A02-Justification_Approval_(JA)-Proof_of_Concept-Mazar_e_Sharif_(MeS)-redacted.pdf

Control No: 19-09 Contractor: XXXXX

Program/Equipment: Aviation Fuel

Version –March 2017 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR SUBPART 13.5 SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS – SOLE SOURCE JUSTIFICATION AND APPROVAL

Program/Equipment: Combined Security Transition Command-Afghanistan (CSTC-A) has a persistent requirement to provide aviation turbine fuel support to Afghanistan National Defense Security Forces (ANDSF) training sites, operation sites, operational forces, and national-level management and leadership activities.

Authority: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 as implemented by FAR Subpart 13.106-1(b)(1)(i).

Amount: $1,525,350.00

Prepared by: XXXXX XXXXX DSN: XXX-XX-XXXX Contract Specialist Date: 30 April 2019 Email: XXXXX.XXX@mail.mil

Contracting Officer: XXXXX XXXXX DSN: XXX-XX-XXXX Procuring Contracting Officer Date: 30 April 2019

Technical: XXXXX XXXXX DSN: XXX-XX-XXXX Fuels Management Advisor Date: 30 April 2019 Train Advise Assist Command-AIR (TAAC-AIR) CJ-4 Fuels Aviation Contracting

Requirements: XXXXX XXXXX DSN: XXX-XX-XXXX XXXXXXXXXX XXXXXXXXXX Date: 30 April 2019

XXXXXXXXXX XXXXXXXXXX

Operational Support Logistics (CSTC-A / OS LOG)

Reviews: I have reviewed this justification and find it adequate to support sole source.

Program Manager:

Typed Name: XXXXX XXXXX

DSN: XXX-XX-XXXX

Signature:

Version –March 2017 FOR OFFICIAL USE ONLY

Legal Counsel:

Special Advocate for Competition:

Version – March 2017 FOR OFFICIAL USE ONLY

FAR Subpart 13.5 Simplified Procedures for Certain Commercial Items – Sole

Source Justification and Approval

1. Contracting Activity: Regional Contracting Command-Afghanistan (RCC-A), Army Contracting Command-Afghanistan (ACC-A)

2. Description of Action: Requiring activity, Combined Security Transition Command- Afghanistan (CSTC-A) /Operational Support Logistics (OS LOG), requests a contract for aviation fuel. The Contracting Officer has determined that this requirement can best be fulfilled with a Firm-Fixed Price Economic Price Adjustment (FP EPA), Single Award Indefinite-Delivery Indefinite-Quantity (IDIQ) contract with XXXXX XXXXX (XXXXX) (CAGE XXXXX). This requirement is for the supply and delivery of JP-8 Aviation Fuel to the Afghan National Defense and Security Forces (ANDSF) sites of Mazar E Sharif (MeS) located in northern Afghanistan. The Government projects an award date of 25 May 2019. Afghanistan Security Forces Funds (ASFF) Fiscal Year (FY) 2019 funds will be used. The estimated ceiling amount for this contract is $1,525,350.00, based on the Independent Government Cost Estimate (IGCE).

An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

_______________________ approved an acquisition plan in accordance with DFARS 207.103(d)(i)(B) on ______________.

The required acquisition plan in accordance with DFARS 207.103(d)(i)(B) is currently awaiting _______________________ approval.

3. Description of Supplies/Services: Supply and delivery of JP-8 Aviation Fuel to the ANDSF site at Mazar-e-Sharif (MeS). The Contractor shall provide all personnel, equipment (i.e. required vehicles), supplies, transportation, tools, materials, supervision, other items, and other ancillary non-personal services necessary to deliver JP-8 Aviation Fuel to Mazar-e-Sharif (MeS). The Contractor shall accomplish all required sourcing, transportation services to delivery points, and delivery of fuel into aircraft specified for service on a Free on Board (FOB) Destination Basis. The Contractor is responsible for all security of tank vehicles, personnel and all petroleum products being transported.

ANDSF operational requirements for this commodity may vary in quantity, duration, and delivery suspense; the Contractor shall maintain sufficient operational flexibility to satisfy this requirement.

