r_J A_12-55_W81GYE-07-C-0005_J A_.pdf

USTRANSCOM

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

ATLANTIC BARGE CONTRACT - W81 GYE-07-C-0005

1. Contracting Activity: United States Transportation Command, Sealift Division, USTRANSCOM/TCAQ-1, 508 Scott Drive, Building 1900W, Scott AFB, IL 62225.

2. Nature and/or Description Of Action Being Approved:

USTRANSCOM intends to extend the current Atlantic Barge contract, W81GYE-07-C-0005, four (4) months from 1 October 2012, through 31 January 2013. The current Firm Fixed Price contract was awarded to Van Line Bunkering on 26 October 2006 with performance ending on 30 September 2012. There are no remaining option periods to exercise. A break in Service would be detrimental to the Government and its operations.

A four month extension to the current contract is required to allow the continuation of exploring for a means to increase competition for the follow-on procurement. Under the current contract, only one offer was received.

The current estimated value of this contract is The total estimated value ofthis modification i for an additional four months of Option Year 4-specified rates with three percent inflation.

3. Description Of Services Required to Meet Agency Needs:

The Atlantic Barge Contract covers the transportation of Department of Defense-owned bulk jet fuel (JP5 and JP8), marine diesel (F76), and commercial (Jet-A) by tug and barge between all ordered United States ports and points on inland waterways in Delaware, Virginia, Maryland, Pennsylvania, New Jersey, Connecticut (for deliveries to New Haven), Massachusetts (for deliveries to Quincy), Maine (for deliveries to Portland) and Washington DC in a 24/7 capacity.

The contractor's operations shall be on the Chesapeake Bay, the Delaware Bay, coastal waterways, inland waterways and their tributaries. Movements between the Delaware River and Chesapeake Bay shall be accomplished by traversing the C&D Canal. This performance shall be provided by barge/tug systems compliant with the coastwise laws of the United States.

Four barges in total are required by this contract: three tank barges, each having a total calibrated capacity of not less than 20,000 barrels (and not more than 30,000 barrels) with inland water way capability, and one tank barge having a total calibrated capacity of35,000 barrels (and not more than 50,000 barrels) with ocean going capability. Barges must be double hulled and be no older than 15 years old at anytime during the life of the contract. The current contract has a provision for on-call tows which can be activated as the need arises.

4. Statutory Authority Permitting Other Than Full and Open Competition: 10 U.S.C 2304(c)(l), Only one responsible source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Demonstration That the Proposed Contractors' Unique Qualifications or the Nature of the Acquisition Requires the Use of Only One Responsible Source and No Other Supplies or Services Sill Satisfy Agency Requirements: The Government requires the continuation of Atlantic Barge Service. DLA Energy cannot sustain long-term fuel support to two (2) of their largest customers; Dover AFB DE and McGuire AFB NJ; without barge/pipeline distribution.

Additionally, NAS Ocean VA and Andrews AFB MD support to the Air Force One would be impacted by a break in service. Van Line Bunkering, is the only source that can provide service to support this requirement without interruption. The barges are constantly making deliveries under the contract and there is very little downtime. Any delay to fuel delivery would result in unacceptable low inventory at the Defense Fuel Support Point (DFSP). This is a specialized service because the requirement calls for both inland and ocean going equipment. Additionally, the ocean going equipment requires special Coast Guard Certification. Van Line Bunkering has all the required equipment in place to continue 24/7 Support without interruption in service.

Initial market research indicates there are no contractors currently able to perform all required tasks. Furthermore, any potential delays that could arise while another contractor positions their assets and gets agreements in place to support this requirement are unacceptable to the customer.

The current contract performance ends on 30 September 2012. Efforts to recompete this requirement have been ongoing since 31 March 2012. Ifwe do not extend the contract, the other option would be to utilize spot barges, however, spot barges utilized on a per move basis, do not guarantee a vessel will be available for a delivery, which would lead to an unacceptable break in serv1ce.

6. Description of Efforts Made to Ensure That Offers are Solicited From as Many Sources As Is Practicable: A description of the services was published along with a Request for Information (RFI) on Federal Business Opportunities (FBO.gov) on 4 April and 22 May 2012 to seek potential sources. The resultant fact-finding did not confirm an increased number of resources available to provide this particular service. It was determined to extend the current contract in order to allow additional time for exploring other acquisition options for improving competition.

