SPE60225R0708 JA_Redacted.pdf
PDF 2 MB Posted
- Solicitation number
- SPE60225R0708
- Issued by
-
Defense Logistics Agency Energy
About this file
This is a Justification for Other Than Full and Open Competition (J&A) for a sole-source contract award to Japan Freight Rail Company (JFRC).
The Defense Logistics Agency (DLA) Energy is procuring rail transportation services to move bulk petroleum products between specified locations in Japan under solicitation SPE602-25-R-0708. The contract is structured as a Firm-Fixed Price (FFP) agreement with an estimated total value of $6,059,975.80, comprising a one-year base period plus four one-year option periods. The service requirement involves 134 equal annual shipments across all contract periods. The Government previously procured these services under an agreement with JFRC, followed by a bridge contract (FA520925C0002) awarded by the U.S. Air Force 374th Contracting Squadron on a sole-source basis. DLA Energy is now the designated contracting office for the follow-on contract. The justification asserts that JFRC is the sole authorized provider due to proprietary rights to the transportation infrastructure and Ministry of Land, Infrastructure and Transport (MLIT) regulations that restrict rail operations in Japan. MLIT maintains an annual registry of authorized operators, and as of April 1, 2025, JFRC remains the sole operator for the specified route. Other Japanese rail companies operate only in restricted regional areas or for non-commercial purposes. Market research was conducted through a Sources Sought Notice posted to SAM.gov on June 30, 2025, with responses due July 8, 2025. One company responded but failed to provide capability statements when requested. The Contracting Officer determined the anticipated cost to be fair and reasonable based on historical pricing from the previous agreement and current bridge contract. No other factors supporting alternative competition authorities apply to this acquisition.
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Justification for Other Than Full and Open Competition Page 3 of 6
SPE602-25-R-0708
JFRC possesses proprietary rights to the the services will be performed on and is therefore the sole authorized transportation provider. The Ministry of Land, Infrastructure and Transport (MLIT) regulations outline all in Japan. MLIT issues an updated list of registered on an annual basis, and as of April 1, 2025, JFRC remains the sole operator for (to
) within their prefecture, and Additional Japanese companies are present; however, their capabilities are regionally restricted and reserved for non-commercial only. Thus, excluding other companies from meeting the requirements. JFRC is the only authorized source that can deliver sufficient quantities of consistently and reliably to
; no other source has the capabilities to offer transportation services in support of this requirement, due to restrictions.
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)):
Information was exchanged and obtained according to FAR parts 15.201(c)(3) and conducted the release of an RFI in accordance with FAR 15.201(e); DLA Energy posted a Sources Sought Notice (SSN), as required by FAR 5.201(b)(1)(i), on June 30, 2025, on the System for Award Management (SAM) requesting information concerning the availability of all capable contractors that provide to transport bulk petroleum product in Japan. DLA Energy encouraged all interested companies to submit responses concerning capabilities. The response due date was July 8th, 2025, by 3:00 PM EST. SAM.gov does not provide data regarding the number of contractors eligible to receive the SSN or the contractors that viewed the SSN, so it is not possible to determine the number of contractors reached by the posting. However, there were no restrictions on the posting and all contractors were able to review and respond regardless of business size classification. The SSN was posted under NAICS code: 488210.
submitted a response to the SSN. However, when further inquired about their capabilities, failed to provide a response, and as a result, was found incapable of fulfilling the requirements.
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 has determined that the cost to the Government will be fair and reasonable based on a comparison of historical prices paid, for the same or similar items, in accordance with FAR 15.404-1(b)(2)(ii). The anticipated cost to the Government for the contract is $6,059,975.80, which represents the sole source quantity multiplied by the anticipated unit price. The Contracting Officer will utilize the previous agreement and the current bridge contract as a comparison of historical prices paid.
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 techniques for this market research were conducted in accordance with FAR 10.002(b)(2)(i), and FAR 10.002(b)(2)(ix). DLA Energy was informed by the 374th Contracting Squadron that the current bridge contract, FA520925C0002, is sole sourced to JFRC. The 374th Contracting Squadron conducted the following market research:
Justification for Other Than Full and Open Competition Page 5 of 6
SPE602-25-R-0708
(FAR 6.303-2(b)(10):
expressed an interest in writing, however failed to provide a capability statement.
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 service requirement is regionally restricted to operate between Japan. DLA Energy is presently unable to overcome the barriers to competition
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