Qatex_JA_P00003_Redact2.pdf

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

Controlled by: DLA Energy / FEBC CUI Category: PROCURE

Distribution/Dissemination Controls: FED ONLY

25-0002

Justification for Other than Full and Open Competition under Qatex Limited (QATEX) Contract Modification SPE602-24-D-0455/P00003

1. Summary/Introduction:

Defense Logistics Agency (DLA) Energy is the Integrated Materiel Manager and contracting activity for petroleum products and services for the Department of Defense (DoD). This Justification and Approval (J&A) is for the acquisition of designated petroleum products on an other than full and open competition basis due to unusual and compelling urgency, in accordance with (IAW) Federal Acquisition Regulation (FAR) 6.302-2, from Qatex Limited (QATEX) via modification P00003 to contract SPE602-24-D-0455.

The period of performance for this contract is January 1, 2024, through December 31, 2024. This J&A authorizes procurement of approximately 13,020,000 U.S. gallons (USG) of Turbine Fuel, Aviation (JA1) with an estimated value of

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

The action being approved is a J&A authorizing other than full and open competition for the purchase of JA1 under DLA Energy’s contract with QATEX. The Contracting Officer originally solicited and awarded fuel volume to meet these requirements via tanker origin mode to an alternate vendor. Tanker origin mode means that the Government transports the fuel to its intended destination. DLA Energy is required to obtain transportation support from Military Sealift Command (MSC) and did so to meet these requirements.

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

The estimated requirements to be ordered under the proposed contract modification are as follows:

Justification for Other Than Full and Open Competition (Cont’d) (SPE602-24-D-0455/P00003 – Qatex Limited)

CUI

i. JA1 conforming to ASTM-D1655 and DEF STAN 91-91 Issue 15 dated November 10, 2023. The total estimated quantity required is 13,020,000 USG.

The estimated dollar value of this contract action is

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. § 3204(a)(2), as implemented by FAR 6.302-

2. The agency’s need for the supplies is of such an unusual and compelling urgency that the United States would be seriously injured unless the agency is permitted to proceed with the contract modification to purchase additional supplies from

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 United States Department of Defense (DOD) has a presence in Qatar. DOD without the fuel sought under modification P00003 to contract SPE602-24-D-0455. The fuel is

Urgency of 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)):

QatarEnergy (QE) The current contract with Q was awarded using competitive procedures under solicitation SPE602-23-R-0706.

Due to the unusual and compelling nature of this action pursuant to FAR 6.302-2, the exception at FAR 5.202(a)(2) applies.

Justification for Other Than Full and Open Competition (Cont’d) (SPE602-24-D-0455/P00003 – Qatex Limited)

CUI

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 anticipated cost to the Government will be fair and reasonable based on prices received for comparable products in the region. No price change from the base contract will be made.

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)):

DLA Energy re-confirmed that delivery via pipeline is restricted because QatarEnergy (QE) is owned by QE and thus has access to the pipeline as a part of normal business operations. QE confirmed by e-mail on February 29, 2024 that its proprietary pipeline is reserved for the exclusive use of its affiliated company, , that is subject to this J&A. Therefore, no other sources will be contacted, nor will further market research be 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.