Tab 4- JA_UC_Redacted_v3.pdf

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DLA Energy - Justification & Approval Urgent and Compelling- OTB-H-B-Contract # SPE60225P0452
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SPE60225PXXXX
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This document is a Justification and Approval (J&A) for Other Than Full and Open Competition issued by the Defense Logistics Agency (DLA) Energy. The J&A authorizes a one-time buy (OTB) of 2,100,000 U.S. gallons (USG) of Turbine Fuel, Aviation (JAA) from Petromax Refining LLC at an estimated value of $4,444,895.70, which equates to $2.602077 per USG. The procurement is for a specific portion of the Inland/East/Gulf Coast (IEG) Bulk Petroleum Products solicitation SPE602-24-R-0709, with a performance period from May 6, 2025, to June 6, 2025.

The justification cites unusual and compelling urgency under FAR 6.302-2, noting that Petromax was the only vendor capable of delivering the required fuel quantity within the specified timeline. DLA Energy determined the pricing was fair and reasonable based on historical pricing comparisons, and no other vendors could refine and deliver the fuel within the required delivery date. The contract was awarded using Defense Working Capital Funds, and the agency determined that full and open competition was not appropriate due to critical supply chain constraints and operational requirements.

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DEFENSE LOGISTICS AGENCY

ENERGY

8725 JOHN J. KINGMAN ROAD

FORT BELVOIR, VIRGINIA 22060-6222

CUI

Source Selection Information- See FAR 2.101 and 3.104

J&A Tracking Number 25-0023

Justification for Other than Full and Open Competition

1. Summary/Introduction:

Defense Logistics Agency (DLA) Energy is the Integrated Material Manager (IMM) and contracting activity for petroleum products and services for the Department of Defense (DoD). This Justification and Approval (J&A) is for the acquisition of designated petroleum products on an other than full and open competition basis due to unusual and compelling urgency, in accordance with (IAW) Federal Acquisition Regulation (FAR) 6.302-2. This J&A authorizes the procurement of 2,100,000 U.S. gallons (USG) of Turbine Fuel, Aviation (JAA) from Petromax Refining LLC (Petromax) with an estimated value of $4,444,895.70 based on current market value, via a one-time buy (OTB). The purchase covers a portion of the Inland/East/Gulf Coast (IEG) Bulk Petroleum Products solicitation SPE602-24-R-0709 JAA requirement, to be delivered via to

The period of performance is from May 6, 2025, to June 6, 2025.

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

The action being approved is a J&A authorizing other than full and open competition for a OTB purchase of 2,100,000 USG of JAA to be delivered from Petromax via from May 6, 2025, to June 6, 2025. Defense Working Capital Funds will be utilized for this effort.

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

The estimated requirements ordered under the OTB are as follows:

(i) JAA conforming to latest version of ASTM D 1655 meeting required modifications per Quality Assurance Provision (QAP) C16.08-1 TURBINE

FUEL, AVIATION (JET A).

(ii) The total estimated quantity required is 2,100,000 USG.

(iii) The estimated dollar value of the Petromax OTB SPE602-25-P-0452 is $4,444,895,70. The unit price/USG value was determined fair and reasonable based on comparison to historical prices paid for the same requirements at $2.602077/USG.

CUI

Justification and Approval for Other Than Full and Open Competition Petromax Refining Co. LLC SPE602-25-P-0452

Source Selection Information- See FAR 2.101 and 3.104

(a)(2) a synopsis was not posted due to the unusual and compelling urgent nature of the requirement and because the Government would have been seriously injured if it had been forced to comply with the time periods set forth in FAR 5.203 due to the urgent need for continued fuel supply.

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 determined that the anticipated cost to the Government was fair and reasonable based on comparison to historical prices paid for the same or similar item IAW FAR 15.404-1(b)(2)(ii). The price awarded to Petromax under the OTB order was $2.602077/USG. This price was previously determined fair and reasonable based on competition under IEG solicitation SPE602-24-R-0709, for the same period of performance. Therefore, the contract price under the OTB is reasonable and reflects the current market price of fuel.

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 did not conduct further market research other than what was known at the time the requirement was received . DLA Energy is the IMM for the purchase of fuel for all military services. With an intimate knowledge of the supply chain and supplier base, no further market research was needed for this one-time purchase.

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.

Justification and Approval for Other Than Full and Open Competition Petromax Refining Co. LLC SPE602-25-P-0452

Source Selection Information- See FAR 2.101 and 3.104

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):

See section 6 above.

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 actions that will allow DLA Energy to overcome the competition barriers for this requirement as this was an operational issue that could not be anticipated.

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, Contracting Officer, Bulk Petroleum Products Bulk Petroleum Products

Division Chief, Bulk Petroleum Products

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