While there are some contracts issued throughout the year, the US military typically issues large sets of contracts over concentrated periods. In March 2006, for instance, DID covered over $3 billion in contracts issued within a week. The Defense Energy Support Center estimates that the US military paid more than $10 billion for over 130 million barrels of fuel in 2006, compared to $6.7 billion for 144.8 million barrels in 2004. No wonder energy conservation is on the Pentagon’s agenda, while DARPA researches alternative fuels for B-52 bombers.
It would appear to be that time of year again. Here are all of the American military’s fuel contracts for March 2009, along with descriptions of key fuel types and explanations of the contract language. The final tally was $5,693,595,745 – plus any economic price adjustments, a term we explain below.
TJ Drafting and Design, Inc. in Christmas FL received an estimated $20.9 million firm-fixed-price contract from the Marine Corps System Command, Orlando, FL, to advance the training capability, operational readiness, and tactical proficiency of Joint Terminal Attack Controllers (JTACs), Joint Forward Observers (JFOs), and Forward Air Controllers (FACs). Demands for air support remain high in the current war, and widespread proficiency in these skills is essential for effective combined arms operations.
The training scenarios will require the placement of tactical ordnance on selected targets using Joint Close Air Support (JCAS) procedures and observed fire procedures for Naval Surface Fire Support (NSFS), artillery and mortar fire to perform destruction, neutralization, suppression, illumination/coordinated illumination, interdiction, and harassment fire missions. Work will be performed at multiple Marine Corp bases worldwide, and work is expected to be complete on August 31/11. Contract funds in the amount of $12.3 million will expire at the end of the current fiscal year. This contract was competitively procured, with 4 offers received (M67854-09-C-8031).
Small business qualifier RBC, Inc. in Alexandria, VA received a $13.3 million modification to a previously awarded cost plus fixed fee contract (N00421-09-C-0034). It exercises an option to continue program management, research, design, development, engineering, procurement, test and evaluation, training facilities and equipment, and repair and modification support services to support the Maritime Surveillance Aircraft Program (PMA-290). That program covers P-3 and future P-8A aircraft operated by the U.S. Navy ($7.3 million; 79.4%), and by the governments of Taiwan ($1.5 million, 16.4%), Norway (171,100, 1.8%), South Korea ($135,000, 1.5%) and Portugal ($83,500, 0.9%). Note that Taiwan is a new P-3 customer.
Work will be performed in Patuxent River, MD. The DefenseLINK release gives a completion date of September 2009, but the RBC, Inc. site gives a period of March 1/09 – Nov 17/09. This will reportedly allow RBC to continue supporting PMA-290 without a lapse of service until the next, competed contract is issued. The Naval Air Systems Command, Patuxent River, MD manages this contract.
