DoD awards $25.8M for Naval Distillate Fuel to ExxonMobil under Full and Open Competition
Contract Overview
Contract Amount: $25,794,906 ($25.8M)
Contractor: Exxon Mobil Corporation
Awarding Agency: Department of Defense
Start Date: 2014-11-18
End Date: 2014-12-08
Contract Duration: 20 days
Daily Burn Rate: $1.3M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 21
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: 8501571394!DISTILLATE,NAVAL
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22037, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $25.8 million to EXXON MOBIL CORPORATION for work described as: 8501571394!DISTILLATE,NAVAL Key points: 1. Significant award to a major energy corporation. 2. Competition was open, suggesting potential for competitive pricing. 3. Fixed-price contract type limits cost overrun risk for the government. 4. Sector is critical for defense operations and energy markets.
Value Assessment
Rating: good
The award value of $25.8 million for a 20-day duration appears reasonable given the nature of fuel procurement for the Department of Defense. Benchmarking against similar large-scale fuel contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages a competitive marketplace and potentially lower prices.
Public Impact
Ensures critical fuel supply for naval operations. Supports a major domestic energy producer. Impacts the broader energy market through significant demand.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price volatility in the fuel market.
- Dependence on a single supplier for a critical commodity.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type.
- Ensures supply for essential defense needs.
Sector Analysis
This contract falls within the energy sector, specifically petroleum refining and distribution. Defense fuel procurement represents a substantial portion of government energy spending, with benchmarks varying based on commodity prices and contract scope.
Small Business Impact
While this specific award went to a large corporation, the defense logistics agency often utilizes various contracting vehicles that can include small businesses for fuel distribution or related services. Further analysis would be needed to determine overall small business participation in this specific procurement.
Oversight & Accountability
The Department of Defense, through the Defense Logistics Agency, is responsible for ensuring the efficient and cost-effective procurement of essential supplies like fuel. Oversight mechanisms are in place to monitor contract performance and ensure compliance.
Related Government Programs
- Petroleum Refineries
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Market volatility of fuel prices.
- Potential for supply chain disruptions.
- Dependence on a single large supplier.
- Geopolitical factors impacting energy markets.
Tags
petroleum-refineries, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.8 million to EXXON MOBIL CORPORATION. 8501571394!DISTILLATE,NAVAL
Who is the contractor on this award?
The obligated recipient is EXXON MOBIL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $25.8 million.
What is the period of performance?
Start: 2014-11-18. End: 2014-12-08.
What is the historical price trend for naval distillate fuel around the award date?
Analyzing historical price trends for naval distillate fuel around November 2014 is crucial for assessing the value of this $25.8 million award. Understanding market fluctuations, geopolitical factors, and supply/demand dynamics at the time would help determine if ExxonMobil's pricing was competitive relative to prevailing market conditions and similar past contracts.
What are the specific performance metrics and penalties associated with this firm fixed-price contract?
For a firm fixed-price contract, understanding the specific performance metrics and any associated penalties is vital for risk assessment. While the price is fixed, the government relies on timely delivery and adherence to quality specifications. Details on delivery schedules, fuel quality standards, and penalties for non-compliance would reveal the government's recourse in case of performance issues.
How does the awarded price compare to other full and open competition contracts for similar fuel quantities and durations?
Comparing this $25.8 million award to other full and open competition contracts for similar quantities and durations of naval distillate fuel is key to evaluating its effectiveness. Benchmarking against peer contracts would highlight whether the competitive process yielded optimal pricing or if there were opportunities for further cost savings, providing insight into the overall value achieved for taxpayer funds.
Industry Classification
NAICS: Manufacturing › Petroleum and Coal Products Manufacturing › Petroleum Refineries
Product/Service Code: FUELS, LUBRICANTS, OILS, WAXES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 21
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3225 GALLOWS RD, FAIRFAX, VA, 22037
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,794,906
Exercised Options: $25,794,906
Current Obligation: $25,794,906
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP060014D0480
IDV Type: IDC
Timeline
Start Date: 2014-11-18
Current End Date: 2014-12-08
Potential End Date: 2014-12-08 00:00:00
Last Modified: 2015-11-19
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