DoD awards $221M contract to Equilon Enterprises LLC for petroleum refineries, JP8 fuel

Contract Overview

Contract Amount: $220,989,132 ($221.0M)

Contractor: Equilon Enterprises LLC

Awarding Agency: Department of Defense

Start Date: 2008-03-28

End Date: 2009-04-30

Contract Duration: 398 days

Daily Burn Rate: $555.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 23

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Energy

Official Description: JP8

Place of Performance

Location: SARALAND, MOBILE County, ALABAMA, 36571

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $221.0 million to EQUILON ENTERPRISES LLC for work described as: JP8 Key points: 1. Contract awarded to Equilon Enterprises LLC for JP8 fuel. 2. Full and open competition was utilized. 3. The contract value is $221,098,913. 4. The period of performance is 398 days. 5. The NAICS code is 324110 (Petroleum Refineries).

Value Assessment

Rating: good

The contract value of $221M for JP8 fuel appears reasonable given the fixed price with economic price adjustment structure. Benchmarking against similar fuel contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was employed, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors can bid.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it aims to secure the best value through market forces.

Public Impact

Ensures supply of critical JP8 fuel for Department of Defense operations. Supports the Defense Logistics Agency's mission to provide logistical support. Economic price adjustment clause may impact final cost based on market fluctuations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to economic price adjustment.
Dependence on a single supplier for a critical fuel type.

Positive Signals

Awarded through full and open competition.
Contract supports essential defense operations.

Sector Analysis

The petroleum refining sector is critical for national security, providing essential fuels. This contract falls within the typical range for large-scale fuel procurement by the DoD.

Small Business Impact

This contract was awarded to Equilon Enterprises LLC, a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

The Defense Logistics Agency is responsible for overseeing this contract. Standard oversight procedures for fixed-price contracts with economic price adjustments would apply.

Related Government Programs

Petroleum Refineries
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Economic Price Adjustment (EPA) risk
Potential for price volatility
Dependence on a single supplier
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $221.0 million to EQUILON ENTERPRISES LLC. JP8

Who is the contractor on this award?

The obligated recipient is EQUILON ENTERPRISES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $221.0 million.

What is the period of performance?

Start: 2008-03-28. End: 2009-04-30.

What is the historical price trend for JP8 fuel over the contract period?

Analyzing historical JP8 fuel prices during the contract's performance period (2008-2009) would reveal the extent of price volatility. This data is crucial for understanding the impact of the economic price adjustment and whether the government paid a fair price relative to market conditions at the time.

Were there any performance issues or disputes during the contract execution?

Investigating performance records and any dispute logs associated with this contract would highlight potential risks and the effectiveness of contract management. Any issues could indicate challenges in supply chain reliability or quality control, impacting operational readiness.

How does the awarded price compare to other JP8 fuel procurements during the same period?

Benchmarking this contract's price against similar JP8 fuel procurements by other government agencies or even commercial entities during 2008-2009 is essential. This comparison would validate whether the $221M award represented competitive and fair market pricing.

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: SP060008R0061

Offers Received: 23

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Parent Company: Shell Deutschland Gmbh (UEI: 423792808)

Address: 910 LOUISIANA ST, HOUSTON, TX, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $220,989,132

Exercised Options: $220,989,132

Current Obligation: $220,989,132

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP060008D0467

IDV Type: IDC

Timeline