Dod's $15.8M Coco Storage Services Contract Awarded to Pike Fuels Limited Partnership
Contract Overview
Contract Amount: $15,868,127 ($15.9M)
Contractor: Pike Fuels Limited Partnership
Awarding Agency: Department of Defense
Start Date: 1998-07-01
End Date: 2018-06-30
Contract Duration: 7,304 days
Daily Burn Rate: $2.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: COCO STORAGE SERVICES
Place of Performance
Location: FRAMINGHAM, MIDDLESEX County, MASSACHUSETTS, 01702
Plain-Language Summary
Department of Defense obligated $15.9 million to PIKE FUELS LIMITED PARTNERSHIP for work described as: COCO STORAGE SERVICES Key points: 1. The contract value is $15.8 million over 20 years. 2. PIKE FUELS LIMITED PARTNERSHIP is the sole awardee. 3. The contract type is Firm Fixed Price, indicating predictable costs. 4. The sector is Other Warehousing and Storage, supporting defense logistics.
Value Assessment
Rating: fair
The contract's 20-year duration and $15.8M value suggest a significant investment. Without specific performance metrics or comparison data, assessing value for money is challenging. The fixed-price nature helps control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the long duration might have limited the number of active bidders over time.
Taxpayer Impact: The long-term nature of this contract, while potentially offering stability, means taxpayers are committed to this vendor for two decades, impacting budget flexibility.
Public Impact
Ensures critical storage services for the Department of Defense. Supports military readiness through reliable logistics infrastructure. Long-term commitment may impact flexibility for future service needs. Potential for price increases over the extended contract period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (20 years) may lead to vendor lock-in and reduced flexibility.
- Lack of specific performance data makes it difficult to assess true value for money.
- Potential for price escalation over the extended period despite fixed-price structure.
Positive Signals
- Awarded under full and open competition, suggesting a competitive initial pricing.
- Firm Fixed Price contract type provides cost certainty for the government.
- Supports essential defense logistics operations.
Sector Analysis
This contract falls within the Warehousing and Storage sector, crucial for maintaining supplies and equipment for military operations. Benchmarks for similar long-term storage contracts are difficult to ascertain without more specific service details.
Small Business Impact
The provided data does not indicate any subcontracting goals or participation by small businesses in this contract.
Oversight & Accountability
The long duration of this contract warrants regular review to ensure continued relevance and cost-effectiveness. Oversight should focus on performance and potential market changes.
Related Government Programs
- Other Warehousing and Storage
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Long contract duration (20 years)
- Lack of detailed service description
- Potential for vendor lock-in
- Limited visibility into performance metrics
- Uncertainty regarding price adjustments over time
Tags
other-warehousing-and-storage, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.9 million to PIKE FUELS LIMITED PARTNERSHIP. COCO STORAGE SERVICES
Who is the contractor on this award?
The obligated recipient is PIKE FUELS LIMITED PARTNERSHIP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $15.9 million.
What is the period of performance?
Start: 1998-07-01. End: 2018-06-30.
What specific storage services are provided, and how do they align with current and future DOD needs?
The contract specifies 'Other Warehousing and Storage' (NAICS 493190). Without detailed service descriptions, it's hard to assess alignment. Given the 20-year term, the DOD likely requires consistent, long-term storage solutions for various materials, potentially including equipment, supplies, or munitions. Regular reviews would be essential to confirm ongoing necessity and adapt to evolving operational requirements.
How was the initial price determined, and are there mechanisms for price adjustments over the 20-year term?
The contract is 'FIRM FIXED PRICE,' suggesting the initial price was negotiated and agreed upon. While this structure aims to prevent cost overruns, long-term contracts often include clauses for economic price adjustments or require renegotiation if significant market shifts occur. The specific terms regarding price adjustments over 20 years are critical for assessing long-term value.
What is the performance history of PIKE FUELS LIMITED PARTNERSHIP with the Department of Defense for similar services?
Performance history is crucial for assessing reliability and value. Information on past performance, including any quality issues, delivery timeliness, or cost control successes, would provide a clearer picture of the vendor's capabilities. Without this data, the assessment relies heavily on the competitive process and contract structure.
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: SP060097R0092
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Gulf OIL Limited Partnership (UEI: 080588496)
Address: 275 WASHINGTON ST STE 300, NEWTON, MA, 02458
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,868,127
Exercised Options: $15,868,127
Current Obligation: $15,868,127
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)
Cost or Pricing Data: NO
Timeline
Start Date: 1998-07-01
Current End Date: 2018-06-30
Potential End Date: 2018-12-31 00:00:00
Last Modified: 2020-03-05
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