The verified requirements of the Government for this planned IDIQ contract and it’s six month ordering period, as reflected in the Independent Government Cost Estimate (IGCE), is an estimated total maximum volume of 1,500,000 liters of aviation fuel for Mazar E Sharif. A summary of the estimated aviation fuel requirement and the estimated price of this fuel is as follows:

Location Fuel Quantity IGCE Price Mazar E Sharif (MeS) 1,500,000 liters $ 1,450,350.00 DBA Insurance For entire period $ 75,000.00

Program/Equipment: Aviation Fuel

Version – March 2017 FOR OFFICIAL USE ONLY

$ 1,525,350.00

Period of Performance: Date of award + 6 months

Total Value: $1,525,350.00

4. Authority Cited: Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 as implemented by FAR Subpart 13.5:

Unusual and compelling urgency Exclusive licensing agreements Industrial mobilization Other: ____________________

5. Reason for Authority Cited:

Currently, an IDIQ contract is in place with another vendor to provide fuel in the Northern Region One. Region One consists of six sites: Badakhshan, Mazar-e-Sharif, Maimanah, Sheberghan, Kunduz, and Takhar. The current contractor is satisfactorily providing aviation fuel to four of the six sites; however, they have been consistently providing fuel to Mazar-e-Sharif which is non-compliant with the required contract standards. Due to the current contractor’s failure to perform in accordance with the terms and conditions of its contract with regards to quality fuels to Mazar-e-Sharif, a partial termination is being considered. Therefore, this sole source procurement will enable the government to determine if another vendor is capable of providing the service through use of a ‘proof of concept’ with XXXXX. There exists an unusual and compelling need to award a sole source IDIQ contract to provide JP-8 Aviation Fuel to Mazar-e-Sharif to effect mission success of the ANDSF in this region. Currently, the mission of pushing back the enemy is at a stand-still at this critical site

The lack of useable aviation fuel supply to Mazar-e-Sharif critically harms the Afghan Air Force's (AAF) ability to directly assist the Afghanistan National Army (ANA) in achieving operational objectives. The failure of both the fuel and equipment used during delivery and transporting to pass contract required inspections supports implications of recent AAF aircraft maintenance failures. No operational sorties will be possible from Mazar-e- Sharif in support of fielded forces without quality, inspection passable JP-8 Aviation Fuel, including direct fire support or airlift. Not only will this impact the ability of ANDSF to achieve their short term operational objectives, it may also compromise the air/ground integration progress made between the AAF and ANA, and the reputation of the AAF in supporting the ANA in the field. Therefore a new IDIQ contract is required immediately to effect mission success.

The initial IDIQ was awarded under full and open competition procedures. Given the unusual urgency of this requirement, it is not feasible at this time to conduct a new competition for this requirement as the time needed to compete this requirement and administer source selection procedures would prolong fuel deficiencies and extend the period of time for mission failure in this region several months. Additionally, for the importance of this requirement’s mission, only a vendor with proven capabilities is

Program/Equipment: Aviation Fuel

Version – March 2017 FOR OFFICIAL USE ONLY suitable, since a non-performing vendor would disable the AAF’s ability to provide critical support as the 2019 “fighting season” continues, endangering ANDSF and coalition forces.

This requirement will be followed by a new competitive acquisition under full and open competitive procedures on or before November 2019.

Presently, JP-8 Aviation Fuel is being delivered to Mazar-e-Sharif in Afghanistan by XXXXX, but there has been recurrent quality test failures. CSTC-A has an unusual and compelling need for JP-8 Aviation Fuel at Mazar-e-Sharif. As they are satisfactorily delivering quality fuel on contract XXXXX for program ‘XXXXX’, XXXXX is uniquely placed to perform this effort through current proven performance. XXXXX has the necessary familiarity and current supply chain for importing, transporting, inspecting and delivering the required aviation fuel to contingency locations within Afghanistan. Any potential awardee that does not have an established ordering/shipping/receiving logistical pipeline would require the time to establish such means for importing fuel into the country, which would further prolong the fuel deficiencies and extend the period of time for mission failure in this region. For a vendor without an established logistical pipeline, it is expected that a mobilization period of 30 days would be required to establish one.

The requirements of the Government for this planned IDIQ contract through its planned six-month ordering period is an estimated total volume of 1,500,000 liters of aviation fuel delivered to the AAF installation at Mazar-e-Sharif, as defined in the IGCE and summarized in paragraph 3, Description of Supplies/Services, above. Failure to provide the ANDSF Mazar-e-Sharif location with this JP-8 Aviation Fuel would increase the likelihood of significant of territorial gains by opposing forces. Therefore, it is imperative to award this contract to XXXXX to ensure the Afghan Security Forces in the region have the necessary JP-8 Aviation Fuel required to proceed with missions, conduct combat operations, evacuate casualties, transport troops and police, and provide national security.

