DoD Awards $33.2M for Ground Fuel Pipeline Transport to Undisclosed Foreign Awardees

Contract Overview

Contract Amount: $33,194,000 ($33.2M)

Contractor: Foreign Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2021-05-14

End Date: 2021-12-16

Contract Duration: 216 days

Daily Burn Rate: $153.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: GROUND FUEL, MINISTRY OF DEFENSE (MOD), LOCATIONS: {201ST REGION, 203RD REGION, 205TH REGION, & 207TH REGION}

Plain-Language Summary

Department of Defense obligated $33.2 million to FOREIGN AWARDEES (UNDISCLOSED) for work described as: GROUND FUEL, MINISTRY OF DEFENSE (MOD), LOCATIONS: {201ST REGION, 203RD REGION, 205TH REGION, & 207TH REGION} Key points: 1. Significant contract value of $33.2 million for essential ground fuel logistics. 2. Competition details are obscured, with 'Foreign Awardees (Undisclosed)' raising transparency concerns. 3. Risk associated with reliance on undisclosed foreign entities for critical fuel supply. 4. Sector context points to a vital Defense supply chain operation.

Value Assessment

Rating: questionable

The contract value of $33.2 million for pipeline transportation of refined petroleum products is substantial. Without knowing the specific services or volume, direct comparison is difficult, but the lack of transparency around awardees makes value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While advertised as 'Full and Open Competition,' the awardees are listed as 'Foreign Awardees (Undisclosed).' This lack of specificity hinders understanding of the competitive landscape and how pricing was determined.

Taxpayer Impact: The use of undisclosed foreign awardees for a critical fuel supply raises questions about maximizing taxpayer value and ensuring the most competitive pricing.

Public Impact

Ensures fuel supply to multiple Ministry of Defense regions, critical for operations. Lack of transparency regarding awardees could indicate potential national security or economic risks. The contract duration of 216 days suggests a short-term or specific operational need. Potential for increased costs due to lack of clear competitive benchmarking.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Undisclosed foreign awardees
Lack of specific service details
Potential national security implications

Positive Signals

Full and open competition advertised
Essential service provision

Sector Analysis

This contract falls within the Defense sector, specifically focusing on logistics and fuel supply chain management. Spending benchmarks for such services can vary widely based on volume, distance, and geopolitical factors.

Small Business Impact

The data does not indicate any specific provisions or awards made to small businesses under this contract. The focus appears to be on larger, potentially foreign entities.

Oversight & Accountability

The 'Undisclosed Foreign Awardees' designation warrants further oversight to ensure accountability and transparency in the contracting process, especially for critical infrastructure like fuel supply.

Related Government Programs

Pipeline Transportation of Refined Petroleum Products
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of transparency in awardee identification
Potential national security risks
Unclear competitive advantage for taxpayers
Limited insight into performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.2 million to FOREIGN AWARDEES (UNDISCLOSED). GROUND FUEL, MINISTRY OF DEFENSE (MOD), LOCATIONS: {201ST REGION, 203RD REGION, 205TH REGION, & 207TH REGION}

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 $33.2 million.

What is the period of performance?

Start: 2021-05-14. End: 2021-12-16.

What specific criteria were used to select the 'undisclosed foreign awardees' and how was their technical capability and reliability assessed?

The provided data does not detail the selection criteria or assessment methods for the undisclosed foreign awardees. Further investigation would be required to understand the due diligence performed by the Department of the Army to ensure these entities possess the necessary technical capabilities and reliability for transporting refined petroleum products.

What are the potential risks associated with awarding fuel transportation contracts to undisclosed foreign entities, particularly concerning supply chain security and geopolitical stability?

Awarding contracts to undisclosed foreign entities for critical fuel transport introduces risks related to supply chain security, potential geopolitical leverage, and compliance with international regulations. Lack of transparency hinders the ability to assess these risks adequately, potentially impacting operational continuity and national security interests.

How does the pricing structure (FIRM FIXED PRICE) compare to industry benchmarks for similar pipeline transportation services, especially considering the undisclosed nature of the awardees?

A Firm Fixed Price contract aims to provide cost certainty. However, without knowing the specific routes, volumes, and the competitive landscape among the undisclosed foreign awardees, it is difficult to benchmark this $33.2 million contract against industry standards. The lack of transparency complicates a robust value-for-money assessment.

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: $33,194,000

Exercised Options: $33,194,000

Current Obligation: $33,194,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91B4N17D0003

IDV Type: IDC

Timeline