Indefinite Delivery Contract SPE60726D0006

Freeman Holdings of Hawaii, LLC, a certified small disadvantaged business and veteran-owned enterprise operating as Million Air Honolulu, was awarded a single-award Indefinite Delivery Contract by the Defense Logistics Agency Energy valued at $86.69 million with an ultimate completion date of March 31, 2029. The contract authorizes Freeman Holdings to supply aviation turbine fuel, specifically Jet Aviation Fuel Grade A, to support Department of Defense military aviation operations across eleven western U.S. states and territories including Alaska, Hawaii, California, Idaho, Montana, Nevada, Oregon, Utah, Washington, and Wyoming. The contract structure enables DLA Energy to issue multiple fixed-price delivery orders with economic price adjustment mechanisms, providing the Department of Defense with flexible procurement authority to respond to fluctuating operational fuel requirements while maintaining market-responsive pricing. The place of performance is specified as Cape Oral, Florida, and the contract was awarded on April 1, 2026, with no small business set-aside designation utilized despite the contractor's eligibility.

The underlying solicitation (SPE607-25-R-0204) sought comprehensive into-plane fuel delivery services across approximately 74 airport locations, with contractors required to provide 24/7 delivery capabilities, electronic point-of-sale systems, and compliance with military fuel quality standards including MIL-STD-1548H for into-plane servicing. DLA Energy evaluated proposals using a Lowest Price Technically Acceptable methodology, with separate awards intended for each airport location. The solicitation established a three-year period of performance from April 1, 2026, through March 31, 2029, and incorporated pricing mechanisms based on Platt's 5-day average price escalator with weekly market-based adjustment allowances of 350-550 percent of the award price, accommodating volatility in petroleum fuel markets. The procurement covered fuel delivery quantities ranging substantially across locations, from 4,000 to over 18 million units, demonstrating variable operational requirements across the Department of Defense's western region aviation operations.