USAID Spends $13.6M on Heavy Fuel Oil Shipments via Competed Contract

Contract Overview

Contract Amount: $13,650,335 ($13.7M)

Contractor: THE Rice Corporation

Awarding Agency: Agency for International Development

Start Date: 2008-11-26

End Date: 2011-06-22

Contract Duration: 938 days

Daily Burn Rate: $14.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: SHIPMENT OF HEAVY FUEL OIL

Plain-Language Summary

Agency for International Development obligated $13.7 million to THE RICE CORPORATION for work described as: SHIPMENT OF HEAVY FUEL OIL Key points: 1. Significant expenditure on a critical commodity for international aid. 2. Competition was utilized, suggesting potential for price discovery. 3. Contract duration is substantial, indicating long-term need. 4. Fixed-price contract offers cost certainty but limits flexibility.

Value Assessment

Rating: fair

The contract value of $13.6M over 938 days for heavy fuel oil shipment appears reasonable given the nature of the commodity and the services required. Benchmarking against similar freight transportation contracts would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), indicating a competitive process was employed. This method aims to achieve fair and reasonable pricing through market solicitation.

Taxpayer Impact: The use of a competed contract suggests that taxpayer funds were likely used efficiently to procure necessary fuel oil for aid programs.

Public Impact

Ensures delivery of essential fuel for international development programs. Supports operational continuity for USAID missions reliant on heavy fuel oil. Potential impact on energy markets in recipient regions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration may exceed actual need, leading to potential overspending.
Reliance on a single commodity could pose supply chain risks.
Geopolitical instability in regions of operation could disrupt delivery.

Positive Signals

Competitive bidding process likely secured favorable pricing.
Firm fixed price provides budget predictability.
Contract supports critical humanitarian and development objectives.

Sector Analysis

Spending on heavy fuel oil shipments falls under the broader transportation and logistics sector, crucial for supporting international aid and development. Benchmarks for similar large-scale freight contracts would be relevant.

Small Business Impact

The data does not indicate whether small businesses participated in this procurement. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The contract was competed, suggesting a level of oversight in the procurement process. However, ongoing monitoring of performance and delivery is crucial for accountability.

Related Government Programs

Deep Sea Freight Transportation
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Contract duration may be excessive.
Potential for price volatility not fully captured by fixed price.
Geopolitical risks in delivery regions.
Environmental risks associated with fuel transport.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $13.7 million to THE RICE CORPORATION. SHIPMENT OF HEAVY FUEL OIL

Who is the contractor on this award?

The obligated recipient is THE RICE CORPORATION.

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $13.7 million.

What is the period of performance?

Start: 2008-11-26. End: 2011-06-22.

What was the specific justification for procuring heavy fuel oil through the Agency for International Development, and what programs did it support?

The Agency for International Development (USAID) procures commodities like heavy fuel oil to support its various programs in developing countries. This could include powering generators for essential services like hospitals and water treatment plants, supporting agricultural activities, or facilitating transportation infrastructure in regions where such fuel is critical for basic operations and economic stability.

What are the primary risks associated with a long-term contract for heavy fuel oil shipment in potentially volatile regions?

Long-term contracts for heavy fuel oil in volatile regions carry risks such as price fluctuations beyond the fixed-price agreement's protection, supply chain disruptions due to geopolitical events or infrastructure damage, and potential environmental hazards during transport. There's also a risk of the commodity becoming less relevant if alternative energy sources are adopted or if program needs shift.

How effectively did the competed SAP process ensure value for money compared to other potential contracting methods for this type of service?

A competed Simplified Acquisition Procedure (SAP) generally aims to ensure value for money by introducing competition, which typically drives down prices. However, SAP is intended for smaller procurements. If this $13.6M contract was indeed competed under SAP, it might indicate a less rigorous competition than a full and open process, potentially limiting the extent of price discovery and value achieved.

Industry Classification

NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Deep Sea Freight Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1624 SANTA CLARA DR STE 230, ROSEVILLE, CA, 95661

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Labor Surplus Area Firm, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $14,575,167

Exercised Options: $14,575,167

Current Obligation: $13,650,335

Timeline