DoD Awards $26.25M for Pipeline Fuel Transport, Facing Foreign Awardee Uncertainty
Contract Overview
Contract Amount: $26,250,633 ($26.3M)
Contractor: Foreign Awardees (undisclosed)
Awarding Agency: Department of Defense
Start Date: 2020-01-17
End Date: 2020-05-16
Contract Duration: 120 days
Daily Burn Rate: $218.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: GROUND FUEL, CORP (203RD, 205TH, 215TH) DO#12
Plain-Language Summary
Department of Defense obligated $26.3 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: GROUND FUEL, CORP (203RD, 205TH, 215TH) DO#12 Key points: 1. Significant contract value of $26.25 million for essential fuel logistics. 2. Competition was full and open, but awardees are undisclosed foreign entities, raising transparency concerns. 3. Risk associated with foreign awardees and potential lack of direct oversight. 4. Sector is critical infrastructure, specifically transportation of refined petroleum products.
Value Assessment
Rating: fair
The contract value of $26.25 million for 120 days of service appears reasonable given the critical nature of fuel transportation. However, without specific benchmarks for pipeline services, a precise value assessment is difficult. The firm fixed price contract offers cost certainty.
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 fact that the awardees are undisclosed foreign entities limits transparency and potentially complicates oversight, even with a competitive process.
Taxpayer Impact: Taxpayer funds are being used for essential defense logistics. While competition was employed, the lack of transparency regarding foreign awardees warrants scrutiny to ensure value for money.
Public Impact
Ensures critical fuel supply chain for military operations. Potential national security implications due to reliance on foreign entities for essential infrastructure. Lack of transparency on awardees hinders public understanding of defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Undisclosed foreign awardees
- Limited transparency in competition details
- Potential national security risks
Positive Signals
- Full and open competition utilized
- Firm fixed price contract provides cost certainty
Sector Analysis
This contract falls within the Defense sector, specifically supporting logistics and infrastructure. Spending on fuel transportation is crucial for military readiness, and benchmarks vary widely based on the mode of transport and geopolitical factors.
Small Business Impact
The data indicates no specific set-aside for small businesses. Given the nature of pipeline transportation, it is likely that larger, specialized firms, potentially including foreign entities, were the primary participants.
Oversight & Accountability
While awarded under full and open competition, the undisclosed nature of the foreign awardees presents an oversight challenge. Further investigation into the vetting process and ongoing monitoring of these entities is crucial for accountability.
Related Government Programs
- Pipeline Transportation of Refined Petroleum Products
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Undisclosed foreign awardees
- Potential national security risks
- Lack of transparency in awardee identification
- Limited direct oversight capabilities
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 $26.3 million to FOREIGN AWARDEES (UNDISCLOSED). GROUND FUEL, CORP (203RD, 205TH, 215TH) DO#12
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 $26.3 million.
What is the period of performance?
Start: 2020-01-17. End: 2020-05-16.
What is the specific vetting process for undisclosed foreign awardees in critical defense infrastructure contracts?
The vetting process for foreign awardees in critical defense contracts typically involves national security reviews, checks against sanctions lists, and assessments of their operational capabilities and reliability. However, the extent of public disclosure regarding these processes is often limited due to security concerns, making it difficult to ascertain the specific measures applied in this case.
How does the use of undisclosed foreign entities impact the risk profile of this fuel transportation contract?
The use of undisclosed foreign entities introduces several risks, including potential geopolitical vulnerabilities, challenges in enforcing contractual obligations, and difficulties in ensuring compliance with U.S. security standards. It also raises concerns about transparency and accountability, making it harder to assess the true cost-effectiveness and reliability of the service provided.
What measures are in place to ensure the effectiveness and security of the pipeline transportation services provided by these foreign awardees?
Effectiveness and security are typically ensured through rigorous performance standards outlined in the contract, regular inspections, and reporting requirements. However, with undisclosed foreign entities, the ability to conduct direct oversight and immediate intervention may be more complex, relying heavily on the contractual framework and diplomatic channels if issues arise.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W91B4N17R0005
Offers Received: 4
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: $26,250,633
Exercised Options: $26,250,633
Current Obligation: $26,250,633
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91B4N17D0001
IDV Type: IDC
Timeline
Start Date: 2020-01-17
Current End Date: 2020-05-16
Potential End Date: 2020-05-16 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)