Redacted JA0015_signed_.pdf

J&A Tracking Number: 24-0015

Justification for Other than Full and Open Competition

1. Summary/Introduction:

Agency/Contracting Activity (FAR 6.303-2(b)(1)): Defense Logistics Agency Energy (DLA Energy)

2) Solicitation: SPE601-24-R-0309

3) Total estimated value of action for approval: $235,000.00

4) Contract value: Estimated Value of $235,000.00

5) Period of Performance: May 5, 2024, through January 31, 2025

6) Requiring activity (source of requirement): DLA Energy Aerospace

7) Brief description of agency need and action: The Defense Logistics Agency Energy (DLA Energy), as the Department of Defense (DOD) Integrated Materiel Manager (IMM) for Aerospace Energy products and related services, requires the refurbishment, recertification, maintenance and disposal preparation of a fleet of compressed gas tube-bank trailers, International Organization for Standardization (ISO) containers on chassis and stand-alone chassis, which are utilized for bulk compressed gas service on an other than full and open competition basis due to only one responsible source, in accordance with (IAW) Federal Acquisition Regulation (FAR) 6.302-1 form Weldship Corporation. This Justification and Approval (J&A) is for the acquisition of an shall include, all supplies, products, management, tools, equipment, and labor necessary to ensure that container fleet is brought to and or maintained to a safe, serviceable and roadworthy condition for Compressed gas Tube-Bank Trailers (2ea) and Convert (1ea) Tube-Bank Trailer to Hydrogen.

2. Nature and/or description of the action being approved [FAR 13.5 & 6.303-2(b)(1)]:

This J&A is based upon the authority 10U.S.C. 3204(a)(1), as implemented by FAR 13.5.

of the test program for commercial items at 41 U.S.C. §1901, and follows the requirements set out by Federal Acquisition Regulation 13.501(a)(1). This contract action is being pursued to procure the refurbishment, recertification, maintenance, and disposal preparation of a fleet of compressed gas tube-bank trailers, International Organization for Standardization (ISO) containers on chassis and stand-alone chassis, which are utilized for bulk compressed gas service. The Contractor shall provide all supplies, products, management, tools, equipment, and labor necessary to ensure that container fleet is brought to and or maintained to a safe, serviceable and roadworthy condition for Compressed gas Tube-Bank Trailers (2ea) and Convert (1ea) Tube-Bank Trailer to Hydrogen. DLA Energy Aerospace is discontinuing its ownership of the tube trailers to support various customer operations. In FY23, DLA Energy Aerospace identified five DLA Energy Aerospace owned Tube-Bank Trailers that needed to complete the refurbishment, recertification, maintenance, and disposal process so the final transfers to the customers could be completed. This action was solicited competitively, and award was made to Weldship Corporation under SPE601-22-D-1504 using the lowest price technically acceptable evaluation procedures. These trailers are specialized equipment and were manufactured and procured to meet the military specifications needed by DLA Energy Aerospace to support world-wide cryogenic requirements. However, during the competition of the requirements of the five tube trailers under contract SPE601-22-D-1504 another three trailers were identified as needing the refurbishment, recertification, maintenance, and disposal services. DLA Energy Aerospace Customer Operations personnel transported those three Tube-Bank Trailers to Weldship Corporation’s facility in Bethlehem, PA. However, soon after the three trailers arrived at the contractor’s facility, contract SPE601-22-D-1504 expired. Due to the specialized nature of these Tube-Bank Trailers, it is in the best interest of the Government to have Weldship Corporation complete re-certification of the remaining three trailers. Once these trailers are transferred to the customers, it will give them one vendor for inspection and warranty related issues. As stated above, these Tube-Bank Trailers were sent to the contractor before the expiration of the previous contract. However, due to EBS system constraints, the delivery orders supporting these three Tube-Bank Trailers could not be executed before that contract expired. To solicit this requirement competitively would lead to substantial duplication in cost to ship the trailers from the Weldship Corporation facility to another vendor’s location. DLA Energy Aerospace transported these three trailers to the vendor’s facility at a cost of $23K. That additional cost to transport to another vendor’s facility would add additional cost that is not anticipated to be recovered costs through price negotiations as Weldship was the lowest priced technically acceptable offeror and awardee on the previous solicitation. Resultantly, it is the most cost effective and efficient solution to allow Weldship in which they were the lowest price technically acceptable. However, a notice was published in Sams.gov for the required services but did not yield any offerors.

