DoD awards $87.9M contract for POL tank maintenance at Diego Garcia, spanning over 5 years
Contract Overview
Contract Amount: $87,876,340 ($87.9M)
Contractor: Weston Solutions Inc
Awarding Agency: Department of Defense
Start Date: 2025-09-11
End Date: 2030-03-08
Contract Duration: 1,639 days
Daily Burn Rate: $53.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION SERVICES TO PERFORM CLEANING, INSPECTION, AND REPAIRS ON SIX (6) PETROLEUM, OIL AND LUBRICANT (POL) TANKS (1, 5, 11, 31, 32, AND 102) AT DEFENSE FUEL SUPPORT POINT (DFSP) DIEGO GARCIA (DGO).
Plain-Language Summary
Department of Defense obligated $87.9 million to WESTON SOLUTIONS INC for work described as: CONSTRUCTION SERVICES TO PERFORM CLEANING, INSPECTION, AND REPAIRS ON SIX (6) PETROLEUM, OIL AND LUBRICANT (POL) TANKS (1, 5, 11, 31, 32, AND 102) AT DEFENSE FUEL SUPPORT POINT (DFSP) DIEGO GARCIA (DGO). Key points: 1. Contract value appears substantial for specialized tank maintenance services. 2. Competition dynamics for this contract are crucial for ensuring fair pricing. 3. Geographic isolation of Diego Garcia may present logistical and cost risks. 4. Long-term nature of the contract suggests a sustained need for these services. 5. The firm-fixed-price structure shifts performance risk to the contractor. 6. This contract supports critical fuel infrastructure for DoD operations.
Value Assessment
Rating: good
The contract value of $87.9 million for five years of POL tank maintenance is significant. Benchmarking against similar specialized infrastructure maintenance contracts is challenging due to the unique location and scope. However, the firm-fixed-price nature suggests that the contractor has priced in all anticipated costs and risks. Further analysis would require comparing unit costs for specific services (e.g., per tank inspection, per repair hour) against industry standards and historical data for similar work, if available.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. This approach is generally favorable for price discovery and ensuring the government receives competitive offers. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition and its impact on the final price.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces, leading to better value for money on this essential infrastructure service.
Public Impact
This contract directly supports the operational readiness of the Department of Defense by ensuring the integrity of critical fuel storage facilities. Personnel at Defense Fuel Support Point (DFSP) Diego Garcia will benefit from reliable fuel supply chains. The services provided ensure the safe and efficient storage of petroleum, oil, and lubricants, vital for military operations in the Indo-Pacific region. The contract's duration implies a stable demand for specialized construction and maintenance services in this sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to the remote and challenging logistics of Diego Garcia.
- Risk of schedule delays impacting fuel supply chain operations if unforeseen issues arise.
- Dependence on a single contractor for critical infrastructure maintenance over a long period.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process.
- Firm-fixed-price contract type allocates risk to the contractor.
- Long-term contract provides stability and predictability for essential services.
Sector Analysis
This contract falls within the Construction Services sector, specifically related to industrial facilities and infrastructure maintenance. The market for specialized tank cleaning, inspection, and repair is competitive, with a focus on safety, environmental compliance, and technical expertise. Spending on maintaining critical infrastructure like POL tanks is a consistent requirement for defense and energy sectors, often involving significant capital investment and specialized labor.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While large prime contractors like Weston Solutions Inc. may utilize small business subcontractors, the primary awardee is a large business. Further investigation into subcontracting plans would be needed to assess the direct impact on the small business ecosystem for this specific contract.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Navy contracting and technical officers responsible for DFSP Diego Garcia. The firm-fixed-price nature provides a degree of accountability by tying payment to performance. Transparency is generally maintained through contract award databases, but detailed performance metrics and inspection reports may not be publicly available. Inspector General involvement would typically be triggered by allegations of fraud, waste, or abuse.
Related Government Programs
- Defense Fuel Support Points (DFSP) Operations
- Petroleum, Oil, and Lubricant (POL) Storage and Handling
- Naval Facilities Engineering Command (NAVFAC) Contracts
- Construction and Maintenance Services for Military Installations
- Indo-Pacific Region Defense Infrastructure
Risk Flags
- Geographic Isolation Risk
- Logistical Complexity
- Environmental Sensitivity
- Long-Term Contractor Dependence
Tags
construction, defense, department-of-defense, department-of-the-navy, diego-garcia, firm-fixed-price, full-and-open-competition, infrastructure-maintenance, oil-and-gas-pipeline-construction, petroleum-oil-lubricant-tanks, remote-location, weston-solutions-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $87.9 million to WESTON SOLUTIONS INC. CONSTRUCTION SERVICES TO PERFORM CLEANING, INSPECTION, AND REPAIRS ON SIX (6) PETROLEUM, OIL AND LUBRICANT (POL) TANKS (1, 5, 11, 31, 32, AND 102) AT DEFENSE FUEL SUPPORT POINT (DFSP) DIEGO GARCIA (DGO).
