DoD's $46.9M petroleum contract to Petroleum Traders Corp. saw 47 awards over 4 years

Contract Overview

Contract Amount: $46,925,432 ($46.9M)

Contractor: Petroleum Traders Corp

Awarding Agency: Department of Defense

Start Date: 2013-08-01

End Date: 2017-08-31

Contract Duration: 1,491 days

Daily Burn Rate: $31.5K/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 DELIVERIES FOR RFG REG UNL, GASOLINE REG UNL, ETHANOL, WINTER ULSD, SUMMER ULSD, FUEL OIL BURNER #2, RED-DYED ULSD #2, BIODIESEL, RFG PREM UNL, GASOHOL REG UNL, GASOHOL MID UNL FUEL.

Place of Performance

Location: FORT WAYNE, ALLEN County, INDIANA, 46804

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $46.9 million to PETROLEUM TRADERS CORP for work described as: COG3 DELIVERIES FOR RFG REG UNL, GASOLINE REG UNL, ETHANOL, WINTER ULSD, SUMMER ULSD, FUEL OIL BURNER #2, RED-DYED ULSD #2, BIODIESEL, RFG PREM UNL, GASOHOL REG UNL, GASOHOL MID UNL FUEL. Key points: 1. The contract provided a wide range of fuel products, indicating broad logistical support needs. 2. Fixed-price with economic price adjustment terms suggest a strategy to manage fuel price volatility. 3. The contract's duration and number of awards point to consistent, ongoing demand for these fuels. 4. Competition was full and open, suggesting a potentially competitive pricing environment. 5. The contract was awarded to a single entity, Petroleum Traders Corp., for all deliveries. 6. The geographic scope appears to be Indiana, based on the state code provided.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific per-unit pricing data or comparable contracts for similar fuel types and quantities. The total award amount of $46.9 million over four years suggests a significant volume of fuel was procured. The fixed-price with economic price adjustment (EPA) clause indicates an attempt to balance cost certainty for the government with the contractor's exposure to market fluctuations in fuel prices. Without more granular data on the specific fuel types, volumes, and delivery locations, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically implies that all responsible sources were permitted to submit bids. The fact that there were 47 awards under this contract suggests multiple opportunities for bidding or task orders. However, the data does not specify the number of unique bidders or the level of competition for each individual award. A robust competition would generally lead to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and ensures that government funds are used efficiently by leveraging market forces.

Public Impact

The Department of Defense benefits from a reliable supply of various fuel types essential for its operations. Services delivered include the provision of gasoline, diesel, ethanol, and other fuel products. The geographic impact is primarily within Indiana, as indicated by the state code. Workforce implications are indirect, supporting the logistics and transportation sectors involved in fuel delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit pricing makes it difficult to assess if the government received the best possible price.
The fixed-price with EPA structure can lead to cost increases if fuel prices rise significantly.
Limited insight into the number of actual bidders for each award under the 'full and open' umbrella.
The contract's focus on a single primary awardee (Petroleum Traders Corp.) could limit broader market engagement over its life.

Positive Signals

Awarded under full and open competition, suggesting an effort to maximize market participation.
The contract structure (fixed-price with EPA) aims to manage price volatility in a key commodity.
The contract successfully delivered a diverse range of fuel products over its four-year term.
The contract provided consistent fuel supply, crucial for military readiness and operations.

Sector Analysis

The petroleum refining and distribution sector is critical for national infrastructure and defense. This contract falls under the NAICS code 324110 (Petroleum Refineries), though the awardee is a trader/distributor. The market is characterized by significant price volatility influenced by global supply and demand, geopolitical events, and regulatory changes. Government contracts for fuel are substantial, supporting military readiness and agency operations. Comparable spending benchmarks would involve analyzing other large-scale fuel procurement contracts by DoD or other federal agencies, considering fuel types, volumes, and contract terms.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. There is no explicit information regarding subcontracting plans or performance related to small businesses. Therefore, the direct impact on the small business ecosystem from this particular contract appears minimal, unless Petroleum Traders Corp. voluntarily engaged small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency (DLA), which is responsible for procuring and distributing fuel for the DoD. Accountability measures would include performance monitoring, delivery verification, and adherence to contract terms. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or identified during the contract's performance or audit.

