SPE603-18-C-5012_Redacted.pdf

DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

MARCH 23, 2018

18-0033

Justification for Other than Full and Open Competition

1. Summary/Introduction:

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 two-month bridge contract to provide Alongside Aircraft Refueling (AAR) Services at on a sole source basis to the incumbent contractor, Maytag Aircraft Corporation from April 01, 2018 through May 31, 2018 under the authority found at FAR 6.302- 2(a). The award of this two-month contract SPE603-18-C-5012, under solicitation SPE603-18-R- 0527 had an awarded value of $466,270.00 and utilized FY 2018 Defense Working Capital Funds. The bridge contract also contained contract clause 52.217-8 Extension Provision, allowing the Government to extend the contract one or more times for up to six months. The total award value including all options is $1,865,080. This J&A is being completed after contract award in accordance with FAR 6.303-2(c)(1).

This action constitutes a bridge contract under DLAD 2.101 & 16.191, and is being reported at the appropriate levels in accordance with DLAD 16.191(c)(3). DLA Energy FESAB is using FAR 13.5-Simplified Procedures for Certain Commercial Items to award a two-month bridge contract to the existing contractor. Therefore, in accordance with DLAD 16.191(b)(4) a J&A is being completed to provide a detailed rationale for use of a two-month bridge contract for this requirement including an explanation as to why the need for a two-month bridge contract is not due to lack of advance planning or inadequate procurement execution. The bridge contract was required due to two post-award protests of the follow-on contract award. One of the post-award protests is a protest of the HUBZone status of the follow-on awardee to the Small Business Administration, and the other is a protest at the Government Accountability Office. This J&A provides the rationale for the use of other than full and open competition and a discussion of actions taken to avoid the need for additional bridge contracts for this requirement. The J&A will be processed for approval at the required level based on the total value of the contract action.

The incumbent contractor, Maytag Aircraft Corporation, provides Alongside Aircraft Refueling, Government-Owned Contractor-Operated (GOCO) storage services and related services using best commercial standards. Maytag Aircraft Corporation is responsible for operating and maintaining Government fixed fuel facilities, delivering ground fuel, maintaining fuel inventory and accounting, handling used oil, and managing automated service stations. The contractor provides aviation, ground, used oil service, and utility vehicles, and equipment in necessary quantities to meet the aircraft and ground refueling/defueling workload requirements, including surge demands. Furthermore, the contractor provides all labor, equipment, tools, materials, supplies, and supervision necessary to receive, store, issue, maintain quality, and account for petroleum products. upon not only the fuel management services provided by the contractor, but also the fuel vehicles, labor, and

Justification for Other Than Full and Open Competition (Cont’d) (SPE603-18-C-5012 – Maytag Aircraft Corporation) equipment provided by the contractor. The contract for these services under contract SP0600- 09-D-5907 expired on March 31, 2018 with all options exercised. The follow-on contract SPE603-18-C-5011 was awarded on March 14, 2018. However, two post-award protests were received prior to the start of performance for the follow-on contract on April 01, 2018, which resulted in a stay of performance for SPE603-18-C-5011. The bridge contract was required to and and was awarded on March 29, 2018, to prevent . The same terms and conditions with no additional requirements as the follow-on solicitation apply to this two-month bridge contract

SPE603-18-C-5012.

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

The procurement of these services for the period of two months is conducted using the procedures identified in FAR 13.5 under the authority of 10 U.S.C. §1901. This is a performance-based requirement. Full compliance with the Performance Work Statement (PWS) determines the successful performance of the contractor. The contractor is responsible for accounting and administration; managing aircraft fuel services, fuel distribution and storage operations, ground fuel delivery operations and maintenance of Government-owned fuel facilities. Services include providing all technical support, personnel, supervision, equipment, tools, materials and other items as required by the PWS. Under the circumstances and as explained below, Maytag Aircraft Corporation is the only source currently capable of performing acceptable services at ; therefore, a sole source award is appropriate to

The start of performance for the follow-on contract delay, due to a protest of the contract award.

A two-month bridge contract is necessary due to the additional time required to resolve the protests of the follow-on award, SPE603-18-C-5011. As a result, performance of the competitively awarded follow-on contract did not begin in sufficient time

. The two-month bridge contract incorporates the current requirements. The two months period of performance on the bridge contract will allow sufficient time to resolve the protest for the competitive follow-on contract. The Government faced unusual and compelling urgency in awarding the bridge contract for

2018 Defense Working Capital Funds in the amount of $466,270.00 were provided via PR 73708780 to fund this requirement.

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

(SPE603-18-C-5012 – Maytag Aircraft Corporation)

The predecessor contract awarded for these services based award upon full and open competition to Maytag Aircraft Corporation on August 10, 2009. The current contract consists of a four-year base period from October 01, 2009 through September 30, 2013 with one option period from October 1, 2013 through September 30, 2017. An exercised option to extend the services for six months, IAW FAR 52.217-8, extended the contract expiration date to March 31, 2018. The total dollar value of the current contract is $10,208,272.00. A competitive follow on contract, SPE603-18-C-5011 was awarded, however a post-award protest required a stay in contract performance.

