DoD's $80.8M Turbine Fuel Contract Awarded to Husky Marketing and Supply Company
Contract Overview
Contract Amount: $80,851,234 ($80.9M)
Contractor: Husky Marketing and Supply Company
Awarding Agency: Department of Defense
Start Date: 2011-12-20
End Date: 2012-09-30
Contract Duration: 285 days
Daily Burn Rate: $283.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 24
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Energy
Official Description: TURBINE FUEL, AVIATION (JP8)
Place of Performance
Location: DUBLIN, FRANKLIN County, OHIO, 43017
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $80.9 million to HUSKY MARKETING AND SUPPLY COMPANY for work described as: TURBINE FUEL, AVIATION (JP8) Key points: 1. Significant spending on aviation fuel (JP8) for defense operations. 2. Husky Marketing and Supply Company secured the contract. 3. The contract was awarded under full and open competition. 4. Fixed Price with Economic Price Adjustment contract type indicates potential price volatility.
Value Assessment
Rating: good
The contract value of $80.8M is substantial for aviation fuel. Benchmarking against similar JP8 contracts would be necessary for a precise assessment, but the fixed-price with economic adjustment structure suggests a need for careful monitoring of fuel market fluctuations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense fuel supplies.
Public Impact
Ensures critical aviation fuel supply for Department of Defense operations. Supports military readiness and logistical capabilities. Potential impact on fuel prices for other government agencies or commercial entities if market conditions are affected.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause may lead to cost overruns if fuel prices rise significantly.
- Dependence on a single supplier for a critical commodity.
Positive Signals
- Awarded through full and open competition, indicating a robust market.
- Contract supports essential defense logistics.
Sector Analysis
This contract falls within the energy sector, specifically petroleum products crucial for aviation. Defense Logistics Agency spending on fuel is a significant component of the overall defense budget, with benchmarks often tied to market commodity prices.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this specific award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Defense Logistics Agency is responsible for procuring and managing supplies for the U.S. Armed Forces. Oversight would involve monitoring contract performance, price adjustments, and ensuring compliance with terms.
Related Government Programs
- Petroleum Refineries
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for cost increases due to economic price adjustment.
- Dependence on a single supplier for a critical resource.
- Fluctuations in global oil prices can impact contract costs.
- Ensuring consistent fuel quality and timely delivery is paramount.
Tags
petroleum-refineries, department-of-defense, oh, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $80.9 million to HUSKY MARKETING AND SUPPLY COMPANY. TURBINE FUEL, AVIATION (JP8)
Who is the contractor on this award?
The obligated recipient is HUSKY MARKETING AND SUPPLY COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $80.9 million.
What is the period of performance?
Start: 2011-12-20. End: 2012-09-30.
What is the historical price trend for JP8 fuel during the contract period, and how did the economic price adjustment clause affect the final cost?
Analyzing the historical price trend of JP8 fuel during the contract period (2011-2012) is crucial. The economic price adjustment clause allows for modifications to the contract price based on fluctuations in fuel market indices. Understanding these trends and the specific adjustment mechanism will reveal how much the final cost deviated from the initial fixed price and whether it resulted in savings or increased expenditure for the government.
What were the key performance indicators (KPIs) for Husky Marketing and Supply Company under this contract, and were there any performance issues or penalties?
Key performance indicators for a fuel supply contract typically include on-time delivery, fuel quality specifications, and adherence to delivery schedules. The Defense Logistics Agency would have monitored these KPIs. Any deviations could lead to penalties or contract modifications. Investigating performance reports and any associated documentation would reveal if Husky Marketing and Supply Company met its contractual obligations effectively and if any issues impacted the government's operations or costs.
How does the unit cost of JP8 under this contract compare to prevailing market rates and similar government contracts awarded around the same time?
Comparing the unit cost of JP8 under this contract to prevailing market rates and similar government contracts awarded concurrently is essential for assessing value for money. This analysis would involve examining industry price indices for aviation fuel and reviewing data from other federal contracts for the same or comparable products. A favorable comparison would indicate effective price negotiation and competitive sourcing, while a higher cost might suggest potential inefficiencies or market disadvantages.
Industry Classification
NAICS: Manufacturing › Petroleum and Coal Products Manufacturing › Petroleum Refineries
Product/Service Code: FUELS, LUBRICANTS, OILS, WAXES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: SP060011R0061
Offers Received: 24
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 1209 ORANGE ST, WILMINGTON, DE, 00
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $80,851,234
Exercised Options: $80,851,234
Current Obligation: $80,851,234
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP060012D0547
IDV Type: IDC
Timeline
Start Date: 2011-12-20
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2012-04-12
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