SPE60125R0304 JA GN2 VSFB-1_Redacted approved.pdf

Justification for Other Than Full and Open Competition (Cont’d) Page 3 of 7

(SPE601-25-R-0304 – AIRGAS USA, LLC)

amounts of real estate required were considered; as well as the modifications that would need to be made to the existing pipeline. This effort was repeated and resulted in the same information in 2017.

Ultimately, it was determined to be highly unlikely that the duplication in costs to the Government would be recouped through any possibility of competition. In addition to the uncertainty and unlikelihood of recouping costs through competition, there would also be the risk of disruption to providing GN2 while in order to accommodate an alternate site. Furthermore, there was not a justifiable need at that time for an alternate site and no current efforts are underway to expand the current site therefore, the current contract was restricted to the then incumbent contractor, with no other potential vendors currently situated to perform.

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)):

Pursuant to FAR 5.204, the Contracting Officer must synopsize a proposed action before issuing any resulting solicitation. A Sources Sought Notice was posted to SAM.gov on February 11, 2025, and closed on February 26, 2025, without any responsible sources expressing interest in this requirement.

As stated above, with their multi-million-dollar conversion facilities and equipment on-site at VSFB to convert liquid nitrogen into GN2 directly into the Government-owned pipeline is still determined to be the Only Responsible Source for this requirement.

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

DLA Energy Aerospace Contracting Officer will ensure the anticipated cost to the Government will be fair and reasonable based on price analysis conducted in accordance with FAR 15.404-1(b)(2)(ii) as adjusted to reflect current market conditions. Comparison of proposed prices to historical prices paid, whether by the Government or other than the Government, for same or similar items.

The Contracting Officer will utilize the current unit price as a valid basis for comparison. The current unit price will be adjusted to account for materially differing terms and conditions; quantities; and market & economic factors. Expert technical advice will be obtained when analyzing similar items; or commercial items that are “of a type” or requiring minor modifications, to ensure product meets customer needs. Any resultant prices will be firm fixed prices.

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)):

The incumbent contractor, Airgas USA, LLC has been successfully supplying GN2 at VAFB since 1997.

DLA Energy went out in an effort to find additional sources with the competitive procurement for contract SP0600-04-D-1529, which expired on 30 April 2006. Extensive efforts were taken to locate potential sources including attempts to contact 112 small business sources identified by North American Industrial Classification System (NAICS) code 325120 (Gases, Industrial, Manufacturing).

Approximately 89% of these contractors were able to be located and seven (7) requested a Request for Proposal. Even though unrestricted full and open competitive procedures were utilized, the incumbent contractor, Airgas USA, LLC provided the only offer. The procurements for the previous contracts SPE0600-07-D-1502, SP0600-08-D-1531, SPE601-14-D-1516, and the current contract with Airgas USA, LLC SPE601-20-D-1502, which expires on 28 September 2025, were solicited as sole source. For the upcoming solicitation, preliminary market research was conducted using NAICS code 325120, PSC