In order to , it was

. The contracted services are for the management, maintenance, and operation of Government owned fuel facilities and equipment at various locations listed in the Performance Work Statement of . The contractor furnishes, manages, maintains, and operates all mobile fuel servicing equipment

The Contractor provides Aviation Fuel Servicing Operations, Bulk Storage Operations and Ground Fuel Servicing Operations. In addition, the Contractor provides 24 hour/7 days a week, uninterrupted services to include all outlying fields

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. §2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-2 – Unusual and compelling urgency and more specifically, the authority of FAR 6.302-2(b). The services sought are required for

. Competition for these services was precluded by the unusual and compelling urgency, and delay of award would have resulted in serious injury to the Government. Failure to have a contract for these services in place would have

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 is currently provided by the incumbent, Maytag Aircraft Corporation. The high quality fuels management services. is an active Marine Corps Air Station with many . These services are

. Timely fuel support, system maintenance, quality control in accordance with Marine Corps. The existing work force is trained and able to conduct

. Maytag Aircraft Corporation’s performance of these services at is acceptable based on the last several Contracting Officer’s Representative

(COR) Reports. Additionally, Maytag Aircraft Corporation, Inc. currently possesses the vehicles, equipment, and personnel during the period of performance for

(SPE603-18-C-5012 – Maytag Aircraft Corporation) the two-month bridge in accordance with the current contract SP0600-09-D-5907. A new contractor would need preparation time prior to beginning performance to acquire the necessary specialized trucks to perform the contract and to develop and implement operations and training plans and to train personnel.

Utilizing full and open competition for this two-month bridge contract was not in the best interest of the Government. In accordance with FAR 6.302-2(b)(2), an attempt to award this short term requirement through full and open competition would have resulted in unacceptable delays in fulfilling the agency’s requirements as addressed in Section 2 above. Due to the substantial logistical and financial burden required of a contractor to perform this requirement, past experience shows that few if any contractors would be interested in this requirement. If interested, their contract price would be much more expensive than the extension price for the current contract because any new contractor would be attempting to recover their start-up costs over a short period. Therefore, the cost of conducting a solicitation for this short-term requirement is unlikely to recover through competition. The Contracting Officer has determined that a two-month bridge contract ensures the until the follow-on contract SPE603-18-C-0511 will begin after the resolve of the protest and that Maytag Aircraft Corporation is currently the only known responsible source with the ability to meet the agency’s 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)):

A synopsis was not be posted to FBO.gov to provide notice of the two-month bridge contract requirement. The exception at FAR 5.202(a)(2) applies. The customer at requires . is an active Marine Corp Air Station base with

. These services . Timely fuel support, system maintenance, quality control in accordance with Marine Corps Air Station standards is required . The existing work force is trained and able to

. DLA Energy FESAB does not expect a competitive offer to the Solicitation SPE603-18-R-0527. Accordingly, this requirement procured under the authority of FAR 6.302, Other than Full and Open Competition, in order to ensure at

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 cost for this two-month bridge contract, as proposed by Maytag Aircraft Corporation is $466,270.00, calculated by multiplying the monthly use charge of by two months.

while Maytag Aircraft Corporation’s monthly price for the two-month contract SPE600-17-C-5023 is per month. The Maytag Aircraft

(SPE603-18-C-5012 – Maytag Aircraft Corporation)

Corporation’s price is significantly lower than the IGCE for the bridge contract. Therefore, in accordance with FAR 15.404-1(b)(2)(v), the Contracting Officer has determined that the two-month contract’s price proposed by Maytag Aircraft Corporation is fair and reasonable.

The Government evaluated the six-month option to extend the contract (in accordance with contract clause 52.217-8) at the time of award of this bridge contract. The Government evaluated the extension provision period by multiplying the monthly use charge by six, and adding it to the base period price. The overall evaluated price for Maytag Aircraft Corporation is $1,865,080.00.

This below the IGCE for the potential eight (8) month period of performance.

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 FESAB conducted market research as part of the procurement planning process for the new solicitation SPE600-17-R-0522. The follow-on contract awarded using full and open competition and protest ensued prior to implementation of the follow-on. Five (5) businesses expressed interest in providing proposals to the follow-on contracts. The Government determined that Maytag was the only company capable of providing services in the required time.

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):

Not Applicable

(SPE603-18-C-5012 – Maytag Aircraft Corporation)

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 known barriers to competition at this time for . Per section 11 of J&A 17-0051, the Government has taken all the actions to overcome barriers to competition.

The Government has procured these services competitively in the past and intends to do so in the future. Contract SPE603-18-C-0518, was awarded based upon full and open competition and, the protest of the awarded contract will be resolved prior to the expiration of the bridge contract.

I hereby certify that the data which forms the basis for this justification is accurate and complete to the best of my knowledge and belief.

Contract Specialist Bulk Petroleum Supply Chain Services

Contracting Officer

Division Chief

I hereby certify that the data which forms the basis for this justification is accurate and complete and that the purchase request covers only the minimum requirements to satisfy the needs of the Government.

Chief, Facilities Management Branch

I have reviewed and concur with this Justification.

(SPE603-18-C-5012 – Maytag Aircraft Corporation)

Director Bulk Petroleum Services

Senior Counsel DLA Energy Counsel

Approved:

Advocate for Competition