DoD's $20.3M Aviation Turbine Fuel Contract Awarded to VETJET FUELS LLC Under Full and Open Competition

Contract Overview

Contract Amount: $20,356,109 ($20.4M)

Contractor: Vetjet Fuels LLC

Awarding Agency: Department of Defense

Start Date: 2025-12-23

End Date: 2026-01-30

Contract Duration: 38 days

Daily Burn Rate: $535.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: 8511832495!TURBINE FUEL,AVIATION

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75240

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $20.4 million to VETJET FUELS LLC for work described as: 8511832495!TURBINE FUEL,AVIATION Key points: 1. Significant award for aviation fuel, a critical defense commodity. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Fixed Price with Economic Price Adjustment (FPEPA) contract type introduces some price volatility risk. 4. The sector is Petroleum Refineries, with a North American Industry Classification System (NAICS) code of 324110.

Value Assessment

Rating: good

The award amount of $20.3M for a duration of 38 days appears reasonable given the nature of aviation fuel procurement. Benchmarking against similar contracts for bulk fuel purchases 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 that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The use of full and open competition is taxpayer-beneficial as it drives down costs through market forces.

Public Impact

Ensures the Department of Defense has a reliable supply of critical aviation fuel. Supports military readiness and operational capabilities. The economic price adjustment clause may lead to fluctuations in the final cost to taxpayers. The contract duration is relatively short, suggesting potential for frequent re-competition or follow-on awards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic Price Adjustment (EPA) clause can lead to cost overruns if fuel prices rise significantly.
Short contract duration may indicate a need for frequent procurement actions, increasing administrative burden.
No small business participation noted, which could be a missed opportunity for economic development.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Contract supports a critical national defense need.
Fixed price component provides some cost certainty.

Sector Analysis

The Petroleum Refineries sector (NAICS 324110) is essential for producing fuels vital to transportation and defense. Spending in this sector can fluctuate based on global commodity prices and geopolitical events.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). There is no specific set-aside for small businesses in this procurement, which is common for large-scale fuel contracts.

Oversight & Accountability

The Defense Logistics Agency (DLA) is responsible for this procurement, a key agency for managing supply chains. Oversight would focus on ensuring adherence to contract terms, price reasonableness, and timely delivery.

Related Government Programs

Petroleum Refineries
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Economic Price Adjustment (EPA) introduces cost uncertainty.
Reliance on a single vendor for this delivery order.
Potential for price volatility in the aviation fuel market.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.4 million to VETJET FUELS LLC. 8511832495!TURBINE FUEL,AVIATION

Who is the contractor on this award?

The obligated recipient is VETJET FUELS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $20.4 million.

What is the period of performance?

Start: 2025-12-23. End: 2026-01-30.

What is the historical price trend for this specific type of aviation fuel over the contract period, and how might the EPA clause impact the final cost?

Analyzing historical price data for aviation turbine fuel is crucial. The Economic Price Adjustment (EPA) clause allows for price changes based on an index, typically tied to market fuel prices. If fuel prices increase significantly during the contract period, the final cost to the DoD could exceed the initial fixed price, impacting the overall value and potentially exceeding budget allocations. Conversely, if prices decrease, taxpayers benefit.

Given the full and open competition, what was the range of bids received, and how does the awarded price compare to the benchmark for similar fuel contracts?

Understanding the bid range provides insight into the competitiveness of the procurement. A wide bid range might suggest differing cost structures or perceived risks among bidders. Comparing the awarded price to established benchmarks for aviation turbine fuel, considering factors like delivery location and volume, helps determine if the government secured a fair price. A narrow bid range could indicate a more consolidated market or a highly competitive environment.

What is the strategic importance of this fuel supply to the Department of Defense, and are there alternative fuel sources or suppliers that could be leveraged to mitigate supply chain risks?

This fuel supply is critical for maintaining aviation readiness and operational capabilities within the Department of Defense. Mitigating supply chain risks involves assessing the reliability of VETJET FUELS LLC and exploring potential backup suppliers or alternative fuel types. Diversification of suppliers and understanding geopolitical factors affecting fuel availability are key to ensuring uninterrupted operations and national security.

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

Parent Company: Ross & Associates of River Falls WI Ltd

Address: 13601 PRESTON RD STE 730W, DALLAS, TX, 75240

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $20,356,109

Exercised Options: $20,356,109

Current Obligation: $20,356,109

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE60225D0473

IDV Type: IDC

Timeline