DoD's $33M Afghanistan Army Fuel Delivery Order Faces Scrutiny for Foreign Awardees and Limited Transparency
Contract Overview
Contract Amount: $33,055,239 ($33.1M)
Contractor: Foreign Awardees (undisclosed)
Awarding Agency: Department of Defense
Start Date: 2019-09-18
End Date: 2020-01-16
Contract Duration: 120 days
Daily Burn Rate: $275.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE PURPOSE OF THIS DELIVERY ORDER IS TO PROVIDE GROUND FUELS {DIESEL, PETROL, PROPANE} FOR THE AFGHAN NATIONAL ARMY 111TH, 209TH, AND 215TH CORPS.
Plain-Language Summary
Department of Defense obligated $33.1 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: THE PURPOSE OF THIS DELIVERY ORDER IS TO PROVIDE GROUND FUELS {DIESEL, PETROL, PROPANE} FOR THE AFGHAN NATIONAL ARMY 111TH, 209TH, AND 215TH CORPS. Key points: 1. Significant expenditure on essential fuel for Afghan forces. 2. Competition was full and open, but awardees are undisclosed. 3. Risk of funds mismanagement due to undisclosed foreign recipients. 4. Sector: Defense logistics and fuel supply chain.
Value Assessment
Rating: questionable
The contract value of $33,055,238.96 for fuel delivery appears substantial. Benchmarking is difficult without knowing the specific fuel types, quantities, and delivery locations within Afghanistan, as well as the prevailing market prices at the time.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the lack of disclosure regarding the specific foreign awardees raises concerns about accountability and the ultimate beneficiaries of these funds.
Taxpayer Impact: Taxpayer funds are being used to support Afghan National Army operations, but the lack of transparency regarding awardees makes it difficult to assess the full impact and ensure funds are used effectively and without waste.
Public Impact
Supports critical military operations of the Afghan National Army. Potential for funds to be diverted or misused if oversight of foreign awardees is insufficient. Highlights the complexities and risks associated with U.S. military support contracts in foreign theaters. Raises questions about due diligence in vetting foreign contractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Undisclosed foreign awardees
- Limited transparency on contract execution
- Potential for funds diversion
Positive Signals
- Full and open competition utilized
- Supports critical allied forces
Sector Analysis
This contract falls within the defense logistics and fuel supply sector. Spending benchmarks for fuel delivery in conflict zones are highly variable, influenced by security costs, transportation challenges, and market volatility. The $33M figure represents a significant investment in maintaining operational readiness for allied forces.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the awardees are undisclosed foreign entities. This suggests that small businesses were likely not direct participants in this specific delivery order, which is common for large-scale international logistics contracts.
Oversight & Accountability
Oversight is crucial given the foreign awardees and the nature of the contract. The Department of Defense and Department of the Army are responsible, but the lack of disclosed awardee information hinders public and potentially internal oversight efforts, making it difficult to track performance and accountability.
Related Government Programs
- Pipeline Transportation of Refined Petroleum Products
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of transparency regarding awardees
- Potential for funds misuse or diversion
- Difficulty in verifying competitive pricing
- Limited public accountability
- Geopolitical risks associated with operating environment
Tags
pipeline-transportation-of-refined-petro, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.1 million to FOREIGN AWARDEES (UNDISCLOSED). THE PURPOSE OF THIS DELIVERY ORDER IS TO PROVIDE GROUND FUELS {DIESEL, PETROL, PROPANE} FOR THE AFGHAN NATIONAL ARMY 111TH, 209TH, AND 215TH CORPS.
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 $33.1 million.
What is the period of performance?
Start: 2019-09-18. End: 2020-01-16.
What specific measures were in place to ensure the accountability and proper use of funds by the undisclosed foreign awardees?
The contract details do not specify oversight mechanisms for foreign awardees. Typically, such measures would involve rigorous vetting, performance monitoring, audits, and clear contractual clauses regarding fund utilization and anti-corruption. Without disclosure of the awardees, assessing the effectiveness of these measures is challenging.
How did the 'full and open competition' process ensure fair pricing and prevent potential overcharging by foreign entities?
Full and open competition theoretically allows multiple bidders to offer competitive prices, driving down costs. However, the undisclosed nature of the foreign awardees makes it difficult to verify if the pricing was indeed competitive and fair, especially considering potential risks associated with operating in Afghanistan and the lack of direct U.S. small business involvement.
What is the long-term strategic value of this fuel supply contract beyond immediate operational support for the Afghan National Army?
The primary value is enabling the operational readiness of Afghan forces, contributing to regional stability efforts. However, the lack of transparency surrounding the awardees and potential risks associated with fund management could undermine long-term trust and the effectiveness of U.S. security assistance if not managed with stringent oversight.
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: $33,055,239
Exercised Options: $33,055,239
Current Obligation: $33,055,239
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91B4N17D0006
IDV Type: IDC
Timeline
Start Date: 2019-09-18
Current End Date: 2020-01-16
Potential End Date: 2020-01-16 00:00:00
Last Modified: 2021-08-20
More Contracts from Foreign Awardees (undisclosed)
- Supply of Fuel to Various Locations in Afghanistan — $889.5M (Department of Defense)
- A-Temp ANP Award — $444.1M (Department of Defense)
- Supply of Fuel to Bagram AIR Field, Afghanistant — $289.5M (Department of Defense)
- Delivery of Fuel in Afghanistan — $237.0M (Department of Defense)
- Turbine Fuel for Forward Operating Base (FOB) Sharana — $204.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)