DoD's $21.8M Vance AFB Fuels Management Contract Awarded to BSH Management Services LLC

Contract Overview

Contract Amount: $21,817,338 ($21.8M)

Contractor: BSH Management Services LLC

Awarding Agency: Department of Defense

Start Date: 2012-06-01

End Date: 2022-05-31

Contract Duration: 3,651 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FUELS MANAGEMENT SERVICES AT AETC VANCE AFB, OK

Place of Performance

Location: ENID, GARFIELD County, OKLAHOMA, 73701

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $21.8 million to BSH MANAGEMENT SERVICES LLC for work described as: FUELS MANAGEMENT SERVICES AT AETC VANCE AFB, OK Key points: 1. The contract's value of $21.8 million over its duration suggests a significant need for specialized fuels management. 2. The 'Full and Open Competition After Exclusion of Sources' indicates a competitive process, but with specific criteria for participation. 3. The contract duration of 3651 days (over 10 years) points to a long-term strategic requirement for these services. 4. The award to BSH Management Services LLC represents a substantial commitment to a single provider for this critical function. 5. The North American Industry Classification System (NAICS) code 484220 for Specialized Freight Trucking suggests a focus on the logistics and transportation of fuels. 6. The Firm Fixed Price contract type aims to provide cost certainty for the government, shifting cost overrun risks to the contractor.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the specific services provided and the volume of fuels managed. However, a 10-year contract valued at over $21 million for specialized logistics services at a single Air Education and Training Command (AETC) base indicates a substantial, ongoing requirement. Without comparable contracts for similar bases or services, it is difficult to definitively assess value for money. The firm fixed-price nature of the contract provides some cost control, but the overall price relative to the scope of work remains to be fully evaluated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was intended to be open, certain sources were excluded, possibly due to specific qualifications, past performance, or security requirements. The presence of 9 bidders indicates a degree of competition, but the exclusion of sources may have limited the overall pool of potential offerors. The impact on price discovery is moderate; while multiple bidders competed, the exclusion criteria could have influenced the final pricing.

Taxpayer Impact: The competition level suggests that while taxpayers benefited from multiple bids, the exclusion of certain sources might have prevented potentially lower bids from a wider range of competitors.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Vance Air Force Base, OK, ensuring a consistent and reliable supply of fuels. The services delivered include the management, transportation, and potentially storage of various types of fuels essential for aircraft and base operations. The geographic impact is localized to Vance Air Force Base in Oklahoma, supporting its mission readiness. Workforce implications include the employment of personnel by BSH Management Services LLC to carry out the contract duties, as well as the indirect support to the military and civilian workforce at the base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep over the long contract duration if not managed effectively.
Dependence on a single contractor for a critical operational resource could pose a risk if performance falters.
The 'exclusion of sources' aspect warrants further scrutiny to ensure it was justified and did not unduly limit competition.

Positive Signals

The firm fixed-price contract type provides budget predictability for the government.
The award to a single entity for a long duration suggests a stable, long-term partnership for essential services.
The presence of 9 bidders indicates significant market interest and a competitive landscape, even with exclusions.

Sector Analysis

The defense logistics and fuel management sector is critical for military operations, ensuring the availability of essential resources. This contract falls under specialized freight trucking and logistics services, a segment of the transportation industry. The market size for defense logistics is substantial, with numerous companies vying for contracts that ensure the smooth functioning of military bases worldwide. Comparable spending benchmarks would involve analyzing fuel consumption and logistics costs at other similarly sized Air Force bases.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. The prime contractor, BSH Management Services LLC, is responsible for fulfilling the contract, and any subcontracting decisions would be at their discretion, not mandated by a small business set-aside provision.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Defense Logistics Agency. Accountability measures are inherent in the contract terms, particularly the firm fixed-price structure which penalizes cost overruns for the contractor. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed operational oversight might be internal to the agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Fuel Supply Center Operations
Air Force Base Support Services
Logistics and Transportation Services
Specialized Freight Services
Energy Infrastructure Management

Risk Flags

Potential for limited competition due to source exclusion.
Long contract duration may lead to contractor lock-in.
Dependence on a single provider for critical fuel supply.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.8 million to BSH MANAGEMENT SERVICES LLC. FUELS MANAGEMENT SERVICES AT AETC VANCE AFB, OK

Who is the contractor on this award?

