DOD's $50M Alaska Fuel Contract Awarded to Crowley Petroleum Distribution Amidst Full and Open Competition
Contract Overview
Contract Amount: $50,282,741 ($50.3M)
Contractor: Crowley Petroleum Distribution, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-11-01
End Date: 2011-10-30
Contract Duration: 1,459 days
Daily Burn Rate: $34.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 12
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Energy
Official Description: THE PRODUCTS BEING PURCHASED ARE IN ACCORDANCE WITH THE REQUIREMENTS THAT WHERE RECEIVED FROM THE ACTIVITIES UNDER SOLICITATION SP060-07-R-0211. THESE REQUIREMENT REFLECTED NUMEROUS HEATING FUELS, GASOLINE, HIGH/LOW/ ULTRA LOW SULFUR DIESELS AND OTHER FUELS IN THE ALASKA PROGRAM.
Place of Performance
Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $50.3 million to CROWLEY PETROLEUM DISTRIBUTION, INC. for work described as: THE PRODUCTS BEING PURCHASED ARE IN ACCORDANCE WITH THE REQUIREMENTS THAT WHERE RECEIVED FROM THE ACTIVITIES UNDER SOLICITATION SP060-07-R-0211. THESE REQUIREMENT REFLECTED NUMEROUS HEATING FUELS, GASOLINE, HIGH/LOW/ ULTRA LOW SULFUR DIESELS AND OTHER FUELS IN THE ALASKA PROGRAM… Key points: 1. The contract, valued at $50.28 million, covers various heating fuels and diesel products for Alaska. 2. Crowley Petroleum Distribution, Inc. secured the award through full and open competition. 3. The contract duration is over three years, from November 2007 to October 2011. 4. This award falls under the 'Petroleum and Petroleum Products Merchant Wholesalers' sector.
Value Assessment
Rating: good
The contract's fixed-price with economic price adjustment structure allows for market fluctuations in fuel prices. This is a common and generally accepted pricing method for commodities like fuel, balancing cost certainty with market realities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method is designed to foster price discovery and ensure the government receives competitive pricing.
Taxpayer Impact: The use of full and open competition aims to secure the best possible prices for taxpayers on essential fuel supplies for Alaska.
Public Impact
Ensures a stable supply of critical fuels for military and government operations in Alaska. Supports economic activity in Alaska through the distribution of petroleum products. The fixed-price with economic adjustment clause may lead to cost variations based on market fuel prices.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause could lead to higher costs if fuel prices surge.
- Geographic remoteness of Alaska may increase logistical costs and delivery risks.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Contract addresses critical fuel needs for a remote region.
Sector Analysis
This contract falls within the Petroleum and Petroleum Products Merchant Wholesalers sector, crucial for energy supply chains. Spending in this sector is highly sensitive to global commodity prices and geopolitical events.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The contract was awarded by the Defense Logistics Agency, a key component of the Department of Defense responsible for logistics. Oversight would involve monitoring delivery, quality, and adherence to the economic price adjustment terms.
Related Government Programs
- Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for cost overruns due to economic price adjustment clause.
- Logistical challenges and risks associated with operating in Alaska.
- Lack of specific data on per-unit costs and market comparisons.
- No indication of small business participation.
Tags
petroleum-and-petroleum-products-merchan, department-of-defense, ak, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.3 million to CROWLEY PETROLEUM DISTRIBUTION, INC.. THE PRODUCTS BEING PURCHASED ARE IN ACCORDANCE WITH THE REQUIREMENTS THAT WHERE RECEIVED FROM THE ACTIVITIES UNDER SOLICITATION SP060-07-R-0211. THESE REQUIREMENT REFLECTED NUMEROUS HEATING FUELS, GASOLINE, HIGH/LOW/ ULTRA LOW SULFUR DIESELS AND OTHER FUELS IN THE ALASKA PROGRAM.
Who is the contractor on this award?
The obligated recipient is CROWLEY PETROLEUM DISTRIBUTION, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $50.3 million.
What is the period of performance?
Start: 2007-11-01. End: 2011-10-30.
What was the average per-unit cost of the fuels purchased under this contract, and how did it compare to market benchmarks at the time?
The provided data does not include specific per-unit cost breakdowns or detailed market benchmark comparisons. While the total award was $50.28 million over 1459 days, calculating an average per-unit cost would require knowing the quantities of each fuel type purchased. Without this, a direct comparison to market benchmarks is not feasible from the given information.
What were the primary risks associated with fulfilling this fuel contract in Alaska, and how were they mitigated?
Key risks likely included the harsh Alaskan climate impacting delivery schedules and potentially increasing operational costs, and the volatility of global fuel prices. Mitigation strategies might have involved robust logistical planning, contingency measures for weather delays, and the economic price adjustment clause to buffer against price fluctuations.
How effective was the full and open competition in achieving cost savings for this significant fuel procurement?
While the data confirms full and open competition was utilized, it doesn't quantify the exact cost savings achieved. However, this procurement method is generally considered effective in driving competitive bids and ensuring the government secures favorable pricing compared to sole-source or limited competition scenarios.
Industry Classification
NAICS: Wholesale Trade › Petroleum and Petroleum Products Merchant Wholesalers › Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)
Product/Service Code: FUELS, LUBRICANTS, OILS, WAXES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: SP060007R0211
Offers Received: 12
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 201 ARCTIC SLOPE AVENUE, ANCHORAGE, AK, 00
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $50,282,741
Exercised Options: $50,282,741
Current Obligation: $50,282,741
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP060008D1009
IDV Type: IDC
Timeline
Start Date: 2007-11-01
Current End Date: 2011-10-30
Potential End Date: 2011-10-30 00:00:00
Last Modified: 2011-07-28
More Contracts from Crowley Petroleum Distribution, Inc.
- Award — $172.6M (Department of Defense)
- PC&S Ground Fuels — $153.4M (Department of Defense)
- 200411!006261!97AS!0600 !defense Energy Support Center !SP060095C5541 !A!N! !N! !p00043!20040802!20160819!001382555!001382555!001382555!n!chevron Corporation !575 Market ST !SAN Francisco !ca!94105!03000!020!02!anchorage !anchorage !alaska !+000000101343!n!n!000000000000!x173!lease/Fuel Storage Buildings !S1 !services !000 !* !493190!E! !3! ! !C! ! !99990909!B! ! !B! !a!u!k!2!002!b! !C!N!Z! ! !N!C!N! ! ! !a!c!a!a!000!a!a!n! ! ! ! ! ! !0001! ! — $44.0M (Department of Defense)
View all Crowley Petroleum Distribution, Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)