DoD's $33.6M Fuel Storage System Contract Awarded via Full and Open Competition

Contract Overview

Contract Amount: $33,646,161 ($33.6M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2007-09-29

End Date: 2010-06-30

Contract Duration: 1,005 days

Daily Burn Rate: $33.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DF-2 FUEL STORAGE SYSTEMS

Plain-Language Summary

Department of Defense obligated $33.6 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: DF-2 FUEL STORAGE SYSTEMS Key points: 1. The contract was awarded using a full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which typically transfers risk to the contractor. 3. The duration of the contract was 1005 days, indicating a medium-term project. 4. The award value of $33.6 million falls within a moderate spending range for defense infrastructure. 5. The North American Industry Classification System (NAICS) code 424710 points to wholesale trade of petroleum products. 6. The contract was awarded by the Department of the Army, a major component of the DoD. 7. The absence of specific awardee information limits detailed analysis of contractor performance. 8. The contract was not set aside for small businesses, indicating it was open to all eligible bidders.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the fuel storage systems procured and comparable market rates at the time of award. The firm fixed price structure suggests that the contractor bore the risk of cost overruns, which can be a positive indicator for value if the price was competitive. However, the lack of disclosed awardee and specific performance metrics prevents a thorough assessment of whether the government received optimal value for its investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 12 bids (no) indicates a healthy level of interest and competition for this requirement. A competitive process generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers by leveraging market forces to drive down costs. The multiple bids suggest that the government had a range of options to choose from, increasing the likelihood of securing a cost-effective solution.

Public Impact

The primary beneficiaries of this contract are the Department of Defense and its operational units requiring reliable fuel storage infrastructure. The services delivered include the provision and potentially installation or maintenance of fuel storage systems. The geographic impact is likely concentrated within military installations managed by the Department of the Army. Workforce implications could include jobs in manufacturing, logistics, and potentially construction or maintenance related to the fuel storage systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of disclosed awardee details hinders assessment of contractor's past performance and reliability.
Specific technical requirements and performance standards of the fuel storage systems are not detailed, making it difficult to evaluate the quality of the delivered goods.
The contract's end date has passed, limiting current relevance for ongoing performance monitoring.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm Fixed Price contract type generally aligns costs with performance and transfers risk to the contractor.
The presence of 12 bids suggests significant market interest and competitive pressure.

Sector Analysis

The procurement of fuel storage systems falls under the broader defense logistics and infrastructure sector. This sector is critical for maintaining operational readiness by ensuring the secure and efficient storage of essential fuels. Spending in this area is often driven by the need to upgrade aging facilities, meet new environmental regulations, or support evolving military operational requirements. Comparable spending benchmarks would typically involve other large-scale infrastructure projects within the Department of Defense or similar government agencies focused on energy and storage solutions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). This suggests that the requirement was likely too large or specialized for small business participation as prime contractors, or that the competition was open to all eligible firms regardless of size. There is no information provided regarding subcontracting plans, so the extent to which small businesses may have participated as subcontractors cannot be determined from this data alone. The lack of a small business set-aside means that opportunities for small businesses to directly compete for this prime contract were limited.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified goods or services at an agreed-upon price. Transparency is limited by the lack of disclosed awardee information and detailed performance metrics. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

Defense Logistics Agency (DLA) Fuel Operations
Army Corps of Engineers Construction Contracts
Department of Energy Fuel Infrastructure Grants
Military Base Operations and Maintenance

Risk Flags

Lack of Awardee Transparency
Limited Performance Metrics
Potential for Quality Compromise in FFP Contracts
Aging Infrastructure Needs (Implied)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.6 million to DOMESTIC AWARDEES (UNDISCLOSED). DF-2 FUEL STORAGE SYSTEMS

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $33.6 million.

What is the period of performance?

Start: 2007-09-29. End: 2010-06-30.

What specific types of fuel storage systems were procured under this contract, and what were their technical specifications?

