US Purchases Up To $1.66B in Fuel Contracts
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The Defense Energy Support Center at Fort Belvoir, VA recently issued $1.66 billion in fixed price with economic price adjustment contracts for JP5 and JP8 Turbine Fuel. JP5 and JP8 are used in many jet engines. JP8 has also been used to fuel many US Army vehicles under the Single Fuel Concept; this March-April 2005 Army Logistician article notes some of the successes and difficulties with that concept to date.
These are 12-month indefinite delivery, indefinite quantity type contracts with a 30-day carry over period. The performance completion date is Oct. 30, 2006. There were 64 proposals solicited and 17 responded. DID will begin by clarifying the differences between the three fuel types, then offer contracts and amounts…
The Fuel Types
Information in this section is taken from the US Coast Guard’s Propulsion Fuel Guide, and the US Army Center for Health Promotion and Preventive Medicine. Both documents are in PDF format.
JP-5 (also known as F-44) & JP-8. is procured to MIL-DTL-5624T. JP-5 is a very clean burning fuel with very strict quality requirements – especially with regard to water and particulate content. Because it’s an aviation fuel, it includes a Fuel System Icing Inhibitor (FSII) additive. JP-5 is inherently stable; it does not form oxygenated sludge. Gas turbine maintenance (particularly when associated with combustor cans) is reduced when burning JP-5. The downsides are that JP-5 tends to be more expensive; its energy content is lower than F-76 type fuel; and it may have lower viscosity and/or lubricity characteristics. The lower energy content means higher fuel consumption rates. Lower viscosity and lubricity may cause wear-type problems in diesel engine injection pumps.
JP-5 is used in US Navy aircraft. It has a high flash point, which means it doesn’t vaporize until it reaches about 130 degrees F or so. This makes it ideally suited for storage aboard ship where low flammability is desired. JP-8, which contains even less benzene than JP-5and so is thicker, is used by the US Army and Air Force. It is actually the same as commercial jet fuel (Jet Fuel A), but has different additives. Shipboard fire safety concerns have prevented carrier-based aircraft from making the switch.
F-76 is procured to MIL-F-16884J. It is suitable for use in both gas turbines and diesel engines. F-76 burned in Paxman engines however, must have a minimum Cetane Number of 45 (the F-76 specification allows a minimum Cetane Number of 42). It has numerous and very strict quality requirements – including a rigorous storage stability test. Because no commercial fuel products come with a similar storage stability “guarantee,” all commercial fuel must be periodically rotated onboard ship so it’s consumed before any potential stability problem can occur. F-76 is generally found on Naval bases or oiler ships only.
The Contracts
- Small business qualifier Paramount Petroleum Corp. in Paramount, CA won a maximum $61.2 million contract for JP8 Turbine Fuel (SP0600-5-D-0509).
- Valero Marketing and Supply Co. in San Antonio, TX won a maximum $231.4 million contract for JP5 Turbine Fuel. Work will be performed in Benicia, CA (SP0600-5-D-0510).
- Sinclair Oil Corp. in Salt Lake City, UT won a maximum $41.4 million contract for JP8 Turbine Fuel. Work will be performed in Sinclair, WY (SP0600-5-D-0511).
- Small business qualifier Montana Refining Co. in Dallas, TX won a maximum $6 million contract for JP8 Turbine Fuel. Work will be performed in Great Falls, MT (SP0600-5-D-0512).
- Small business qualifier Navajo Refining Co. in Dallas, TX, won a maximum $129.5 million contract for JP8 Turbine Fuel. Work will be performed in Dallas, TX, El Paso, TX; Moriarty, NM; and Roswell, NM (SP0600-5-D-0513).
- Tesoro Refining and Marketing Co. in San Antonio, Texas, won a maximum $135.7 million contract for JP8 Jet Fuel. Work will be performed in Kapolei, HI (SP0600-5-D-0516).
- BP West Coast Products LLC in La Palma, CA won a maximum $587.8 million contract for JP8 Turbine Fuel and F-76 Fuel. Work will be performed in La Palma, CA and Ferndale, WA (SP0600-5-D-0517).
- Small business qualifier U.S. Oil and Refining in Tacoma, WA won a maximum $100.4 million contract for JP8 Turbine Fuel (SP0600-5-D-0517) [DID note: the contract numbers were the same on both DoD DefenseLink releases].
- Shell Oil Products U.S. in Houston, TX won a maximum $205.6 million contract for JP8 Turbine Fuel. Work will be performed in Martinez, CA (SP0600-5-D-0518).
- CHEVRONTEXACO Global Aviation in San Ramon, CA won a maximum $61.8 million contract for JP8 Turbine Fuel (SP0600-5-D-0519).
- Small business qualifier Western Refining Co., LP in El Paso, TX won a maximum $98.7 million contract for JP8 Turbine Fuel (SP0600-5-D-0520).
- Small business qualifier Petro Star Inc. in Anchorage, AK won a maximum $141.1 million contract for JP8 and JP5 Jet Fuel. Work will be performed in Anchorage, AK, North Pole and Valdez, AK. Proposals were Web-solicited and 22 responded; the performance completion date for this contract is April 30, 2006. The Defense Energy Support Center at Fort Belvoir, VA issued the contract (SP0600-5-D-0483).

