Defense awards $44M for fuel storage, with Chevron as primary contractor over 12 years

Contract Overview

Contract Amount: $43,975,901 ($44.0M)

Contractor: Crowley Petroleum Distribution, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-06-15

End Date: 2016-09-18

Contract Duration: 4,478 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: 200411!006261!97AS!0600 !DEFENSE ENERGY SUPPORT CENTER !SP060095C5541 !A!N! !N! !P00043!20040802!20160819!001382555!001382555!001382555!N!CHEVRON CORPORATION !575 MARKET ST !SAN FRANCISCO !CA!94105!03000!020!02!ANCHORAGE !ANCHORAGE !ALASKA !+000000101343!N!N!000000000000!X173!LEASE/FUEL STORAGE BUILDINGS !S1 !SERVICES !000 !* !493190!E! !3! ! !C! ! !99990909!B! ! !B! !A!U!K!2!002!B! !C!N!Z! ! !N!C!N! ! ! !A!C!A!A!000!A!A!N! ! ! ! ! ! !0001! !

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99518

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $44.0 million to CROWLEY PETROLEUM DISTRIBUTION, INC. for work described as: 200411!006261!97AS!0600 !DEFENSE ENERGY SUPPORT CENTER !SP060095C5541 !A!N! !N! !P00043!20040802!20160819!001382555!001382555!001382555!N!CHEVRON CORPORATION !575 MARKET ST !SAN FRANCISCO !CA!94105!03000!020!02!ANCHORAGE !ANCH… Key points: 1. The contract spans over a decade, indicating long-term infrastructure needs. 2. Chevron Corporation secured a significant portion of the value, suggesting strong market presence. 3. The fixed-price with economic adjustment structure introduces potential cost volatility. 4. Competition was full and open, but the award value suggests a concentrated market.

Value Assessment

Rating: good

The contract value of $43.98 million over 12 years averages approximately $3.66 million annually. This seems reasonable for large-scale fuel storage and building leases, especially considering the long duration and potential for economic adjustments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the significant value awarded to a single entity, Chevron, might indicate a limited number of capable bidders for such specialized services.

Taxpayer Impact: While competition was utilized, the long contract duration and economic price adjustments introduce potential for cost overruns, impacting taxpayer funds over time.

Public Impact

Ensures critical fuel storage infrastructure for military operations. Supports regional economic activity through contract performance. Potential for price fluctuations impacts budget predictability for the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (12 years) increases risk of price escalation.
Economic price adjustment clause can lead to unpredictable costs.
Concentration of value with one contractor may limit future competition.

Positive Signals

Full and open competition was utilized.
Contract supports essential defense energy needs.
Long-term award provides stability for infrastructure.

Sector Analysis

This contract falls under the 'Other Warehousing and Storage' sector, specifically related to defense energy support. Spending benchmarks for similar long-term infrastructure leases for critical resources can vary widely based on location and specific requirements.

Small Business Impact

The data indicates that neither small business set-asides nor subcontracting goals were explicitly mentioned for this contract. This suggests that the primary award was likely to a large corporation, with limited direct benefit to small businesses unless they were subcontractors.

Oversight & Accountability

The long duration of the contract necessitates ongoing oversight to ensure performance standards are met and that economic price adjustments are justified. Regular reviews by the Defense Logistics Agency are crucial for accountability.

Related Government Programs

Other Warehousing and Storage
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Long contract duration (12 years)
Economic price adjustment clause
Potential for cost overruns
Limited visibility into specific subcontractor participation
Lack of detailed performance history in summary data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.0 million to CROWLEY PETROLEUM DISTRIBUTION, INC.. 200411!006261!97AS!0600 !DEFENSE ENERGY SUPPORT CENTER !SP060095C5541 !A!N! !N! !P00043!20040802!20160819!001382555!001382555!001382555!N!CHEVRON CORPORATION !575 MARKET ST !SAN FRANCISCO !CA!94105!03000!020!02!ANCHORAGE !ANCHORAGE !ALASKA !+000000101343!N!N!000000000000!X173!LEASE/FUEL STORAGE BUILDINGS !S1 !SERVICES !000 !* !493190!E! !3! ! !C! ! !999

Who is the contractor on this award?

The obligated recipient is CROWLEY PETROLEUM DISTRIBUTION, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $44.0 million.

What is the period of performance?

Start: 2004-06-15. End: 2016-09-18.

What was the total amount paid out under the economic price adjustment clause throughout the contract's life?

The provided data does not detail the specific amounts paid under the economic price adjustment clause. To assess the full financial impact, a deeper dive into contract modifications and payment histories would be required. This information is crucial for understanding the actual cost variance from the initial fixed price.

Were there any performance issues or disputes during the 12-year contract period?

The available data does not specify any performance issues or disputes. A comprehensive review would involve examining contract performance reports, any formal complaints, or litigation records associated with Chevron Corporation and this specific contract (SP060095C5541) to ascertain the level of contractor performance and adherence to terms.

How did the final awarded price compare to initial bids received under the full and open competition?

The data indicates the total award value but does not provide details on the initial bids received. To assess the effectiveness of the competition and price discovery, comparing the final awarded amount against the range of bids submitted by all competitors would be necessary. This would reveal if the chosen price was competitive.

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: SP060095R0093

Offers Received: 2

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

Evaluated Preference: NONE

Contractor Details

Parent Company: Crowley Holdings, Inc. (UEI: 831667329)

Address: 201 ARCTIC SLOPE AVE, ANCHORAGE, AK, 99518

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

Financial Breakdown

Contract Ceiling: $33,294,485

Exercised Options: $45,592,063

Current Obligation: $43,975,901

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline