DoD awards $9.95M for Aviation Turbine Fuel to Par Hawaii Refining LLC, with delivery in early 2026

Contract Overview

Contract Amount: $9,953,554 ($10.0M)

Contractor: PAR Hawaii Refining LLC

Awarding Agency: Department of Defense

Start Date: 2026-01-12

End Date: 2026-02-24

Contract Duration: 43 days

Daily Burn Rate: $231.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Defense

Official Description: 8511856340!TURBINE FUEL,AVIATION

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77024

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $10.0 million to PAR HAWAII REFINING LLC for work described as: 8511856340!TURBINE FUEL,AVIATION Key points: 1. Significant contract value for a critical aviation fuel supply. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Fixed Price with Economic Price Adjustment (FPEPA) introduces price volatility risk. 4. Sector is Defense Logistics, a key area for military readiness.

Value Assessment

Rating: good

The award amount of $9.95M for a 43-day delivery period appears reasonable given the nature of aviation fuel. Benchmarking against similar fuel contracts 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, which typically drives competitive pricing. The use of a delivery order under an existing contract structure is noted.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure fuel at the best possible price.

Public Impact

Ensures continued supply of critical aviation fuel for military operations. Supports the Department of Defense's logistical capabilities. Potential for price fluctuations due to economic price adjustment clause.

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 delivery window (43 days) may limit future competitive opportunities if not managed well.
No small business participation noted.

Positive Signals

Full and open competition likely secured a competitive price.
Contract supports essential defense logistics.

Sector Analysis

This contract falls within the Petroleum Refineries sector, specifically for aviation turbine fuel. Spending in this area is crucial for national defense and transportation infrastructure, with benchmarks varying based on global oil prices and geopolitical factors.

Small Business Impact

The data indicates no small business participation in this specific award. Further analysis would be needed to determine if opportunities were missed or if the nature of the requirement precluded small business involvement.

Oversight & Accountability

The contract is a delivery order, suggesting it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on the management of the IDIQ and the specific delivery order to ensure fair pricing and timely execution.

Related Government Programs

Petroleum Refineries
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Economic Price Adjustment (EPA) clause introduces cost uncertainty.
Short delivery window may limit future competition or create supply risks.
No small business participation noted.
Dependence on a single supplier for a critical resource during the delivery period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.0 million to PAR HAWAII REFINING LLC. 8511856340!TURBINE FUEL,AVIATION

Who is the contractor on this award?

The obligated recipient is PAR HAWAII REFINING LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.0 million.

What is the period of performance?

Start: 2026-01-12. End: 2026-02-24.

What is the historical pricing trend for aviation turbine fuel, and how might the EPA clause impact the final cost?

Historical pricing for aviation turbine fuel is subject to global crude oil market fluctuations, geopolitical events, and seasonal demand. The Economic Price Adjustment (EPA) clause allows for price changes based on an index, meaning if fuel prices increase, the contract cost will rise proportionally. This protects the contractor from losses due to market volatility but exposes the DoD to potential cost overruns if prices surge unexpectedly.

What are the specific risks associated with a short 43-day delivery period for aviation turbine fuel?

A short 43-day delivery period for aviation turbine fuel presents risks such as potential supply chain disruptions if the contractor faces unforeseen issues, and limited time for the government to react if performance issues arise. It also concentrates demand, potentially leading to higher per-unit costs if not managed through robust competition and contract terms. Furthermore, it may restrict the ability of smaller, agile suppliers to compete if they require longer lead times for production or delivery.

How does the 'full and open competition' for this fuel contract ensure value for taxpayers?

Full and open competition ensures value for taxpayers by allowing any qualified vendor to bid on the contract, fostering a competitive environment. This typically drives down prices as contractors strive to offer the most attractive bids to win the award. The Defense Logistics Agency can then select the offer that represents the best value, considering both price and other factors, thereby maximizing the efficient use of taxpayer funds for essential fuel 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

Parent Company: PAR Pacific Holdings, Inc.

Address: 825 TOWN AND COUNTRY LN STE 1500, HOUSTON, TX, 77024

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $9,953,554

Exercised Options: $9,953,554

Current Obligation: $9,953,554

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE60225D0486

IDV Type: IDC

Timeline