Related Government Programs

DoD Fuel Procurement
Defense Logistics Agency Contracts
Petroleum Product Supply Contracts
Fixed-Price with Economic Price Adjustment Contracts
Fuel Distribution Services

Risk Flags

Potential for price volatility due to FPEPA clause
Lack of detailed performance metrics in summary data
Limited insight into specific bidder participation per award

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.9 million to PETROLEUM TRADERS CORP. COG3 DELIVERIES FOR RFG REG UNL, GASOLINE REG UNL, ETHANOL, WINTER ULSD, SUMMER ULSD, FUEL OIL BURNER #2, RED-DYED ULSD #2, BIODIESEL, RFG PREM UNL, GASOHOL REG UNL, GASOHOL MID UNL FUEL.

Who is the contractor on this award?

The obligated recipient is PETROLEUM TRADERS CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $46.9 million.

What is the period of performance?

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

What was the specific breakdown of fuel types and volumes delivered under this contract?

The data lists 'COG3 DELIVERIES FOR RFG REG UNL, GASOLINE REG UNL, ETHANOL, WINTER ULSD, SUMMER ULSD, FUEL OIL BURNER #2, RED-DYED ULSD #2, BIODIESEL, RFG PREM UNL, GASOHOL REG UNL, GASOHOL MID UNL FUEL' as the description of goods. However, the exact quantities for each specific fuel type are not detailed in the provided data. The total award amount was $46,925,432.08 over the contract's duration. To understand the precise breakdown, one would need to access the individual award data or delivery reports associated with this contract, which are not included in the summary information.

How did the final price paid compare to the initial estimated value or benchmark prices for these fuels during the contract period?

The contract utilized a 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' (FPEPA) pricing structure. This means the final price paid would have varied based on pre-defined economic factors, typically related to market indices for fuel prices. Without access to the specific economic price adjustment clauses and the actual market data used for adjustments, a direct comparison to initial estimates or static benchmarks is not possible from the provided summary. The total obligated amount was $46,925,432.08, which represents the ceiling or total value awarded, but actual spending could have been lower or higher depending on the EPA adjustments and delivery volumes.

What was the track record of Petroleum Traders Corp. with DoD or other federal agencies prior to or during this contract?

The provided data identifies Petroleum Traders Corp. (co: 'PETROLEUM TRADERS CORP') as the contractor. While this summary doesn't detail their prior track record, a comprehensive analysis would involve searching federal procurement databases (like FPDS or SAM.gov) for other contracts awarded to this entity. This would reveal their history of performance, any past issues (e.g., contract disputes, performance failures), and their experience with similar fuel procurements for the Department of Defense or other agencies. A positive history would indicate lower performance risk, while a negative history might raise concerns.

Were there any performance issues or contract disputes reported during the life of this contract?

The summary data provided does not contain information regarding performance issues, disputes, or contract modifications for this specific contract. Such details are typically found in contract performance reports, modification histories, or contract close-out documentation. A thorough review would require accessing more detailed contract files or agency performance records. The absence of readily available negative information does not guarantee flawless performance, but it also doesn't present immediate red flags based solely on this summary.

How does the number of awards (47) under this contract relate to the overall spending and duration?

With a total duration of 1491 days (approximately 4 years) and 47 awards, this averages out to roughly one award every 31-32 days. This suggests a relatively consistent need for fuel deliveries throughout the contract period. The total obligated amount was $46,925,432.08. If these 47 awards were roughly evenly distributed in value, each would average around $1 million. This pattern indicates that the contract was actively used to fulfill ongoing fuel requirements rather than being a single large delivery or a dormant contract.

What is the significance of the 'INDIANA' state code (sn: 'INDIANA') in relation to the contracting agency (DoD) and awardee?

The state code 'INDIANA' likely indicates the primary place of performance or the location of the delivery points for the fuel procured under this contract. Given that the contracting agency is the Department of Defense and the awardee is a petroleum trader, this suggests that military installations or operations within Indiana were the main recipients of these fuel supplies. The Defense Logistics Agency (DLA) manages fuel distribution, and Indiana may host significant logistical hubs or bases requiring these petroleum products.

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: SP060013R0204

Offers Received: 47

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

Evaluated Preference: NONE

Contractor Details

Address: 7120 POINTE INVERNESS WAY, FORT WAYNE, IN, 03

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

Financial Breakdown

Contract Ceiling: $46,925,432

Exercised Options: $46,925,432

Current Obligation: $46,925,432

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP060013D4029

IDV Type: IDC

Timeline