SPE60221D0482_JA_FSII Transport_FINAL_Redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

October 20, 2022

Justification for Other Than Full and Open Competition: 22-0038

1. Summary/Introduction:

The Defense Logistics Agency (DLA) Energy is the Integrated Materiel Manager and contracting activity for petroleum products and services for the Department of Defense ( there is an unanticipated reoccurring requirement for transportation and intermitted storage services to transport Fuel System Icing Inhibitor (FSII) from DFSP Sitra, Bahrain for discharge at DFSP Ali Al Salem, Kuwait and DFSP Mesaieed, Qatar. This Justification supports DLA Energy’s award of a sole source FAR Part 13 SAT Buy and modification of contract SPE602-21-D-0482 (the “Contract”) with Stolt-Nielson BV (“Stolt”), under Federal Acquisition Regulation (FAR) 13.5, Simplified Acquisition Procedures. The total estimated value of the Contract is $10,947,789.60.

This contract action was prompted by DLA Energy’s original and intended transportation service provider’s inability to provide the services as requested.

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

The action is the sole source award and modification of Stolt’s Contract for transportation services for DLA Energy-owned fuel additive in the Middle East. The Contract, which has one

(1) base year and four (4) option years, is a requirements-type contract with a total period of performance from July 1, 2021, to June 30, 2026. The modification justified herein adds contract line-item number (CLIN)s 0051 through 0074 for truck transportation of 31 containers annually and 62 days of intermittent storage annually ofFSII via Intermodal Container Transport from DFSP Sitra, Bahrain to DFSP Ali Al Salem, Kuwait and DFSP Mesaieed, Qatar.. In order to synchronize with the current Contract, the modification has one (1) base year (Oct. 20, 2022, through June 30, 2023) and three (3) option years, concluding June 30, 2026. The total estimated value of $438,264.60 for these CLINs has increased the total contract value from $10,509,525.00 to $10,947,789.60 The fuel products transported and stored under this contract are for use by U.S. military and coalition forces in DFSP Ali Al Salem, Kuwait and DFSP Mesaieed, Qatar.

The type and year of funds for the requirement covered by this J&A have been accounted for in the FY22 Annual Operating Budget. The Contract modification, effective 20 Oct. 2022 by means of P00007, established CLINs 0051-0074, awarded CLINs 0051 and 0056, and amended Task Order SPE60222FS184 for the required fuel delivery services.

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

(SPE602-21-D-0482 – STOLT-NIELSON BV)

supply chain shortage. As such, it is the Contracting Officer’s determination that this contractor is the only responsible source that can provide the container transportation services for FSII at DFSP Sitra, Bahrain.

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 reasons discussed in Section 5 above, DLA Energy only solicited an offer from Stolt for this simplified acquisition. A synopsis was not posted in SAM.GOV pursuant to the exception in FAR 5.202(a)(2), the proposed contract action is made under the conditions described in FAR Part 13, and the Government would be seriously injured if the agency complies with the time periods specified in FAR 5.203. For the reasons discussed in Section 5 above, the Contracting Officer has determined that the contract action authorized by this J&A was made under the conditions described in FAR Part 13 and the Government would have been seriously injured if the agency complied with the time periods specified in FAR 5.203.

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

In accordance with FAR 15.404-1(b)(2)(v), the Contracting Officer determines the price offered by Stolt to be fair and reasonable based on comparison of proposed prices with independent Government cost estimates. The offeror price is within the acceptable variance of 10% above/below the IGCE total estimated price.

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

(SPE602-21-D-0482 – STOLT-NIELSON BV)

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)):

See the discussion in Section 5 above concerning research into available service providers in the region. Stolt has been the sole offeror on FSII truck transportation services from DFSP Sitra, Bahrain to DFSP Ali Al Salem, Kuwait and DFSP Mesaieed, Qatar for the past There is no known new information available regarding FSII that would have improved competition in this region. Based on these circumstances, coupled with the urgency, 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.

Failure to add the line items to the period of performance under the current contract by twelve (12) months would have resulted in a lack of fuel supply to DFSP Ali Al Salem, Kuwait and DFSP Mesaieed, Qatar and negatively impact the ability of aircraft to perform their operational missions. Any lapses in contract performance, therefore, would have resulted in serious injury, financial or other, 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)):

This contract action was not competed, and no synopsis was posted; and therefore, no company other than Stolt expressed interest in it.

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 Government will research the availability of other service providers, including reengagement of tender services that could meet the requirement. The Government will also perform additional market research to determine reliable long-term permanent and soluble solution that is in the best interest of the Government.

I hereby certify that the data which forms the basis for this justification is accurate and complete