FY25 IEG Justification and Approval signed Redacted.pdf

This document is a Justification for Other Than Full and Open Competition (J&A) for the Defense Logistics Agency (DLA) Energy's Inland East Gulf Coast Offshore Solicitation SPE602-24-R-0709. The solicitation is for the procurement of aviation and naval turbine fuels from two suppliers: Alon USA, LP and Phillips 66 Company. The total procurement covers approximately 31,577,407 U.S. gallons with an estimated total value of $80,275,801.44.

The contract will be a one-year, fixed-price agreement with economic price adjustment, covering the contractual performance period from April 1, 2025 through March 31, 2026, with a 30-day carryover delivery period. The procurement breaks down into two primary supplier allocations: 14,329,040 gallons from Alon at $2.574320 per gallon (totaling $36,887,534.25) and 17,248,367 gallons from Phillips 66 at $2.515500 per gallon (totaling $43,388,267.19). DLA Energy conducted market research through Sources Sought Notices in May 2024 and determined that only these two suppliers can support the required fuel quantities for specific geographic regions.