JA_Bridge_17C5022_Whidbey_Island_Bridge_Redacted_revised.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

June 23, 2017

17-0048

Justification for Other than Full and Open Competition

1. Summary/Introduction:

Defense Logistics Agency (DLA) Energy is the contracting activity for petroleum products and services for the Department of Defense (DoD). This Justification & Approval (J&A) is for the award of a six-month contract to provide on a sole source basis to the incumbent contractor, from July 1, 2017 through December 31, 2017 under the authority found at

FAR 6.302-1(a)(2)(iii). The award of this six-month contract , under solicitation will cost and will utilize

This action constitutes a bridge contract under DLAD 2.101 & 16.191, and is being reported at the appropriate levels in accordance with (IAW) DLAD 16.191(c)(3). DLA Energy FESAB is using FAR 13.5-Simplified Procedures for Certain Commercial Items to award a six-month contract to the existing contractor. IAW DLAD 13.5(S-90)(4), a J&A is required for sole source acquisitions. Therefore, IAW DLAD 16.191(b)(4), a J&A is being completed to provide a detailed rationale for use of a six-month contract for this requirement including an explanation as to why the need for a six-month contract is not due to lack of advance planning or inadequate procurement execution. This J&A provides the rationale for the length of the six-month contract and a discussion of actions taken to avoid the need for additional bridge contracts for this requirement. The J&A will be processed for 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 current contract for these services will expire on June 30, 2017 with all options exercised.

This six-month bridge contract is issued under the same terms and conditions as the pending follow-on solicitation with no additional requirements.

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

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

The procurement of these services the period of six months is being conducted using the procedures identified in FAR 13.5 under the authority of 10 U.S.C. §1901. 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 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.

The requirement for refueling services at is continuing and highly specialized. The procurement for the follow-on contract was delayed in part due to unexpected numerous technical concerns in the majority of the proposals during technical evaluations. IAW FAR

51.101 Best Value Continuum, the greater the performance risk, the more technical considerations may play a dominant role in source selection. The services required for this acquisition are highly complex, and the risk of failure, to include, schedule disruption, cost increasing, or degradation are high. Therefore, based on these potential risks, it was determined necessary for the Government to issue a six-month bridge contract. The bridge contract will allow the additional time required to award the follow-on contract, and to allow the successful offeror, adequate time to obtain fuel trucks for the awarded contract.

In addition, a bridge contract is necessary because the procurement of new fuel trucks by the successful offeror under will take up to six months, during which time the Government has a need to continue the services provided under the bridge contract. 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 the contract, they are meeting the current mission and are capable of performing for an additional six months on a six-month bridge contract. The six-month 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)):

The current contract for these services was awarded based on full and open competition to on December 24, 2008. The current contract consists of a four-year base period from January 1, 2009 through December 31, 2012 with one option period from January 1, 2013 through December 31, 2016. An option to extend the services for six months IAW FAR 52.217-8 was exercised extending the contract expiration date to June 30, 2017. The total dollar value of the current contract is .

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:

Managing, maintaining, and operating of Government owned fuel facilities and equipment at various locations listed in the Performance Work Statement for . Contractor furnishes, manages, maintains, and operates all mobile fuel servicing equipment required and necessary to support the facilities, equipment, vehicles, vessels, and assigned aircrafts.

. The mission at is dependent not only upon the fuel management services provided by the contractor, but also the fuel vehicles, labor, and equipment provided by the contractor. These elements include all labors, equipment, tools, materials, supplies, and supervision necessary to receive, store, issue maintain quality, and account for petroleum products.

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 mission at . The customer requires continuous, high quality fuels management services. is an active naval base with many

The existing work force is trained and able to conduct operations without interruption. performance of these services at is acceptable based on the last several Contracting Officer’s Representative (COR) Reports. Additionally, currently possesses the vehicles, equipment, and personnel to sustain the services during the period of performance for the six-month bridge contract IAW the current contract . A new contractor would need preparation time prior to beginning performance to acquire the necessary specialized trucks to perform the contract and to including time required to develop and implement operations and training plans and to train personnel.

Utilizing full and open competition for this six-month bridge contract is not in the best interest of the Government. IAW 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 under solicitation begins on January 1, 2018 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 (FAR 6.303- 2(b)(6)):

On June 6, 2017, a synopsis was posted to Federal Business Opportunities website (FBO.gov) to provide notice of the six-month bridge contract requirement and solicit capability statements from other potential vendors. DLA Energy received no responses to the synopsis which was posted, and therefore was unable to identify any other responsible sources. Accordingly, this requirement will be procured under FAR 6.302, Other than Full and Open Competition, in order to ensure continued performance of services at . Given the short timeframe in which the contractor needs to have fuel trucks on site, was determined to be the only responsible source.

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. DLA Energy-FESN prepared an Independent Government Cost Estimate (IGCE) for the six-month bridge contract. The IGCE for the six-month bridge contract is per month while monthly price for the six-month bridge contract is . The price is lower than the IGCE for the follow-on contract. Therefore, IAW 15.404-1(b)(2)(v), the Contracting Officer has determined that the six-month bridge contract’s 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 January 27, 2016, DLA Energy FESAB 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 six-month bridge contract is being competed using full and open competition. expressed interest in providing proposals to the follow-on contract. DLA Energy supplemented the information about general market conditions for these services by posting a synopsis to FBO.gov to determine whether there were additional firms who would offer on this requirement. The Government received no capability statements in response to the synopsis.

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 to a Sources Sought Notice for the follow-on contract. No responses were received in for the Synopsis of this six-month bridge contract, which was posted to FBO.gov.

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)):

There are no known barriers to competition at this time for . The Government has procured these services competitively in the past and intends to do so in the future. The follow-on 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 contract.

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.

Contract Specialist Army/Navy Optimizations Aircraft Refueling & Misc. Domestic Large Purchases Branch Bulk Petroleum Supply Chain Services Date:

Contracting Officer Bulk Petroleum Supply Chain Services Date:

Division Chief Bulk Petroleum Supply Chain Services 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.

Chief, Facilities Management Branch Date:

Date: 2017.06.23 10:02:16 -04'00'

Date: 2017.06.27 16:11:26 -04'00'

Date: 2017.06.28 09:16:52 -04'00'

Date: 2017.06.28 10:32:26 -04'00'

I have reviewed and concur with this Justification.

Director Bulk Petroleum Services Date:

Senior Counsel DLA Energy Counsel Date:

Approved:

Defense Logistics Agency Energy Competition Advocate Date:

Date: 2017.06.28 13:00:41 -04'00'

Date: 2017.06.28 13:25:32 -04'00'

Date: 2017.06.29 09:51:21 -04'00'