DoD's $25.2M Naval Distillate Fuel Contract Awarded to Motor Oil (Hellas) Corinth Refineries S.A

Contract Overview

Contract Amount: $25,236,618 ($25.2M)

Contractor: Motor OIL (hellas) Corinth Refineries S.A.

Awarding Agency: Department of Defense

Start Date: 2025-09-26

End Date: 2025-09-26

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: 8511669989!DISTILLATE,NAVAL

Plain-Language Summary

Department of Defense obligated $25.2 million to MOTOR OIL (HELLAS) CORINTH REFINERIES S.A. for work described as: 8511669989!DISTILLATE,NAVAL Key points: 1. Contract awarded for naval distillate fuel, a critical component for naval operations. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract value is significant, reflecting substantial fuel requirements. 4. The sector is Defense, specifically logistics and fuel supply. 5. Risk appears moderate, dependent on supplier reliability and market price fluctuations.

Value Assessment

Rating: good

The contract value of $25.2M for naval distillate fuel appears reasonable given the scale of defense fuel needs. Benchmarking against similar large-volume fuel procurements would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of this award is expected to yield a fair price, minimizing unnecessary taxpayer expenditure on essential fuel supplies.

Public Impact

Ensures continued operational readiness for naval vessels requiring specific fuel types. Supports the broader defense supply chain for petroleum products. Potential impact on regional fuel markets depending on the volume procured. Contributes to the economic activity of the awarded refinery and its associated logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical risks affecting global oil prices and supply chains.
Potential for supply disruptions due to unforeseen events.
Dependence on a single supplier for a critical commodity.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract type provides cost certainty.
Long-term contract can ensure stable supply.

Sector Analysis

This contract falls within the energy sector, specifically the procurement of refined petroleum products for defense purposes. Spending benchmarks for military fuel are highly variable, influenced by global commodity prices and strategic reserve needs.

Small Business Impact

This award does not appear to directly benefit small businesses, as the prime contractor is a large international refinery. Subcontracting opportunities for small businesses may exist within the logistics or support services, but are not explicitly detailed.

Oversight & Accountability

The Department of Defense, through the Defense Logistics Agency, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure compliance and performance.

Related Government Programs

Petroleum Refineries
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Potential for price increases if market conditions change unfavorably.
Dependence on a single supplier's operational stability.
Geopolitical risks impacting supply chain continuity.
Logistical challenges in delivery and storage.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.2 million to MOTOR OIL (HELLAS) CORINTH REFINERIES S.A.. 8511669989!DISTILLATE,NAVAL

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 $25.2 million.

What is the period of performance?

Start: 2025-09-26. End: 2025-09-26.

What is the historical pricing trend for naval distillate fuel, and how does this contract's price compare?

Analyzing historical pricing data for naval distillate fuel is crucial for assessing value. Factors like crude oil prices, refining costs, and market demand significantly influence these trends. Comparing this contract's price against historical averages and similar-sized procurements will reveal whether the government secured a competitive rate or if potential savings were missed.

What are the specific risks associated with relying on a single foreign supplier for critical naval fuel, especially in volatile geopolitical climates?

Reliance on a single foreign supplier for critical naval fuel introduces significant geopolitical and supply chain risks. In times of international tension or conflict, this supplier could face sanctions, operational disruptions, or be pressured to limit exports, potentially jeopardizing naval readiness. Diversifying suppliers or maintaining strategic reserves mitigates these vulnerabilities.

How effectively does the firm fixed price contract type protect the government against market volatility for this commodity?

A firm fixed price (FFP) contract offers substantial protection against market volatility for the government, as the price is set at the time of award and generally does not change. This provides cost certainty for the duration of the contract. However, if market prices drop significantly, the government might overpay compared to current rates, though this is a trade-off for guaranteed price stability.

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: FIRM FIXED PRICE (J)

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: $25,236,618

Exercised Options: $25,236,618

Current Obligation: $25,236,618

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE60225D0479

IDV Type: IDC

Timeline