DoD's $22.8M Fuel Oil Burner Contract Awarded to Asia Resource Partners K.K. Under Full and Open Competition
Contract Overview
Contract Amount: $22,884,174 ($22.9M)
Contractor: Asia Resource Partners K.K.
Awarding Agency: Department of Defense
Start Date: 2008-06-12
End Date: 2010-06-30
Contract Duration: 748 days
Daily Burn Rate: $30.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: FUEL OIL BURNER (FJ1)
Plain-Language Summary
Department of Defense obligated $22.9 million to ASIA RESOURCE PARTNERS K.K. for work described as: FUEL OIL BURNER (FJ1) Key points: 1. Contract value of $22.8M for fuel oil burners. 2. Awarded to Asia Resource Partners K.K. by the Defense Logistics Agency. 3. Procured under full and open competition. 4. Fixed Price with Economic Price Adjustment contract type. 5. The NAICS code indicates a petroleum products wholesale merchant.
Value Assessment
Rating: fair
The contract value of $22.8M for fuel oil burners appears to be within a reasonable range for specialized equipment, though specific benchmarks are unavailable without detailed technical specifications and market comparisons. The fixed-price with economic price adjustment (FPEPA) structure aims to balance cost certainty with market volatility.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust process for soliciting bids and ensuring fair market pricing. This method typically leads to competitive pricing as multiple vendors have the opportunity to participate.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of goods and services procured.
Public Impact
Ensures operational readiness for Department of Defense assets requiring fuel oil burners. Supports the petroleum products wholesale merchant sector. Potential for price fluctuations due to the economic price adjustment clause. Contract duration of approximately 2 years impacts long-term supply chain planning.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment may lead to cost overruns if fuel prices increase significantly.
- Limited information on the specific type and technical requirements of the fuel oil burners.
- The awardee's specific expertise in fuel oil burners is not detailed.
Positive Signals
- Awarded under full and open competition, indicating a competitive bidding process.
- Contract addresses a critical need for the Department of Defense.
- Fixed price component provides some cost predictability.
Sector Analysis
The procurement falls under the Petroleum and Petroleum Products Merchant Wholesalers sector. Spending in this sector can be volatile due to global commodity prices and geopolitical factors. Benchmarks for fuel oil burners specifically are difficult to ascertain without detailed technical specifications.
Small Business Impact
The data indicates that small business participation was not a factor in this award (sb: false). The contract was awarded to Asia Resource Partners K.K., and there is no information provided regarding subcontracting opportunities for small businesses.
Oversight & Accountability
The contract was awarded by the Defense Logistics Agency, a component of the Department of Defense, which has established oversight mechanisms for procurement. However, the specific oversight applied to this contract and its effectiveness are not detailed in the provided data.
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 escalation due to Economic Price Adjustment.
- Lack of detailed technical specifications for the fuel oil burner.
- No explicit mention of small business subcontracting goals.
- Limited insight into the specific performance requirements and vendor capabilities.
Tags
petroleum-and-petroleum-products-merchan, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.9 million to ASIA RESOURCE PARTNERS K.K.. FUEL OIL BURNER (FJ1)
Who is the contractor on this award?
The obligated recipient is ASIA RESOURCE PARTNERS K.K..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $22.9 million.
What is the period of performance?
Start: 2008-06-12. End: 2010-06-30.
What is the specific technical requirement for the fuel oil burner, and how does it compare to commercially available models to assess value?
The provided data lacks specific technical details about the fuel oil burner (FJ1). Without knowing the exact specifications, performance requirements, and intended application, it is challenging to conduct a thorough value assessment against commercially available models. Further analysis would require access to the solicitation documents and technical specifications to determine if the price reflects unique capabilities or standard market offerings.
What are the potential risks associated with the economic price adjustment (EPA) clause in this contract, and how might they impact the final cost?
The primary risk of the EPA clause is that significant fluctuations in fuel oil prices, driven by market volatility or geopolitical events, could substantially increase the contract's final cost beyond initial projections. This could lead to budget overruns for the Department of Defense. The effectiveness of the EPA in mitigating risk depends on the specific indexation formula and the stability of the underlying commodity prices during the contract period.
How effective was the full and open competition in ensuring the best possible price and quality for these fuel oil burners?
Full and open competition is generally considered an effective method for achieving competitive pricing and ensuring quality by allowing multiple vendors to bid. However, the ultimate effectiveness in this specific case cannot be determined solely from the award data. Factors such as the number of bids received, the technical qualifications of the bidders, and the final negotiated price relative to independent cost estimates would be needed for a comprehensive assessment of effectiveness.
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: SP060006R0107
Offers Received: 6
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 1-1-1, UCHISAIWAICHO, CHIYODA-KU
Business Categories: Category Business, Foreign Owned, Hispanic American Owned Business, International Organization, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $22,884,174
Exercised Options: $22,884,174
Current Obligation: $22,884,174
Contract Characteristics
Multi-Year Contract: Yes
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP060008D1260
IDV Type: IDC
Timeline
Start Date: 2008-06-12
Current End Date: 2010-06-30
Potential End Date: 2010-06-30 00:00:00
Last Modified: 2009-10-30
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)