Who is the contractor on this award?
The obligated recipient is WESTON SOLUTIONS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $87.9 million.
What is the period of performance?
Start: 2025-09-11. End: 2030-03-08.
What is the track record of Weston Solutions Inc. in performing similar POL tank maintenance contracts for the Department of Defense?
Weston Solutions Inc. has a history of performing environmental, construction, and engineering services for the Department of Defense. While specific details on their past performance with POL tank maintenance at remote locations like Diego Garcia require deeper database searches, their extensive experience with large-scale federal projects suggests a capability to handle complex infrastructure work. Reviewing their past performance evaluations and any contract disputes or awards related to similar services would provide a clearer picture of their reliability and expertise in this niche area. Their ability to secure this significant contract indicates a positive assessment of their qualifications by the awarding agency.
How does the awarded price compare to industry benchmarks for POL tank maintenance, considering the remote location?
Directly comparing the $87.9 million contract value to industry benchmarks for POL tank maintenance is challenging without specific, granular cost data for the services rendered (e.g., per-gallon cleaning, per-linear-foot repair). The remote location of Diego Garcia significantly increases logistical costs, potentially inflating the overall price compared to mainland U.S. operations. While the firm-fixed-price structure implies the contractor has accounted for these costs, a detailed analysis would involve breaking down the contract into unit prices for specific tasks and comparing those against publicly available cost data for similar specialized industrial maintenance, adjusted for geographic premiums. The absence of readily available comparable data suggests this contract may represent a unique cost scenario.
What are the primary risks associated with performing maintenance on POL tanks in a remote island environment like Diego Garcia?
Performing maintenance on POL tanks in a remote island environment like Diego Garcia presents several significant risks. Logistical challenges are paramount, including the transportation of specialized equipment, materials, and personnel, which can lead to delays and increased costs. Environmental factors, such as tropical weather conditions (storms, humidity), can impact work schedules and the longevity of repairs. Furthermore, the isolation may limit the availability of local skilled labor and emergency response services, potentially exacerbating the impact of any incidents. Ensuring compliance with stringent environmental regulations in such a sensitive ecosystem also adds complexity. The contractor must meticulously plan for these factors to mitigate potential cost overruns and schedule slippages.
What is the expected impact of this contract on the operational readiness of DFSP Diego Garcia?
This contract is critical for maintaining the operational readiness of DFSP Diego Garcia. The six POL tanks covered are essential for storing and distributing fuel, which is a vital resource for naval and other military operations in the Indo-Pacific region. By ensuring these tanks are clean, inspected, and in good repair, the contract directly supports the reliable supply of fuel. This prevents potential disruptions to military exercises, deployments, and day-to-day operations that depend on a consistent fuel source. The five-year duration suggests a commitment to sustained readiness for this key infrastructure.
How has spending on POL tank maintenance at DFSP Diego Garcia trended over the past five years?
Historical spending data specifically for POL tank maintenance at DFSP Diego Garcia over the past five years is not directly provided in the summary data. However, the award of this $87.9 million, five-year contract indicates a significant and ongoing requirement for these services. To understand historical trends, one would need to access contract databases to identify previous awards for similar maintenance, repair, or construction services at this specific facility. Analyzing the frequency, value, and duration of past contracts would reveal patterns in spending and potentially highlight any increases or decreases in maintenance needs or costs over time.
What are the specific types of repairs anticipated under this contract, and how are they prioritized?
The contract specifies 'cleaning, inspection, and repairs' for six POL tanks. The 'repairs' component is broad and could encompass a range of activities, from minor patching of corrosion to more significant structural interventions, depending on the findings of the inspections. The prioritization of repairs would typically be determined by the severity of identified issues, potential risks to safety and environmental integrity, and their impact on the tank's capacity and functionality. The contract likely outlines a process for the government to approve proposed repairs based on inspection reports, with critical safety and operational issues taking precedence.
Industry Classification
NAICS: Construction › Utility System Construction › Oil and Gas Pipeline and Related Structures Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Weston Solutions Holdings Inc
Address: 1400 WESTON WAY, WEST CHESTER, PA, 19380
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $87,876,340
Exercised Options: $87,876,340
Current Obligation: $87,876,340
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $3,785,832
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N3943020D2227
IDV Type: IDC
Timeline
Start Date: 2025-09-11
Current End Date: 2030-03-08
Potential End Date: 2030-03-08 00:00:00
Last Modified: 2025-09-11
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