DOE Awards $24.3M for COCO Storage Services to Global Companies LLC
Contract Overview
Contract Amount: $24,300,000 ($24.3M)
Contractor: Global Companies LLC
Awarding Agency: Department of Energy
Start Date: 2014-06-30
End Date: 2018-12-31
Contract Duration: 1,645 days
Daily Burn Rate: $14.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CONTRACTOR-OWNED, CONTRACTOR OPERATED (COCO), STORAGE SERVICES IN ACCORDANCE WITH DOE'S REFINED PRODUCT RESERVE
Place of Performance
Location: REVERE, SUFFOLK County, MASSACHUSETTS, 02151
Plain-Language Summary
Department of Energy obligated $24.3 million to GLOBAL COMPANIES LLC for work described as: CONTRACTOR-OWNED, CONTRACTOR OPERATED (COCO), STORAGE SERVICES IN ACCORDANCE WITH DOE'S REFINED PRODUCT RESERVE Key points: 1. Contract awarded for essential refined product reserve storage. 2. Global Companies LLC, a significant player, secured the deal. 3. Potential risks include reliance on a single contractor for critical infrastructure. 4. The 'Other Warehousing and Storage' sector sees substantial government investment.
Value Assessment
Rating: good
The award amount of $24.3M over approximately 4.5 years suggests a competitive pricing strategy. Benchmarking against similar COCO storage contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more favorable pricing for the government.
Taxpayer Impact: The competitive award process likely ensured taxpayer funds were used efficiently for essential storage services.
Public Impact
Ensures national energy security through strategic petroleum reserve maintenance. Supports the Department of Energy's mission to manage energy resources. Provides critical infrastructure for the nation's energy supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration may exceed operational needs.
- Lack of small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the 'Other Warehousing and Storage' sector, which is vital for maintaining national reserves. Government spending in this area is often driven by national security and economic stability requirements.
Small Business Impact
The data indicates that small businesses were not involved in this contract, either as prime contractors or potentially as subcontractors. Further analysis could explore opportunities for future small business inclusion.
Oversight & Accountability
The Department of Energy is responsible for overseeing this contract. Standard contract management practices should ensure performance and accountability.
Related Government Programs
- Other Warehousing and Storage
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Contract duration potentially long.
- No small business participation.
- Reliance on contractor-owned facilities.
Tags
other-warehousing-and-storage, department-of-energy, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $24.3 million to GLOBAL COMPANIES LLC. CONTRACTOR-OWNED, CONTRACTOR OPERATED (COCO), STORAGE SERVICES IN ACCORDANCE WITH DOE'S REFINED PRODUCT RESERVE
Who is the contractor on this award?
The obligated recipient is GLOBAL COMPANIES LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $24.3 million.
What is the period of performance?
Start: 2014-06-30. End: 2018-12-31.
What is the cost per unit of storage capacity provided under this contract?
The provided data does not specify the exact storage capacity or the unit of measure (e.g., barrels, cubic feet). Therefore, a precise per-unit cost cannot be calculated without additional information on the volume of refined products stored and the total capacity of the facilities.
What are the key performance indicators (KPIs) for this storage contract?
Key performance indicators for such a contract would likely include maintaining product integrity, ensuring timely access to stored products, adherence to safety and environmental regulations, and operational uptime of the storage facilities. Specific KPIs would be detailed in the contract's statement of work.
How does the firm fixed price structure mitigate risks for the government?
A firm fixed price contract shifts the risk of cost overruns to the contractor. This provides the government with cost certainty, as the price is set regardless of the contractor's actual costs incurred during performance, protecting taxpayer funds from unexpected increases.
Industry Classification
NAICS: Transportation and Warehousing › Warehousing and Storage › Other Warehousing and Storage
Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: SP060014R0517
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Global Partners LP (UEI: 602580867)
Address: 800 SOUTH ST STE 200, WALTHAM, MA, 02453
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,300,000
Exercised Options: $24,300,000
Current Obligation: $24,300,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2014-06-30
Current End Date: 2018-12-31
Potential End Date: 2019-05-02 00:00:00
Last Modified: 2019-05-02
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