DoD's $2.57M aviation turbine fuel contract awarded to Carbon Asset Developer Associates LLC

Contract Overview

Contract Amount: $2,579,126 ($2.6M)

Contractor: Carbon Asset Developer Associates LLC

Awarding Agency: Department of Defense

Start Date: 2026-01-09

End Date: 2026-01-20

Contract Duration: 11 days

Daily Burn Rate: $234.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Energy

Official Description: 8511851584!TURBINE FUEL,AVIATION

Place of Performance

Location: ALAMO, HIDALGO County, TEXAS, 78516

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $2.6 million to CARBON ASSET DEVELOPER ASSOCIATES LLC for work described as: 8511851584!TURBINE FUEL,AVIATION Key points: 1. Contract value appears reasonable given the short duration and fixed-price with economic price adjustment structure. 2. Full and open competition suggests a competitive market for aviation turbine fuel. 3. Short performance period (11 days) may indicate urgent or specific operational needs. 4. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. Contractor's location in Texas (st: TX) may influence logistical considerations. 6. The North American Industry Classification System (NAICS) code 324110 points to petroleum refineries as the primary industry.

Value Assessment

Rating: good

The contract value of $2.57 million for an 11-day delivery period for aviation turbine fuel is difficult to benchmark precisely without knowing the exact quantity and specific fuel type. However, given the fixed-price with economic price adjustment (FPEPA) clause, which allows for adjustments based on market fluctuations, the price is likely competitive. The short duration suggests a specific, potentially urgent need, making direct comparison to longer-term contracts challenging. The award to a single entity, Carbon Asset Developer Associates LLC, under full and open competition implies that other qualified vendors could have bid, and this price was deemed the best value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided in the data, but the designation suggests a robust competitive process. This level of competition is generally expected to drive down prices and ensure fair market value for the goods or services procured.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more favorable pricing and a wider selection of qualified vendors, ensuring the government receives the best possible value for its spending.

Public Impact

The primary beneficiaries are likely military aviation units requiring turbine fuel for aircraft operations. The service delivered is the supply of aviation turbine fuel. The geographic impact is primarily within Texas (st: TX), where the contractor is located, and potentially at the delivery point specified by the Defense Logistics Agency. Workforce implications are minimal for this specific contract, as it focuses on fuel supply rather than direct labor services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause introduces potential for cost overruns if market prices surge unexpectedly.
Short performance window could indicate potential supply chain vulnerabilities if the contractor faces unforeseen disruptions.
Reliance on a single contractor for this specific delivery order, even within a competitive framework, carries inherent risk.

Positive Signals

Awarded under full and open competition, suggesting a competitive market and potentially favorable pricing.
Fixed-price contract type (with EPA) provides some cost certainty, with adjustments for market fluctuations.
Contractor is based in Texas, potentially indicating efficient logistics for certain operational areas.

Sector Analysis

The procurement of aviation turbine fuel falls within the broader energy sector, specifically related to petroleum products. The market for aviation fuels is typically characterized by large, established suppliers and refineries. The contract value of approximately $2.57 million for a short duration is relatively small in the context of the overall defense fuel supply chain, which involves significant volumes and complex logistics. Comparable spending benchmarks would typically involve analyzing historical fuel prices per gallon or barrel, adjusted for economic factors and specific fuel grades.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and the contractor, Carbon Asset Developer Associates LLC, is not explicitly identified as a small business. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The focus appears to be on securing fuel supply through the most competitive means available.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency (DLA), which is responsible for procuring and distributing fuel for the Department of Defense. Accountability measures would include ensuring timely delivery of the correct fuel specifications and adherence to the contract terms, including the economic price adjustment provisions. Transparency is generally maintained through contract award databases, although specific details of the delivery and pricing adjustments may be less publicly accessible.

Related Government Programs

Defense Logistics Agency Fuel Contracts
Aviation Fuel Procurement
Petroleum Product Supply Contracts
Fixed-Price with Economic Price Adjustment Contracts

Risk Flags

Short Performance Period
Economic Price Adjustment Clause
Potential for Price Volatility

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.6 million to CARBON ASSET DEVELOPER ASSOCIATES LLC. 8511851584!TURBINE FUEL,AVIATION

Who is the contractor on this award?

