DoD awards $87.9M contract for POL tank maintenance at Diego Garcia, spanning over 5 years

Contract Overview

Contract Amount: $87,876,340 ($87.9M)

Contractor: Weston Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2025-09-11

End Date: 2030-03-08

Contract Duration: 1,639 days

Daily Burn Rate: $53.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION SERVICES TO PERFORM CLEANING, INSPECTION, AND REPAIRS ON SIX (6) PETROLEUM, OIL AND LUBRICANT (POL) TANKS (1, 5, 11, 31, 32, AND 102) AT DEFENSE FUEL SUPPORT POINT (DFSP) DIEGO GARCIA (DGO).

Plain-Language Summary

Department of Defense obligated $87.9 million to WESTON SOLUTIONS INC for work described as: CONSTRUCTION SERVICES TO PERFORM CLEANING, INSPECTION, AND REPAIRS ON SIX (6) PETROLEUM, OIL AND LUBRICANT (POL) TANKS (1, 5, 11, 31, 32, AND 102) AT DEFENSE FUEL SUPPORT POINT (DFSP) DIEGO GARCIA (DGO). Key points: 1. Contract value appears substantial for specialized tank maintenance services. 2. Competition dynamics for this contract are crucial for ensuring fair pricing. 3. Geographic isolation of Diego Garcia may present logistical and cost risks. 4. Long-term nature of the contract suggests a sustained need for these services. 5. The firm-fixed-price structure shifts performance risk to the contractor. 6. This contract supports critical fuel infrastructure for DoD operations.

Value Assessment

Rating: good

The contract value of $87.9 million for five years of POL tank maintenance is significant. Benchmarking against similar specialized infrastructure maintenance contracts is challenging due to the unique location and scope. However, the firm-fixed-price nature suggests that the contractor has priced in all anticipated costs and risks. Further analysis would require comparing unit costs for specific services (e.g., per tank inspection, per repair hour) against industry standards and historical data for similar work, if available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. This approach is generally favorable for price discovery and ensuring the government receives competitive offers. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition and its impact on the final price.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces, leading to better value for money on this essential infrastructure service.

Public Impact

This contract directly supports the operational readiness of the Department of Defense by ensuring the integrity of critical fuel storage facilities. Personnel at Defense Fuel Support Point (DFSP) Diego Garcia will benefit from reliable fuel supply chains. The services provided ensure the safe and efficient storage of petroleum, oil, and lubricants, vital for military operations in the Indo-Pacific region. The contract's duration implies a stable demand for specialized construction and maintenance services in this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Construction Services sector, specifically related to industrial facilities and infrastructure maintenance. The market for specialized tank cleaning, inspection, and repair is competitive, with a focus on safety, environmental compliance, and technical expertise. Spending on maintaining critical infrastructure like POL tanks is a consistent requirement for defense and energy sectors, often involving significant capital investment and specialized labor.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While large prime contractors like Weston Solutions Inc. may utilize small business subcontractors, the primary awardee is a large business. Further investigation into subcontracting plans would be needed to assess the direct impact on the small business ecosystem for this specific contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy contracting and technical officers responsible for DFSP Diego Garcia. The firm-fixed-price nature provides a degree of accountability by tying payment to performance. Transparency is generally maintained through contract award databases, but detailed performance metrics and inspection reports may not be publicly available. Inspector General involvement would typically be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

construction, defense, department-of-defense, department-of-the-navy, diego-garcia, firm-fixed-price, full-and-open-competition, infrastructure-maintenance, oil-and-gas-pipeline-construction, petroleum-oil-lubricant-tanks, remote-location, weston-solutions-inc

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $87.9 million to WESTON SOLUTIONS INC. CONSTRUCTION SERVICES TO PERFORM CLEANING, INSPECTION, AND REPAIRS ON SIX (6) PETROLEUM, OIL AND LUBRICANT (POL) TANKS (1, 5, 11, 31, 32, AND 102) AT DEFENSE FUEL SUPPORT POINT (DFSP) DIEGO GARCIA (DGO).

Who is the contractor on this award?

The obligated recipient is WESTON SOLUTIONS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $87.9 million.

What is the period of performance?

Start: 2025-09-11. End: 2030-03-08.

