DoD's $19.4M Ground Fuels Contract Awarded to Brad Hall & Associates, Inc
Contract Overview
Contract Amount: $19,368,051 ($19.4M)
Contractor: Brad Hall & Associates, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-08-01
End Date: 2013-08-31
Contract Duration: 1,126 days
Daily Burn Rate: $17.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 52
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Energy
Official Description: GROUND FUELS CONTRACT
Place of Performance
Location: IDAHO FALLS, BONNEVILLE County, IDAHO, 83401
State: Idaho Government Spending
Plain-Language Summary
Department of Defense obligated $19.4 million to BRAD HALL & ASSOCIATES, INC. for work described as: GROUND FUELS CONTRACT Key points: 1. Contract value of $19.4M for ground fuels. 2. Awarded by the Defense Logistics Agency (DLA) under the Department of Defense. 3. Competition type: Full and Open Competition after Exclusion of Sources. 4. Contract type: Fixed Price with Economic Price Adjustment. 5. Sector: Petroleum and Petroleum Products Merchant Wholesalers.
Value Assessment
Rating: fair
The contract value of $19.4M appears reasonable for a multi-year fuels contract. However, without specific unit pricing or volume data, a direct comparison to similar contracts is challenging. The economic price adjustment clause introduces variability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating an initial broad solicitation followed by specific source exclusions. This method aims for competition but the exclusions could limit the pool of bidders and potentially impact price discovery.
Taxpayer Impact: Taxpayer funds are used for this essential fuel supply. The economic price adjustment clause could lead to higher costs if fuel prices rise significantly, impacting the overall taxpayer burden.
Public Impact
Ensures critical fuel supply for military operations. Supports the petroleum wholesale industry. Potential for price fluctuations impacting budget predictability. Requires ongoing monitoring due to economic price adjustment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause may increase costs.
- Exclusion of sources in competition could limit optimal pricing.
- Contract duration of 1126 days (approx. 3 years) requires sustained oversight.
Positive Signals
- Full and open competition was utilized.
- Contract supports essential defense logistics.
- Fixed price component provides some cost certainty.
Sector Analysis
This contract falls within the Petroleum and Petroleum Products Merchant Wholesalers sector, a critical component of the energy supply chain for defense operations. Spending benchmarks in this sector are highly volatile due to global commodity prices.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). Therefore, there is no direct benefit to small businesses from this specific award, though they may participate as subcontractors.
Oversight & Accountability
The Defense Logistics Agency (DLA) is responsible for overseeing this contract. The use of fixed price with economic price adjustment necessitates careful monitoring of market prices to ensure fair cost adjustments and prevent overpayment.
Related Government Programs
- Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for cost overruns due to EPA.
- Limited competition due to source exclusions.
- Lack of transparency on specific unit pricing.
- Contract duration requires sustained oversight.
Tags
petroleum-and-petroleum-products-merchan, department-of-defense, id, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.4 million to BRAD HALL & ASSOCIATES, INC.. GROUND FUELS CONTRACT
Who is the contractor on this award?
The obligated recipient is BRAD HALL & ASSOCIATES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $19.4 million.
What is the period of performance?
Start: 2010-08-01. End: 2013-08-31.
What is the potential upside or downside for taxpayers given the economic price adjustment clause?
The economic price adjustment (EPA) clause allows for contract price modifications based on fluctuations in specific economic indicators, typically related to fuel prices. For taxpayers, this presents a dual risk and potential benefit. If fuel prices decrease, the contract price could be adjusted downwards, saving taxpayer money. Conversely, if fuel prices surge, the EPA clause will likely lead to an increase in the contract price, increasing the cost to taxpayers beyond the initial fixed price estimate.
How does the 'Full and Open Competition after Exclusion of Sources' method impact overall contract risk?
This competition method introduces a moderate level of risk. While 'full and open' aims for broad participation, the subsequent 'exclusion of sources' narrows the field. The risk lies in whether these exclusions were justified and did not inadvertently eliminate highly competitive bidders. If the exclusions were too restrictive, it could lead to less competitive pricing and potentially higher costs for the government, increasing financial risk.
What is the effectiveness of this contract in ensuring fuel supply for the DoD?
The effectiveness of this contract hinges on the contractor's ability to consistently meet delivery requirements and the DLA's oversight. Given it's a fixed-price contract with EPA for essential ground fuels, it is likely effective in ensuring supply, as fuel is a high-priority item. However, effectiveness can be diminished if price adjustments become excessive or if delivery performance falters, requiring robust contract management.
Industry Classification
NAICS: Wholesale Trade › Petroleum and Petroleum Products Merchant Wholesalers › Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)
Product/Service Code: FUELS, LUBRICANTS, OILS, WAXES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: SP060010R0204
Offers Received: 52
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 280 S HOLMES AVE, IDAHO FALLS, ID, 02
Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,368,051
Exercised Options: $19,368,051
Current Obligation: $19,368,051
Contract Characteristics
Multi-Year Contract: Yes
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP060010D4006
IDV Type: IDC
Timeline
Start Date: 2010-08-01
Current End Date: 2013-08-31
Potential End Date: 2013-08-31 00:00:00
Last Modified: 2010-12-07
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