DoD Awards $215M Fuel Management Contract to Elk Solutions LLC for 5 Years
Contract Overview
Contract Amount: $21,579,984 ($21.6M)
Contractor: ELK Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2025-04-01
End Date: 2029-03-31
Contract Duration: 1,460 days
Daily Burn Rate: $14.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 8510914805!AF FUELS MANAGEMENT SERVICES
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $21.6 million to ELK SOLUTIONS LLC for work described as: 8510914805!AF FUELS MANAGEMENT SERVICES Key points: 1. Contract value of $215.8 million over 5 years. 2. Competition method: Full and Open Competition after Exclusion of Sources. 3. Risk: Firm Fixed Price contract type mitigates cost overrun risk. 4. Sector: Warehousing and Storage (NAICS 493190).
Value Assessment
Rating: good
The contract value of $215.8 million over approximately 5 years suggests a significant operational scale. Benchmarking against similar warehousing and storage contracts would be necessary for a precise assessment, but the firm fixed price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This indicates a competitive process was used, but specific details on source exclusion are not provided. The firm fixed price contract type aims to ensure fair pricing through competition.
Taxpayer Impact: The competitive award process is intended to secure the best value for taxpayers, with the firm fixed price structure preventing unexpected cost increases.
Public Impact
Ensures reliable fuel management services for the Department of Defense. Supports military readiness through efficient logistics. Potential impact on fuel prices and availability in the region. Contract duration of 5 years provides long-term stability for services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detail on 'Exclusion of Sources' in competition.
- No specific mention of small business participation.
- Firm Fixed Price may not account for unforeseen market fluctuations.
Positive Signals
- Competitive award process.
- Firm Fixed Price contract type.
- Long contract duration ensures service continuity.
Sector Analysis
This contract falls within the Warehousing and Storage sector (NAICS 493190), crucial for military logistics. Spending benchmarks in this sector vary widely based on scale and services, but a $215M, 5-year contract indicates a substantial operation.
Small Business Impact
The data indicates that small business participation was not a factor in this award (sb: false). Further analysis would be needed to determine if opportunities for small businesses were considered or if the contract scope inherently favored larger entities.
Oversight & Accountability
The contract is managed by the Defense Logistics Agency, a key component of DoD oversight for supply chain and logistics. The firm fixed price structure simplifies oversight by focusing on performance rather than cost reconciliation.
Related Government Programs
- Other Warehousing and Storage
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of transparency regarding source exclusion.
- No explicit small business participation noted.
- Potential for price volatility risk in FFP over 5 years.
- Contract performance metrics not detailed.
Tags
other-warehousing-and-storage, department-of-defense, ok, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.6 million to ELK SOLUTIONS LLC. 8510914805!AF FUELS MANAGEMENT SERVICES
Who is the contractor on this award?
The obligated recipient is ELK SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $21.6 million.
What is the period of performance?
Start: 2025-04-01. End: 2029-03-31.
What specific factors led to the exclusion of certain sources in the 'Full and Open Competition after Exclusion of Sources' process, and how did this impact the final price?
The rationale behind excluding specific sources is not detailed in the provided data. Understanding these exclusions is crucial to assess if the competition was truly maximized and if potential cost savings were forgone. Further investigation into the solicitation documents and award justification would be necessary to determine the precise impact on the final price and overall value for the government.
What are the potential risks associated with a Firm Fixed Price contract for fuel management services over a five-year period, considering market volatility?
While a Firm Fixed Price contract offers cost certainty, it carries risks if market conditions for fuel prices or related operational costs (like labor or transportation) fluctuate significantly over five years. Elk Solutions LLC bears the risk of cost increases, which could potentially lead to reduced service quality if margins are squeezed, or conversely, substantial profit if prices decrease significantly. The government's risk is primarily in potentially overpaying if market conditions become highly favorable to the contractor.
How effectively does this contract contribute to the overall mission readiness and operational efficiency of the Department of Defense's fuel management capabilities?
This contract's effectiveness hinges on Elk Solutions LLC's ability to consistently deliver reliable fuel management services as stipulated. The long-term nature and significant value suggest a critical role in supporting DoD operations. Success metrics within the contract, such as on-time delivery, fuel quality maintenance, and inventory management accuracy, would be key indicators of its contribution to mission readiness and operational efficiency.
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: SPE60324R0510
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 719 HALE ST, BEVERLY, MA, 01915
Business Categories: Category Business, 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: $21,579,984
Exercised Options: $21,579,984
Current Obligation: $21,579,984
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-04-01
Current End Date: 2029-03-31
Potential End Date: 2034-09-30 00:00:00
Last Modified: 2026-03-11
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)