 1, 2017

17-0027

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 six (6) month bridge contract to provide on a sole source basis to the incumbent contractor, . from April 1, 2017 through September 30, 2017 under the authority found at FAR 6.302-1(a)(2)(iii). The award of this bridge contract will cost and will utilize .

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 as to 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 value of the contract action.

provides and related services at using best commercial standards. . is responsible for operating and maintaining

Government fixed fuel facilities, delivering ground fuel, maintaining fuel inventory and accounting, handling used oil, and managing automated service stations. The contractor provides aviation, ground, used oil, and utility vehicles, and equipment in necessary quantities to meet the aircraft and ground refueling/defueling workload requirements, including surge demands. Furthermore, the contractor provides all labors, equipment, tools, materials, supplies, and supervision necessary to receive, store, issue, maintain quality, and account for petroleum products.

The contract for these services under contract will expire on March 31, 2017 with all options exercised. The bridge contract is issued under the same terms and conditions with no additional requirements as contract

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

Justification for Other Than Full and Open Competition (Cont’d) delivery 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, is the only source currently capable of performing acceptable services at therefore, a sole source award is appropriate to maintain successful operations.

This requirement for refueling services at is continuing and highly specialized. A bridge contract is necessary due to the additional time required to award the follow on contract, and for the successful offeror on the follow-on solicitation, to obtain fuel trucks for that contract.

The procurement of new fuel trucks by the successful offeror under will take up to four months, during which time the Government has a need to continue the services provided under the contract. The competitive follow-on award will not be made in sufficient time to allow continuous performance of at . All offerors will need to procure fuel trucks to perform under the follow-on contract. While the incumbent contractor’s current fuel trucks are not in a condition which will allow them to meet the requirements of the follow-on contract for the entire base period of that contract, they are meeting the current mission and are capable of performing for an additional 6 months on a bridge contract. The bridge contract will incorporate the current requirements.

The six-month period of performance on the bridge contract will allow sufficient time for award of the competitive follow-on contract and procurement of vehicles by the successful offeror.

in the amount of are provided via 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)):

Contract was awarded on June 27, 2008 under full and open competition for a base period beginning October 1, 2008 through September 30, 2012 with one option period from October 1, 2012 through September 30, 2016, one unevaluated six-month option to extend the contract in accordance with FAR 52.217-8 by Contract has exhausted all options and expires March 31, 2017.

In order to meet the mission at , it is critical that the support at not be interrupted. Within the scope of this contract, the contractor is responsible for the following fuels management functions:

Operating and maintaining Government fixed fuel facilities, delivering ground fuel, maintaining fuel inventory and accounting, handling used oil, and managing automated service stations. The contractor provides aviation, ground, used oil, and utility vehicles, and equipment in necessary quantities to meet the aircraft and ground refueling/defueling workload requirements, including surge demands. Furthermore, the contractor provides all labors, equipment, tools, materials, supplies, and supervision necessary to receive, store, issue maintain quality, and account for petroleum products.

The current contract for these services was awarded based on full and open competition to on June 27, 2008. The current contract consists of a five-year base period from October

1, 2008 through September 30, 2012 with one option period from October 1, 2012 through September

30, 2016. An option to extend the services for six months IAW FAR 52.217-8 was exercised extending the contract expiration date to March 31, 2017. The total dollar value of the current contract is

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 award of this short-term requirement to another source at this time would likely result in substantial duplication of cost to the Government that 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 customer requires continuous, high quality fuels management services. is an active naval base with many alongside aircraft refueling existing work force is trained and able to conduct operations without interruption.

performance of these services at is acceptable based the last several Contracting Officer’s Representative (COR) Report. Additionally, .

currently possesses the vehicles, equipment, and personnel to sustain the services during the period of performance for the bridge contract in accordance with the current contract . A new contractor would necessarily need preparation time prior to beginning performance including time required to develop and implement operations and training plans and training personnel.

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

In accordance with FAR 6.302-1(a)(2)(iii), an attempt to award this short term requirement through full and open competition would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and would result in unacceptable delays in fulfilling the agency’s requirements as addressed in Section 2 above. Due to the substantial logistical and financial burden required of a contractor to perform this requirement, past experience shows that few if any contractors would be interested in this requirement. If interested, their contract price would be much more expensive than the extension price for the current contract because any new contractor would be attempting to recover their start-up costs over a short period of time. Therefore, the cost of conducting a solicitation for this short-term requirement is unlikely to be recovered through competition. The Contracting Officer has determined that a six-month bridge contract will ensure the continued and uninterrupted support of the fuel service mission at until the follow-on contract begins on October 1, 2017 and that . is currently the only known responsible source with the ability to meet the agency’s requirement.

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 (FAR6.303-2(b)(6)):

On March 22, 2017, a synopsis was posted to FBO.gov to provide notice of the bridge contract requirement and solicit capability statements from other potential vendors. Given the short timeframe in which the contractor needs to have fuel trucks on site, . was determined to be the only responsible source. The follow-on requirement was synopsized and solicited using full and open competition under solicitation .

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 cost for this six-month bridge contract, as proposed by , calculated by multiplying the monthly use charge of by six-months. This monthly use charge price was determined to be fair and reasonable based on adequate competition at time of award under the current contract. The market for these services have remained stable since the current contract was competed and awarded. Additionally, the Independent Government Cost Estimate (IGCE) prepared by DLA Energy-FESN for the follow-on solicitation per month while for the bridge contract . The IGCE is per month than the price offered by However, is only for 6 months and fully competing this six-month requirement would have administrative costs that would cancel out any cost savings through competition. Therefore, in accordance with FAR 15.404- 1(b)(1) and FAR 15.404-1(b)(2)(ii) and (v), the Contracting Officer has determined that the bridge contract price proposed by 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 April 8, 2016, DLA Energy FESBC conducted market research as part of the procurement planning process for the new solicitation . The follow-on contract which will be awarded for the period after this bridge contract is being competed using full and open competition. DLA Energy FESBC issued a Sources Sought Notice and expressed interest in providing proposals to the follow-on contract.

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 FESBC to a Sources Sought Notice.

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)):

There are no known 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 the follow- on contract, was issued using full and open competition, and is scheduled to be awarded prior to the expiration of the six-month bridge contract.

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.

I have reviewed and concur with this Justification.