DoD's $29.2M contract for refined petroleum product transport awarded to undisclosed foreign entities

Contract Overview

Contract Amount: $29,249,645 ($29.2M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2019-05-22

End Date: 2019-09-21

Contract Duration: 122 days

Daily Burn Rate: $239.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

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

Plain-Language Summary

Department of Defense obligated $29.2 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: POL FOR MOD 111TH CORPS - REGION ONE Key points: 1. Value for money is difficult to assess due to undisclosed foreign awardee. 2. Competition dynamics are unclear, with a full and open competition leading to an award to foreign entities. 3. Risk indicators include potential geopolitical dependencies and lack of transparency in the awardee. 4. Performance context is limited to a 122-day delivery order for pipeline transportation. 5. Sector positioning is within Defense logistics, specifically the transportation of refined petroleum products.

Value Assessment

Rating: questionable

The contract value of $29.2 million for a 122-day delivery order is substantial. However, without knowing the specific services rendered or the identity of the foreign awardee, it is impossible to benchmark this against similar contracts or assess the pricing for value. The lack of transparency surrounding the awardee raises concerns about whether the most cost-effective and reliable option was secured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which theoretically allows any responsible source to submit an offer. However, the fact that the award went to an undisclosed foreign entity raises questions about the effectiveness of the competition in driving down costs or ensuring the best value for the U.S. taxpayer. The number of bidders is not specified, making it difficult to gauge the true level of competition.

Taxpayer Impact: While full and open competition is generally preferred, awarding to an undisclosed foreign entity may limit direct taxpayer benefit if it does not result in demonstrably lower costs or superior service compared to domestic options.

Public Impact

The primary beneficiaries are likely military operations requiring refined petroleum products in Region One. The service delivered is the pipeline transportation of refined petroleum products. The geographic impact is focused on Region One, as specified in the contract description. Workforce implications are not directly detailed but would involve personnel managing and operating the pipeline infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the identity of the foreign awardee.
Potential geopolitical risks associated with reliance on foreign entities for critical fuel transport.
Difficulty in assessing value for money and ensuring fair pricing due to undisclosed awardee.

Positive Signals

Awarded under full and open competition, suggesting an attempt to solicit broad market participation.
Contract specifies a clear service: pipeline transportation of refined petroleum products.

Sector Analysis

This contract falls within the Defense sector's logistics and transportation sub-sector. The market for refined petroleum product transportation is critical for military readiness, involving various modes including pipelines, tankers, and trucks. Comparable spending benchmarks are difficult to establish without more specific details on the route, volume, and type of refined product. However, the Department of Defense consistently spends billions on fuel and its transportation annually.

Small Business Impact

There is no indication that this contract involved small business set-asides. The award to an undisclosed foreign entity further suggests that small business participation was unlikely, either as prime contractors or potentially as subcontractors, unless specifically mandated and tracked.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Army contracting officers and potentially the Department of Defense Inspector General. Transparency is a concern due to the undisclosed nature of the foreign awardee, which could complicate accountability and performance monitoring.

Related Government Programs

Defense Logistics Agency (DLA) Fuel Contracts
Military Fuel Transportation Services
Department of Defense Energy Procurement

Risk Flags

Lack of Transparency in Awardee Identification
Potential Geopolitical Dependencies
Uncertainty in Value for Money Assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.2 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 $29.2 million.

What is the period of performance?

Start: 2019-05-22. End: 2019-09-21.

What is the track record of the undisclosed foreign awardee in providing pipeline transportation services?

The provided data does not disclose the identity of the foreign awardee, making it impossible to assess their track record. This lack of transparency is a significant concern for evaluating the reliability and performance history of the entity responsible for transporting critical refined petroleum products. Without knowing who the contractor is, their past performance, safety records, and experience with similar operations cannot be verified, which is a fundamental aspect of responsible contracting.

How does the pricing of this contract compare to similar domestic pipeline transportation services?

Direct comparison of pricing is not feasible with the current data. The contract value is $29.2 million for a 122-day delivery order. However, without knowing the specific volume of product transported, the route, the type of refined petroleum, and the operational complexities, a per-unit cost analysis or a benchmark against domestic providers is impossible. Furthermore, the undisclosed nature of the foreign awardee prevents any assessment of their cost structure or profit margins relative to market rates.

What are the specific geopolitical risks associated with awarding this contract to an undisclosed foreign entity?

Awarding critical infrastructure contracts, such as the transportation of refined petroleum products, to undisclosed foreign entities introduces several geopolitical risks. These can include potential supply chain disruptions due to political instability in the awardee's home country, reliance on foreign entities for essential military logistics, and reduced leverage in diplomatic or trade negotiations. The lack of transparency exacerbates these risks by obscuring the extent of U.S. reliance on potentially adversarial or unstable foreign partners for vital resources.

What measures are in place to ensure the security and integrity of the pipeline operations managed by a foreign entity?

The provided data does not detail specific security and integrity measures for this contract. Typically, contracts involving critical infrastructure and foreign entities would require stringent security protocols, background checks, and oversight. However, the anonymity of the awardee makes it impossible to ascertain if such measures are adequate or effectively implemented. The Department of Defense would normally have protocols for vetting foreign partners and monitoring their operations, but the lack of disclosure here hinders a proper assessment.

What was the rationale for awarding this contract to a foreign entity under full and open competition, rather than prioritizing domestic suppliers?

The rationale for awarding this contract to a foreign entity under full and open competition is not explicitly stated in the provided data. While full and open competition aims to secure the best value, it's possible that the foreign entity offered a price or capability that was deemed superior at the time of award, or perhaps domestic capacity was insufficient or unavailable for the specific requirements in Region One. However, the lack of transparency regarding the awardee's identity makes it difficult to understand the specific factors that led to this decision and whether it truly served the best interests of the U.S.

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: $29,249,645

Exercised Options: $29,249,645

Current Obligation: $29,249,645

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91B4N17D0006

IDV Type: IDC

Timeline