SAM #SPE603-27-R-0504

Sole-source West Oahu fuel storage and handling services

DLA Energy plans a sole-source contract for bulk fuel storage and handling services at West Oahu, Hawaii. - Agency and approach: The Defense Logistics Agency (DLA), through DLA Energy, intends to make a single-source, firm-fixed-price award to IES Downstream, LLC. The notice cites only one responsible source and says no actions are planned to reduce competition barriers for West Oahu dock services. - Services and fuels: Receive, store, protect, handle, and ship Aviation Turbine Fuel Grades Jet-A and JP-5, and Naval Distillate Fuel Grade F-76. - Facility requirements: Provide 2,051,000 barrels of storage fill capacity and support annual throughput of 3,500,000 barrels. - Transportation capabilities: Support receipt and shipment by tanker/barge, the Joint Base Pearl Harbor-Hickam/Red Hill tank farm and pipeline, and a commercial/refinery pipeline; tank-truck shipment is also required. - Period: Performance is scheduled to begin October 26, 2027. The contemplated term is a four-year base period, one five-year option, and six one-month options, totaling up to 9 years and 6 months.

Description

THIS IS A NOTICE OF INTENT TO AWARD A SOLE SOURCE CONTRACT AND IS NOT A REQUEST FOR COMPETITIVE PROPOSALS. NOTICE OF INTENT TO SOLE SOURCE: This notice is being published in accordance with Federal Acquisition Regulation (FAR) Subpart 5.101 requiring dissemination of information for proposed contract actions. This is a notice of intent to make a single source award contract and is not a request for competitive proposals. The statutory authority for the use of other than full and open competition procedure for this procurement is prescribed by FAR 6.103-1, only one responsible source and no other supplies or services will satisfy the agency’s requirements.  DLA Energy intends to issue a four-year base, with one, five-year option period and six one-month options firm fixed price single source award contract to IES Downstream, LLC (IES), in accordance with 10 U.S.C. § 3204(a)(1), Only One Responsible Source.  The contract will provide services with the capability to receive via Tanker/Barge and Joint Base Pearl Harbor-Hickam (JBPHH)/Red Hill (RH) tank farm and commercial/refinery pipeline, store, protect, and ship Aviation Turbine Fuel Grades Jet-A, JP-5 and Naval Distillate Fuel Grade F-76 via Tanker/Barge, JBPHH pipeline, and tank truck with a storage fill capacity of 2,051,000 barrels (BBLS).

Background: IES provides contract services for the receipt and distribution of aviation fuel at West Oahu, Hawaii. Currently, the company receives Government-owned Aviation Turbine Fuel Grades Jet-A and JP-5) and Naval Distillate Fuel Grade F-76 via tanker/barge and contractor furnished pipeline system. This arrangement involves the unloading of fuel and its subsequent handling within IES's facilities. The Government intends to award a follow-on contract for these services at West Oahu, Hawaii, scheduled for Fiscal Year 2027 (FY27). This upcoming contract specifies an annual throughput requirement of 3,500,000 barrels of Aviation Turbine Fuel and Naval Distillate Fuel. To fulfill the requirement would require the construction of a pipeline and subsequent connection point to the Government’s pipeline by the start of the performance period (October 26, 2027). 

Competitive Environment: There are no planned actions to address barriers that would create a more competitive procurement environment for dock services at West Oahu, Hawaii.

Objectives: The objective of the contract is to ensure uninterrupted support for the government customers' Jet and Naval Distillate fuel needs.

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