JA_NB_Coronado_-_Bridge_Redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

June 27, 2017

17-0051

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 nine-month contract to provide Alongside Aircraft Refueling (AAR) Services at on a sole source basis to the incumbent contractor, from July 1, 2017 through March 31, 2018 under the authority found at FAR 6.302-1(a)(2)(iii). The award of this nine-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 DLAD 16.191(c)(3). DLA Energy FESAB is using FAR 13.5-Simplified Procedures for Certain Commercial Items to award a nine-month contract to the existing contractor. In accordance with DLAD 13.5(S-90)(4), a J&A is required for sole source acquisitions. Therefore, in accordance with DLAD 16.191(b)(4) a J&A is being completed to provide a detailed rationale for use of a nine-month contract for this requirement including an explanation as to why the need for a nine-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 nine-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.

The incumbent contractor, , provides Alongside Aircraft Refueling, Government-Owned Contractor-Operated (GOCO) storage services, 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 service, 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 labor, equipment, tools, materials, supplies, and supervision necessary to receive, store, issue, maintain quality, and account for petroleum products. 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. The contract for these services under contract will expire on June 30, 2017 with all options exercised. This nine-month bridge contract is issued under the same terms and conditions with no additional requirements as the pending follow-on solicitation for this requirement.

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 for the period of nine months is 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 a change in the acquisition strategy from Lowest Price Technically Acceptable source selection process to a Trade-Off source selection process. In accordance with FAR 15.101-1, a best value acquisition strategy using the Tradeoff source selection process was used for this acquisition. A Tradeoff source selection process is being used because of the complexity of the services and the risk of failure. The technical requirements for contractor furnished equipment, fuel operation, qualified personnel, and accounting management are unique. The risks of schedule disruption, costs increasing, or performance degradation are high. Therefore, it was determined that it is in the Government’s best interest to use the Tradeoff source selection process rather than the Lowest Price Technical Acceptable source selection process. A nine-month bridge contract is necessary due to the additional time required to revise the requirement for the follow-on solicitation

, and for the successful offeror on the follow-on solicitation, when awarded, 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 contract. As a result, the competitive follow-on award will not be made in sufficient time to allow continuous performance of AAR and GOCO storage services at

. All offerors will need to procure fuel trucks to perform under the follow-on contracts. 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 nine months on a nine-month contract. The nine-month bridge contract will incorporate the current requirements. The nine months 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 10, 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 Alongside Aircraft Refueling 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 of . 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 Contractor provides Aviation Fuel Servicing Operations, Bulk Storage Operations and Ground Fuel Servicing Operations. In addition, the Contractor provides 24 hour/7 days a week, uninterrupted services to include all outlying fields. 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.

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 is dependent upon these contract fueling services currently being provided by the incumbent, . The customer requires continuous, high quality fuels management services. is an active with many alongside aircraft refueling services . These services are critical to the support of . Timely fuel support, system maintenance, quality control in accordance with is required to meet the mission. 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 nine-month contract in accordance with 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 develop and implement operations and training plans and to train personnel.

Utilizing full and open competition for this nine-month 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 nine-month contract will ensure the continued and uninterrupted support of the fuel service mission at until the follow-on contract under solicitation begins on April 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 FBO.gov to provide notice of the six to nine-month contract requirement and solicit capability statements from other potential vendors. DLA Energy received

The customer at NB Coronado, CA requires continuous, high quality fuels management services. is an active with many alongside aircraft refueling services supporting . These services are critical to the support of . Timely fuel support, system maintenance, quality control in accordance with is required to meet the mission. The existing work force is trained and able to conduct operations without interruption.

DLA Energy FESAB does not expect a competitive offer to the Solicitation

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 nine-month contract, as proposed by is , calculated by multiplying the monthly use charge of by nine months. DLA Energy- LFB prepared an IGCE of for the nine-month contract. The IGCE for the nine-month contract is per month while monthly price for the nine-month contract is per month. The price is significantly lower than the IGCE for the follow-on contract. Therefore, in accordance with FAR 15.404-1(b)(2)(v), the Contracting Officer has determined that the nine-month 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 November, 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 nine-month contract is being competed using full and open competition. expressed interest in providing proposals to the follow-on contracts. 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 capabilities 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. Additionally, the follow-on procurement is expected to receive robust competition by the solicitation closing date of July 7, 2017. was received for the Synopsis of this nine-month 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 . Per section 11 of J&A 17-0051, the Government has taken all the actions to overcome barriers to competition.

The Government has procured these services competitively in the past and intends to do so in the future. Solicitation , for the follow-on contract, was issued using full and open competition, and is scheduled to be awarded prior to the expiration of the nine-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:

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: