Tab 1 - DFSP Norfolk JA redact_legal (1).pdf

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6221

25-0026

Justification for Other than Full and Open Competition

1. Summary/Introduction:

The Defense Logistics Agency (DLA) Energy, a Major Subordinate Command of DLA, is the contracting activity for bulk petroleum products and services for the Department of Defense (DoD). This Justification & Approval (J&A) is for the award of a two-month bridge action by modification with one additional one-month option on contract SPE600-15-C-5014 for fuel storage services in Norfolk, VA. The contract provides bulk storage services, retail service station support, alongside aircraft refueling services, and the entire fuels management services at Defense Fuel Support Point (DFSP) Norfolk, VA. This includes services to provide safe, accurate and timely handling, quality control, and accountability of Defense Working Capital Fund-owned petroleum products and to perform required maintenance to ensure facilities, associated systems, vehicles, and equipment remain operational to meet the U.S. Navy’s mission.

This bridge action would be on a sole source basis to the incumbent contractor, LB&B Associates, Inc. (LB&B). The period of performance will be July 01, 2025, through August 31, 2025, and the one-month extension would be September 1, 2025, through September 30, 2025.

The total estimated value of the two-month bridge action is $1,929,302.86, and with the one additional one-month option, the total is $2,893,954.29. This will increase the contract value from $108,893,099.31 to $111,787,053.60. Since the Extension Provision under FAR clause 52.217-8, Option to Extend Services (Nov 1999) was already exercised under P00082 of the current contract, this action constitutes a bridge contract under DLAD 2.101, DLAD 17.9601(a), and is reported at the appropriate levels in accordance with DLAD 17.9605.

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

The procurement of services for the two-month bridge with one additional one-month option is being conducted using the procedures under FAR 6.302-2, and additionally DFARS PGI 206.302-2(b)(ii)(B) which offers an example of an unusual and compelling urgency as a contract for essential equipment needed to perform the operational mission of an aircraft. DLA Energy’s urgent requirement for fuel services at DFSP Norfolk is the type of urgency contemplated by the DFARS PGI example; Fuel and fueling services (JP5, F24, F76, and lubricants) is required to enable the functioning of military equipment, vehicles, and aircraft and the impending contract expiration creates a compelling urgency to secure fuel services before the existing fuel contract expires.

Any interruption in these services could result in mission failure, and as such, the agency cannot afford the risks associated with bringing in a new contractor. If contractual services at DFSP Norfolk cease, the impact would be immediate and severe, disrupting the receipt, storage, and distribution of critical military fuels (JP5, F24, F76, and lubricants) across the highest volume DoD fuel complex in the continental U.S. This would jeopardize fuel support to numerous fleet

Justification for Other Than Full and Open Competition (Cont’d) (SPE600-15-C-5014 – LB&B Associates Inc.)

and industrial customers, including Navy, Marine Corps, and joint service operations, halt replenishment of naval vessels and aircraft, and cripple operational readiness. With millions of barrels of fuel being moved annually through numerous tanks, 100+ miles of pipeline, and multiple refueling points, any lapse in service would compromise mission continuity, national defense readiness, and regional energy security.

The procurement for the follow-on contract, SPE603-25-C-5006, was awarded on May 12, 2025, to Maytag Aircraft LLC (Maytag). After the post-award debriefing, the incumbent contractor, LB&B Associates Inc., (LB&B), protested the award to the Government Accountability Office (GAO) on May 23, 2025. A Stop Work Order was issued to Maytag on May 27, 2025, which halted their efforts to start contract performance on July 1, 2025. LB&B has since withdrawn their protest as of June 13, 2025, and Maytag was notified the same day that they are authorized to continue working on the contract. However, the time lost due to the work stoppage cannot be directly added back to the contract end date. Federal Acquisition Regulation (FAR) 42.1303 governs Stop Work Orders, and it requires contractors to stop all work and incurring costs during the stoppage. As a result, Maytag's preparations, including arrangements for fuel truck deliveries, were halted. Restarting operations after a Stop Work Order is not a simple matter and it involves an in depth re-planning effort, making the recovery more complex than just adding the days lost back to the schedule.

Additionally, the Contracting Officer confirmed with the Contracting Officer Representative (COR) that Maytag would need additional time to obtain Common Access Cards (CACs) and gain access to the Airfield. Due to the Vetting Process, which includes background investigations, Maytag is subject to delays with CAC appointments, and DLA Security’s staffing constraints that may cause a delay in processing DLA 1728 forms. Currently, the estimated timeframe for a new applicant to complete fingerprinting and a security questionnaire for their background check is 30-45 business days. There are 100 employees that need appointments scheduled and CACs issued before contract expiration June 30, 2025. CACs are required to access Electronic Point of Sale (EPOS) to issue and log inventory related to fuel requirements delivered to the customer. Maytag would also need approximately two weeks to receive Airfield clearance, due to training and qualification standards required to access and operate on the Airfield. Consequently, the Contracting Officer finds LB&B the only reliable source to avoid a gap in service.

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

The current contract, SPE600-15-C-5014 was competitively awarded to LB&B on June 8, 2015.

The four-year base was from October 1, 2015, through September 30, 2019, and the five-year option was from October 1, 2019, through September 30, 2024. The contract also authorized six one-month extensions, which were exercised via modification P00082, and extended the period of performance to March 31, 2025. The initial bridge action by modification, P00092, extended the period of performance from April 1, 2025, through June 30, 2025. The total dollar value of the current contract is $108,893,099.31. This pending bridge action by modification will extend the period of performance from July 1, 2025 through August 31, 2025 and the additional one-

(SPE600-15-C-5014 – LB&B Associates Inc.)

month extension would be September 1, 2025, through September 30, 2025, if the proposed option is exercised. The total contract value will be $111,787,053.60.

The contract provides bulk storage services, retail service station support, alongside aircraft refueling services, and the entire fuels management services at DFSP Norfolk, VA. This includes services to provide safe, accurate and timely handling, quality control, and accountability of Defense Working Capital Fund-owned petroleum products and to perform required maintenance to ensure facilities, associated systems, vehicles, and equipment remain operational to meet the U.S. Navy’s mission.

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. §3204, as implemented by Federal Acquisition Regulation 6.302-2. The services sought are urgent and compelling and an award to a new source would likely result in substantial duplication of costs to the Government that is not expected to be recovered through competition and would result in unacceptable delays in fulfilling the agency’s requirements. If contractual services at DFSP Norfolk cease, the impact would be immediate and severe, disrupting the receipt, storage, and distribution of critical military fuels (JP5, F24, F76, and lubricants) across the highest volume DoD fuel complex in the continental U.S. This would jeopardize fuel support to numerous fleet and industrial customers, including Navy, Marine Corps, and joint service operations, halt replenishment of naval vessels and aircraft, and cripple operational readiness. With millions of barrels of fuel being moved annually through numerous tanks, 100+ miles of pipeline, and multiple refueling points, any lapse in service would compromise mission continuity, national defense readiness, and regional energy security. The risk of service disruption also outweighs any potential cost savings from a competitive award.

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 services required by the agency are available only from LB&B to satisfy the agency requirements during the period of performance from July 1, 2025, through August 31, 2025. The mission at DFSP Norfolk is dependent upon the current fuel services provided by the incumbent contractor, LB&B. The customer requires continuous, high quality bulk storage services, retail service station support, alongside aircraft refueling services, and entire fuels management services. These services are critical to the support of the installation. Timely fuel support, system maintenance, and quality control in accordance with U.S. Navy standards are required to meet the mission. The existing workforce is trained and ready to conduct operations without interruption. LB&B’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, LB&B currently possesses the equipment and personnel to sustain services for the estimated performance period. A new contractor would face significant delays in acquiring infrastructure, permits, and absorb/manage all associated facility

(SPE600-15-C-5014 – LB&B Associates Inc.)

risks and environmental concerns, develop and implement operations, training plans, and train personnel.

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)):

Based on data received in response to the sources sought notice SPE603-22-R-5X05 referenced in paragraph 8 below, the Contracting Officer had no reasonable expectation that any other source could perform. In accordance with FAR 6.305(a), the justification and approval will be redacted and posted to the System for Award Management (SAM) website within 14 days of modification release.

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 current contract, SPE600-15-C-5014, has a bridge action by modification that extended the period of performance from April 1, 2025, to June 30, 2025, exercised via modification P00092 with a monthly cost of $964,651.43. Following the Head of the Contracting Activity’s approval of the decision memorandum, the Contracting Officer confirmed with LB&B that they will continue operations under the proposed bridge action at the existing price of $964,651.43.

This pricing is comparable to current market prices and is similar to the monthly usage charge for the follow-on contract, SPE603-25-C-5006.

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 performed for the follow-on contract, SPE603-24-R-0506, was also used for this bridge action as well as the prior bridge action. A sources sought notice was published on the SAM website by DLA Energy – FESAA on February 3, 2022. At the time of closing, March 25, 2022, there were ten respondents. Of the ten questions that DLA Energy – FESAA requested a response to, one was very critical to this bridge action. The question asked was how long of a phase-in time was needed to start performance, and most of the respondents stated 30 to 45 days.

The Performance Work Statement also allows for a ten-day turnover prior to the start of contract performance; the outgoing contractor must permit the incoming contractor access to the applicable fuel facilities to observe their operation. During this ten-day period, the incoming contractor must receive assistance from the outgoing contractor, DLA Energy representatives, and the Contracting Officer’s Representative (COR) to accomplish a joint facilities turnover inspection, to include product testing, inventory of product, and audit of property. The outgoing contractor must also provide the incoming contractor with all relevant information concerning the facility and its operation, including maintenance records, and engineering documentation.

(SPE600-15-C-5014 – LB&B Associates Inc.)

Therefore, the Contracting Officer has no reasonable expectation that any other contractor than LB&B can meet the Government’s urgent requirements for this bridge action.

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.

See section four (4).

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

This bridge action will be completed by modification due to scheduling and performance risks.

Per the aforementioned market research, there is no expectation that sources beyond LB&B can meet the requirement. Therefore, this action was not synopsized on the SAM website.

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 bulk storage services, retail service station support, alongside aircraft refueling services, and the entire fuels management services at DFSP Norfolk, VA. For this bridge action, the Government has determined that LB&B is the only responsible source capable of performing services without delays, incurring additional costs, or other adverse risks to the Government.

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.

(SPE600-15-C-5014 – LB&B Associates Inc.)

MORISHITA ARMSTEAD MARK A. LASKOSKI

Contracting Specialist Contracting Officer

YALIER FUSTER

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.

ALEXANDER HAYNES

Chief of Requirements Division

I have reviewed and concur with this Justification

FOR PATRICIA LITTLEJOHN

Bulk Supply Chain Services Business Unit Director

DOR0016

Highlight

DOR0016

Highlight

DOR0016

Rectangle

(SPE600-15-C-5014 – LB&B Associates Inc.)

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

DONNA A. BLACK

Alternate DLA Energy Advocate for Competition

KEVIN M. AHERN

Director, Procurement Process Support

GABRIELLA M. EARHARDT

Head of the Contracting Activity

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

JOY E. MULLORI

DLA Competition Advocate

Approved:

MATTHEW R. BEEBE

DLA Senior Procurement Executive