DLA awards $118.6M for Turbine Fuel (JP5/JP8) to Wynnewood Energy Co LLC under full and open competition
Contract Overview
Contract Amount: $118,601,053 ($118.6M)
Contractor: Wynnewood Energy CO LLC
Awarding Agency: Department of Defense
Start Date: 2007-03-23
End Date: 2008-04-30
Contract Duration: 404 days
Daily Burn Rate: $293.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 21
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Energy
Official Description: TURBINE FUEL, AVIATION (JP5) & TURBINE FUEL, AVIATION (JP8)
Place of Performance
Location: WYNNEWOOD, GARVIN County, OKLAHOMA, 73098
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $118.6 million to WYNNEWOOD ENERGY CO LLC for work described as: TURBINE FUEL, AVIATION (JP5) & TURBINE FUEL, AVIATION (JP8) Key points: 1. Significant award for aviation turbine fuels, critical for military operations. 2. Wynnewood Energy Co LLC is the sole awardee, indicating a focused supplier relationship. 3. Fixed Price with Economic Price Adjustment (FPEPA) contract type introduces price volatility risk. 4. The contract falls within the Petroleum Refineries sector (NAICS 324110).
Value Assessment
Rating: fair
The award value of $118.6M for a 404-day duration appears substantial. Benchmarking against similar fuel contracts would be necessary to assess if the pricing is competitive, especially given the FPEPA clause.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the single awardee implies Wynnewood Energy Co LLC was the most advantageous offer.
Taxpayer Impact: The use of FPEPA introduces potential for increased costs to taxpayers if fuel prices rise significantly during the contract period.
Public Impact
Ensures supply of critical aviation fuels for Department of Defense aircraft. Potential for fluctuating fuel costs impacts budget predictability for the agency. Supports a specific energy sector company, Wynnewood Energy Co LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause may lead to cost overruns.
- Single awardee could limit future competition and negotiation leverage.
- Dependence on a single supplier for critical fuel.
Positive Signals
- Awarded under full and open competition.
- Ensures critical supply chain for aviation fuel.
Sector Analysis
This contract is within the petroleum refining sector, supplying essential fuels for aviation. Spending benchmarks for such commodities can vary widely based on market conditions and geopolitical factors.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. The focus is on larger energy sector providers.
Oversight & Accountability
The Department of Defense, through the Defense Logistics Agency, is responsible for this procurement. Oversight would focus on contract performance, delivery, and adherence to pricing adjustments.
Related Government Programs
- Petroleum Refineries
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Price volatility due to FPEPA.
- Potential for supply chain disruption with a single awardee.
- Dependence on specific refinery output.
- Geopolitical factors affecting global fuel prices.
Tags
petroleum-refineries, department-of-defense, ok, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $118.6 million to WYNNEWOOD ENERGY CO LLC. TURBINE FUEL, AVIATION (JP5) & TURBINE FUEL, AVIATION (JP8)
Who is the contractor on this award?
The obligated recipient is WYNNEWOOD ENERGY CO LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $118.6 million.
What is the period of performance?
Start: 2007-03-23. End: 2008-04-30.
What is the historical price trend for JP5/JP8 fuels during the contract period?
Analyzing historical price trends for JP5/JP8 fuels during the 2007-2008 contract period is crucial. This would help determine the actual impact of the economic price adjustment clause and whether it resulted in costs significantly above or below market expectations. Understanding this trend provides insight into the effectiveness of the FPEPA in managing price volatility for the government.
Were there any performance issues or delivery delays reported for this contract?
Assessing performance issues or delivery delays is vital for understanding contract effectiveness. Any reported problems could indicate underlying risks in the supply chain, supplier capability, or logistical challenges. Such information would inform future procurement strategies and supplier vetting processes, highlighting potential risks associated with similar contracts.
How did the final awarded price compare to initial solicitations or other market benchmarks?
Comparing the final awarded price to initial solicitations and other market benchmarks is key to evaluating value. If the awarded price was significantly higher than anticipated or market rates, it suggests potential issues with the competition, the FPEPA clause, or the initial cost estimates. This analysis helps determine if taxpayers received fair value for the fuel procured.
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
Solicitation ID: SP060007R0061
Offers Received: 21
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Gary-Williams Company (UEI: 836503003)
Address: 370 17THSTSTE 5300, DENVER, CO, 90
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $118,601,053
Exercised Options: $118,601,053
Current Obligation: $118,601,053
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP060007D0476
IDV Type: IDC
Timeline
Start Date: 2007-03-23
Current End Date: 2008-04-30
Potential End Date: 2008-04-30 00:00:00
Last Modified: 2009-10-30
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