DoD's $21.7M contract for specialized fuel services at Wright-Patterson AFB shows fair competition and potential value

Contract Overview

Contract Amount: $21,777,314 ($21.8M)

Contractor: Fuel Services DL JV

Awarding Agency: Department of Defense

Start Date: 2014-09-18

End Date: 2025-02-28

Contract Duration: 3,816 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF ALONGSIDE AIRCRAFT REFUELING AT WRIGHT-PATTERSON AFB, OH OTHER THAN INHERENTLY GOVERNMENTAL FUNCTION.

Place of Performance

Location: CLOVER, YORK County, SOUTH CAROLINA, 29710

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $21.8 million to FUEL SERVICES DL JV for work described as: IGF::OT::IGF ALONGSIDE AIRCRAFT REFUELING AT WRIGHT-PATTERSON AFB, OH OTHER THAN INHERENTLY GOVERNMENTAL FUNCTION. Key points: 1. Contract awarded through full and open competition, indicating a competitive market for these specialized services. 2. The fixed-price contract type helps mitigate cost overruns, providing budget certainty. 3. Performance is located in Ohio, with the contractor based in South Carolina. 4. The contract duration extends over multiple years, suggesting a need for sustained service delivery. 5. The specialized freight trucking NAICS code points to a niche service area. 6. No small business set-aside was utilized, but subcontracting opportunities may exist.

Value Assessment

Rating: good

The contract's total value of $21.7 million over its period of performance appears reasonable given the specialized nature of aerial refueling support. Benchmarking against similar contracts is challenging due to the specific niche, but the firm fixed-price structure suggests predictable costs. The number of bids received (10) indicates a healthy level of interest and potential for competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, suggesting that multiple vendors were allowed to bid. The fact that 10 bids were received indicates a robust competitive environment for these specialized fuel services. This level of competition is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating at Wright-Patterson AFB, Ohio, ensuring their aircraft have necessary refueling support. The service delivered is specialized aerial refueling support, critical for flight operations and readiness. The geographic impact is localized to Wright-Patterson AFB, Ohio. Workforce implications include the need for skilled personnel to perform the refueling operations, likely supporting jobs within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep if market conditions change significantly during the contract term, despite fixed-price structure.
Reliance on a single contractor for critical refueling services could pose a risk if performance issues arise.
Geographic concentration of service delivery at one base could be a vulnerability.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potentially good pricing.
Firm fixed-price contract type provides cost certainty for the government.
Multiple bidders (10) indicate strong market interest and vendor capability.
Contract duration suggests a stable, long-term need being met.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on specialized logistics and support functions. The market for aerial refueling services is typically dominated by a few key players due to the high technical requirements and safety regulations. Spending in this area is critical for maintaining military operational readiness and supporting global deployments. Comparable spending benchmarks would likely be found within other Department of Defense fuel and aviation support contracts.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates the prime contractor is not a small business. There is no explicit information on subcontracting plans for small businesses within this award. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors for specific components or services.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Defense Contract Management Agency (DCMA) likely oversees performance, and the Defense Contract Audit Agency (DCAA) may conduct audits. The Inspector General for the Department of Defense would have jurisdiction over any allegations of fraud, waste, or abuse related to this contract. Transparency is facilitated through contract award databases like FPDS.

Related Government Programs

Department of Defense Fuel Contracts
Wright-Patterson AFB Support Services
Specialized Aviation Logistics
Aerial Refueling Services
Defense Logistics Agency Contracts

Risk Flags

Long contract duration
Potential for market price fluctuations
Reliance on specialized services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.8 million to FUEL SERVICES DL JV. IGF::OT::IGF ALONGSIDE AIRCRAFT REFUELING AT WRIGHT-PATTERSON AFB, OH OTHER THAN INHERENTLY GOVERNMENTAL FUNCTION.

Who is the contractor on this award?

The obligated recipient is FUEL SERVICES DL JV.

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: 2014-09-18. End: 2025-02-28.

What is the historical spending pattern for aerial refueling services at Wright-Patterson AFB?

Historical spending data for aerial refueling services specifically at Wright-Patterson AFB is not directly available in the provided snippet. However, the current contract, valued at $21.7 million and spanning from September 2014 to February 2025, indicates a significant and sustained requirement for these services. The duration suggests that previous contracts likely existed to fulfill similar needs. To understand the historical pattern, one would need to query federal procurement databases for all contracts awarded to various vendors for aerial refueling or related fuel services at this specific installation over a longer period, such as the last 10-15 years. This would reveal trends in contract values, competition levels, and contractor performance over time, allowing for a more comprehensive analysis of spending evolution and potential fluctuations based on operational tempo or strategic shifts.

How does the pricing of this contract compare to similar aerial refueling contracts awarded by the DoD?

Directly comparing the pricing of this $21.7 million contract to similar aerial refueling contracts is challenging without access to a broader dataset of comparable awards. Factors such as the specific type of aircraft being refueled, the volume of fuel required, the duration of the contract, and the geographic location can significantly influence pricing. However, the fact that this contract was awarded under full and open competition with 10 bids suggests that the pricing achieved is likely competitive within the market for these specialized services. The firm fixed-price structure also provides a degree of cost certainty. To perform a robust comparison, one would need to identify contracts with similar scopes of work, service levels, and performance periods, and then analyze their total values and potentially their per-unit costs (e.g., cost per gallon or cost per refueling operation) to establish a benchmark.

What are the key performance indicators (KPIs) for this contract, and how is contractor performance being measured?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this specific contract. However, for aerial refueling services, typical KPIs would likely include on-time performance, fuel quality and quantity accuracy, safety compliance (zero incidents), response time for refueling requests, and overall mission support effectiveness. Contractor performance is generally measured through quality assurance surveillance plans (QASPs) implemented by the government contracting officer's representative (COR). These plans outline the methods used to monitor and evaluate the contractor's adherence to contract requirements. Performance metrics are often documented in Contractor Performance Assessment Reporting System (CPARS) records, which are used for future source selections.

What is the track record of FUEL SERVICES DL JV as a contractor for the Department of Defense?

Information regarding the specific track record of 'FUEL SERVICES DL JV' as a contractor for the Department of Defense is not detailed in the provided data snippet. To assess their track record, one would need to consult federal procurement databases (like FPDS or SAM.gov) to review their past contract awards, performance history (e.g., CPARS ratings), and any history of contract disputes or terminations. A positive performance history across multiple contracts, particularly those involving similar specialized services, would indicate reliability and capability. Conversely, a history of poor performance, cost overruns, or compliance issues would raise concerns about their suitability for this current contract.

What are the potential risks associated with the long duration (over 5 years) of this contract?

The long duration of this contract, spanning from September 2014 to February 2025 (over 10 years), presents several potential risks. Firstly, market conditions for fuel prices and specialized services can fluctuate significantly over such a period, potentially impacting the cost-effectiveness of the firm fixed-price agreement if initial estimates were based on different economic assumptions. Secondly, technological advancements in refueling equipment or processes could emerge, making the contracted services or equipment outdated before the contract ends. Thirdly, there's a risk of contractor performance degradation over time due to complacency or changes in their organizational capacity. Finally, a prolonged commitment ties up government resources that could potentially be reallocated if needs change, although the sustained nature of refueling support suggests a consistent requirement.

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: SP060013R0516

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13246 RTE 59 STE 208, PLAINFIELD, IL, 60585

Business Categories: Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,777,314

Exercised Options: $21,777,314

Current Obligation: $21,777,314

Actual Outlays: $525,363

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline