SPE60523D9501 redacted JA.pdf

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN .1. KINGMAN ROAD

PORT BELVOIR, VIRGINIA 2.20606221

J&A Tracking Number: 22-0024

Justification for Other than Full and Open Competition under 1.998 Qatar, SPE6O5-22-R-0208

1. Summary/Introduction:

Defense Logistics Agency (DLA) Energy is the Executive Agent for Direct Delivery Fuels and the contracting activity for petroleum products and services for the Department of Defense (DoD). This Justification and Approval (J&A) is for the acquisition of supplies for Diesel Fuel (SFD) and Midgrade Unleaded Gasoline (MUM) on other than a full and open competition basis in support of Camp As Sayliyah and Al Udeid Airbase (AR) in the State of Qatar. The existing contract, SPE6O5-1 9-D-9552, awarded November 14, 2018, was for a four-year base period, and a six-month extension option to Qatar Fuel (WOQOD). The following justification is presented to support the decision to award a three-year contract to Qatar Fuel (WOQOD) with a performance period beginning on November 1, 2022. The estimated total dollar value for this acquisition is $55,559,112.06.

2. Nature and/or description of the action bein2 approved (FAR 6.303-2(b) (2):

This justification will authorize a three-year fixed price with economic price adjustment requirements contract on a sole source basis from Qatar Fuel (WOQOD). The contract will have a period of performance from November 1, 2022, through October 31, 2025, with an option to extend the term of the contract for no more than six months. The Defense Working Capital Fund (DWCF) is expected to be used for this requirement.

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

This is a follow-on F.O.B. destination (free onboard at destination) requirement for the U.S.

Central Command (CENTCOM) and U.S. Air Force in the State of Qatar, in support of Procurement Program I .99B (State of Qatar). The required products, with an ordering period from November 1, 2022, through October31, 2025, are as follows:

• Fuel, Gasoline (MUM) National Stock Number 9130-01-272-0983.

The three-year estimated quantity for Camp As Sayliyah is 305,208 U.S. Gallons with an estimated value of $845,426.16

• Diesel Fuel (SFD) National Stock Number 9140-01-556-9156 The three-year estimated quantity for Camp As Sayliyah is 5,659,890 U.S.

Gallons with an estimated value of$18,734,235.90

Justification for Other Than Full and Open Competition (Cont’d) (SPE6O5-22-R-0208 — Qatar Fuel (WOQOD))

• Fuel, Gasoline (MUM) National Stock Number 9130-01-272-0983.

o The three-year estimated quantity for Al Udeid AB is 3,525,000 U.S. Gallons with an estimated value of $9,764,250.00

• Diesel Fuel (SFD) National Stock Number 9140-01-556-9156 The three- year estimated quantity for Al Udeid AB is 7,920 000 U S Gallons with an estimated value of $26,215,200.00

4. Identification of the statutory authority permittin2 other than full and open competition (FAR 6.303-2(b) (4)’):

This J&A is based upon the authority o 10 U.S.C. §3204(a)(l) as implemented by Federal Acquisition Regulation 6.302-1. The supplies required by the agency are only available from Qatar Fuel (WOQOD) and no other type of supplies will satis~’ 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) (5Th

The statutory authority permitting other full and open competition is 10 U.S.C. §3204(a)(1), only one responsible source can satsfS’ the agency’s requirement.

Qatar Fuel (WOQOD) is the only authorized fuel re ailer in the State of Qatar. The company is publicly listed on the Qatar Stock Exchange and is supplied by Qatar Energy, which was fonnerly called Qatar Petroleum. Qatar Energy is a state-owned petroleum company and is the only source for the required supplies. The State of Qatar does not allow any other entity to market, transport or distribute fuel, and it owns the petroleum company which supplies the fuel; therefore, Qatar Fuel (WOQOD) is a state-controlled company.

Pursuant to Qatar Law Number 4, of 2003, Qatar Fuel (WOQOD) has the sole concession for marketing, transporting, and distributing Gas and Petroleum Products (except for bittunen) to the country’s airports, ports and petrol stations through its distribution, transportation, and sales networks. The law was issued in the Amiri Diwan (equivalent to a Parliament) on April 28, 2003, for a fifteen-year period (attachment 1).

The law’s concession was set to exuire on A 128, 2018; however, on JuN 14, 2018, DLA‘ii

As of today, Qatar Fuel (WOQOD) maintains exclusive concession to market, transport, and distribute all gas and petroleum products m the State of Qatar: therefore, it remains the only way to supply military requirements with gasoline and diesel fuel until 2023.

