DoD Awards $20.7M for Aviation Turbine Fuel to S-OIL Corporation Under Full and Open Competition
Contract Overview
Contract Amount: $20,688,045 ($20.7M)
Contractor: S-Oil Corporation
Awarding Agency: Department of Defense
Start Date: 2025-06-27
End Date: 2025-07-15
Contract Duration: 18 days
Daily Burn Rate: $1.1M/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: 8511469745!TURBINE FUEL,AVIATION
Plain-Language Summary
Department of Defense obligated $20.7 million to S-OIL CORPORATION for work described as: 8511469745!TURBINE FUEL,AVIATION Key points: 1. Significant award for aviation fuel, a critical defense commodity. 2. Competition method indicates potential for competitive pricing. 3. Fixed Price with Economic Price Adjustment (FPEPA) introduces some price volatility risk. 4. Sector: Defense Logistics, supporting aviation operations.
Value Assessment
Rating: good
The award value of $20.7M for a short duration (18 days) suggests a substantial but focused procurement. Benchmarking against similar aviation fuel contracts would be necessary for a precise value assessment.
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 and allows for a broad range of potential suppliers to bid. This method is generally effective in achieving fair market prices.
Taxpayer Impact: Full and open competition is expected to yield a reasonable price for the taxpayer, maximizing value by leveraging market forces.
Public Impact
Ensures continued operational readiness for military aviation assets. Supports critical supply chains for fuel, a non-discretionary defense need. Potential for price fluctuations due to economic price adjustment clauses.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment may lead to costs exceeding initial estimates.
- Short contract duration could necessitate rapid follow-on procurements.
Positive Signals
- Awarded under full and open competition.
- Supports essential defense operations.
Sector Analysis
This procurement falls within the Defense Logistics sector, specifically for aviation fuel. Spending benchmarks for aviation fuel can vary significantly based on global market prices, geopolitical factors, and demand.
Small Business Impact
The data does not indicate whether small businesses were involved in this specific contract award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The award is managed by the Defense Logistics Agency, a key entity for managing defense supply chains. Oversight would focus on contract performance, delivery, and adherence to economic price adjustment terms.
Related Government Programs
- Petroleum Refineries
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for cost overruns due to economic price adjustment.
- Short contract duration may lead to continuous procurement cycles.
- Dependence on global oil market fluctuations.
- Risk of supply chain disruptions impacting delivery timelines.
Tags
petroleum-refineries, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.7 million to S-OIL CORPORATION. 8511469745!TURBINE FUEL,AVIATION
Who is the contractor on this award?
The obligated recipient is S-OIL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $20.7 million.
What is the period of performance?
Start: 2025-06-27. End: 2025-07-15.
What is the historical price trend for aviation turbine fuel, and how might the economic price adjustment clause impact the final cost compared to fixed-price contracts?
Aviation turbine fuel prices are subject to global oil market volatility, influenced by supply, demand, and geopolitical events. The economic price adjustment (EPA) clause allows for price changes based on an index, meaning the final cost could be higher or lower than the initial fixed price. This protects the contractor from significant market swings but introduces uncertainty for the government, potentially leading to costs exceeding initial projections if fuel prices rise sharply.
Given the short duration of the delivery order, what are the risks associated with potential supply chain disruptions or the need for immediate follow-on contracts?
The short 18-day delivery window for this order presents a risk of supply chain disruptions if the contractor faces unforeseen logistical challenges or production issues. It also implies a need for rapid planning and execution of subsequent delivery orders or contracts to ensure continuous fuel supply. Failure to secure timely follow-on awards could impact operational readiness.
How does the 'full and open competition' method ensure cost-effectiveness for this specific aviation fuel procurement compared to other contracting approaches?
Full and open competition is generally the most effective method for achieving cost-effectiveness as it allows all responsible sources to submit bids, fostering a competitive environment. This pressure typically drives down prices and encourages innovation. For a commodity like aviation fuel, where multiple suppliers may exist, this approach maximizes the likelihood of securing the best possible price and terms for the government.
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: 192, BAEKBEOM-RO, SEOUL
Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $20,688,045
Exercised Options: $20,688,045
Current Obligation: $20,688,045
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE60225D0459
IDV Type: IDC
Timeline
Start Date: 2025-06-27
Current End Date: 2025-07-15
Potential End Date: 2025-07-15 00:00:00
Last Modified: 2026-01-15
More Contracts from S-Oil Corporation
- Turbine Fuel, Aviation (jp8/Ja1) Naval Distillate (F76) — $578.1M (Department of Defense)
- Turbine Fuel, Aviation (JP8), Fuel, Naval Distillate (F76) — $511.4M (Department of Defense)
- Fuel Naval Distillate F76 — $482.0M (Department of Defense)
- Awarded 58,280,000 USG of F76 Fuel for Westpac Fuels Purchase Program (supplemental 0004) — $120.0M (Department of Defense)
- Award for 20,160,000 USG of Fuel, Naval Distillate (F76) Under Westpac Supplemental Soln SP0600-09-R-0077-0003 — $54.2M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)