TAB 43 VALERO_JA_REDACTED_FINAL_Redacted.pdf
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- Solicitation number
- SPE60225D0475-P00006
- Issued by
-
Defense Logistics Agency Energy
About this file
This is a Justification for Other Than Full and Open Competition (J&A) document for a Defense Logistics Agency (DLA) Energy procurement action.
DLA Energy sought to procure 19,320,000 U.S. gallons of F76 Naval Distillate fuel from Valero Marketing and Supply Company under contract modification SPE602-25-D-0475. The procurement was justified under the unusual and compelling urgency exception to full and open competition, citing 10 U.S.C. § 3204(a)(2) and 41 U.S.C. § 3304(a)(2). The fuel was required to replenish Defense Fuel Supply Point reserves that had reached minimum control limits, with delivery required from March 18, 2026 to April 30, 2026. The contract modification was released on March 18, 2026 and was not competed due to urgency. The estimated dollar value for the quantity increase is redacted in the document. DLA Energy determined the unit price fair and reasonable through comparison to historical prices and current contract pricing under the existing solicitation SPE602-24-R-0709 (Inland/East/Gulf Coast Bulk Petroleum Products), with the new price only 3% higher than the existing contract rate.
The justification emphasizes that Valero was the only supplier capable of delivering the required volume within the compressed timeframe due to critical supply chain constraints. No other vendors could refine or deliver 19,320,000 USGs of F76 by the required delivery date, and Valero already had the fuel ready for loading. No market research was conducted beyond DLA Energy's existing knowledge as the Integrated Material Manager for all military fuel purchases. DLA Energy plans to mitigate future reliance on single-source procurement by implementing increased market intelligence and engaging additional suppliers in the Gulf Coast region capable of offering bulk F76 quantities with diverse transportation capabilities.
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Justification for Other Than Full and Open Competition (Cont’d) Page 4 of 6
(SPE602-25-D-0475– VALERO MARKETING AND SUPPLY COMPANY)
(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 6.103-1 is cited for follow-on acquisitions as described in 6.103-1(c) an estimate of the cost to the Government that would be duplicated and how the estimate was derived.
Not Applicable.
(iii) When 6.103-2 is cited, estimated cost, or other rationale as to the extent and nature of the harm to the Government.
DLA Energy determined that without the immediate procurement of 19,320,000 USG of F76, inventory would fall below acceptable operating levels. Such a shortfall would affect mission readiness, operations, and DLA Energy’s ability to support the warfighter. Any delay in award or delivery would have resulted in exhausting its remaining reserves before replenishment could arrive, directly affecting supported fuel supply points and degrading the Government’s ability to execute mission-critical operations.
10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition (FAR 6.104(a)(10)):
Not Applicable.
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 6.104-1(a)(11)):
The planned improvements to overcome barriers to competition will be to implement increased market intelligence and improve supplier engagement to locate additional suppliers in the gulf-coast region that can offer bulk quantities of F76 fuel with the ability to deliver through various modes of transportation. These include This will increase competition and mitigate the use of other than full and open competition contract actions.
Source Selection Information – See FAR 2.101 and 3.104
CUI
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