DoD's $37M Jet Fuel Contract with RMA Inc. Faced Full and Open Competition
Contract Overview
Contract Amount: $37,179,244 ($37.2M)
Contractor: RMA Inc
Awarding Agency: Department of Defense
Start Date: 2010-05-01
End Date: 2014-03-31
Contract Duration: 1,430 days
Daily Burn Rate: $26.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 70
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: JET A W/FSII AND JET A W/O FSII
Place of Performance
Location: SPOKANE, SPOKANE County, WASHINGTON, 99201
Plain-Language Summary
Department of Defense obligated $37.2 million to RMA INC for work described as: JET A W/FSII AND JET A W/O FSII Key points: 1. The contract for Jet A fuel with and without FSII was awarded to RMA Inc. for $37.2 million. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration was 1430 days, indicating a long-term supply agreement. 4. The petroleum products wholesale sector is critical for military operations. 5. The fixed-price contract with economic price adjustment aims to manage fuel price volatility.
Value Assessment
Rating: good
The contract value of $37.2 million for a 1430-day period appears reasonable given the nature of fuel procurement. Benchmarking against similar long-term fuel supply contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of fixed price with economic price adjustment helps manage risks associated with fluctuating fuel costs for both parties.
Taxpayer Impact: The competitive nature of the award is expected to have resulted in a fair price for taxpayers, mitigating excessive costs.
Public Impact
Ensures consistent supply of critical jet fuel for military aviation operations. Supports readiness and operational capabilities of the Department of Defense. Price adjustments help stabilize budgeting despite market fluctuations. The contract's duration suggests a stable, long-term relationship with the supplier.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases due to economic price adjustment clause.
- Dependence on a single supplier for a critical commodity.
Positive Signals
- Awarded through full and open competition.
- Long contract duration provides supply stability.
- Fixed price with economic adjustment manages cost volatility.
Sector Analysis
This contract falls within the Petroleum and Petroleum Products Merchant Wholesalers sector, essential for supporting transportation and logistics. Spending in this sector is directly tied to operational tempo and fuel price trends.
Small Business Impact
The data indicates that neither small business nor small disadvantaged business participation was explicitly tracked or required for this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Defense Logistics Agency, a key entity for managing supply chains. Oversight would focus on adherence to contract terms, delivery schedules, and the accuracy of economic price adjustments.
Related Government Programs
- Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Economic price adjustment introduces cost uncertainty.
- Potential for price volatility impacting budget.
- Dependence on a single supplier for a critical resource.
- Lack of explicit small business participation noted.
Tags
petroleum-and-petroleum-products-merchan, department-of-defense, wa, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.2 million to RMA INC. JET A W/FSII AND JET A W/O FSII
Who is the contractor on this award?
The obligated recipient is RMA INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $37.2 million.
What is the period of performance?
Start: 2010-05-01. End: 2014-03-31.
What was the average per-gallon price paid under this contract, considering the economic price adjustments?
Calculating the exact average per-gallon price requires access to the specific price adjustment data over the contract's life. Without this granular data, it's impossible to determine the final average cost. However, the base contract value and duration suggest a significant volume of fuel was procured, making the final price per gallon a crucial metric for assessing value.
What specific economic factors were included in the price adjustment clause, and how did they impact the final cost?
The economic price adjustment clause likely tied fuel costs to market indices such as the West Texas Intermediate (WTI) or Brent crude oil prices, and potentially refining costs. The specific factors and their weighting would determine how much the price fluctuated. Understanding these factors is key to assessing whether the adjustments fairly reflected market conditions or led to excessive costs.
How did the awarded price compare to market benchmarks for Jet A fuel during the contract period?
A comprehensive comparison would require analyzing historical market prices for Jet A fuel, adjusted for location and specific grade (with/without FSII), over the 2010-2014 period. While the contract utilized full and open competition, indicating a competitive process, comparing the final negotiated price against independent market data would confirm if the government secured a favorable rate relative to prevailing market conditions.
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: SP060009R0227
Offers Received: 70
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 3727 S DAVISON BLVD, SPOKANE, WA, 05
Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $37,179,244
Exercised Options: $37,179,244
Current Obligation: $37,179,244
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP060010D0006
IDV Type: IDC
Timeline
Start Date: 2010-05-01
Current End Date: 2014-03-31
Potential End Date: 2014-03-31 00:00:00
Last Modified: 2011-04-28
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