JA SOLE SOURCE _Redacted_OPSEC_Redacted.pdf
PDF 890 KB Posted
- Attached to
- Rocky Mountain /West Coast / Offshore Program Federal contract opportunity
- Solicitation number
- SPE602-25-R-0705
- Issued by
- Defense Logistics Agency Energy
About this file
This document is a Justification for Other Than Full and Open Competition (J&A) issued by the Defense Logistics Agency (DLA) Energy for the procurement of approximately 26,493,300 U.S. Gallons (USG) of Turbine Fuel, Aviation Grade Jet A (JAA). The solicitation (SPE602-25-R-0705) was publicly issued on February 21, 2025, with an anticipated contract period from October 1, 2025 to September 30, 2026. The total estimated value is $68,742,695.40, based on the current contract unit price, with delivery to be made via a supplier-owned pipeline.
The procurement is being conducted on a non-competitive basis, with 90% of the JAA requirement to be awarded to a single supplier via pipeline delivery, while the remaining 10% is open to competitive delivery via pipeline or truck. DLA Energy conducted market research and found that the location resides in a marketplace with no alternative commercial pipeline. The agency aims to promote potential competition by allowing truck delivery for a portion of the requirement. The contract will be a fixed-price Indefinite Delivery Indefinite Quantity (IDIQ) contract, funded by FY 2026 Defense Working Capital Funds, with an economic price adjustment provision.
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Text version
Source Selection Information -See FAR 2.101 and FAR 3.104 Controlled by: DLA Energy FEBB CUI Category: SSEL
Distribution/Dissemination Controls: FED ONLY POC: Kirk Gamblin (kirk.gamblin@dla.mil)
J&A Tracking Number: 24-0008
CUI
JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION
ROCKY MOUNTAIN WEST COAST SOLICITATION SPE602-25-R-0705
Summary/Introduction:
Defense Logistics Agency (DLA) Energy is the integrated materiel manager for energy commodities and the contracting activity for petroleum products and services for the Department of Defense (DoD). This Justification and Approval (J&A) is for the procurement of approximately 26,493,300 U.S. Gallons (USG) Turbine Fuel, Aviation Grade Jet A (JAA) to via a supplier-owned pipeline with an estimated value of $68,742,695.40 based on current contract CLIN price on November 12, 2024 with an anticipated Period of Performance of October 1, 2025 – September 30, 2026. This location is solicited annually under the Rocky Mountain/West Coast/Offshore (RMW) Program for Bulk Petroleum Products. Request for proposals (RFP) SPE602-25-R-0705 was publicly solicited on February 21, 2025.
Ninety percent (90%) of the JAA requirement at is being solicited on an “other than full and open basis via pipeline; the remaining ten percent (10%) is being solicited via pipeline and/or truck. Offers for delivery via truck will be competed with the pipeline offer from to determine the overall best value to the Government. This J&A covers 90% of the requirement at for a total of 26,493,300 USG.
Nature and/or description of the action being approved (FAR 6.303-2(b)(2)):
An approved J&A will result in award of a one-year, fixed-price with economic price adjustment (EPA), Indefinite Delivery Indefinite Quantity (IDIQ) contract to to supply The contract period of performance is October 1, 2025 – September 30, 2026, and a 30-day carryover delivery period for fuel ordered during the contractual ordering period. FY 2026 Defense Working Capital Funds will be used for this effort.
Description of supplies or services required to meet the agency’s need (including estimated value) (FAR 6.303-2(b)(3)):
Requirements are subject to change based on mission needs to support operations throughout the region. The estimated quantity the Government shall award under this J&A is set forth in the table below:
Justification for Other Than Full and Open Competition (Cont’d)
Source Selection Information -See FAR 2.101 and FAR 3.104
CUI
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)):
On November 12, 2024, DLA Energy posted a combined Sources Sought Notice/Synopsis (SSN) on SAM.gov under notice SPE602-25-RFI-1001, stating that the Government intended to procure 569,943,000 USG of JAA to support the annual RMW purchase program Twenty-one companies responded to the SSN, expressing a general interest in the procurement, and providing their general capabilities. one of the respondents expressed interest in supply at .
DLA Energy issued solicitation SPE602-25-R-0705 on February 21, 2025. is solicited as at least 90% (and up to 100%) FOB Destination pipeline delivery and up to 10% FOB Origin or Destination truck.
Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable (FAR 6.303-2(b)(7)):
The anticipated cost to the Government for these contracts is $68,742,695.40, which represents the sole source quantities multiplied by the anticipated price per gallon. The anticipated price per gallon for the RMW requirements is determined by using the winning unit price at this RMW location for JAA under prior RMW solicitation SPE602-24-R-0701, escalated to the base reference date of October 31, 2023. Additionally, it is expected that the anticipated cost to the Government will be fair and reasonable based on a comparison of the proposed price to historical prices paid in accordance with FAR 15.404-1(b)(2)(ii) and market research in accordance with FAR 15.404-1(b)(2)(vi).
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’s Inventory Management Division (FEN), the Agency’s experts on the RMW supply chains, conduct ongoing market research concerning fuel supply, transportation, and logistics. Based on their research, FEN concluded that resides in a marketplace where no commercial pipeline other than the one owned by .
Any other facts supporting the use of other than full and open competition, such as (FAR 6.303-2(b)(9)):
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.
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