DoD Awards $31.4M for Ground Fuel Pipeline Delivery, Facing Foreign Awardee Uncertainty

Contract Overview

Contract Amount: $31,368,058 ($31.4M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2020-05-16

End Date: 2020-09-14

Contract Duration: 121 days

Daily Burn Rate: $259.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: GROUND FUEL, MOD CORPS {111TH, 207TH , 209TH, 217TH} DELIVERY ORDER BATCH #13 (DO#13)

Plain-Language Summary

Department of Defense obligated $31.4 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: GROUND FUEL, MOD CORPS {111TH, 207TH , 209TH, 217TH} DELIVERY ORDER BATCH #13 (DO#13) Key points: 1. Significant contract value of $31.4 million for essential fuel transportation. 2. Competition method was 'Full and Open', but awardees are undisclosed foreign entities. 3. Potential risk associated with undisclosed foreign awardees and lack of transparency. 4. The contract falls under the 'Transportation' sector, crucial for military logistics.

Value Assessment

Rating: fair

The contract's value of $31.4 million for pipeline transportation of refined petroleum products appears reasonable given the duration and scope. However, without knowing the specific routes and volumes, a precise benchmark is difficult. The contract is a Delivery Order under a larger IDIQ, making direct comparison challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition', which theoretically allows for broad participation and competitive pricing. However, the fact that the awardees are undisclosed foreign entities raises concerns about the effectiveness of price discovery and the transparency of the process.

Taxpayer Impact: While competition was sought, the lack of transparency regarding foreign awardees and the potential for less competitive pricing due to undisclosed entities could negatively impact taxpayer value.

Public Impact

Ensures critical fuel supply for specific Army Corps units, supporting operational readiness. The use of pipeline transportation suggests a focus on efficient and potentially cost-effective delivery for bulk fuel. Lack of transparency on awardees hinders public understanding of where taxpayer funds are allocated for essential services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Undisclosed foreign awardees
Lack of transparency in awardee identification
Potential for reduced competition due to foreign entity limitations

Positive Signals

Full and open competition utilized
Firm Fixed Price contract type limits cost overrun risk
Essential service for military operations

Sector Analysis

This contract falls within the Transportation sector, specifically pipeline transportation of refined petroleum products. Spending in this area is critical for national defense logistics. Benchmarks for pipeline contracts vary widely based on length, capacity, and commodity, but this $31.4M value for a 121-day delivery order batch is substantial.

Small Business Impact

The data indicates no specific set-aside for small businesses (SB is false). Given the nature of large-scale pipeline operations and the undisclosed foreign awardees, it is unlikely that small businesses played a significant role in this particular delivery order batch.

Oversight & Accountability

The use of a Delivery Order under a larger contract vehicle implies some level of pre-qualification. However, the lack of disclosed awardees for this specific order warrants further scrutiny to ensure proper oversight and accountability in the execution and payment processes.

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 associated with undisclosed foreign entities
Uncertainty about the true level of competition and price discovery
Limited visibility into taxpayer fund allocation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.4 million to FOREIGN AWARDEES (UNDISCLOSED). GROUND FUEL, MOD CORPS {111TH, 207TH , 209TH, 217TH} DELIVERY ORDER BATCH #13 (DO#13)

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 $31.4 million.

What is the period of performance?

Start: 2020-05-16. End: 2020-09-14.

What is the specific justification for awarding to undisclosed foreign entities, and how does this align with DoD's transparency and national security objectives?

The justification for awarding to undisclosed foreign entities is not provided in the data. Typically, such awards might be linked to specific geopolitical agreements, host nation support requirements, or unique logistical capabilities unavailable domestically. However, without explicit justification, it raises concerns regarding adherence to transparency principles and potential national security implications of relying on unknown foreign entities for critical infrastructure support.

How does the 'Full and Open Competition' process ensure fair pricing when the ultimate awardees are not publicly disclosed?

While 'Full and Open Competition' mandates that all responsible sources can submit offers, the lack of disclosed awardees complicates the assessment of fair pricing. It is presumed that the contracting officer evaluated offers based on price and other factors. However, without knowing who the competitors were and the final awardee's specific pricing structure, it's difficult to independently verify if the 'best value' was truly achieved or if undisclosed foreign entities had an unfair advantage or disadvantage.

What is the long-term strategic impact of relying on foreign entities for critical fuel transportation infrastructure, especially when their identities are concealed?

The long-term strategic impact could be significant. Over-reliance on foreign entities for critical infrastructure, particularly when their identities are concealed, can create vulnerabilities in supply chain security and national defense readiness. It may also limit opportunities for domestic industry development and job creation. Understanding the specific risks and benefits associated with these foreign awards is crucial for maintaining robust and secure logistical capabilities.

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: $31,368,058

Exercised Options: $31,368,058

Current Obligation: $31,368,058

Actual Outlays: $21,962,364

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91B4N17D0006

IDV Type: IDC

Timeline