Department of the Army awards $37.9M for JP-8 fuel storage tanks, highlighting infrastructure needs

Contract Overview

Contract Amount: $37,897,942 ($37.9M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2008-09-26

End Date: 2010-08-30

Contract Duration: 703 days

Daily Burn Rate: $53.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT JP-8 FUEL STORAGE TANKS

Plain-Language Summary

Department of Defense obligated $37.9 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: CONSTRUCT JP-8 FUEL STORAGE TANKS Key points: 1. Contract value of $37.9M indicates significant investment in critical fuel storage infrastructure. 2. Full and open competition suggests a potentially competitive bidding process for this project. 3. The definitive contract type implies a clear scope of work and fixed pricing. 4. Awarded by the Department of the Army, this contract addresses essential operational support. 5. The North American Industry Classification System (NAICS) code 424710 points to the petroleum bulk stations and terminals sector. 6. A duration of 703 days suggests a substantial construction or upgrade project.

Value Assessment

Rating: fair

The contract value of $37.9 million for constructing JP-8 fuel storage tanks appears substantial. Without specific details on the number, capacity, or complexity of the tanks, a direct value-for-money assessment is challenging. However, the fixed-price nature of the contract suggests that the government has a defined cost expectation. Benchmarking against similar large-scale fuel storage projects would be necessary for a more precise evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, potentially leading to better pricing and quality for the government. The fact that it was competed fully suggests that the market had sufficient capacity and interest to bid on this type of project.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring that the government receives competitive pricing.

Public Impact

The primary beneficiaries are the Department of the Army and its operational units requiring secure and reliable JP-8 fuel storage. The services delivered include the construction or upgrade of critical fuel storage infrastructure. The geographic impact is likely localized to the military installation where the tanks are constructed, supporting base operations. Workforce implications may include employment opportunities for construction workers, engineers, and project managers in the relevant sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on awardee(s) makes it difficult to assess past performance or potential conflicts of interest.
The duration of the contract (703 days) could indicate potential for schedule delays if not managed effectively.
The fixed-price nature, while offering cost certainty, might limit flexibility if unforeseen issues arise during construction.

Positive Signals

Awarded under full and open competition, suggesting a healthy market response and potential for competitive pricing.
The definitive contract type implies a well-defined scope, reducing ambiguity and potential for disputes.
The focus on critical fuel storage infrastructure addresses a fundamental operational requirement for the military.

Sector Analysis

This contract falls within the construction and infrastructure sector, specifically related to energy storage and petroleum facilities. The market for constructing large-scale fuel storage tanks is specialized, often involving firms with expertise in industrial construction, environmental compliance, and heavy engineering. Spending benchmarks for similar projects would typically consider factors like tank capacity, material, location, and regulatory requirements.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While full and open competition allows for small businesses to bid, there is no explicit mechanism to ensure their inclusion or subcontracting opportunities. The impact on the small business ecosystem would depend on whether any small businesses were prime contractors or subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are inherent in the fixed-price definitive contract structure, which defines deliverables and payment terms. Transparency would be enhanced through contract award databases, though specific project details and oversight reports may not be publicly accessible.

Related Government Programs

Military Base Infrastructure Projects
Petroleum Storage and Distribution
Defense Logistics and Supply Chain
Construction Contracts
Fueling Infrastructure

Risk Flags

Potential for cost overruns if scope changes or unforeseen issues arise, despite fixed-price contract.
Risk of schedule delays impacting operational readiness if construction is not completed on time.
Environmental risks associated with fuel storage infrastructure require stringent management.
Dependence on a limited number of specialized contractors for large-scale fuel storage projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.9 million to DOMESTIC AWARDEES (UNDISCLOSED). CONSTRUCT JP-8 FUEL STORAGE TANKS

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 $37.9 million.

What is the period of performance?

Start: 2008-09-26. End: 2010-08-30.

What specific types and capacities of JP-8 fuel storage tanks were included in this contract?

The provided data does not specify the exact types or capacities of the JP-8 fuel storage tanks. The contract is broadly categorized under NAICS code 424710 (Petroleum Bulk Stations and Terminals) and awarded by the Department of the Army. To determine the specifics, one would need to consult the detailed contract award documents, which would outline the technical specifications, quantities, and storage volumes required. This level of detail is crucial for understanding the scope of the project and assessing its value.

How does the $37.9 million contract value compare to similar fuel storage tank construction projects for the Department of Defense?

Benchmarking the $37.9 million contract value requires comparing it to similar projects within the Department of Defense or other federal agencies. Factors such as the number of tanks, their individual capacities, materials used (e.g., steel, concrete), site preparation requirements, and environmental compliance measures significantly influence cost. Without these specifics, a direct comparison is difficult. However, for large-scale military infrastructure, this figure suggests a significant investment in essential fuel storage capabilities, likely involving multiple large-capacity tanks or complex installation requirements.

What were the primary risks identified for this JP-8 fuel storage tank construction project, and how were they mitigated?

The provided data does not explicitly list the risks identified for this contract. However, common risks in large construction projects include schedule delays due to weather or supply chain issues, cost overruns (though mitigated by fixed-price contract), unforeseen site conditions, and regulatory compliance challenges. For fuel storage, environmental risks related to spills or leaks are also critical. Mitigation strategies typically involve detailed project planning, robust oversight, contingency planning, adherence to strict safety and environmental protocols, and potentially performance bonds from the contractor.

What is the historical spending pattern for JP-8 fuel storage tank construction by the Department of the Army?

The provided data only details a single contract award of $37.9 million for JP-8 fuel storage tanks. To understand historical spending patterns, a broader analysis of past contracts awarded by the Department of the Army for similar infrastructure would be necessary. This would involve searching contract databases for previous awards related to fuel storage facilities, examining their values, durations, and the types of tanks constructed. Such an analysis would reveal trends in investment, frequency of such projects, and average contract values over time.

What specific performance metrics were established for the contractor to ensure successful completion of the fuel storage tank project?

The provided summary data does not detail the specific performance metrics established for this contract. Typically, for construction projects of this nature, performance metrics would focus on adherence to project schedules, quality of workmanship, compliance with technical specifications and safety standards, and timely completion of milestones. The contract type (firm fixed price) implies that meeting these defined requirements is essential for the contractor to receive full payment. Detailed performance standards would be outlined in the contract's statement of work and associated clauses.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912ER08R0054

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $43,446,462

Exercised Options: $37,897,942

Current Obligation: $37,897,942

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline