SPE60318C5071 P00019 JA FINAL SIGNED (G)_Redacted.pdf

DEFENSE LOGISTICS AGENCY ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

June 26, 2023

23-0018

Justification for Other than Full and Open Competition

1. Summary/Introduction:

The Defense Logistics Agency (DLA) Energy is the contracting activity for petroleum products and services for the Department of Defense (DoD). This Justification & Approval (J&A) is for the award of a twelve-month bridge action by modification in order to provide alongside aircraft refueling services at Naval Air Station (NAS) Patuxent (Pax) River, MD on a sole source basis to the incumbent contractor, Joint Venture Global Solutions LLP (JVGS). The period of performance will be July 1, 2023 – June 30, 2024. Since the extension provision under FAR clause 52.217-8, Option to Extend Services (Nov 1999), was already exercised under P00017 of the contract SPE603-18-C-5071, this action constitutes a bridge action under Defense Logistics Acquisition Directive (DLAD) 2.101 and DLAD 17.9602(b)(1)(i) and is being taken after receiving approval at the appropriate levels in accordance with DLAD 17.9603-1(b).

Under DLAD 2.101, the definition of a “bridge action” includes a non-competitive action requiring justification to retain the current or similar service due to a delay in the award of a follow-on contract. Under DLAD 17.9602(b)(2)(v), a bridge action is appropriate under circumstances that the contracting officer can demonstrate are not due to a lack of advance planning or inadequate procurement execution resulting in delay of a solicitation or award.

Contract will require the incumbent contractor, JVGS, to provide alongside aircraft refueling services at NAS Pax River, MD. JVGS is responsible for the management, operation, maintenance, product quality surveillance, inventory control and accounting, security, safety, and environmental protection to provide retail/bulk fuel services as described below for the fuel facilities, related structures, and property on a sole source basis under the authority of FAR 6.302-1(a)(2)(iii). The bridge action by modification is issued under the same terms and conditions with no additional requirements as contract SPE603-18-C-5071. The value of the action being approved is . The contract for these services will expire on June 30, 2024.

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

Contract SPE603-18-C-5071 fulfills a performance-based requirement on behalf of Navy customers. Successful performance is measured by fully complying with the Performance Work Statement (PWS). The requirement for refueling services at NAS Pax River is continuing and highly specialized. The procurement for the follow-on contract was delayed due to numerous technical concerns in most of the proposals during technical evaluations. The highly technical nature of the services resulted in multiple rounds of technical evaluations, prompted by receipt of

Justification for Other Than Full and Open Competition or Services Will Satisfy Agency Requirements, and more specifically, the authority of FAR 6.302-1(a)(2)(iii). The services sought are highly specialized and awarding to another source will result in substantial duplication of cost to the Government, which is not expected to be recovered through competition, and resulting in unacceptable delays in fulfilling Agency requirements.

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 mission at NAS Pax River is dependent upon the current fuel services provided by the incumbent contractor, JVGS. The customer requires continuous, high quality alongside aircraft refueling services. NAS Pax River is an active installation with critical refueling services supporting the base daily. Timely fuel support, system maintenance, and quality control in accordance with U.S. Navy standards, including NATOPS, are required to meet the mission.

JVGS’ existing workforce is trained and ready to conduct operations without interruption.

JVGS’s performance for these services is acceptable based upon assessments from the Contracting Officer Representative (COR) and Contractor Performance Assessment Reporting System (CPARS). In addition, JVGS currently possesses the required mobile fuel vehicles, equipment and personnel to sustain services for the twelve-month performance period. A new contractor would need to familiarize themselves with the operations, obtain vehicles, vehicle permits, base access authorization; and absorb/manage all associated facility risks and environmental concerns. The contractor would also be required to develop and implement contingency, contract compliance plans, and training plans. Historically, awarded contracts for similar services have required nine to twelve months of preparation. The highly specialized nature of the work is apparent by the market research outlined in Section 6 below. A Sources Sought Notice (SSN) produced only two interested parties

Services at NAS Pax River differ from customary alongside aircraft refueling support provided by DLA Energy in a myriad of ways such as the manning of highly secured facilities.

Utilizing full and open competition to award outside of a bridge action is not in the Government’s best interest. In accordance with FAR 6.302-1(a)(2)(ii), an attempt to award this twelve-month requirement through full and open competition would result in substantial duplication of costs, that is not expected to be recovered through competition and would result in unacceptable delays in fulfilling the Agency’s requirement as addressed in Section 2 above. Due to the substantial logistical and financial burden of the requirement, a new contractor would not be successfully capable of providing services without delays, acquiring additional costs, or encountering other adverse risks. A new offeror’s contract price would be significantly higher than a bridge action to the incumbent since a new contractor must recover start-up costs over a short period. Therefore, the cost of conducting a solicitation for the twelve-month period cannot be recovered through competition. The Contracting Officer has determined that a twelve-month bridge action will ensure continued and uninterrupted support of the alongside aircraft refueling services at NAS Pax River, until a follow-on contract is in place.

The Government would expect to pay a significant premium for services if it sought to ensure continuity of services through an offeror other than JVGS. JVGS has already demonstrated that it possesses the equipment and personnel to perform on Jul 1, 2023. Ensuring that another contractor could perform would require the extreme mobilization of personnel and equipment both of which would carry significant costs such as leasing equipment, transporting equipment, and providing offer packages to employees. Price increases would be expected even without extreme mobilization as technically acceptable proposals for follow-on services begin at

/month as compared to the /month being paid to JVGS under the proposed bridge action.

In accordance with FAR 6.302-1, JVGS is the only responsible source that can meet the Agency’s requirement for the additional twelve-month period; without substantial duplication of costs, or delays in obtaining such services.

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)]:

On Jun 12, 2023, a SSN was posted to the Contracting Opportunities website at SAM.gov, to solicit capability statements from potential vendors and provide notice of the follow-on contract.

DLA Energy received two responses

As such, JVGS is determined to be the only responsible source.

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 contractor’s proposed prices were compared with the Independent Government Cost Estimate (IGCE) prepared by DLA Energy Terminal Operations. The contractor’s twelve-month price of is lower than the IGCE of annually for services. Both estimates factor in all costs associated with contract performance; to include labor, equipment, contractor-furnished vehicles, and other direct costs.

The Government does not expect the costs of awarding a twelve-month contract to a new contractor to be recovered through competition. An informal analysis of prices shows that awarding a bridge action is in the Government’s best interest.

The price submitted by JVGS, , is determined to be fair and reasonable based upon comparison of the IGCE per FAR 15.404-1(b)(2)(v).

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 conducted market research that indicate these services are commercially available;

via research for the follow-on procurement and the SSN mentioned above.

Market research was conducted as part of the procurement planning process for solicitation SPE603-22-R-0504. submitted proposals for providing these services under the follow-on contract, which will replace these services on Jul 1, 2024. The solicitation is currently being competed using full and open competitive procedures and has received adequate competition from responsible offerors. The Government has reviewed the market research for the follow-on procurement in preparation for this bridge action.

DLA Energy supplemented the information about general market conditions for these services by posting a SSN to SAM.gov. The SSN prompted capability statements from

JVGS is determined to be the only responsible source.

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.

Not applicable.

10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition [FAR 6.303-2(b)(10)]:

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)]:

There are no inherent barriers to competition for the follow-on acquisition of alongside aircraft refueling services at NAS Pax River, MD. For the current bridge action, the Government has determined that JVGS is the only responsible source capable of performing services without delays, incurring additional costs, or other adverse risks to the Government. A bridge action will be executed before the performance start date of Jul 1, 2023.