DEFENSE LOGISTICS AGENCY ENERGY 8725 JOHN J. KINGMAN ROAD FORT BELVOIR, VIRGINIA 22060-6222 March 17,2017 17-0034 Justification for Other than Full and Open Competition 1. Summary/Introduction: Defense Logistics Agency (DLA) Energy, a field activity ofthe DLA, awarded a requirements type contract to Defense Government Contracting International Corporation (DGC International) using other than full and open competition. This procurement action is for the acquisition of supplies for Diesel Fuel (DF2), Aviation Turbine Fuel (JPS), Regular Unleaded Gasoline (MUR) and Midgrade Unleaded Gasoline (MUM on other than a full and o en com etition basis for deliver to The following justification is presented to support the decision to award a four-month contractto DGC International on March 16, 2017. A major operation is scheduled for around this time and it is imperative that fuel is available for and related operational activities. The dollar value for this acquisition is Based on information from CENTCOM and DLA Energy Middle East concerning the current operational requirements, this contract was awarded to DGC International, which has successfully delivered fuel to the specific locations in the requirement. DLA Energy is currently soliciting the long-term requirements for these locations under Solicitation SP060016-R-0227 through full-and-open competition. This short-term contract will be used to fulfill current mission requirements until a long-term contract under Solicitation SP0600-16-R-0227 can be awarded. DGC International was awarded a four-month, fixed-price with economic price adjustment requirements type contract to allow sufficient time to complete the full-and­ open competition for these requirements under Solicitation SP0600-16-R-0227. This J&A has been approved and publicized after award, in accordance with Federal Acquisition Regulation (FAR) 6.303-l(e). Due to the unusual and compelling nature ofthis requirement, preparation and approval ofthis J&A prior to award would have unreasonably delayed the acquisition. 2. Nature and/or description of the action being approved (FAR 6.303-2{b)(2)): The action being approved is the award ofa sole source requirements contract for delivery ofan estimated SS4,144 gallons of JPS, an estimated 294,2S6 �ated 33,S57 gallons ofMUM and an estimated 25,714 gallons ofMUR- on an other than full and open competition due to unusual and compelling urgency to have continuous contract coverage at the requirin sites. Dela in awardin a contract would have resulted in serious in'ury to the Government. The period ofperformance is four months (from date ofaward through July 10, 2017), plus a 30-day Page 2 of 8 Justification for Other Than Full and Open Competition (Cont?d) (SPE600-17 -D-9507 carry over period. The 30-day carry over period provides that if an order is placed within the ordering period, the iroduct may be delivered up to 30 days after the ordering period expires. The total value is 3. Description of supplies or services required to meet the agency?s need (including estimated value) (FAR iveri ieriod from March 10, 2017 through July 10, 2017, are as Regular Automotive Gasoline (MUR) National Stock Number 9130-00-148-7103. The four month estimated quantity is 25,714 U.S. Gallons, The required products, with a del follows below. The total value is Midgrade Automotive Gasoline (MUM) National Stock Number 9140-00-286?5294 The four month estimated quantity is 2,571 U.S. Gallons, The four month estimated quantity is 9,857 U.S. Gallons, The four month estimated quantity is 21,429 U.S. Gallons. Aviation Turbine Fuel (JP8) National Stock Number 9140?00?286?5294 The four month estimated quantity is 78,000 U.S. Gallons, The four month estimated quantity is 96,429 U.S. Gallons, The four month estimated quantity is 15,429 U.S. Gallons, The four month estimated quantity is 514,286 U.S. Gallons, The four month estimated quantity is 180,000 U.S. Gallons. 0000 Diesel Fuel (DF2) National Stock Number 9140?00-286-5294 The four month estimated quantity is 17,143 U.S. Gallons, The four month estimated quantity is 257,143 U.S. Gallons, The four month estimated quantity is 20,000 U.S. Gallons. 4. Identi?cation of the statutory authority permitting other than full and open competition, (FAR This is based upon the authority of 10 U.S.C. ?2304(c)(2), as implemented by FAR: 6.302- 2. Unusual and compelling urgency precluded full and open competition, and delay in awarding a contract to cover the requirement would have resulted in serious injury to the Government. 5. Demonstration that the proposed contractor?s unique qualifications or the nature of the acquisition requires use of the authority cited (FAR Page 3 of 8 Justi?cation for Other Than Full and Open Competition (Contra) (SPE60047-D-9507) Contractors musta 1 for base access to ain the abth to deliver fuel to the eci?c locations this time, no other contractor has the ability to access the locations and deliver the foe necessary to meet DLA Energy requirements. Awardng to any vendor other than DGC International will seriously jeopardize mission requirements due to the time needed to gain access to locations requiring service. Based on the current operational conditions, vendor access is strictly limited to bases and fuel delivery sites; therefore, it is imperative that an award is made to a vendor that currently has access to limit the ?zunount of time spent gaining access a?er award is made. Not ?lling this requirement by the scheduled deliver date would cause harm to the Government 13 dela in mission re uirements. would not be ab to ful?ll dayato~day miseron needs due to the lack of fuel. No other contractor has current access to all bases, fuel delivery points and service locations. This short-term contract will be used to ful?ll cm?rent