DOE awards $52.6M for COCO petroleum storage to Buckeye Terminals, LLC, serving NY and New England harbors
Contract Overview
Contract Amount: $52,573,500 ($52.6M)
Contractor: Buckeye Terminals, LLC
Awarding Agency: Department of Energy
Start Date: 2019-01-01
End Date: 2022-06-30
Contract Duration: 1,276 days
Daily Burn Rate: $41.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CONTRACTOR-OWNED, CONTRACTOR-OPERATED (COCO) STORAGE SERVICES AND FACILITIES TO RECEIVE, STORE, ISSUE, AND PROVIDE QUALITY FOR U.S. GOVERNMENT OWNED PETROLEUM PRODUCTS, SPECIFICALLY GASOLINE CBOB/RBOB, IN TWO GEOGRAPHICAL REGIONS, NEW YORK HARBOR AND NEW ENGLAND HARBOR.
Place of Performance
Location: PERTH AMBOY, MIDDLESEX County, NEW JERSEY, 08861
Plain-Language Summary
Department of Energy obligated $52.6 million to BUCKEYE TERMINALS, LLC for work described as: CONTRACTOR-OWNED, CONTRACTOR-OPERATED (COCO) STORAGE SERVICES AND FACILITIES TO RECEIVE, STORE, ISSUE, AND PROVIDE QUALITY FOR U.S. GOVERNMENT OWNED PETROLEUM PRODUCTS, SPECIFICALLY GASOLINE CBOB/RBOB, IN TWO GEOGRAPHICAL REGIONS, NEW YORK HARBOR AND NEW ENGLAND HARBOR. Key points: 1. Contract focuses on essential petroleum product storage and handling for government needs. 2. Buckeye Terminals, LLC, a significant player, secured this contract. 3. The contract value is substantial, reflecting the critical nature of fuel logistics. 4. Competition was full and open, suggesting a competitive bidding process.
Value Assessment
Rating: good
The contract value of $52.6 million over approximately 3.5 years appears reasonable for specialized COCO storage services in high-demand regions like New York and New England harbors. Benchmarking against similar large-scale fuel storage contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently for essential fuel storage services.
Public Impact
Ensures a stable supply of gasoline for government operations in two key East Coast regions. Supports national energy security by maintaining critical fuel storage infrastructure. Provides economic activity through the operation of storage facilities and related services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in the petroleum market impacting long-term costs.
- Geopolitical events could disrupt supply chains and storage needs.
- Dependence on a single contractor for critical infrastructure.
Positive Signals
- Contract ensures availability of essential fuel for government operations.
- Full and open competition likely led to a competitive price.
- Strategic location of facilities in major harbor areas.
Sector Analysis
This contract falls under the 'Other Warehousing and Storage' sector, specifically for petroleum products. Spending in this area is crucial for national security and energy logistics, with benchmarks varying based on storage capacity, location, and service complexity.
Small Business Impact
The contract was awarded to Buckeye Terminals, LLC, which is not identified as a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The Department of Energy is responsible for overseeing this contract. Standard oversight mechanisms for contract performance, quality control, and financial management are expected to be in place.
Related Government Programs
- Other Warehousing and Storage
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Contract duration and value
- Critical infrastructure for energy security
- Geographic concentration of service
- Firm Fixed Price contract type
Tags
other-warehousing-and-storage, department-of-energy, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $52.6 million to BUCKEYE TERMINALS, LLC. CONTRACTOR-OWNED, CONTRACTOR-OPERATED (COCO) STORAGE SERVICES AND FACILITIES TO RECEIVE, STORE, ISSUE, AND PROVIDE QUALITY FOR U.S. GOVERNMENT OWNED PETROLEUM PRODUCTS, SPECIFICALLY GASOLINE CBOB/RBOB, IN TWO GEOGRAPHICAL REGIONS, NEW YORK HARBOR AND NEW ENGLAND HARBOR.
Who is the contractor on this award?
The obligated recipient is BUCKEYE TERMINALS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $52.6 million.
What is the period of performance?
Start: 2019-01-01. End: 2022-06-30.
What is the average cost per barrel stored under this contract, and how does it compare to industry averages?
Calculating the exact cost per barrel requires knowing the total storage capacity and utilization rates, which are not provided. However, the total contract value of $52.6 million over roughly 4 years for storing gasoline implies a significant operational cost. A detailed analysis would compare this to market rates for similar COCO storage services, considering factors like location, throughput, and specialized handling requirements.
What are the specific risks associated with relying on a contractor-owned, contractor-operated (COCO) model for critical fuel storage?
The COCO model introduces risks related to contractor performance, financial stability, and potential conflicts of interest. Dependence on a single entity for essential services can create vulnerabilities if the contractor fails to meet obligations or faces operational disruptions. Ensuring robust contract terms, performance monitoring, and contingency plans is crucial to mitigate these risks.
How effectively does this contract ensure the readiness and availability of gasoline for U.S. government operations in the specified regions?
The contract's structure, focusing on receiving, storing, and issuing fuel, directly addresses readiness. The firm fixed-price nature and the contractor's operational responsibility aim for consistent availability. However, effectiveness hinges on the contractor's operational efficiency, maintenance of facilities, and adherence to quality standards, all subject to DOE oversight.
Industry Classification
NAICS: Transportation and Warehousing › Warehousing and Storage › Other Warehousing and Storage
Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 89243518RFE000008
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Buckeye Terminals LLC
Address: 5 TEK PARK 9999 HAMILTON BLVD, BREINIGSVILLE, PA, 18031
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $52,573,500
Exercised Options: $52,573,500
Current Obligation: $52,573,500
Actual Outlays: $27,988,167
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2019-01-01
Current End Date: 2022-06-30
Potential End Date: 2022-06-30 00:00:00
Last Modified: 2022-06-30
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