The obligated recipient is BSH MANAGEMENT SERVICES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.8 million.

What is the period of performance?

Start: 2012-06-01. End: 2022-05-31.

What is the historical spending pattern for fuels management services at Vance AFB prior to this contract?

Analyzing historical spending patterns for fuels management at Vance AFB prior to this contract (2012-2022) would provide crucial context for evaluating the $21.8 million award. Without access to prior contract data, it's difficult to determine if this represents an increase, decrease, or stable level of spending. Factors such as changes in fuel prices, operational tempo, base expansion or contraction, and previous contract vehicles (e.g., multiple smaller contracts versus one large one) would influence historical figures. Understanding past spending would help assess whether the current contract's value is commensurate with historical needs and market conditions, or if it indicates a significant shift in resource allocation or service provision.

How does the per-unit cost of fuel managed under this contract compare to market rates or similar DoD contracts?

Determining the per-unit cost of fuel managed under this contract is challenging without specific data on the volume of fuel (gallons, liters) procured and the total contract value attributed to fuel acquisition versus management services. The contract is for 'Fuels Management Services,' which likely includes logistics, storage, and handling, not just the purchase of fuel itself. To compare per-unit costs, we would need to isolate the cost of the fuel commodity from the service fees. If the contract includes fuel purchase, benchmarking against market indices (e.g., Platts, EIA data) and similar DoD fuel purchase contracts would be necessary. If it's purely services, then benchmarking against per-gallon/liter handling fees at comparable military installations or commercial facilities would be appropriate.

What specific risks were identified during the 'exclusion of sources' process, and how were they mitigated?

The 'Full and Open Competition After Exclusion of Sources' implies that certain potential bidders were deemed ineligible based on predefined criteria. The specific risks that led to these exclusions are not detailed in the provided data but typically relate to factors such as security clearances, specialized technical capabilities, past performance issues on similar contracts, financial stability, or compliance with specific regulatory requirements. Mitigation strategies would involve ensuring the exclusion criteria were clearly defined, legally defensible, and consistently applied to all potential offerors. The agency would need to document the rationale for exclusion to ensure fairness and transparency, demonstrating that the exclusions were necessary to meet critical program requirements and did not arbitrarily limit competition.

What is the track record of BSH Management Services LLC in managing large-scale DoD fuel contracts?

BSH Management Services LLC's track record in managing large-scale DoD fuel contracts is a critical factor in assessing the success of this $21.8 million award. Information regarding their past performance, including the size and scope of previous fuel management contracts, their on-time delivery rates, safety records, and any history of contract disputes or terminations, would be essential. A review of their performance history on similar contracts, particularly those involving significant volumes of fuel and complex logistics at military installations, would help determine their capability and reliability. Positive performance indicators would include successful completion of prior contracts, favorable past performance reviews, and a demonstrated ability to meet stringent DoD requirements.

How does the 10-year duration of this contract impact long-term planning and potential for contractor lock-in?

The 10-year duration (3651 days) of this fuels management contract provides Vance AFB with significant long-term stability and predictability for a critical service. This extended period allows the contractor, BSH Management Services LLC, to make necessary investments in equipment, personnel, and processes, potentially leading to efficiencies. However, such a long duration also increases the risk of contractor lock-in, where the incumbent contractor may have a significant advantage in future re-competes due to established infrastructure and institutional knowledge. This could potentially reduce future competition and may not always guarantee the best value for taxpayers over the very long term if market conditions or technological needs change substantially.

Industry Classification

NAICS: Transportation and Warehousing › Specialized Freight Trucking › Specialized Freight (except Used Goods) Trucking, Local

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SP060011R5202

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3208 SYKESVILLE ROAD, WESTMINSTER, MD, 21157

Business Categories: Category Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $31,857,701

Exercised Options: $21,817,338

Current Obligation: $21,817,338

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline