DoD's $25.5M Aviation Turbine Fuel Contract Awarded to BP Products North America Inc

Contract Overview

Contract Amount: $25,499,063 ($25.5M)

Contractor: BP Products North America Inc.

Awarding Agency: Department of Defense

Start Date: 2019-05-31

End Date: 2019-06-28

Contract Duration: 28 days

Daily Burn Rate: $910.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: 8506575878!TURBINE FUEL,AVIATION

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60606

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $25.5 million to BP PRODUCTS NORTH AMERICA INC. for work described as: 8506575878!TURBINE FUEL,AVIATION Key points: 1. Significant contract value of $25.5 million for aviation fuel. 2. BP Products North America Inc. secured the award. 3. Full and open competition was utilized. 4. The contract falls under the Petroleum Refineries sector.

Value Assessment

Rating: good

The contract value of $25.5 million appears reasonable for aviation turbine fuel, especially considering it was awarded under full and open competition. Benchmarking against similar contracts would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust price discovery process. This method allows multiple qualified vendors to bid, typically leading to more competitive pricing for the government.

Taxpayer Impact: The competitive nature of this award likely resulted in favorable pricing, maximizing the value of taxpayer dollars spent on essential aviation fuel.

Public Impact

Ensures a steady supply of critical aviation fuel for Department of Defense operations. Supports national security by maintaining readiness of military aircraft. The award benefits a major energy company, contributing to economic activity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition utilized
Clear contract type (firm fixed price)
Defined delivery period

Sector Analysis

This contract falls within the Petroleum Refineries sector (NAICS 324110), which involves the processing of crude oil into refined products. Spending in this sector is crucial for energy security and military operations.

Small Business Impact

The data does not indicate any specific involvement or benefit to small businesses in this particular contract award. Further analysis would be needed to determine if subcontracting opportunities were available or utilized.

Oversight & Accountability

The contract was awarded by the Defense Logistics Agency, a key component of the DoD responsible for logistics support. Oversight would involve ensuring timely delivery and adherence to contract specifications.

Related Government Programs

Petroleum Refineries
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Lack of specific volume data
Unclear meaning of 'br' value
Potential for market volatility impacting price

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.5 million to BP PRODUCTS NORTH AMERICA INC.. 8506575878!TURBINE FUEL,AVIATION

Who is the contractor on this award?

The obligated recipient is BP PRODUCTS NORTH AMERICA INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $25.5 million.

What is the period of performance?

Start: 2019-05-31. End: 2019-06-28.

What was the specific volume of fuel procured under this contract?

The provided data does not specify the exact volume of aviation turbine fuel procured. The contract value is $25,499,063.30, and the duration was 28 days. To determine volume, one would need the price per unit or gallon at the time of award.

Were there any significant price fluctuations or market volatility that could have impacted the final award price?

While the data doesn't detail market conditions, aviation fuel prices are subject to global oil market volatility. The firm fixed price contract suggests BP Products North America Inc. assumed the risk of price fluctuations during the contract period.

How does the awarded price compare to the government's estimated cost or budget for this procurement?

The provided data includes a 'br' (bid received?) value of 910681, which is significantly lower than the award amount. Without knowing what 'br' represents (e.g., estimated cost, a specific bid), a direct comparison is not possible. Further information is needed to assess if the award was within budget.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BP P.L.C. (UEI: 210042669)

Address: 30 S WACKER DR STE 900, CHICAGO, IL, 60606

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $25,499,063

Exercised Options: $25,499,063

Current Obligation: $25,499,063

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE60218D0451

IDV Type: IDC

Timeline