mission requirements until the long-term contract can be awarded. The period of performance for this action is four?inon?is and does not exceed the necessary time to meet only the unusual and compelling requirements and for the agency to enter into a contract using fully competitive procedures under Solicitation Page 4 of 8 usti?cation for Other Than Full and Open Competition (Cont?d) 6. Description of the efforts made to ensure that offers are/were solicited from as many potential Sources as is/was practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and. if not, which exception under 5.202 applies (FAR 6.303- 21b116n: This contract was not synopsized due to the unusual and compelling urgency in accordance with FAR This requirement was procured on an ?other than full and open competition? basis to ensure the delivery of fuel to the above sites_ from March 10, 2017 to July 10, 2017. 7. Determination by the contracting of?cer that the anticipated cost to the Government will be fair and reasonable (FAR The Contracting Of?cer used the price analysis techniques described in FAR 15.404?1 comparison of proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items. Line items 0001 and 0002 are found to be fair and reasonable in accordance with FAR 15.404?1 b) 2) ii com ared to espective 1y, than the awarded price on the purChase order. Line item 0003 is found to be fair and reasonable in accordance with FAR 15.404-1 2) ii) com ared to han the awarded price on the purchase order. Line items 0004 and 0007 are found to be fair and reasonable in accordance with FAR 15.404?1 com ared to he purchase order price 0 was escalated to the current market price by subtracting the August 1, 2016 Platts Gasoline 95 RON Unl FOB Arab Gulf established price of $1.240693 ?om the established price for February 1, 2017, $1.603048 for February 1, 2017. The difference of $0.362355 was added to the delivery order rice for a new comparison price of? ?respectively, for line items 0004 and 0007 than the awarded price on the purchase order. Line item 0005 is found to be fair and reasonable in accordance with FAR 15.404?1 2 ii) com ared to he purchase order price 0 was escalated to the current market price by subtracting the August 1, 2016 Platts Gasoil 2500 PPM) FOB Arab Gulf established price of $1 .221050 from the established price for February 1, 2017, $1.501869 for February 1, 2017 . The difference of $0.280819 was added to the delivery order price for a new comparison price of? for line Justification for Other Than.Full and Open Competition (Cont'd) (SPE600-17-D-9507) Page 5 of8 item 0005 than the awarded price on the purchase order. Line item 0006 is found to be fair and reasonable in accordance with FAR 15.404-1 (b)(2)(ii) com ared to was The purchase order price o escalated to the current market price by subtracting the August 1, 2016 Platts Gasoline 95 RON Unl FOB Arab Gulf Monthly established price of $1.240693 from the established price for February 1, 2017, $1.603048 for 1 February 2017. The difference of $0.362355 was added to �der price for a new comparison price o -for line item 0006 than the awarded price on the purchase order. Line items 0008 is found to be fair and reasonable in accordance with FAR 15.404-1 (b)(2)(ii) com ared to purchase order. Line item 0009 is found to be fair and reasonable in accordance with FAR 15.404-1 (b com ared to the purchase order. Line item 0010 is found to be fair and reasonable in accordance with FAR 15.404-1 purchase order. Line item 0011 is found to be fair and reasonable in accordance with FAR 15.404-1 Line item 0012 is found to be fair and reasonable in accordance with FAR 15.404-1 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)): The incumbent contractor, DGC International, provided the only practicable means to meet the stated requirements. 9. Any other facts supporting the use of other than full and open competition, such as {FAR 6.303-2(b)(9): Page 6 of 8 Justification for Other Than Full and Open Competition (Cont?d) (SPE600-17-D-9507) Explanation of why technical data packages, speci?cations, 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 an estimate of the cost to the Government that would be duplicated and how the estimate was derived. Not Applicable When 6.302-2 is cited, estimated cost, or other rationale as to the extent and nature of the harm to the Government. There are no other facts beyond the ones set forth above. 10. A listing of the sources, if any, that expressed, in writing, an interest in the acquisition (FAR No sources expressed interest in writing. 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 DLA Energy has issued solicitation SPO600-16-R-0227 for this requirement under full and open competition and had anticipated competitively awarding all line items under this extension under long term contract(s) prior to the need for this short-term contract arising. DLA Energy anticipates that solicitation will result in an award in or around May 2017 based on full-and?open competition once any negotiations between offerors are completed. I hereby certify that the data which forms the basis for this justi?cation is accurate and complete to the best of my knowledge and belief. Page 7 of8 Justi?cation for Other Than Full and Open Competition (Cont?d) Contracting Specialist Contracting Of?cer Date: Date: Division Chief Date: I hereby certify that the data which forms the basis for this justi?cation is accurate and complete and that the purchase request covers only the minimum requirements to satisfy the needs of the Government. Date I have reviewed and concur with this Justi?cation. BU Director Date: Page 8 of8 Justification for Other Than Full and Open Competition (Cont?d) (SPE600-17-D-9507) Assistant Counsel Date Approved Competition Advocate Date