DoD's $21.7M Aviation Turbine Fuel Contract Awarded to Motor Oil (Hellas) Corinth Refineries S.A
Contract Overview
Contract Amount: $21,697,251 ($21.7M)
Contractor: Motor OIL (hellas) Corinth Refineries S.A.
Awarding Agency: Department of Defense
Start Date: 2025-06-18
End Date: 2025-07-12
Contract Duration: 24 days
Daily Burn Rate: $904.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Energy
Official Description: 8511453312!TURBINE FUEL,AVIATION
Plain-Language Summary
Department of Defense obligated $21.7 million to MOTOR OIL (HELLAS) CORINTH REFINERIES S.A. for work described as: 8511453312!TURBINE FUEL,AVIATION Key points: 1. The contract is for aviation turbine fuel, a critical component for military operations. 2. Competition was full and open, suggesting a competitive bidding process. 3. The award to a single entity, Motor Oil (Hellas) Corinth Refineries S.A., warrants scrutiny regarding price discovery. 4. The petroleum refineries sector is subject to global market fluctuations, impacting fuel costs.
Value Assessment
Rating: good
The award amount of $21.7M for aviation turbine fuel appears reasonable given the sector's volatility. Benchmarking against similar fuel contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were considered. This method generally promotes competitive pricing, though the specific price discovery mechanism for this fixed-price with economic price adjustment contract needs further review.
Taxpayer Impact: Taxpayer funds are being used for essential military fuel. Competitive bidding aims to ensure efficient use of these funds, but economic price adjustments could lead to cost increases.
Public Impact
Ensures the availability of critical aviation fuel for Department of Defense operations. Supports the defense supply chain for petroleum products. Potential impact on commercial aviation fuel prices if significant volumes are diverted.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause could lead to cost overruns.
- Reliance on a single supplier for a critical commodity.
Positive Signals
- Awarded under full and open competition.
- Fixed price contract structure provides some cost certainty.
Sector Analysis
The petroleum refineries sector is characterized by significant capital investment and susceptibility to global commodity prices. Defense contracts for fuel are essential but can be subject to price volatility, impacting overall spending.
Small Business Impact
This contract does not appear to directly benefit small businesses, as the awardee is a large corporation. Subcontracting opportunities for small businesses are not specified in the provided data.
Oversight & Accountability
The Department of Defense's Defense Logistics Agency is responsible for this award. Standard oversight procedures for fuel procurement and price adjustments should be in place to ensure accountability.
Related Government Programs
- Petroleum Refineries
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for cost increases due to economic price adjustment.
- Dependence on a single supplier for a critical resource.
- Vulnerability to global oil market price fluctuations.
- Lack of specified small business participation.
Tags
petroleum-refineries, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.7 million to MOTOR OIL (HELLAS) CORINTH REFINERIES S.A.. 8511453312!TURBINE FUEL,AVIATION
Who is the contractor on this award?
The obligated recipient is MOTOR OIL (HELLAS) CORINTH REFINERIES S.A..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $21.7 million.
What is the period of performance?
Start: 2025-06-18. End: 2025-07-12.
What is the specific mechanism for the economic price adjustment, and what are the potential upper limits on cost increases?
The economic price adjustment mechanism typically ties price changes to a specific index or market indicator, such as the average price of jet fuel. The contract details would specify the index used and the formula for adjustment. Potential upper limits are often negotiated or capped to mitigate excessive cost increases for the government, ensuring taxpayer funds are protected against extreme market volatility.
How does the benchmark price for aviation turbine fuel compare to the awarded price, considering the economic price adjustment?
Without the specific benchmark price and the details of the economic price adjustment formula, a direct comparison is difficult. However, the 'good' rating suggests the initial price is competitive. The economic price adjustment allows for flexibility in response to market fluctuations, which can be beneficial for ensuring supply but may lead to higher costs than a fixed price if fuel prices rise significantly.
What is the historical performance of Motor Oil (Hellas) Corinth Refineries S.A. in fulfilling similar government contracts?
Assessing the historical performance of Motor Oil (Hellas) Corinth Refineries S.A. is crucial for understanding their reliability and adherence to contract terms. Past performance data, including on-time delivery, quality compliance, and responsiveness to issues, would provide insight into the likelihood of successful contract execution and mitigate potential risks associated with this award.
Industry Classification
NAICS: Manufacturing › Petroleum and Coal Products Manufacturing › Petroleum Refineries
Product/Service Code: FUELS, LUBRICANTS, OILS, WAXES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 12A IRODOU ATTIKOU, MAROUSSI
Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $21,697,251
Exercised Options: $21,697,251
Current Obligation: $21,697,251
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE60224D0475
IDV Type: IDC
Timeline
Start Date: 2025-06-18
Current End Date: 2025-07-12
Potential End Date: 2025-07-12 00:00:00
Last Modified: 2025-11-24
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