Army Awards $29.5M for Pipeline Transport of Refined Petroleum Products to Foreign Awardees
Contract Overview
Contract Amount: $29,479,000 ($29.5M)
Contractor: Foreign Awardees (undisclosed)
Awarding Agency: Department of Defense
Start Date: 2018-11-18
End Date: 2019-01-29
Contract Duration: 72 days
Daily Burn Rate: $409.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Energy
Official Description: POL FOR MOD 111TH CORPS - REGION ONE
Plain-Language Summary
Department of Defense obligated $29.5 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: POL FOR MOD 111TH CORPS - REGION ONE Key points: 1. The contract value is $29.5 million, awarded for pipeline transportation of refined petroleum products. 2. Competition was full and open, but awardees are undisclosed foreign entities, raising potential concerns. 3. The contract duration is 72 days, indicating a short-term need. 4. The sector is primarily energy/transportation, with potential implications for national security and supply chain resilience.
Value Assessment
Rating: questionable
The contract value of $29.5 million for a 72-day service period appears high. Benchmarking against similar pipeline transportation contracts is difficult without more specific service details, but the cost per day is substantial.
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 undisclosed foreign awardees limit transparency and make direct cost comparisons challenging.
Taxpayer Impact: While competition was utilized, the lack of transparency regarding foreign awardees and the substantial cost raise questions about the optimal use of taxpayer funds.
Public Impact
Potential national security implications due to reliance on foreign entities for critical energy infrastructure support. Lack of transparency regarding awardees hinders public understanding and accountability. Questions about the long-term strategic implications of awarding such contracts to foreign entities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Undisclosed foreign awardees
- Lack of transparency
- High cost per day
- Potential national security risk
Positive Signals
- Full and open competition utilized
Sector Analysis
This contract falls within the energy and transportation sectors, specifically focusing on the logistics of refined petroleum products. Spending benchmarks for similar pipeline transportation services are highly variable and depend on route, volume, and security requirements.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract. The focus on foreign awardees suggests limited opportunity for U.S. small businesses in this specific instance.
Oversight & Accountability
The use of full and open competition is a positive oversight mechanism. However, the lack of disclosed awardee information presents a significant gap in accountability and oversight.
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 national security risks
- High cost relative to duration
- Limited visibility into performance metrics
- Potential for funds to leave the U.S. economy
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 $29.5 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 $29.5 million.
What is the period of performance?
Start: 2018-11-18. End: 2019-01-29.
What is the specific nature of the pipeline transportation service and the justification for using foreign awardees?
The specific service involves the pipeline transportation of refined petroleum products. The justification for using foreign awardees is not provided in the data. This lack of information raises concerns about national security, economic benefits to U.S. companies, and the overall value for taxpayer money.
What are the risks associated with awarding critical energy infrastructure support contracts to undisclosed foreign entities?
Risks include potential national security vulnerabilities, reduced transparency and accountability, and the diversion of funds that could otherwise support domestic industries and jobs. Dependence on foreign entities for essential services can also create geopolitical leverage and supply chain disruptions.
How does the cost of this contract compare to similar domestic contracts, and what is the value proposition for the U.S. taxpayer?
Direct comparison is difficult without detailed service specifications and domestic benchmark data. However, the $29.5 million cost for a 72-day service period appears substantial. The value proposition is questionable given the lack of transparency and the use of foreign awardees, suggesting potential for better value through domestic sourcing.
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: $29,479,000
Exercised Options: $29,479,000
Current Obligation: $29,479,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91B4N17D0006
IDV Type: IDC
Timeline
Start Date: 2018-11-18
Current End Date: 2019-01-29
Potential End Date: 2019-01-29 00:00:00
Last Modified: 2021-08-20
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