DOE Awards $43.7M for COCO Storage Services to Buckeye Terminals, LLC Under Full and Open Competition
Contract Overview
Contract Amount: $43,650,956 ($43.7M)
Contractor: Buckeye Terminals, LLC
Awarding Agency: Department of Energy
Start Date: 2014-06-30
End Date: 2018-12-31
Contract Duration: 1,645 days
Daily Burn Rate: $26.5K/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 IN ACCORDANCE WITH DOE'S REFINED PRODUCT RESERVE
Place of Performance
Location: PORT READING, MIDDLESEX County, NEW JERSEY, 07064
Plain-Language Summary
Department of Energy obligated $43.7 million to BUCKEYE TERMINALS, LLC for work described as: CONTRACTOR-OWNED, CONTRACTOR-OPERATED (COCO), STORAGE SERVICES IN ACCORDANCE WITH DOE'S REFINED PRODUCT RESERVE Key points: 1. The contract value is $43.7 million for storage services. 2. Buckeye Terminals, LLC was awarded the contract. 3. The Department of Energy is the awarding agency. 4. The contract was awarded under full and open competition. 5. The contract duration is over 4 years.
Value Assessment
Rating: good
The contract value of $43.7 million for storage services appears reasonable given the 4-year duration. Benchmarking against similar DOE storage contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing.
Taxpayer Impact: Full and open competition generally ensures taxpayer funds are used efficiently by fostering a competitive environment among potential bidders.
Public Impact
Ensures availability of refined product reserves for national energy security. Supports the Department of Energy's strategic petroleum reserve initiatives. Provides essential logistical support for energy commodities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition
- Clear service requirement (storage)
- Defined contract duration
Sector Analysis
This contract falls under the Warehousing and Storage sector, specifically for refined petroleum products. Spending in this sector is critical for maintaining energy supply chains and national reserves.
Small Business Impact
The data indicates that small businesses were not involved in this contract, as the 'sb' field is false. Further analysis would be needed to determine if opportunities were missed or if the nature of the service precluded small business participation.
Oversight & Accountability
The Department of Energy is responsible for overseeing this contract. Standard oversight mechanisms for federal contracts, including performance monitoring and financial audits, would apply.
Related Government Programs
- Other Warehousing and Storage
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Contractor-Owned, Contractor-Operated (COCO) model may have inherent risks if not managed properly.
- Reliance on a single contractor for critical storage services.
- Potential for price volatility in the energy market impacting long-term value.
- Geographic concentration of services in New Jersey.
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 $43.7 million to BUCKEYE TERMINALS, LLC. CONTRACTOR-OWNED, CONTRACTOR-OPERATED (COCO), STORAGE SERVICES IN ACCORDANCE WITH DOE'S REFINED PRODUCT RESERVE
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 $43.7 million.
What is the period of performance?
Start: 2014-06-30. End: 2018-12-31.
What is the benchmark cost per unit for similar storage services?
Without specific details on the volume and type of refined products stored, a precise per-unit cost benchmark is difficult to establish. However, comparing the total contract value against the duration and known storage capacities of similar facilities within the DOE's network could provide an indicative range. Further data on storage rates for comparable commodities would be necessary for a robust benchmark.
What are the primary risks associated with this COCO storage contract?
Key risks include potential price fluctuations in refined products, operational disruptions at the contractor-owned facility, and ensuring compliance with DOE's stringent storage and handling regulations. Geopolitical events impacting energy markets or supply chain vulnerabilities could also pose risks. The long-term nature of the contract necessitates ongoing monitoring of market conditions and contractor performance.
How effectively does this contract support the DOE's mission regarding refined product reserves?
This contract appears to effectively support the DOE's mission by securing necessary storage capacity for refined product reserves through a competitively awarded agreement. The COCO model leverages private infrastructure, potentially offering cost efficiencies. Ensuring the contractor maintains operational readiness and adheres to all safety and environmental standards is crucial for sustained effectiveness.
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: SP060014R0517
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Buckeye Terminals LLC (UEI: 112569892)
Address: 5002 BUCKEYE RD, EMMAUS, PA, 18049
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $43,650,956
Exercised Options: $43,650,956
Current Obligation: $43,650,956
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2014-06-30
Current End Date: 2018-12-31
Potential End Date: 2018-12-31 00:00:00
Last Modified: 2019-06-21
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