DoD's $153M Ground Fuels Contract Awarded to Crowley Petroleum Distribution, Inc
Contract Overview
Contract Amount: $153,428,911 ($153.4M)
Contractor: Crowley Petroleum Distribution, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-11-18
End Date: 2015-10-30
Contract Duration: 1,442 days
Daily Burn Rate: $106.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 13
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Energy
Official Description: PC&S GROUND FUELS
Place of Performance
Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99518
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $153.4 million to CROWLEY PETROLEUM DISTRIBUTION, INC. for work described as: PC&S GROUND FUELS Key points: 1. Significant contract value of over $153 million for ground fuels. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration of 1442 days (approx. 4 years) indicates long-term reliance. 4. Awarded by the Defense Logistics Agency, a key procurement arm for the DoD.
Value Assessment
Rating: good
The contract value of $153M over approximately 4 years suggests a substantial but potentially competitive price point for ground fuels. Benchmarking against similar large-scale fuel contracts would provide a clearer picture of its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition indicates that multiple vendors were likely able to bid, fostering price discovery and potentially leading to more favorable pricing for the government. This method is generally preferred for maximizing competition.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers likely benefited from a fair market price for essential ground fuels.
Public Impact
Ensures a consistent supply of critical ground fuels for Department of Defense operations. Supports military readiness by providing necessary resources for vehicle and equipment operation. Impacts fuel markets in Alaska, where the contract was primarily served. Potential for price fluctuations due to the economic price adjustment clause.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause could lead to cost overruns if fuel prices rise significantly.
- Long contract duration may not fully capture market efficiencies over time.
- Dependence on a single awardee for a critical commodity.
Positive Signals
- Full and open competition utilized.
- Awarded by a major defense procurement agency.
- Ensures supply chain continuity for essential fuels.
Sector Analysis
This contract falls within the energy sector, specifically focusing on the procurement of petroleum products. Spending benchmarks for fuel contracts of this magnitude vary widely based on geopolitical factors, demand, and contract terms.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Defense Logistics Agency is responsible for overseeing this contract, ensuring compliance with terms and conditions. Standard procurement oversight processes are expected to be in place.
Related Government Programs
- Petroleum Refineries
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for price volatility due to EPA clause.
- Long contract duration may miss market optimization opportunities.
- Dependence on a single prime contractor for a critical commodity.
- Lack of explicit small business participation data.
Tags
petroleum-refineries, department-of-defense, ak, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $153.4 million to CROWLEY PETROLEUM DISTRIBUTION, INC.. PC&S GROUND FUELS
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 $153.4 million.
What is the period of performance?
Start: 2011-11-18. End: 2015-10-30.
What was the average per-gallon price paid under this contract, and how does it compare to market rates during the contract period?
The provided data does not include the average per-gallon price or specific volume metrics, making a direct comparison to market rates impossible. To assess value, historical fuel price data for Alaska and similar government contracts would be required to estimate the effective per-gallon cost and evaluate its competitiveness against prevailing market conditions.
What is the potential financial risk associated with the 'economic price adjustment' clause in this contract?
The economic price adjustment (EPA) clause introduces risk by allowing the contract price to fluctuate with market conditions, primarily fuel prices. If fuel prices experienced significant upward volatility during the contract's 4-year term, the government could end up paying substantially more than initially anticipated, impacting budget predictability and potentially exceeding initial cost estimates.
How effectively did the 'full and open competition' process ensure the best possible price and terms for the government?
Full and open competition generally promotes price discovery and encourages multiple bids, which is effective in securing competitive pricing. However, the ultimate effectiveness depends on the number and quality of bids received, the specific requirements of the solicitation, and the negotiation leverage of the parties involved. Without bid data, it's difficult to definitively quantify the price advantage gained.
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
Offers Received: 13
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 201 ARCTIC SLOPE AVE, ANCHORAGE, AK, 00
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $153,428,911
Exercised Options: $153,428,911
Current Obligation: $153,428,911
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP060012D4002
IDV Type: IDC
Timeline
Start Date: 2011-11-18
Current End Date: 2015-10-30
Potential End Date: 2015-10-30 00:00:00
Last Modified: 2015-03-03
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