The provided data does not specify the exact types or technical specifications of the DF-2 FUEL STORAGE SYSTEMS procured. The NAICS code 424710 relates to Petroleum Bulk Stations and Terminals, suggesting the systems are for large-scale storage. Without further details, it's impossible to know if these were above-ground tanks, underground tanks, specialized containment systems, or included associated pumping and monitoring equipment. The 'DF-2' designation likely refers to a specific type of diesel fuel, but the system's capacity, material, and compliance with environmental or safety standards are not disclosed in this summary data.

How does the $33.6 million award value compare to similar fuel storage system contracts awarded by the Department of Defense or other federal agencies?

Comparing the $33.6 million award value requires context regarding the scope and duration of similar contracts. For large-scale fuel storage infrastructure, this amount could represent a significant investment for a single contract, potentially covering multiple units or a substantial facility upgrade. However, without knowing the specific quantity, capacity, and complexity of the systems procured, a direct comparison is difficult. Contracts for smaller, modular fuel storage solutions or those focused solely on maintenance would naturally be lower. Conversely, major new fuel depot construction could easily exceed this figure. The firm fixed price nature suggests a defined scope was agreed upon, which aids in value assessment if the scope is understood.

What was the track record of the undisclosed contractor(s) for delivering similar fuel storage systems or fulfilling Department of Defense contracts?

The provided data does not disclose the identity of the awardee(s), making it impossible to assess their track record. In a typical federal procurement process, information on past performance is a crucial evaluation factor. Agencies review contractors' history of meeting cost, schedule, and performance requirements on previous contracts. Without knowing who received this $33.6 million award, we cannot determine if they had prior experience with fuel storage systems, a history of successful contract completion within the DoD, or any performance issues that might have been flagged. This lack of transparency limits a key aspect of risk assessment.

What are the potential risks associated with the firm fixed price (FFP) contract type for this specific procurement?

The Firm Fixed Price (FFP) contract type generally aims to provide cost certainty and transfer risk to the contractor. For the government, the primary risk with FFP is that the contractor may cut corners on quality or performance to maintain profitability if they underestimated costs or encountered unforeseen issues. In the context of fuel storage systems, inadequate quality could lead to leaks, environmental damage, or operational failures, resulting in higher long-term costs or mission impacts. However, the competitive bidding process (12 bids) and the defined scope (implied by FFP) should have mitigated some of these risks by ensuring a baseline of acceptable proposals and requirements.

How has the Department of the Army's spending on fuel storage systems evolved over the past decade, and does this contract represent a typical spending pattern?

The provided data only covers a single contract awarded in 2007 with an end date in 2010. It does not offer historical spending patterns for the Department of the Army on fuel storage systems over the past decade. To analyze trends, one would need access to a broader dataset encompassing multiple contracts across various fiscal years. This single data point, valued at $33.6 million and awarded via full and open competition, represents one specific procurement event. Without comparative data on the number, size, and type of fuel storage systems procured annually, it's impossible to determine if this contract aligns with or deviates from typical spending patterns.

What are the implications of the contract being awarded under 'DOMESTIC AWARDEES (UNDISCLOSED)'?

The designation 'DOMESTIC AWARDEES (UNDISCLOSED)' indicates that the contractor(s) awarded this contract were based in the United States. However, the specific identity of these awardees is withheld in the provided data. This lack of disclosure prevents a detailed analysis of the contractor's specific capabilities, past performance, or potential conflicts of interest. While ensuring domestic sourcing can be a policy objective, the 'undisclosed' nature limits transparency and the ability for external analysts or the public to verify the selection process and the chosen contractor's qualifications for a significant infrastructure project like fuel storage systems.

Industry Classification

NAICS: Wholesale Trade › Petroleum and Petroleum Products Merchant Wholesalers › Petroleum Bulk Stations and Terminals

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912ER07R0010

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

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

Financial Breakdown

Contract Ceiling: $42,822,973

Exercised Options: $33,646,161

Current Obligation: $33,646,161

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline