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Valero Marketing & Supply Co. in San Antonio, TX won a maximum $118 million fixed price with economic price adjustment, indefinite-delivery/ indefinite-quantity contract for aviation turbine fuel to an undisclosed foreign customer under the Foreign Military Sales (FMS) program.

Valero has previously supplied fuel to Israel under FMS. On July 3/08, Valero won a maximum $46 million contract to supply fuel to the Israeli government.

According to Robert Bryce at Salon.com, Israel has received over 500 million gallons of refined oil products, worth about $1.1 billion, through the FMS program since 2004.

According to documents Bryce obtained through the Freedom of Information Act, between 2004 and 2007 the US Department of Defense provided $818 million worth of fuel to the Israeli military. The total amount was 479 million gallons, the equivalent of about 66 gallons per Israeli citizen. In 2008, an additional $280 million in fuel was provided to the Israeli military.

Bryce charges that this fuel was supplied to Israel at US taxpayer expense. According to the Defense Logistics Agency, however, sales under the FMS program are fully paid for by the foreign government involved. The DLA’s Foreign Military Sales Handbook says:

“FMS is a nonappropriated program through which eligible foreign governments purchase defense articles, services, and training from the U.S. Government (USG). The purchasing government pays all costs that may be associated with a sale.”

The original proposal for the fuel contract was web solicited with 2 responses. The date of performance completion is Oct 31/10. The contracting activity is the Defense Energy Support Center in Fort Belvoir, VA (SPO600-10-D-0460).