Indefinite Delivery Contract SPE60220D0498

The Defense Logistics Agency Energy awarded Chevron USA Inc. an indefinite delivery indefinite quantity contract to supply bulk petroleum products to locations in the Rocky Mountain West, West Coast and Offshore regions. Task orders issued against the contract procure aviation turbine fuels including JP8, JP5, Jet A and JA1 as well as Naval Distillate F76, to specifications, for delivery to facilities in San Ramon, California. The estimated total value of fuel to be ordered over the one year base period of performance from October 2020 to September 2021 is $62.4 million. Individual delivery orders range in value from approximately $24,000 to $6.6 million. The contract utilizes fixed pricing with economic price adjustments and was partially set aside for small businesses. As the Defense Logistics Agency Energy supports fuel procurement for the Department of Defense, this contract aims to provide reliable supplies of aviation and marine fuels to power military aircraft and vessels engaged in training and operations worldwide.

The originating solicitation sought market research to identify suppliers capable of meeting the agency's quality, quantity and delivery requirements for the annual bulk fuel order. Responses were requested by December 2019 to inform the determination of whether to competitively solicit an estimated $25-50 million contract for the Rocky Mountain West, West Coast and Offshore regions' turbine fuel needs between October 2020 and September 2021. Chevron USA Inc. was ultimately awarded the single award, indefinite delivery contract in July 2020 to fulfill these fuel requirements over the following year through placement of delivery orders against the contract.