XXXXX is being awarded this contract for multiple short periods of performance as a Proof of Concept to confirm or disprove the concerns of the current vendor and previous vendor (XXXXX). These concerns are delivering quality fuels which pass all required testing and equipment which passes all required testing without potential for contamination. If XXXXX, as a XXXXX vendor with proven past quality performance, can perform without having similar contract violations it confirms the lack of performance compliance was relevant to the previous vendor’s business practices. If XXXXX, as a XXXXX vendor with proven past quality performance, cannot perform without having the same contract violations or fails in the same testing, then the concerns are potentially part of operational and environmental conditions within the specified region.

In addition to obtaining the fundamental assessment determination as to whether XXXXX can perform where previous contractors could not, there are further benefits to awarding to a vendor with proven performance through other government agencies. Foremost it permits a market driven assessment specific to the dynamics of northern Afghanistan

Program/Equipment: Aviation Fuel

Version – March 2017 FOR OFFICIAL USE ONLY according to the current operational environment and global market. This also permits identifying potential contractual constraints or limitations not previously identified.

Alternatives:

1) Suspension of supply deliveries: This is not a viable alternative as this action is contrary to AAF mission success. The JP-8 Aviation Fuel provided by this contract is directly tied to military operations in Afghanistan and cannot cease without causing significant harm to the Government’s mission in support of the war fighter.

2) Use of in-house resources: This is not a viable alternative as the U.S.

Government has limited in-house resources available to supply fuel to these locations. Furthermore, the use of in-house resources must comply with an existing bi-lateral international support agreement between the U.S. Government and the Government of the Islamic Republic of Afghanistan (GIRoA) at a cost of almost three (3) times the cost of fuel under this contract and potentially impacting the fuel available for U.S. air combat operations.

3) Award of a long-term IDIQ contract to the next lowest priced technically acceptable offer received and evaluated in response to solicitation W91B4N-18-R- 2006 or to another offeror other than XXXXX: This is not a viable option as there are only two vendors performing fuel deliveries, one of which proved unsuccessful delivering quality aviation fuel to Mazar-e-Sharif.

6. Efforts to Obtain Competition: There are no barriers to competition with respect to Government’s requirement for aviation fuel at the ANDSF Mazar-e-Sharif location.

However, due to the unusual and compelling need surrounding this requirement as detailed in paragraph 5 above, competition is not being pursued for this specific acquisition. In accordance with FAR 5.202(a)(2), this action will not be synopsized.

7. Actions to Increase Competition: An acquisition strategy has been created for competing and ultimately awarding a single award IDIQ contract for the long term requirement for aviation fuel at the ANDSF Mazar-e-Sharif location on or before November 2019. The Government will continue to conduct market research and identify any changes in the marketplace that would assist in the upcoming competitive action.

8. Market Research: Since the award of the incumbent contract W91B4N-19-D-0005 on 25 November 2018, there have been no significant changes in the marketplace or noted laws or regulations that would hinder the procurement of this supply. Aviation fuels are commercially available public commodities with no unique characteristics, however security requirements within Afghanistan create a unique situation. The Contractor is responsible for the security for all aviation fuel, tanker vehicles, storage containers, if used, and personnel. The Contractor is also responsible for all stages of testing, maintaining, and ensuring the quality of fuel prior to delivery. These issues create a distinct need for a contractor who can not only provide the quality fuel, but do so consistently to the required locations. Multiple contractors were considered for this award but it is the Government’s determination that only XXXXX would be able to provide the aviation fuel needed within such a short suspense.

9. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: XXXXX XXXXX Date: 21 May 2019 Title: Fuels Management Advisor TAAC-AIR Signature:

Train Advise Assist Command-AIR (TAAC-AIR) CJ-4 Fuels Aviation Contracting

10. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: XXXXX XXXXX Date: 21 May 2019 Title: XXXXXXXXXX XXXXXXXXXX Signature:

XXXXXXXXXX XXXXXXXXXX

Operational Support Logistics (CSTC-A / OS LOG)

11. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. In accordance with FAR 15.403-1(b)(3), Certified cost or pricing data will not be required.

This determination will be made using the following: price analysis cost analysis

IGCE audit: _______________________ other: _historical pricing_______

As a part of this basis, certified cost or pricing data is not required because the item and/or services being acquired are considered commercial.

Typed Name: XXXXX XXXXX Date: 21 May 2019 Title: Contracting Officer Signature:

12. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: XXXXX XXXXX Date: 21 May 2019 Title: Contracting Officer Signature:

Program/Equipment: Aviation Fuel

Approval

Based on the foregoing justification, I hereby approve the procurement of aviation turbine fuel a sole source basis pursuant to the authority of the Simplified Procedures for Certain Commercial Items, 41 U.S.C. 1901 as implemented by FAR Subpart 13.5, subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

XXXXX XXXXX Date: 21 May 2019 Special Advocate for Competition Signature: