DoD's $22.7M fuel contract with Carroll Independent Fuel, LLC awarded under full and open competition

Contract Overview

Contract Amount: $22,708,385 ($22.7M)

Contractor: Carroll Independent Fuel, LLC

Awarding Agency: Department of Defense

Start Date: 2013-08-01

End Date: 2017-07-31

Contract Duration: 1,460 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 47

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: COG3 FUELS CONTRACT

Place of Performance

Location: BALTIMORE, BALTIMORE (CITY) County, MARYLAND, 21218, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $22.7 million to CARROLL INDEPENDENT FUEL, LLC for work described as: COG3 FUELS CONTRACT Key points: 1. Contract value represents a significant investment in fuel supply chain for the Defense Logistics Agency. 2. Full and open competition suggests a potentially competitive bidding process, which can lead to better pricing. 3. The contract's duration of four years indicates a need for sustained fuel provision. 4. Fixed Price with Economic Price Adjustment (FP-EPA) contract type introduces some price volatility risk. 5. The award to a single entity highlights the importance of specialized fuel suppliers in the defense sector. 6. Geographic coverage in Maryland suggests a focus on regional fuel distribution.

Value Assessment

Rating: fair

Benchmarking the value of this $22.7 million contract requires more granular data on fuel types, volumes, and delivery locations. However, the fixed-price with economic price adjustment structure introduces a degree of risk for the government, as fuel prices can fluctuate significantly. Comparing this to other similar fuel supply contracts awarded by the DLA would provide better insight into whether the pricing achieved was competitive, especially considering the potential for price increases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 47 bids suggests a robust competitive environment for this fuel supply requirement. A high number of bidders generally supports price discovery and can lead to more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The extensive competition likely resulted in a more cost-effective outcome for taxpayers by driving down the price through market forces.

Public Impact

Military operations in the Maryland region benefit from a reliable supply of fuel. The contract supports the Defense Logistics Agency's mission to provide logistical support to the armed forces. Local fuel distribution networks and associated jobs in Maryland are likely supported by this contract. Ensures readiness and operational capability for military units relying on these fuel supplies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause introduces potential for cost overruns if fuel prices spike.
Reliance on a single contractor for a critical commodity like fuel can create supply chain vulnerabilities.
The fixed-price nature, even with adjustments, may not fully capture the most advantageous market pricing over the contract's life.

Positive Signals

Awarded under full and open competition, indicating a broad market solicitation.
A large number of bids (47) suggests significant contractor interest and potential for competitive pricing.
The contract duration implies a stable, long-term relationship for a critical supply need.

Sector Analysis

This contract falls within the broader energy sector, specifically focusing on the distribution and supply of petroleum products. The market for defense fuel contracts is often characterized by specialized logistics requirements and stringent performance standards. Comparable spending benchmarks would involve analyzing other DLA fuel contracts or similar fuel supply agreements with government entities to assess the scale and pricing of this award within the industry.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses in its subcontracting plan. Further investigation into subcontracting reports would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Logistics Agency's contracting officers and potentially the Department of Defense's Inspector General. Mechanisms likely include performance monitoring, delivery verification, and financial audits. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed pricing breakdowns may not always be publicly accessible.

Related Government Programs

Defense Logistics Agency Fuel Contracts
Petroleum Product Supply Agreements
Fixed-Price with Economic Price Adjustment Contracts
Department of Defense Supply Chain Management

Risk Flags

Price Volatility Risk due to FP-EPA clause
Potential for Supply Chain Disruption if Prime Contractor Fails
Need for Robust Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.7 million to CARROLL INDEPENDENT FUEL, LLC. COG3 FUELS CONTRACT

Who is the contractor on this award?

The obligated recipient is CARROLL INDEPENDENT FUEL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $22.7 million.

What is the period of performance?

Start: 2013-08-01. End: 2017-07-31.

What was the historical spending pattern for this specific fuel supply requirement prior to this contract award?

