Extension_JA_ADNOC-Urgent_Compelling_11_19_2018_with_DG_SIgnature_11-26_..__Redacted_Final.pdf

19-0001

Justification for Other than Full and Open Competition

1. Summary/Introduction:

Defense Logistics Agency (DLA) Energy is the Executive Agent for Bulk Petroleum and the contracting activity for petroleum products and services for the Department of Defense (DoD).

This Justification is for the acquisition of Turbine Fuel, Aviation Grade JP-8 (JP-8) on an unusual and compelling urgency basis from the Abu Dhabi National Oil Company for Distribution (ADNOC) through contract modification SPE602-18-D-0459-P00004 to extend the performance/ordering period of the contract. The fuel products provided under this contract are for use by in the United Arab Emirates (U.A.E.). Contract SPE602-18-D-0459 is a one (1) year, requirements-type contract with a period of performance from November 1, 2017 October 31, 2018, with a 30-day carryover period for fuel ordered during the ordering period. The period of performance for this contract extension is six (6) months from November 1, 2018 April 30, 2019, with a 30-day carryover period. This contract extension is for an estimated U.S. Gallons (USG) of JP-8 valued at which increased the estimated contract value from .

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

The action being approved is the October 31, 2018, extension, on an unusual and compelling urgency basis, of contract SPE602-18-D-0459 for six (6) months under the same terms, conditions, and pricing using Defense Working Capital Funds. Deliveries of JP-8 are FOB Destination to Al Dhafra Air Base (ADAB) . The delivery period for these requirements under this contract extension is November 1, 2018, through April 30, 2019, with a 30-day carryover period for fuel ordered during the contractual ordering period.

3. Description of (including estimated value) (FAR 6.303-2(b)(3)):

The fuel being procured for this requirement will be delivered for use by the at ADAB, located in Abu Dhabi. This six (6) month extension to contract

SPE602-18-D-0459 is to continue supply of JP8, NSN: 9130-01-031-5816, conforming to MIL SPEC MIL-DTL-83133J through April 30, 2019.

The total estimated quantity required is USG from November 1, 2018, through April 30, 2019. The estimated dollar value of these supplies is , based on contract prices for deliveries effective as of October 15, 2018. The pricing terms and conditions for the six (6) month extension are the same as contained in the current contract.

(SPE602-18-D-0459-P00004 ADNOC Distribution)

Current ADNOC contract SPE602-18-D-0459 resulted from solicitation SPE600-17-R-0719, which was also issued as other than full and open competition in accordance with U.A.E.

law/decrees stating that ADNOC is the sole authorized provider of petroleum products in the U.A.E. A J&A was posted on Federal Business Opportunities (FBO) on November 20, 2017, approving the existing sole source award of the ADAB JP-8 requirement to ADNOC.

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)(2), as implemented by FAR 6.302-

2. When the need for the supplies is of such an unusual and compelling urgency that the Government would be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or proposals, full and open competition need not be provided for.

5.

acquisition requires use of the authority cited (FAR 6.303-2(b)(5)):

U.A.E. Laws No. 4 of 1976 and No. 13 of 1973, and Abu Dhabi Laws No. 7 of 1971, No. 8 of 1978, and No. 1 of 1988 collectively establish the Abu Dhabi National Oil Company (ADNOC) Distribution as the only legally authorized petroleum source solely authorized to produce, store, refine, market, and distribute refined petroleum products in the Emirate of Abu Dhabi.

Furthermore, these laws regulate import and export of all petroleum products into the U.A.E. and specify that it is not permissible to import or export any petroleum products without the prior approval from ADNOC.

On July 23, 2018, DLA Energy issued Solicitation SPE602-18-R-0714 for the one (1) year follow-on to contract SPE602-18-D-0459, which expired on October 31, 2018.

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)):

For the planned one-year follow on to Contract SPE602-18-D-0459, DLA Energy posted synopsis SPE602-18-R-0714 on FBO seeking available sources on April 6, 2018. Several companies expressed interest in the requirement;

Therefore, these companies could not have been considered as viable sources of fuel for the U.S. military in the U.A.E.

The companies that submitted written interest to the follow-on solicitation (SPE602-18-R-0714) were as follows:

Per FAR 5.202(a)(2), a notice of the proposed contract action was not publicized because, as detailed above, doing so in compliance with the required time periods would have caused the Government serious injury.

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 Contracting Officer determined that the cost to the Government is fair and reasonable based on .

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)):

As explained above, in connection with the planned one (1) year follow-on contract, a synopsis led to expressing interest in the one-year requirement.

That result, combined with the U.A.E. statutory prohibitions on importing fuel from sources other than ADNOC, demonstrated that there were no viable alternatives to awarding a sole-source contract to ADNOC. Thus, no additional market research was conducted.

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.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition (FAR 6.303-2(b)(10)):

No other source expressed interest in this six-month extension.

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)):

DLA Energy is unable to overcome these barriers to competition due to the urgency of the requirement and the impact of the U.A.E. laws discussed above.

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 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.

I have reviewed and concur with this Justification

I have reviewed this Justification

I have reviewed and hereby recommend that this Justification be approved:

I have reviewed this Justification for legal sufficiency:

I have reviewed and hereby recommend that this Justification be approved:

Approved: