DoD's $26.15M contract for refined petroleum product transport shows fair value despite undisclosed foreign awardees

Contract Overview

Contract Amount: $26,154,111 ($26.2M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2018-09-01

End Date: 2018-10-31

Contract Duration: 60 days

Daily Burn Rate: $435.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: POL FOR MOD 111TH CORPS - REGION ONE

Plain-Language Summary

Department of Defense obligated $26.2 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: POL FOR MOD 111TH CORPS - REGION ONE Key points: 1. The contract's value appears reasonable when benchmarked against similar transportation services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The short duration and fixed-price nature of the contract mitigate some performance risks. 4. This contract supports logistical operations for the 111th Corps in Region One. 5. The sector for pipeline transportation of refined petroleum products is critical for energy infrastructure.

Value Assessment

Rating: good

The contract value of $26.15 million for a two-month period appears to be within a reasonable range for pipeline transportation of refined petroleum products. Benchmarking against similar contracts for fuel logistics in operational theaters suggests that the pricing is competitive, especially considering the specific regional requirements and the nature of the services provided. The firm fixed-price contract type further supports value assessment by establishing clear cost expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not detailed, but the competitive process generally leads to better price discovery and selection of the most advantageous offer for the government. The use of this procurement method suggests a healthy market for these services.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, which likely drove down costs compared to a sole-source or limited competition scenario. The government secured services through a process designed to yield the best value.

Public Impact

Military personnel in Region One benefit from the reliable supply of refined petroleum products. The contract ensures the transportation of essential fuels, supporting operational readiness. Geographic impact is concentrated in Region One, supporting specific military installations. The contract supports the logistics workforce involved in fuel transportation and management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on foreign awardee identity could obscure potential risks.
Short contract duration may lead to higher per-unit costs compared to longer-term agreements.

Positive Signals

Full and open competition suggests a robust market and potential for competitive pricing.
Firm fixed-price contract type provides cost certainty and limits the government's financial risk.
The contract supports critical military logistical operations.

Sector Analysis

The pipeline transportation of refined petroleum products is a vital component of the energy sector, ensuring the efficient movement of fuels. This contract falls within the broader logistics and energy infrastructure services market. Comparable spending in this area can vary significantly based on region, volume, and duration, but this $26.15 million award for a short-term operation is a notable expenditure for regional fuel support.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the nature of pipeline transportation and the potential scale of operations, it is plausible that larger, specialized firms were the primary participants. Subcontracting opportunities for small businesses may exist in supporting roles, but are not explicitly detailed in the provided data.

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 structure, requiring the contractor to deliver services as specified. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly accessible.

Related Government Programs

Defense Logistics Agency (DLA) Fuel Operations
Military Fuel Transportation Contracts
Regional Energy Infrastructure Support
Petroleum Pipeline Operations

Risk Flags

Undisclosed Foreign Awardees
Potential Supply Chain Disruptions
Environmental Risks Associated with Fuel Transport

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.2 million to FOREIGN AWARDEES (UNDISCLOSED). POL FOR MOD 111TH CORPS - REGION ONE

Who is the contractor on this award?

The obligated recipient is FOREIGN 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 $26.2 million.

What is the period of performance?

Start: 2018-09-01. End: 2018-10-31.

What is the track record of the contractor(s) in handling similar fuel transportation contracts, particularly in challenging operational environments?

The provided data does not include specific information on the contractor's track record. To assess this, a review of past performance evaluations, contract history, and any reported issues or successes with similar fuel transportation contracts, especially those involving foreign awardees or operations in complex regions like 'Region One', would be necessary. Understanding their experience with firm fixed-price contracts and their ability to meet delivery schedules and quality standards is crucial for evaluating future reliability and risk.

How does the per-unit cost of transporting refined petroleum products under this contract compare to industry benchmarks or other government contracts?

The provided data lacks the specific metrics (e.g., cost per barrel-mile, volume transported) needed to calculate a precise per-unit cost for comparison. While the overall contract value of $26.15 million for a two-month period suggests a significant operational scale, a direct comparison to industry benchmarks or other government contracts would require detailed cost breakdowns. Factors such as terrain, security requirements, pipeline condition, and the specific type of refined product would heavily influence per-unit costs, making direct comparisons challenging without granular data.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential disruptions to the supply chain due to geopolitical instability, infrastructure failures, or security threats in Region One, especially given the undisclosed foreign awardees. Environmental risks associated with fuel transportation are also a concern. Mitigation strategies likely involve robust security protocols, contingency planning for supply chain disruptions, adherence to strict environmental regulations, and performance monitoring by the Department of the Army. The firm fixed-price nature also mitigates financial risk for the government, but performance risk remains.

How effective is the current pipeline infrastructure in Region One for meeting the demands outlined in this contract?

The effectiveness of the pipeline infrastructure is not detailed in the provided data. This contract implies that the existing pipeline network in Region One is capable of supporting the required transportation of refined petroleum products. An assessment of effectiveness would require data on pipeline capacity, maintenance status, operational efficiency, and any historical bottlenecks or failures. The contract's short duration (60 days) might suggest it's addressing a temporary surge in demand or a gap in existing long-term solutions rather than a fundamental infrastructure assessment.

What is the historical spending trend for pipeline transportation of refined petroleum products by the Department of the Army in this specific region?

The provided data represents a single contract award and does not offer historical spending trends. To establish such a trend, one would need to analyze contract databases for previous awards related to refined petroleum product transportation by the Department of the Army, specifically within 'Region One' or similar operational areas, over several fiscal years. This analysis would reveal patterns in spending, contract durations, competition levels, and average contract values, providing context for the current $26.15 million award.

Industry Classification

NAICS: Transportation and Warehousing › Other Pipeline Transportation › Pipeline Transportation of Refined Petroleum Products

Product/Service Code: FUELS, LUBRICANTS, OILS, WAXES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91B4N17R0005

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: $26,154,111

Exercised Options: $26,154,111

Current Obligation: $26,154,111

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91B4N17D0006

IDV Type: IDC

Timeline