7. Determination by the Contracting Officer That the Anticipated Cost to the Government Will be Fair and Reasonable: The current monthly rates were determined fair and reasonable in the original award. Various methods of price analysis will be utilized such as comparison to historical pricing, the contractor's commercial rates, tariff rates, and an independent Government Cost Estimate. Based on using the variety of data available, the Contracting Officer anticipates negotiating and determining a fair and reasonable price.

8. Description of the Market Research Conducted and the Results or a Statement of the Reasons Market Research Was Not Conducted: An RFI was posted to FedBizOpps on 4 April 2012. Four contractors contacted USTRANSCOMITCAQ via telephone and e-mail with questions regarding the RFI, but three never formally expressed interest by answering the questions provided in the RFI. Sealaska Global Logistics was the only contractor who followed up and responded formally to the RFI.

In order to seek additional potential sources an additional RFI on 22 May 2012 with questions requesting information to the following contractors who expressed interest on similar requirements in the past: Vane Line Bunkering, Boyd Inland Carriers (Small Business), JAR

Assets, Breathwit Marine (Small Business), Eagle Marine Group (Small Business), Kirby, Susan Finger, Darwin Peguese (Small Business), and Crowley. The following responded to the additional questions, Vane Line Bunkering, Crowley, Poling and Cutler Marine Transportation LLC and Sealaska and the responses were reviewed to support market research for the follow-on procurement.

9. Any Other Facts Supporting the Use of Other Than Full and Open Competition: None.

10. A Listing of Sources, If Any, That Expressed in Writing An Interest in the Acquisition:

Vane Line Bunkering, Poling and Cutler Marine Transportation LLC, and Sealaska all provided written responses to the RFI.

11. A Statement of Actions, If Any, The Agency May Take to Remove Or Overcome Any Barriers To Competition Before Making Any Subsequent Acquisition For the Supplies Or Services Required: Market research was conducted for the follow-on procurement as a means to increase competition.

12. Contracting Officer Certification: I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Typed Name: Suzanne M. Mudd-Y arber Date: }fa ~-rmJM dOLJ

13. Technical/Requirements Certification: I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Typed Name: Warren Boone Date: _________ _

Title: Chief, Distribution Branch, DLA Energy-NCID

Signature: _____________________________ _

Assets, Breathwit Marine (Small Business), F..agle Marine Group (Small Business), Kirby, Susan Finger, Darwin Peguese (Small Business), and Crowley. The following responded to the additional questions, Vane Line Bunkering, Crowley, Poling and Cutler Marine Transportation LLC and Sealaska and the responses were reviewed to suprort market research for the follow-on procurement

9. Any Other Fads Supoorting the Use of Other Tbaa Full and Ooen Competition: None.

10. A Litting ofSourm, If Any, That Ewressed ip WritiDg An Interest in the Acquisition:

Vane Line Bunkering, Poling and Cutler Marine Transportation LLC, and Sealaska all pro\oided written responses to the RFI.

11. A Statement of Actions. If Any, The Agency May I ake to Re!IOVC Or Overcome AnY Barriers To Competition Before Making Anv Subsequent Asguis!tioa For: the Supolig Or Services Required: Market research was conducted for the follow-on procurement as a means to increase competition.

12. Contracting Omccr Certificationj I ~rtify that the data supporting the recommended usc of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Typed Name: Suzanne M. Mudd-Yarber t:' <;:_ ~--t. L.~ J.or Date:~j(l

13. Teebnicai/Reouiremeng Certification: I ~ify that the data supporting the recommended use of other than full and open competition is accurate and complete to the ~1 of my knowledge and belief.

Typed Name: Warren Boone

Title: Chief, Distribution Branch, DLA Energy-NCID

Signatur --------·-

REVIEW AND APPROVAL:

Deputy Chief, Sealift Services Division

Office of the Staff Judge Advocate

JEFF~~ER

Chief, Busmess Support and Policy Division

WILLIAM T. RACHAL

USTRANSCOM Competition Advocate

~ J ftto ~);}-.

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