DoD's $23.1M Fuel Contract with Ports Petroleum Co. Inc. Awarded Under Full and Open Competition

Contract Overview

Contract Amount: $23,105,203 ($23.1M)

Contractor: Ports Petroleum CO Inc

Awarding Agency: Department of Defense

Start Date: 2013-08-01

End Date: 2017-08-31

Contract Duration: 1,491 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 47

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Energy

Official Description: COG 3 FUEL CONTRACT

Place of Performance

Location: WOOSTER, WAYNE County, OHIO, 44691, UNITED STATES OF AMERICA

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $23.1 million to PORTS PETROLEUM CO INC for work described as: COG 3 FUEL CONTRACT Key points: 1. Contract Value: $23.1 million over 4 years. 2. Competition: Awarded through full and open competition. 3. Risk: Fixed Price with Economic Price Adjustment (EPA) introduces some cost volatility. 4. Sector: Defense Logistics Agency procurement for petroleum products.

Value Assessment

Rating: fair

The contract's fixed-price with EPA structure allows for price adjustments based on economic factors, which can lead to cost increases. Benchmarking against similar fuel contracts is necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: While competition is positive, the EPA clause introduces potential for increased taxpayer cost if fuel prices rise significantly.

Public Impact

Ensures fuel supply for Department of Defense operations. Supports a private sector company in the petroleum industry. Potential for price fluctuations impacting budget predictability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic Price Adjustment (EPA) clause can increase costs.
Contract duration of nearly 5 years.
Lack of specific performance metrics provided.

Positive Signals

Awarded under full and open competition.
Supports critical defense logistics.

Sector Analysis

This contract falls within the energy sector, specifically fuel procurement for military operations. Defense Logistics Agency spending on fuel is substantial and subject to market volatility.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors or if Ports Petroleum Co. Inc. itself is a small business. Further analysis would be needed.

Oversight & Accountability

Standard contract oversight by the Department of Defense and Defense Logistics Agency would apply. Monitoring the EPA adjustments and contract performance is crucial.

Related Government Programs

Petroleum Refineries
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Potential for cost overruns due to EPA.
Long contract duration (nearly 5 years).
Lack of detailed performance metrics.
Limited insight into small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.1 million to PORTS PETROLEUM CO INC. COG 3 FUEL CONTRACT

Who is the contractor on this award?

The obligated recipient is PORTS PETROLEUM CO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.1 million.

What is the period of performance?

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

What was the average per-unit cost of fuel under this contract, and how did it compare to market rates at the time of award and during the contract period?

The provided data does not include per-unit cost details or market rate comparisons. To assess value, an analysis of historical fuel prices and competitor bids would be required. This would reveal if the fixed-price with EPA offered a competitive rate relative to market fluctuations and other potential suppliers.

What specific economic factors are included in the Economic Price Adjustment (EPA) clause, and what has been the historical impact of these adjustments on the contract's total cost?

The specific economic factors driving the EPA are not detailed in the provided data. Understanding these factors (e.g., fuel commodity indices, transportation costs) is crucial for assessing risk. Historical data on the actual price adjustments would reveal the true cost impact beyond the base fixed price and inform future contract strategies.

Were there any performance issues or disputes during the contract's four-year duration, and how were they resolved?

Information regarding performance issues or disputes is not included in the provided data. Effective oversight typically involves tracking contractor performance against requirements and addressing any deviations promptly. The absence of this information limits the assessment of overall contract effectiveness and contractor reliability.

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: 1337 BLACHLEYVILLE RD, WOOSTER, OH, 44691

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,105,203

Exercised Options: $23,105,203

Current Obligation: $23,105,203

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP060013D4027

IDV Type: IDC

Timeline