Analyzing historical spending for this fuel supply requirement prior to the August 2013 award would involve examining previous contracts awarded by the Defense Logistics Agency (DLA) for similar petroleum products in the Maryland region. This would entail searching contract databases for awards to the incumbent contractor or other suppliers covering the period before August 2013. Understanding past spending levels, contract types, and pricing structures would provide a baseline to assess whether the $22.7 million awarded to Carroll Independent Fuel, LLC represents an increase, decrease, or stable expenditure. It would also reveal if the competition landscape has changed over time and if the FP-EPA clause has been a consistent feature, offering insights into long-term cost trends and potential risks.

How did the pricing of this contract compare to market rates for petroleum products during the contract period?

To compare the pricing of this $22.7 million contract to market rates, one would need access to the specific fuel types, quantities, and delivery terms outlined in the contract, alongside reliable market price indices for petroleum products (e.g., Platts, EIA data) relevant to the contract's geographic scope (Maryland) and timeframe (August 2013 - July 2017). The 'Economic Price Adjustment' clause complicates a direct comparison, as it allows for price changes based on market fluctuations. An analysis would involve tracking the average price paid under the contract against prevailing market prices for comparable fuels, accounting for any adjustments. A significant divergence could indicate either a favorable negotiated price for the government or potential overpayment, depending on the direction of the difference and the market volatility.

What is the track record of Carroll Independent Fuel, LLC in fulfilling government contracts, particularly for fuel supply?

Assessing Carroll Independent Fuel, LLC's track record involves reviewing their past performance on federal contracts, specifically those involving fuel supply. This includes examining contract award histories, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented instances of contract disputes, terminations, or awards for excellence. A history of successful, timely deliveries and adherence to contract specifications would indicate reliability. Conversely, a pattern of performance issues, late deliveries, or quality problems would raise concerns about their capability to meet the demands of this $22.7 million Defense Logistics Agency contract. Information on their experience with similar contract types, such as Fixed Price with Economic Price Adjustment, would also be relevant.

What are the specific risks associated with the 'Fixed Price with Economic Price Adjustment' (FP-EPA) contract type for this fuel procurement?

The primary risk associated with the FP-EPA contract type for this fuel procurement is price volatility. While the 'fixed price' component provides a base cost, the 'economic price adjustment' allows the contract price to increase or decrease based on fluctuations in specified economic factors, typically related to the cost of raw materials or market indices. For fuel, this means the government is exposed to potential cost increases if global or regional oil prices rise significantly during the contract period (August 2013 - July 2017). This uncertainty can make budget forecasting more challenging. Conversely, if fuel prices fall, the government benefits from lower costs. The risk lies in the government potentially paying more than anticipated if market conditions are unfavorable, impacting the overall value for money.

How does the number of bidders (47) impact the perceived value and efficiency of the procurement process?

A high number of bidders, such as the 47 received for this $22.7 million fuel contract, generally indicates a healthy and competitive market for the requirement. This level of competition typically leads to better price discovery, as contractors are incentivized to offer their most competitive pricing to win the award. From a value perspective, it suggests the government likely achieved a more favorable price than it might have under a less competitive scenario. It also implies that the procurement process was effectively communicated and accessible to a broad range of potential suppliers, enhancing the efficiency and fairness of the award. This robust competition reduces the risk of contractor collusion and increases confidence in the overall value obtained for taxpayer funds.

What is the strategic importance of this contract for the Defense Logistics Agency's mission?

This contract is strategically important for the Defense Logistics Agency (DLA) as it ensures the reliable and continuous supply of a critical commodity – fuel – to support military operations, primarily within the Maryland region. The DLA's mission is to provide logistics, acquisition, and sustainment support to the joint warfighter. By securing fuel through this contract, the DLA enables the readiness and operational capability of various military branches and units that depend on these fuel supplies for transportation, equipment, and base operations. The contract's duration and value underscore the sustained need for these resources, making it a key component in maintaining the logistical backbone necessary for national defense.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SP060013R0204

Offers Received: 47

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 2700 LOCH RAVEN RD, BALTIMORE, MD, 21218

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,708,385

Exercised Options: $22,708,385

Current Obligation: $22,708,385

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP060013D4012

IDV Type: IDC

Timeline