DoD Awards $12.8M for OCONUS COCO Storage Services to PAR Hawaii Refining LLC

Contract Overview

Contract Amount: $12,804,726 ($12.8M)

Contractor: PAR Hawaii Refining LLC

Awarding Agency: Department of Defense

Start Date: 2022-04-05

End Date: 2024-04-04

Contract Duration: 730 days

Daily Burn Rate: $17.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8508985043!OCONUS COCO STORAGE SERVICES

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77024

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $12.8 million to PAR HAWAII REFINING LLC for work described as: 8508985043!OCONUS COCO STORAGE SERVICES Key points: 1. Contract awarded to a single, large business entity. 2. Spending is within the 'Other Warehousing and Storage' sector. 3. Potential for higher costs due to limited competition. 4. Long-term contract (730 days) with a fixed price structure.

Value Assessment

Rating: fair

The contract value of $12.8M over two years for storage services appears reasonable given the OCONUS location and specialized nature. Benchmarking against similar logistics and storage contracts is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition scenario. This approach may have restricted price discovery and potentially led to a higher price than under full and open competition.

Taxpayer Impact: Taxpayer funds are utilized for essential storage services, with the limited competition potentially impacting the overall value for money.

Public Impact

Ensures critical storage capabilities for Department of Defense operations in OCONUS locations. Supports supply chain resilience by securing necessary warehousing. Potential impact on local economies where storage facilities are located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may inflate costs.
Lack of small business participation.
Contract duration could lock in potentially suboptimal pricing.

Positive Signals

Secures essential OCONUS storage.
Fixed-price contract provides cost certainty.
Awarded to a known entity with established operations.

Sector Analysis

This contract falls under the 'Other Warehousing and Storage' sector, which is crucial for logistical support across various government agencies. Spending benchmarks for OCONUS storage are highly variable based on location and specific requirements.

Small Business Impact

The contract was not awarded to small businesses, as indicated by 'sb': false. This represents a missed opportunity to support small business participation in government contracting.

Oversight & Accountability

Oversight by the Defense Logistics Agency is expected to ensure contract compliance and service delivery. The 'DEFINITIVE CONTRACT' type suggests a framework for ongoing service needs.

Related Government Programs

Other Warehousing and Storage
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Limited competition.
No small business participation.
Potential for price escalation over contract duration.
Lack of detailed cost breakdown.
Geographic isolation of OCONUS location.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to PAR HAWAII REFINING LLC. 8508985043!OCONUS COCO STORAGE SERVICES

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 $12.8 million.

What is the period of performance?

Start: 2022-04-05. End: 2024-04-04.

What specific factors necessitated the exclusion of sources, and how were these justified to ensure fair pricing?

The justification for excluding sources is critical for understanding the limited competition. If specific operational requirements, security protocols, or unique logistical challenges in the OCONUS location made only PAR Hawaii Refining LLC a viable option, this needs clear documentation. Without this, the 'fairness' of the price achieved under these conditions remains questionable, potentially impacting the value for taxpayer dollars.

How does the per-unit cost of this storage service compare to similar services provided domestically or in other OCONUS locations?

Benchmarking the per-unit cost against domestic or other OCONUS storage contracts is essential for assessing value. Factors like geographic location, security requirements, infrastructure availability, and the specific nature of the 'COCO' (Contractor Owned, Contractor Operated) storage will influence costs. A significant deviation from established benchmarks without clear justification could indicate potential overpricing or unique, unavoidable cost drivers.

What mechanisms are in place to ensure the quality and security of the stored goods throughout the contract duration?

Ensuring the quality and security of stored goods is paramount, especially for defense-related materials. The contract should detail specific performance standards, inspection protocols, and security measures. Robust oversight and clear accountability for any loss or damage are necessary to protect government assets and maintain operational readiness. The effectiveness of these measures directly impacts the overall value and reliability of the service.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › Other Warehousing and Storage

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SPE60322R0507

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,859,219

Exercised Options: $12,804,726

Current Obligation: $12,804,726

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline