DoD's $21.5M Aviation Turbine Fuel Contract Awarded to Motor Oil (Hellas) Corinth Refineries S.A

Contract Overview

Contract Amount: $21,548,369 ($21.5M)

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

Awarding Agency: Department of Defense

Start Date: 2025-12-15

End Date: 2025-12-23

Contract Duration: 8 days

Daily Burn Rate: $2.7M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Energy

Official Description: 8511814883!TURBINE FUEL,AVIATION

Plain-Language Summary

Department of Defense obligated $21.5 million to MOTOR OIL (HELLAS) CORINTH REFINERIES S.A. for work described as: 8511814883!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 petroleum refining sector. 3. The fixed-price contract with economic price adjustment introduces some risk related to fuel price volatility. 4. The sector is dominated by large refineries, suggesting limited competition for specialized fuel types.

Value Assessment

Rating: good

The award amount of $21.5M for a duration of 8 days seems reasonable for aviation fuel, but a direct comparison is difficult without more specific volume and grade data. The benchmark of $2.69M per day is high, suggesting potential for price optimization.

Cost Per Unit: $2693546 per day

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: The competitive award aims to secure fuel at a fair market price, minimizing unnecessary taxpayer expenditure on a vital defense commodity.

Public Impact

Ensures continued operational readiness for military aircraft reliant on specialized fuel. Supports the energy sector and international trade relationships through procurement. Potential for price fluctuations impacts budget predictability for the Department of Defense. The specific nature of aviation fuel may limit the number of qualified suppliers globally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could lead to cost overruns if fuel prices spike.
Dependence on a single supplier for a critical, time-sensitive delivery order.
Geopolitical instability in the region could impact supply chain reliability.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Fixed-price contract structure provides some cost certainty.
Delivery order ensures timely supply for immediate operational needs.

Sector Analysis

The petroleum refining sector is capital-intensive and subject to global commodity price fluctuations. Defense logistics often require specialized fuels, which can narrow the supplier pool and impact pricing benchmarks.

Small Business Impact

This contract was awarded to a large international corporation, Motor Oil (Hellas) Corinth Refineries S.A. There is no indication of small business participation in this specific award, which is common for large-scale fuel procurements.

Oversight & Accountability

The Defense Logistics Agency is responsible for managing this contract. Oversight would focus on ensuring timely delivery, adherence to fuel specifications, and proper invoicing under the fixed-price with economic price adjustment terms.

Related Government Programs

Petroleum Refineries
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Price volatility due to economic price adjustment.
Potential supply chain disruptions affecting delivery.
Limited competition for specialized aviation fuel.
Dependence on a single supplier for a critical need.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.5 million to MOTOR OIL (HELLAS) CORINTH REFINERIES S.A.. 8511814883!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 $21.5 million.

What is the period of performance?

Start: 2025-12-15. End: 2025-12-23.

What is the expected volume and specific grade of aviation turbine fuel being procured to accurately assess the per-unit cost and value?

The provided data lacks specific volume and grade details for the aviation turbine fuel. Without this information, a precise per-unit cost benchmark is impossible. This data is crucial for a thorough value assessment and for comparing this contract's pricing against industry standards for similar fuel types and quantities.

How does the economic price adjustment clause function, and what are the potential upper limits on cost increases for this contract?

The economic price adjustment (EPA) clause allows for modifications to the contract price based on fluctuations in specific economic factors, typically related to the cost of raw materials or labor. Understanding the index or formula used for the EPA is critical to assessing the potential risk of cost overruns and the ultimate taxpayer impact if fuel prices rise significantly.

What is the historical performance and reliability of Motor Oil (Hellas) Corinth Refineries S.A. in supplying aviation turbine fuel to the Department of Defense?

Assessing the contractor's past performance is vital for understanding the risk associated with this award. Information on their track record, including on-time delivery rates, quality compliance, and any previous issues or disputes with the DoD, would provide insight into the likelihood of successful contract execution and the overall effectiveness of this procurement.

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: $21,548,369

Exercised Options: $21,548,369

Current Obligation: $21,548,369

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE60225D0488

IDV Type: IDC

Timeline