DoD awards $39.2M for fuel, with ExxonMobil securing contract under full and open competition
Contract Overview
Contract Amount: $39,249,375 ($39.2M)
Contractor: Exxon Mobil Corporation
Awarding Agency: Department of Defense
Start Date: 2010-09-29
End Date: 2011-01-30
Contract Duration: 123 days
Daily Burn Rate: $319.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 13
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: SOLICITATION SP060009R01610002 IS APPLICABLE. NAVAL DISTILATE, F76 AND AVIATION TURBINE FUEL JP8.
Place of Performance
Location: TORRANCE, LOS ANGELES County, CALIFORNIA, 90504
Plain-Language Summary
Department of Defense obligated $39.2 million to EXXON MOBIL CORPORATION for work described as: SOLICITATION SP060009R01610002 IS APPLICABLE. NAVAL DISTILATE, F76 AND AVIATION TURBINE FUEL JP8. Key points: 1. Contract awarded to ExxonMobil for Naval Distillate and Aviation Turbine Fuel. 2. Total contract value is $39.2 million. 3. Competition type was 'Full and Open', indicating broad market participation. 4. The contract spans from September 2010 to January 2011. 5. The sector is Defense Logistics, specifically fuel supply.
Value Assessment
Rating: good
The contract value of $39.2 million for fuel supply appears reasonable given the quantity and duration. Benchmarking against similar fuel contracts would provide a more precise assessment of pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The use of full and open competition is taxpayer-favorable as it aims to secure the best possible prices through market forces.
Public Impact
Ensures critical fuel supply for naval and aviation operations. Supports military readiness by providing essential energy resources. Economic impact on fuel suppliers and related industries. Potential for price fluctuations due to economic price adjustment clause.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment may lead to cost overruns if fuel prices rise significantly.
- Short contract duration (approx. 4 months) may limit long-term price stability.
- Dependence on a single supplier (ExxonMobil) for this specific award.
Positive Signals
- Awarded under full and open competition, promoting market fairness.
- Addresses a critical need for military fuel supply.
- Fixed Price with Economic Price Adjustment provides some cost control while accounting for market volatility.
Sector Analysis
This contract falls within the Defense Logistics Agency's purview, focusing on the procurement of petroleum products essential for military operations. Spending benchmarks for fuel contracts of this nature are highly variable based on market conditions and geopolitical factors.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'ss' is false and 'sb' is false. The primary awardee is ExxonMobil Corporation, a large corporation. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of Defense, through the Defense Logistics Agency, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms would apply to ensure compliance and performance.
Related Government Programs
- Petroleum Refineries
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for price volatility due to economic price adjustment.
- Short contract duration may limit long-term cost savings.
- Reliance on a single large corporation for a critical supply.
- Lack of explicit small business participation noted in award data.
Tags
petroleum-refineries, department-of-defense, ca, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.2 million to EXXON MOBIL CORPORATION. SOLICITATION SP060009R01610002 IS APPLICABLE. NAVAL DISTILATE, F76 AND AVIATION TURBINE FUEL JP8.
Who is the contractor on this award?
The obligated recipient is EXXON MOBIL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $39.2 million.
What is the period of performance?
Start: 2010-09-29. End: 2011-01-30.
What is the historical price trend for JP8 and Naval Distillate fuel during the contract period?
Analyzing historical price trends for JP8 and Naval Distillate fuel during the September 2010 to January 2011 period would reveal the impact of the economic price adjustment clause. Understanding these trends helps assess whether the adjustment mechanism effectively managed costs or led to unexpected increases for the government.
How did the awarded price compare to market benchmarks for similar fuel types at the time of award?
Comparing the awarded price to independent market benchmarks for Naval Distillate and JP8 fuel at the time of the September 2010 award is crucial. This comparison would validate whether the 'Full and Open Competition' effectively drove a competitive price or if there were opportunities for better value.
What was the total volume of fuel procured under this contract and how does it align with DoD's operational needs?
Determining the exact volume procured requires further data, but the contract value suggests a significant quantity. Aligning this volume with the Department of Defense's documented operational fuel requirements for the specified period is essential to assess if the contract adequately met strategic needs without over or under-procurement.
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: SP060009R0161
Offers Received: 13
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 3225 GALLOWS RD, FAIRFAX, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,249,375
Exercised Options: $39,249,375
Current Obligation: $39,249,375
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP060010D0503
IDV Type: IDC
Timeline
Start Date: 2010-09-29
Current End Date: 2011-01-30
Potential End Date: 2011-01-30 00:00:00
Last Modified: 2010-10-28
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