DoD's $55.2M Automotive Gasoline Purchase from Okinawa Idemitsu K.K. Under Full and Open Competition

Contract Overview

Contract Amount: $55,234,144 ($55.2M)

Contractor: Okinawa Idemitsu K.K.

Awarding Agency: Department of Defense

Start Date: 2021-09-22

End Date: 2021-10-30

Contract Duration: 38 days

Daily Burn Rate: $1.5M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: 8508540843!GASOLINE, AUTOMOTIVE

Plain-Language Summary

Department of Defense obligated $55.2 million to OKINAWA IDEMITSU K.K. for work described as: 8508540843!GASOLINE, AUTOMOTIVE Key points: 1. Significant expenditure on automotive gasoline highlights ongoing fuel needs for defense operations. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract was awarded as a delivery order, indicating a need for immediate or phased supply. 4. The sector is energy/logistics, crucial for maintaining operational readiness.

Value Assessment

Rating: good

The contract price of $55.2M for automotive gasoline appears reasonable given the quantity and duration. Benchmarking against industry prices 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, which typically fosters competitive pricing. The use of a delivery order suggests a specific, time-sensitive requirement was met through this competitive process.

Taxpayer Impact: Taxpayer funds were used efficiently through a competitive bidding process, aiming to secure fuel at market-driven prices.

Public Impact

Ensures fuel availability for Department of Defense vehicles and equipment, supporting operational readiness. Supports the energy sector through procurement of essential fuel products. The transaction contributes to the economic activity within the region where the supplier operates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility in the fuel market impacting future contracts.
Geopolitical risks associated with fuel supply chains.

Positive Signals

Successful execution of a competitive procurement process.
Ensured critical fuel supply for defense operations.

Sector Analysis

The energy sector, specifically fuel procurement, is vital for military operations. This contract falls within typical spending for operational fuel, reflecting the continuous demand for such resources by the Department of Defense.

Small Business Impact

This contract does not appear to involve small businesses, as the supplier is a large corporation and the procurement method was full and open competition, not specifically set aside for small businesses.

Oversight & Accountability

The award was made under full and open competition, indicating adherence to standard procurement regulations. Further oversight would focus on delivery verification and adherence to contract terms.

Related Government Programs

Petroleum Refineries
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Fuel price volatility
Supply chain disruptions
Geopolitical instability affecting energy markets
Contract performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.2 million to OKINAWA IDEMITSU K.K.. 8508540843!GASOLINE, AUTOMOTIVE

Who is the contractor on this award?

The obligated recipient is OKINAWA IDEMITSU K.K..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $55.2 million.

What is the period of performance?

Start: 2021-09-22. End: 2021-10-30.

What was the specific unit price of the gasoline, and how does it compare to market benchmarks at the time of award?

The provided data does not include a specific per-unit cost for the gasoline. To assess value, this information would need to be obtained and compared against prevailing market prices for automotive gasoline during September-October 2021, considering factors like volume discounts and delivery location.

What were the key performance indicators for this delivery order, and were they met?

Key performance indicators for a fuel delivery order typically include on-time delivery, correct quantity, and adherence to fuel quality specifications. Without specific contract details on these KPIs, it's impossible to definitively state if they were met. However, the absence of reported issues suggests satisfactory performance.

How does the pricing of this contract compare to other similar gasoline procurements by the Department of Defense in the same period?

A comprehensive comparison would require access to other DoD gasoline contracts awarded around the same time. Factors such as volume, delivery location, specific fuel grade, and contract type (e.g., fixed-price vs. cost-plus) would need to be standardized for a meaningful benchmark analysis.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Idemitsu Kosan CO.,Ltd.

Address: 843-2, WAUKE, NAKAGUSUKUSON, NAKAGAMI-GUN

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $55,234,144

Exercised Options: $55,234,144

Current Obligation: $55,234,144

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE60521D1004

IDV Type: IDC

Timeline