Sole-Source DFSP San Pedro Thermal

Thermal remediation services are being conducted at the Defense Fuel Support Point in San Pedro, California, under a sole-source contract awarded to The Source Group, Inc. (SGI), following justification under FAR 6.103-1 and 6.104-1(a)(7), due to the unique qualifications and site-specific expertise of the incumbent contractor. The contract, identified as SPE603-26-P-5010, has a performance period from April 1, 2026, through September 30, 2026, and is designed to complete remaining remediation activities focused on BFCUST 12 and surrounding tanks at BFCUSTs 1, 4, 5, 7, 11, 12, and 15, building upon the work performed under the prior contract SPE603-19-C-5014. The scope includes the use of specialized in-situ thermal technologies—electro-thermal and steam-enhanced extraction—to address unforeseen subsurface conditions and achieve regulatory closure in accordance with requirements from the Regional Water Quality Control Board, Los Angeles Regional Water Quality Control Board, and the Office of Environmental Health Hazard Assessment. The contract is non-competitive, justified by the lack of other qualified sources, the necessity to avoid duplication of costs, and the high risk of schedule delays and mission disruption from transitioning to a new contractor. Key deliverables required under the contract include the Final Interim Remedial Action Plan, Completion Report, Final IRAP Completion Report, Progress Meeting Minutes, Headquarters Briefing Report, Contract Closure Meeting Minutes, Utility Invoicing Summary, and Management Report – Post-Operations. Performance evaluation and acceptance occur on-site at DFSP San Pedro, with the Government retaining responsibility for oversight through the Contracting Officer and Contracting Officer’s Representative, while the contractor must maintain continuity of trained personnel with deep institutional knowledge of the site’s geology, historical remediation data, and established regulatory relationships with state environmental authorities. No competitive evaluation factors, pricing details, or formal contract type designation are provided, and no packaging, labeling, or preservation requirements are specified. The contract relies on SGI’s existing workforce and embedded regulatory coordination to ensure compliance and timely closure, with no provision for competition or option periods. Point of contact for the award is Rhoji Fernandez of DLA Energy in Fort Belvoir, VA, with additional administrative support from Mark A. Laskoski.