See attaclunent 1, Website Al Meezan Qatar Legal Portal, Qatar Law Number 4 (English)

Page 3 of8

(SPE6O5-22-R-0208 — Qatar Fuel (WO D)

See attachment 2, U.S. Embassy Doha email dated July 14 20

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 wifi be publicized as required by Subpart 5.2 and, if not which exception under 5.202 applies (FAR 6.303- 2(b)(6fl:

This is a sole source procurement from a company, which by Qatar law, has exclusive concession to market, transport, and distribute gas and petroleum products within the State of Qatar.

DLA Energy did not take any actions to overcome barriers to competition because Qatar Fuel (WOQOD), by law, is the only source of supply lawfully authorized to meet the requirements covered by this justification. In the event, that the law changes, any follow-on procurement for these products, will be solicited utilizing full and open competition.

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 is responsible fo dete g that the anticipated cost, to the Government, will be fair and reasonable. Prior to award, the Contracting Officer will detennine any prices negotiated with Qatar Fuel (WOQOD), fair and reasonable by utilizing the price analysis techniques of FAR 15.404-1 (b)(2)(n), comparing previous y proposed prices and previous Government contract prices with the current proposed prices and, if needed, FAR 15.404-l(b)(2)(vii) an analysis of the pricing infonnation provided by the offeror.

Current Contract SPE6O5-19-D-9552 was awarded on a sole source basis, in accordance with Qatar Law Number 4 of 2003, which mandated Qatar Fuel (WOQOD) as the only source in Qatar foi~ gasoline and diesel, at the time of award. The current contract was awarded using the

The

The intent to award sole source was synopsized through the Governmentwide Point of Entry (https //www sam gov.) on April 29, 2022.

subsequent contract I therefore Qatar Fuel (WOQOD) would be providing L for each requirement. The prices would be applicable, due to the State of Qatar’s mandate, wi h ut exception On Apnl 18 2022 DLA Energy-FEPD

Page 4 ofs Justification for Other Than Full nd Open Competition (Cont’d) (SPE6O5-22-R-0208 — Qatar Fu (WOQOD)) ordinated with DLA Energy Market Research and received confirmation that

Qatar Fuel’s most recently submitted pricing from the cunent contract (SPE6O5-19-D-9552) for Diesel (SFD) is $2.200749 and $2.4708l 5 (April 18, 2022) for Camp As Sayliyah and Al Udeid Airbase, respectively. I

The forthcoming contract will use that the State of Qatar’s shall be submitted’

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)):

Market research was not conducted, aside from the efforts detailed above to establish price reasonableness. The incumbent contractor, Qatar Fuel (WOQOD). provides the only prac ical means to meet the stated requirements.

9. Any other facts supporting the use of other than full and open competition, such as (FAR 6.303-2(b) (9):

fil Explanation of why technical data packages, specifications, engineering descriptions, statements of work, or purchase descriptions suitable for full and open corn etition have not been develo ed or are not available.

Not Applicable ffi~ 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 he Governrnent that would be duplicated and how the estimate was derived

Not Applicable flAil When 6.302-2 is cite nature of the harm to th estimated cost or other rationale as to the extent and Government.

Qatar Fuel’s most recently submitted price, from the current enrlsact (SfE6O5-J 9-0-9552), for Gaso1ir~ (MUM) is $2.183300 (April 18, 2022). I means Price

(SPE60S-22-R-0208 — Qatar Fuel (WOQOD))

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)

No sources, other than the four mentioned in paragraph 6, expressed an interest in writing.

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)):

DLA Energy anticipates fun and open competition at the expiration of the contract, unless Qatar Law Number 4, is further extended.

Page 6 of S

(SPE6OS-22-R-0208 — Qatar Fuel (WOQOD))

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.

ntracting Specialist Contracting Officer

Division Chief

I hereby certify that the data which fonns he 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.

USCENTCOM HQ-J43 OPS

CCJ4 JPO

(SPE6O5-22-R-0208 — Qatar Fuel (WOQOD))

I have reviewe an concur with this Justification

BU Director

I have reviewed this justification.

Assistant Counsel

Chief Counsel

I have reviewed and hereby recommend that this Justification be approve

Alternate Advocate for Competition

Director, Procuremen Process Support

Director, Supplier Oper ions

(SPE6OS-22-R-0208 — Qatar Fuel (WOQOD))

I have reviewed and concur with this Justification:

I have reviewed and hereby recommend that this Justification be approved:

Approved:

Acting Senior Associate General Counsel, Acquisition

DLA Advocate for Competition

Head of the Contracting Activity