Indefinite Delivery Contract SPE60726D0032

Avfuel Corp, a for-profit Subchapter S Corporation headquartered in Ann Arbor, Michigan, was awarded a single-award Indefinite Delivery Contract (IDC number 4610122422) by the Defense Logistics Agency (DLA) Energy, a component of the Department of Defense, effective October 1, 2025, through March 31, 2029. The contract carries a ceiling value of $5,563,055.43 and was awarded without set-aside designations through competitive procurement. Under this IDC, Avfuel Corp will provide aviation turbine fuel, specifically Jet A-grade jet propulsion fuel, to support military aircraft operations. The contract framework enables DLA Energy to issue multiple delivery orders for various aviation turbine fuels including JP5, Jet A, JA1, and naval distillate (F76) to Department of Defense activities and Federal Civilian agencies at commercial airports across eleven western states and territories: Alaska, American Samoa, California, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington, and Wyoming. Performance will be conducted at Avfuel Corp's Ann Arbor, Michigan location, with approximately 74 different airport locations receiving deliveries.

The underlying solicitation (SPE607-25-R-0204) required offerors to demonstrate technical acceptability through Certificates of Analysis or Quality and to provide 24/7 delivery capabilities with electronic point-of-sale systems compliant with military fuel quality standards (MIL-STD-1548H for into-plane servicing). Delivery order pricing incorporates Platt's 5-day average price escalator mechanisms with allowances for weekly market-based adjustments up to 350-550 percent of award pricing, reflecting the volatile nature of petroleum fuel markets. This award represents DLA Energy's continued reliance on Avfuel Corp as a strategic supplier, expanding upon the contractor's existing IDC portfolio with the agency, which includes contracts valued at $41.3 million and $10.4 million. The substantial procurement opportunity encompasses fuel quantities ranging from 4,000 to over 18 million units per location, with evaluation conducted using Lowest Price Technically Acceptable (LPTA) methodology and separate awards made for each airport location.