The obligated recipient is CARBON ASSET DEVELOPER ASSOCIATES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2026-01-09. End: 2026-01-20.

What is the typical price per gallon for aviation turbine fuel in Texas, and how does this contract's implied price compare?

Determining the exact price per gallon for this contract is challenging without the specific quantity of fuel ordered. However, we can estimate a range. Aviation turbine fuel (like Jet A) prices fluctuate based on crude oil costs, refining margins, and regional demand. In recent periods, prices have ranged from approximately $3.00 to $5.00 per gallon, depending on market conditions and location. If we assume a standard delivery truck volume (e.g., 8,000 gallons), the implied price per gallon for this $2.57 million contract would be around $321.25 ($2,570,000 / 8,000 gallons). This figure is exceptionally high and suggests either a misunderstanding of the quantity or that the contract covers a highly specialized fuel type, significant logistical costs, or includes substantial overhead and profit margins beyond the base fuel cost. Further clarification on the quantity and specific fuel grade is necessary for an accurate comparison.

What is the significance of the 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' (FPEPA) contract type for this aviation fuel procurement?

The FPEPA contract type is crucial for procurements involving commodities like aviation fuel, where market prices are volatile. It provides a baseline fixed price but allows for adjustments based on pre-defined economic factors, typically linked to indices for crude oil or refined petroleum products. For the government, this means the price can increase if market conditions dictate, protecting the supplier from losses due to unforeseen price spikes. Conversely, if prices fall, the government may benefit from lower costs, depending on the specific adjustment formula. This structure aims to balance cost certainty for the government with risk mitigation for the contractor, ensuring a stable supply chain even amidst market fluctuations. For this $2.57 million contract, the EPA clause is vital given the short delivery window, as it accounts for potential price shifts during that period.

How does the short contract duration (11 days) impact the risk assessment for this aviation turbine fuel delivery?

The extremely short contract duration of 11 days (from 2026-01-09 to 2026-01-20) significantly heightens the risk associated with supply chain disruptions and logistical challenges. While it reduces the exposure to long-term market volatility, it intensifies the pressure on the contractor to meet immediate delivery requirements. Any delay in production, transportation, or quality assurance could have immediate operational consequences for the end-user (likely military aviation units). The government's risk is that a failure to deliver within this tight window could necessitate emergency, potentially more expensive, procurement actions. The contractor's risk lies in the potential for penalties or contract termination if delivery is not met precisely, despite the FPEPA clause which addresses price, not delivery timeliness.

What does the 'FULL AND OPEN COMPETITION' designation imply about the contractor, Carbon Asset Developer Associates LLC?

The 'FULL AND OPEN COMPETITION' designation signifies that Carbon Asset Developer Associates LLC was selected through a process where all responsible sources were allowed to submit bids. This implies that the company met the necessary qualifications, capacity, and financial stability to compete for and fulfill this $2.57 million contract for aviation turbine fuel. It suggests that the company is not a niche provider or a small business operating under a set-aside, but rather a participant in the broader, competitive market for fuel supply. While it doesn't inherently speak to the contractor's track record beyond their ability to win this bid, it indicates they are capable of navigating a standard federal procurement process and likely possess the infrastructure to handle such a delivery.

What is the historical spending context for aviation turbine fuel by the Defense Logistics Agency (DLA)?

The Defense Logistics Agency (DLA) is the primary entity responsible for procuring and distributing fuel for the U.S. military. Historical spending on aviation turbine fuel by the DLA is substantial, often running into billions of dollars annually, reflecting the vast operational needs of the Air Force, Navy, and other branches. This specific $2.57 million contract represents a very small fraction of the DLA's overall fuel budget. Analyzing historical spending patterns would involve looking at aggregate DLA fuel expenditures over several fiscal years, broken down by fuel type (e.g., JP-8, JP-5) and potentially by region or major contract vehicles. Such analysis would reveal trends in pricing, volume requirements, and the competitive landscape for fuel suppliers supporting defense operations.

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: 1044 N TOWER RD, ALAMO, TX, 78516

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,579,126

Exercised Options: $2,579,126

Current Obligation: $2,579,126

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE60225D0464

IDV Type: IDC

Timeline