DoD's $11M Aviation Turbine Fuel Contract Awarded to Marathon Petroleum Company LP
Contract Overview
Contract Amount: $11,084,018 ($11.1M)
Contractor: Marathon Petroleum Company LP
Awarding Agency: Department of Defense
Start Date: 2025-09-24
End Date: 2025-09-26
Contract Duration: 2 days
Daily Burn Rate: $5.5M/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Energy
Official Description: 8511665280!TURBINE FUEL,AVIATION
Place of Performance
Location: FINDLAY, HANCOCK County, OHIO, 45840
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $11.1 million to MARATHON PETROLEUM COMPANY LP for work described as: 8511665280!TURBINE FUEL,AVIATION Key points: 1. Significant award for aviation fuel, a critical defense commodity. 2. Marathon Petroleum Company LP, a major refiner, secured the contract. 3. Potential for price volatility due to economic price adjustment clause. 4. Spending concentrated within the Petroleum Refineries sector.
Value Assessment
Rating: good
The contract value of $11,040,018.40 appears reasonable for aviation turbine fuel, considering market prices and the fixed-price with economic adjustment structure. Benchmarking against similar fuel procurements would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that should drive favorable pricing. The use of fixed price with economic price adjustment allows for market fluctuations.
Taxpayer Impact: Competition likely ensured a fair price, minimizing unnecessary taxpayer expenditure on this essential fuel.
Public Impact
Ensures critical fuel supply for military aviation operations. Supports a major domestic petroleum refiner. Potential impact on fuel prices for commercial aviation if market conditions shift significantly.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment may lead to cost overruns if fuel prices spike.
- Dependence on a single supplier for this delivery order.
Positive Signals
- Awarded under full and open competition.
- Contract supports critical national defense needs.
Sector Analysis
This contract falls within the Petroleum Refineries sector, crucial for national security and economic stability. Spending benchmarks for aviation fuel vary widely based on volume and market conditions.
Small Business Impact
The awardee, Marathon Petroleum Company LP, is a large corporation, not a small business. There is no indication of small business subcontracting in the provided data.
Oversight & Accountability
The Defense Logistics Agency is responsible for procuring fuel for the DoD. Oversight would involve monitoring contract performance and adherence to the economic price adjustment terms.
Related Government Programs
- Petroleum Refineries
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Economic Price Adjustment Clause
- Short Delivery Window
- Potential for Price Volatility
- Large Prime Contractor
Tags
petroleum-refineries, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.1 million to MARATHON PETROLEUM COMPANY LP. 8511665280!TURBINE FUEL,AVIATION
Who is the contractor on this award?
The obligated recipient is MARATHON PETROLEUM COMPANY LP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $11.1 million.
What is the period of performance?
Start: 2025-09-24. End: 2025-09-26.
What is the projected impact of the economic price adjustment clause on the final cost given current market volatility?
The economic price adjustment clause allows for changes in the contract price based on fluctuations in the cost of raw materials, specifically crude oil and refining costs. Given current market volatility, there is a risk that the final cost could exceed the initial estimated value if fuel prices increase significantly. Detailed analysis of historical price trends and future projections would be needed to quantify this impact.
How does the per-unit cost compare to historical awards for similar aviation turbine fuel contracts?
Without specific per-unit cost data or access to historical contract databases, a direct comparison is challenging. However, the total award value of approximately $11 million for a short duration suggests a substantial volume. Benchmarking against similar fixed-price with economic adjustment contracts for aviation fuel procured by the DoD or other federal agencies would be necessary for a precise assessment.
What measures are in place to ensure the quality and timely delivery of the aviation turbine fuel?
The contract is with Marathon Petroleum Company LP, a reputable refiner, suggesting a baseline of quality. The Defense Logistics Agency likely has quality assurance procedures and inspection protocols in place to verify fuel specifications. Timely delivery is managed through the specified delivery order period (2025-09-24 to 2025-09-26), with potential penalties for delays.
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: 539 S MAIN ST, FINDLAY, OH, 45840
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $11,084,018
Exercised Options: $11,084,018
Current Obligation: $11,084,018
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE60224D0477
IDV Type: IDC
Timeline
Start Date: 2025-09-24
Current End Date: 2025-09-26
Potential End Date: 2025-09-26 00:00:00
Last Modified: 2025-09-24
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