DoD Awards $22.8M for Naval Distillate Fuel, Awarded to Motor Oil (Hellas) Corinth Refineries S.A
Contract Overview
Contract Amount: $22,834,115 ($22.8M)
Contractor: Motor OIL (hellas) Corinth Refineries S.A.
Awarding Agency: Department of Defense
Start Date: 2025-09-26
End Date: 2025-09-29
Contract Duration: 3 days
Daily Burn Rate: $7.6M/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: 8511670838!DISTILLATE,NAVAL
Plain-Language Summary
Department of Defense obligated $22.8 million to MOTOR OIL (HELLAS) CORINTH REFINERIES S.A. for work described as: 8511670838!DISTILLATE,NAVAL Key points: 1. Significant award for essential naval fuel, highlighting strategic resource procurement. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. Fixed Price with Economic Price Adjustment (FPEPA) contract type introduces inflation risk. 4. Sector focus on petroleum refining is critical for defense logistics and operations.
Value Assessment
Rating: good
The award amount of $22.8M appears reasonable for a 3-month delivery of naval distillate fuel. 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
Full and open competition was utilized, which typically fosters competitive pricing. The specific pricing mechanisms within the FPEPA contract will influence the final cost to taxpayers.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers by promoting competitive pricing. However, the economic price adjustment clause warrants monitoring for potential cost increases.
Public Impact
Ensures a critical fuel supply for naval operations, supporting national security. The award to a specific refinery indicates a focus on specialized fuel production. Potential for price fluctuations due to the economic price adjustment clause.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment may lead to cost overruns.
- Short delivery window could limit future competition.
- Dependence on a single supplier for this specific fuel type.
Positive Signals
- Full and open competition utilized.
- Award supports critical defense logistics.
- Fixed price component provides some cost certainty.
Sector Analysis
The petroleum refining sector is vital for supplying fuels to various government agencies, including the Department of Defense. Spending in this sector is often driven by geopolitical factors and global commodity prices.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as prime contractors or subcontractors.
Oversight & Accountability
The Defense Logistics Agency is responsible for overseeing this contract. Standard oversight procedures for delivery orders and contract performance should be in place to ensure accountability.
Related Government Programs
- Petroleum Refineries
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Economic Price Adjustment (EPA) clause introduces cost uncertainty.
- Short contract duration may limit long-term price negotiation benefits.
- Potential for supply chain disruptions impacting delivery.
- Reliance on a single supplier for a critical commodity.
Tags
petroleum-refineries, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.8 million to MOTOR OIL (HELLAS) CORINTH REFINERIES S.A.. 8511670838!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 $22.8 million.
What is the period of performance?
Start: 2025-09-26. End: 2025-09-29.
What is the historical pricing trend for naval distillate fuel under similar FPEPA contracts?
Analyzing historical pricing data for naval distillate fuel under comparable Fixed Price with Economic Price Adjustment (FPEPA) contracts is crucial. This would involve examining past award prices, the frequency and magnitude of economic price adjustments, and the underlying indices used for adjustments. Understanding these trends will help assess whether the current award reflects fair and reasonable pricing and identify potential risks associated with future price volatility.
What are the specific economic indices used for price adjustment in this contract?
The specific economic indices used for price adjustment are critical to understanding the potential financial exposure. These indices, often tied to crude oil prices or other energy market benchmarks, dictate how much the price of the naval distillate fuel can fluctuate. Knowing these indices allows for a more accurate projection of potential cost increases and helps in assessing the overall risk associated with the economic price adjustment clause.
How does the awarded price compare to the benchmark price for similar fuel types?
Comparing the awarded price to established benchmarks for similar fuel types is essential for evaluating value for money. This involves identifying relevant market data, such as prices for commercial-grade distillate fuels or other military-grade fuels with similar specifications. A significant deviation from benchmarks, whether higher or lower, warrants further investigation into the specific contract terms, quality requirements, and market conditions that may justify the difference.
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: $22,834,115
Exercised Options: $22,834,115
Current Obligation: $22,834,115
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE60225D0488
IDV Type: IDC
Timeline
Start Date: 2025-09-26
Current End Date: 2025-09-29
Potential End Date: 2025-09-29 00:00:00
Last Modified: 2025-09-26
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