What is the track record of Weston Solutions Inc. in performing similar POL tank maintenance contracts for the Department of Defense?

Weston Solutions Inc. has a history of performing environmental, construction, and engineering services for the Department of Defense. While specific details on their past performance with POL tank maintenance at remote locations like Diego Garcia require deeper database searches, their extensive experience with large-scale federal projects suggests a capability to handle complex infrastructure work. Reviewing their past performance evaluations and any contract disputes or awards related to similar services would provide a clearer picture of their reliability and expertise in this niche area. Their ability to secure this significant contract indicates a positive assessment of their qualifications by the awarding agency.

How does the awarded price compare to industry benchmarks for POL tank maintenance, considering the remote location?

Directly comparing the $87.9 million contract value to industry benchmarks for POL tank maintenance is challenging without specific, granular cost data for the services rendered (e.g., per-gallon cleaning, per-linear-foot repair). The remote location of Diego Garcia significantly increases logistical costs, potentially inflating the overall price compared to mainland U.S. operations. While the firm-fixed-price structure implies the contractor has accounted for these costs, a detailed analysis would involve breaking down the contract into unit prices for specific tasks and comparing those against publicly available cost data for similar specialized industrial maintenance, adjusted for geographic premiums. The absence of readily available comparable data suggests this contract may represent a unique cost scenario.

What are the primary risks associated with performing maintenance on POL tanks in a remote island environment like Diego Garcia?

Performing maintenance on POL tanks in a remote island environment like Diego Garcia presents several significant risks. Logistical challenges are paramount, including the transportation of specialized equipment, materials, and personnel, which can lead to delays and increased costs. Environmental factors, such as tropical weather conditions (storms, humidity), can impact work schedules and the longevity of repairs. Furthermore, the isolation may limit the availability of local skilled labor and emergency response services, potentially exacerbating the impact of any incidents. Ensuring compliance with stringent environmental regulations in such a sensitive ecosystem also adds complexity. The contractor must meticulously plan for these factors to mitigate potential cost overruns and schedule slippages.

What is the expected impact of this contract on the operational readiness of DFSP Diego Garcia?

This contract is critical for maintaining the operational readiness of DFSP Diego Garcia. The six POL tanks covered are essential for storing and distributing fuel, which is a vital resource for naval and other military operations in the Indo-Pacific region. By ensuring these tanks are clean, inspected, and in good repair, the contract directly supports the reliable supply of fuel. This prevents potential disruptions to military exercises, deployments, and day-to-day operations that depend on a consistent fuel source. The five-year duration suggests a commitment to sustained readiness for this key infrastructure.

How has spending on POL tank maintenance at DFSP Diego Garcia trended over the past five years?

Historical spending data specifically for POL tank maintenance at DFSP Diego Garcia over the past five years is not directly provided in the summary data. However, the award of this $87.9 million, five-year contract indicates a significant and ongoing requirement for these services. To understand historical trends, one would need to access contract databases to identify previous awards for similar maintenance, repair, or construction services at this specific facility. Analyzing the frequency, value, and duration of past contracts would reveal patterns in spending and potentially highlight any increases or decreases in maintenance needs or costs over time.

What are the specific types of repairs anticipated under this contract, and how are they prioritized?

The contract specifies 'cleaning, inspection, and repairs' for six POL tanks. The 'repairs' component is broad and could encompass a range of activities, from minor patching of corrosion to more significant structural interventions, depending on the findings of the inspections. The prioritization of repairs would typically be determined by the severity of identified issues, potential risks to safety and environmental integrity, and their impact on the tank's capacity and functionality. The contract likely outlines a process for the government to approve proposed repairs based on inspection reports, with critical safety and operational issues taking precedence.

Industry Classification

NAICS: ConstructionUtility System ConstructionOil and Gas Pipeline and Related Structures Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Weston Solutions Holdings Inc

Address: 1400 WESTON WAY, WEST CHESTER, PA, 19380

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

Financial Breakdown

Contract Ceiling: $87,876,340

Exercised Options: $87,876,340

Current Obligation: $87,876,340

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $3,785,832

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N3943020D2227

IDV Type: IDC

Timeline

Start Date: 2025-09-11

Current End Date: 2030-03-08

Potential End Date: 2030-03-08 00:00:00

Last Modified: 2025-09-11

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