DOE awards $23M for COCO storage services to Buckeye Terminals, LLC
Contract Overview
Contract Amount: $22,968,000 ($23.0M)
Contractor: Buckeye Terminals, LLC
Awarding Agency: Department of Energy
Start Date: 2016-04-01
End Date: 2020-03-31
Contract Duration: 1,460 days
Daily Burn Rate: $15.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF!CONTRACTOR-OWNED, CONTRACTOR-OPERATED (COCO) STORAGE SERVICES IN ACCORDANCE WITH THE NORTHEAST HOME HEATING OIL RESERVE AT PORT READING, NJ AND GROTON, CT.
Place of Performance
Location: PORT READING, MIDDLESEX County, NEW JERSEY, 07064
Plain-Language Summary
Department of Energy obligated $23.0 million to BUCKEYE TERMINALS, LLC for work described as: IGF::OT::IGF!CONTRACTOR-OWNED, CONTRACTOR-OPERATED (COCO) STORAGE SERVICES IN ACCORDANCE WITH THE NORTHEAST HOME HEATING OIL RESERVE AT PORT READING, NJ AND GROTON, CT. Key points: 1. Contract value of $22.97M for warehousing and storage services. 2. Competition was full and open, indicating a competitive bidding process. 3. Risk appears moderate given the fixed-price contract and defined scope. 4. Sector is Other Warehousing and Storage, with a NAICS code of 493190.
Value Assessment
Rating: good
The contract value of $22.97M for 1460 days appears reasonable for COCO storage services. Benchmarking against similar contracts is difficult without more specific service details, but the firm fixed-price structure suggests predictable costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bidders participated. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The firm fixed-price contract aims to control costs, and the competitive award process should ensure taxpayer funds are used efficiently for essential storage services.
Public Impact
Ensures critical fuel storage capacity for the Northeast Home Heating Oil Reserve. Supports energy security and stability for the region. Provides essential infrastructure maintenance and operational services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases if fuel volumes fluctuate significantly beyond estimates.
- Dependence on a single contractor for critical infrastructure.
Positive Signals
- Firm fixed-price contract limits cost overruns.
- Full and open competition promotes market efficiency.
- Supports national energy security objectives.
Sector Analysis
This contract falls within the Other Warehousing and Storage sector, specifically related to energy reserves. Spending in this sector can vary based on national security needs and commodity storage requirements.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Department of Energy is responsible for overseeing this contract. Standard contract management practices should ensure performance and accountability.
Related Government Programs
- Other Warehousing and Storage
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Contract duration is substantial (1460 days).
- Single awardee for critical infrastructure.
- Potential for price escalation if market conditions change significantly.
- Dependence on contractor's operational capabilities.
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 $23.0 million to BUCKEYE TERMINALS, LLC. IGF::OT::IGF!CONTRACTOR-OWNED, CONTRACTOR-OPERATED (COCO) STORAGE SERVICES IN ACCORDANCE WITH THE NORTHEAST HOME HEATING OIL RESERVE AT PORT READING, NJ AND GROTON, CT.
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 $23.0 million.
What is the period of performance?
Start: 2016-04-01. End: 2020-03-31.
What is the benchmark cost per unit for COCO storage services in similar government contracts?
Benchmarking the per-unit cost for COCO storage services is challenging without detailed specifications of the storage capacity, types of fuel handled, and specific operational requirements. Government contracts for similar services can range significantly based on location, security protocols, and duration. A thorough analysis would require comparing metrics like cost per barrel or cost per cubic foot against contracts with comparable scope and market conditions.
What are the potential risks associated with the firm fixed-price contract for these storage services?
While a firm fixed-price contract helps control costs, risks include potential contractor underperformance if the price is too low to cover adequate service levels, or conversely, if the price is too high due to lack of precise market understanding. There's also a risk if unforeseen operational challenges arise that significantly increase the contractor's costs, potentially leading to disputes or requests for modification.
How effectively does this contract contribute to the operational readiness of the Northeast Home Heating Oil Reserve?
This contract is crucial for the operational readiness of the Northeast Home Heating Oil Reserve by ensuring the physical storage infrastructure is maintained and operated. Its effectiveness hinges on the contractor's ability to provide reliable, secure, and compliant storage services throughout the contract period, guaranteeing the availability of the reserve when needed.
Industry Classification
NAICS: Transportation and Warehousing › Warehousing and Storage › Other Warehousing and Storage
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: SP060015R5X01
Offers Received: 3
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, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,677,000
Exercised Options: $22,968,000
Current Obligation: $22,968,000
Actual Outlays: $2,709,000
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2016-04-01
Current End Date: 2020-03-31
Potential End Date: 2020-03-31 00:00:00
Last Modified: 2019-04-02
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