UCU_Engine Oil signed_Redacted.pdf

Department of the Army

Urgent and Compelling Justification for Purchases under the SAT

(Using FAR Part 13)

Purchase Request #:

1. Contracting Activity: The Army Contracting Command‐Red River is the procuring activity for this action.

2. The item needed is engine oil in 15W40 weight and meeting all of the Military Specification known as

MIL‐PRF‐21260E. The amount needed is 22‐55 gallon drums. The desired contractor is Flywheel

Distribution, LLC of 6880 Winchester Circle Boulder, CO 80301. They can be contacted at (866) 607 5965.

They also allow orders of any quantities on their website www.flywheeldistribution.com. This source has

22‐55 drums of the required oil ready to ship as of May 20, 2021.

3. Dollar Amount: The estimated total purchase price is $57,750. The unit cost is $2,625.00 per drum.

The type of funds is AWCF and will be paid with a GPC to Cost Center: I852000, SIO/PCN: 49238

4. Authority Cited: FAR 13.106‐1(b)(1), “Soliciting from a Single Source.” The circumstances of the contract action deem only one source reasonably available due to urgency.

5. Reason for Authority Cited: The Dyno Operations at Red River Army Depot must meet production demand to . Dyno is out of oil and no other suppliers can provide the quantity of mil‐spec oil needed to supply operations for 8 working days. The longer dyno goes without this oil, the larger the economic impact to the Depot. This supplier states that they can ship from Louisiana, to Texas, within 2 days of recent of order. No other supplier has been able to offer this.

Branch Chief , who oversees dyno stated that for the 6 employees shutdown, per 10 hour day, is costing $8,280 a day. When they can no longer wait to fill orders, then they have to have the engines tested external, and that cost about 35k an engine, without transportation cost. So it cost a minimum of 35K a week on labor, and another 35K when outsourcing the engine testing, per engine. Without the oil delivery on Tuesday, they were likely to have to send some out before June 4.

6. Market Research was conducted beginning with a six‐month history of milstrip purchases of similar material through DLA Energy. DLA Energy purchases oil produced by Allegheny Petroleum and labeled as

Altra 21260 15W40 at a cost to RRAD of $3,540.83 per 55‐gallon drum, shipped. Allegheny Petroleum only manufacturers after a specific order demand has been met. This causes sporadic interruptions of the supply chain. This has causes multiple production shutdowns at RRAD. Dyno operations are currently shut down and backordered oil is scheduled to be delivered June 4th.

Within the last 30 days, Mobile oil representatives were contacted through IGCS International, but could not offer a certificate of conformance with a single 15W40 oil that met the milspec standard.

Representatives from Shell backed Quality Petroleum of Texarkana Arkansas were contacted to determine if they had a single product that met the milspec. They have not provided a response as of

May 20, 2021.