This J&A will be approved and publicized after award, IAW FAR 6.305(a)

3. Description of supplies or services required to meet the agency’s need (including estimated value) (FAR 13.5 and FAR 6.303-2(b)(3)):

Defense Logistics Agency Energy (DLA Energy), as the Department of Defense (DoD) Integrated Materiel Manager (IMM) for Aerospace Energy products and services, requires the refurbishment, recertification, maintenance and disposal preparation of a fleet of compressed gas tube-bank trailers, International Organization for Standardization (ISO) containers on chassis and stand-alone chassis, which are utilized for bulk compressed gas service. The Contractor shall provide all supplies, products, management, tools, equipment, and labor necessary to ensure that container fleet is brought to and or maintained to a safe, serviceable and roadworthy condition for Compressed gas Tube-Bank Trailers (2ea) and Convert (1ea) Tube-Bank Trailer to Hydrogen. This is a new award. The total estimated dollar value of this contract action is $235,000.00, which falls withing the Simplified Acquisition Threshhold.

4. Identification of the statutory authority permitting other than full and open competition (FAR 13.5 and FAR 6.303-2(b)(4)):

This J&A is based upon the authority of the test program for commercial items at 10 U.S.C.

3204(a)(1), as implemented by FAR 13.5.

5. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited (FAR 13.5 and FAR 6.303-2(b)(5)):

Weldship Corporation is headquartered in Bethlehem, PA and has a long history and relationship with DLA Energy Aerospace in providing refurbishment, recertification, maintenance and disposal preparation of a fleet of compressed gas tube-bank trailers services on previous requirements.

Weldship also produced and manufactured some of the Tube-Bank Trailers being transferred to DLA Energy Aerospace customers. Therefore, approval of this J&A will allow for Weldship Corporation to complete the work as the single provider for the remaining three Tube-Bank Trailers and provide the customer with a single source for any future inspection and warranty needs.

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 13.5 and FAR 6.303-2(b)(6)):

On December 07, 2023, DLA Energy publicized an “Intent to Sole Source Award” announcement for information, attempting to identify other vendors with interest in meeting this requirement. This sources sought closed on December 21, 2023 with no interested parties responding to this requirement. This contracting action was publicized as required by FAR Subpart 5.2.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable (FAR 13.52 and FAR 6.303-2(b)(7)):

The Contracting Officer determined that the cost to the Government will be fair and reasonable based on comparison of the proposed prices to historical prices paid by the government for the same or similar items in the region, Weldship was the lowest priced technically acceptable vendor to certify other trailers.

8. Description of the market research conducted and the results or a statement of the reason market research was not conducted (FAR 13.5 and FAR 6.303-2(b)(8)):

Market research has been conducted using North American Industrial Classification System (NAICS) code 811310 and keyword for Specialized Trailer Refurbishment utilizing the System for Award Management (SAM), Small Business Administration (SBA), and the Federal Procurement Data System (FPDS) for other vendors that could meet this requirement. Market

Research did not provide additional sources. As stated in paragraph 6, DLA Energy posted an “Intent to Sole Source Award” announcement in accordance with FAR 13.106-1(b)(1)(i) and that resulted in no potential offer.

9. Any other facts supporting the use of other than full and open competition, such as (FAR

13.5 and 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.

(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 sources responded to the synopsis of intent to sole source. See section 6 above

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)):

The current procurement is to complete the refurbishment, recertification, maintenance and disposal preparation for the remaining three Tube Bank Trailers in the DLA Energy Aerospace fleet and once this requirement is complete these three trailers will be transfer to the customers and the customer will be responsible for these requirements in the future. Therefore, DLA Energy Aerospace does not anticipate any subsequent acquisitions for these types of services. However, the Contracting Officer and DLA Energy will be prepared to seek a competitive acquisition if the requirement for Tube-Trailer ownership that require refurbishment, recertification, maintenance and disposal services is needed in the future.