DoD's $22.5M Aviation Turbine Fuel Contract Awarded to Motor Oil (Hellas) Corinth Refineries S.A

Contract Overview

Contract Amount: $22,489,601 ($22.5M)

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

Awarding Agency: Department of Defense

Start Date: 2025-09-29

End Date: 2025-09-30

Contract Duration: 1 days

Daily Burn Rate: $22.5M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Energy

Official Description: 8511674249!TURBINE FUEL,AVIATION

Plain-Language Summary

Department of Defense obligated $22.5 million to MOTOR OIL (HELLAS) CORINTH REFINERIES S.A. for work described as: 8511674249!TURBINE FUEL,AVIATION Key points: 1. The contract is for aviation turbine fuel, a critical component for military operations. 2. The awardee, Motor Oil (Hellas) Corinth Refineries S.A., is a significant player in the refining industry. 3. The fixed-price contract with economic price adjustment introduces some cost fluctuation risk. 4. The sector is dominated by a few large refineries, potentially limiting future competition.

Value Assessment

Rating: good

The contract value of $22.5 million appears reasonable for aviation turbine fuel, especially considering the fixed-price with economic price adjustment structure. Benchmarking against similar 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, suggesting a robust price discovery process. However, the specific details of the bidding and selection are not provided, making a full assessment of price competitiveness difficult.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently. The economic price adjustment clause, however, could lead to increased costs if fuel prices rise significantly.

Public Impact

Ensures continued operational readiness for military aircraft requiring specialized turbine fuel. Supports a key energy commodity vital for national defense logistics. Potential for price volatility due to the economic price adjustment clause impacts budget predictability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment may lead to cost overruns if fuel prices surge.
Limited information on the specific type and grade of turbine fuel procured.
Dependence on a single supplier for a critical aviation fuel.

Positive Signals

Awarded through full and open competition, promoting market efficiency.
Contract duration is relatively short, allowing for reassessment of market conditions.
Fixed-price element provides some cost certainty.

Sector Analysis

The petroleum refineries sector is capital-intensive and subject to global commodity price fluctuations. Defense Logistics Agency's procurement of aviation fuel is a routine but critical function, with benchmarks often tied to market indices like jet fuel spot prices.

Small Business Impact

This contract does not appear to involve small business participation. The nature of aviation fuel refining and supply typically requires large-scale operations and established infrastructure, which are generally outside the scope of small businesses.

Oversight & Accountability

The Defense Logistics Agency is responsible for managing the supply chain for the U.S. military. Oversight would involve monitoring contract performance, fuel quality, and adherence to delivery schedules to ensure operational needs are met and funds are used appropriately.

Related Government Programs

Petroleum Refineries
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Potential for cost escalation due to economic price adjustment.
Dependence on a single supplier for a critical defense commodity.
Lack of detailed information on specific fuel quality standards.
Limited insight into the competitive dynamics beyond 'full and open'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.5 million to MOTOR OIL (HELLAS) CORINTH REFINERIES S.A.. 8511674249!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 $22.5 million.

What is the period of performance?

Start: 2025-09-29. End: 2025-09-30.

What is the specific grade and quality standard for the aviation turbine fuel being procured, and how does it align with military specifications?

The data does not specify the exact grade or quality standards for the aviation turbine fuel. Military specifications for such fuels are typically stringent, covering aspects like freeze point, flash point, and viscosity. Ensuring the procured fuel meets these precise requirements is crucial for aircraft safety and performance, and would be a key oversight point for the Defense Logistics Agency.

How does the economic price adjustment mechanism work, and what are the potential upside and downside risks for the government?

The economic price adjustment (EPA) clause allows for adjustments to the contract price based on fluctuations in specified economic factors, often related to raw material costs or market indices. For the government, the upside is that it can secure supply even when input costs are volatile. The downside is the risk of paying more if those costs increase, potentially exceeding initial budget projections.

What was the competitive landscape like for this specific aviation turbine fuel requirement, and were there any barriers to entry for other potential suppliers?

While the award was made under 'full and open competition,' the specific competitive landscape is not detailed. Barriers to entry in aviation fuel supply can include refinery capacity, logistical infrastructure (pipelines, terminals, specialized transport), and meeting stringent quality certifications. Understanding these factors is key to assessing if the competition truly reflected the broadest possible market.

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: $22,489,601

Exercised Options: $22,489,601

Current Obligation: $22,489,601

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE60225D0488

IDV Type: IDC

Timeline