Valero Marketing And Supply Co

Valero Marketing And Supply Co, a division of Valero Energy Corporation, is a major independent petroleum refiner and marketer supplying aviation turbine fuel, naval distillate fuel, and diesel fuel to the Department of Defense as a prime contractor, competing in full and open competition without set-asides. The company operates from San Antonio, Texas (78249), as a for-profit manufacturer classified under NAICS 324110 (Petroleum Refineries) and PSC 9130 (Liquid Propellants and Fuels, Petroleum Base).

Valero's federal footprint is overwhelmingly dominated by Defense Logistics Agency Energy (DLA Energy), which accounts for 1,638 awards valued at $22.09 billion of the $34.14 billion combined potential value across the vendor's 1,814 prime awards. The second-largest customer is the Department of the Army Materiel Command Security Assistance Command with 111 awards valued at $9.75 billion, reflecting substantial Foreign Military Sales fuel deliveries. DLA Energy and Army SAC together represent 94 percent of combined potential value. The remaining customer base—DLA, Air Force, and Justice Department—accounts for negligible activity.

Valero's concrete capability centers on large-volume military fuel logistics: aviation turbine fuel in military-grade specifications (JP-8, JP-5, JAA, JA1), naval distillate fuel (F-76), and diesel fuel. Representative recent delivery orders include a $33.6 million aviation turbine fuel order awarded August 12, 2025, under the Inland/East/Gulf Coast/Offshore IDV; a $78.9 million naval distillate fuel order dated March 31, 2026; and a $24.3 million naval distillate fuel order from July 11, 2025. All delivery orders use fixed-price structures with economic price adjustment to account for petroleum market volatility. Annual delivery quantities under active IDVs range from 15,000 gallons to 785.4 million gallons depending on the contract vehicle and geographic region.

Valero holds five major indefinite delivery contracts with DLA Energy, with combined potential value exceeding $2.7 billion through 2027. The Inland/East/Gulf Coast/Offshore Program (4610120319) carries a $530.6 million ceiling through April 30, 2026, and has generated 140 task orders valued at $384.2 million. The Rocky Mountain/West Coast/Offshore Program (4610126482) holds a $398.6 million ceiling through September 30, 2026. A single-award Security Assistance Command contract (SP06225R077) valued at $804.3 billion covers Foreign Military Sales deliveries of JP8 and EN590 diesel through January 31, 2027, with base-year requirements of 56 million gallons of JP8 and 28 million gallons of EN590, plus three one-year option periods. Additional legacy IDVs (SPE60223D0494, SPE60222D0489, SPE60218D0488, SPE60221D0487, SPE60220D0492) collectively support hundreds of millions in task order activity.

Activity has remained consistent at 140–196 awards annually over the past five years (2022–2025), with 35 awards recorded through mid-April 2026, indicating continued high-volume ordering. Delivery orders typically complete within 14–90 days of award, reflecting the time-sensitive nature of military fuel supply operations. No recompete cliff materializes in the next 24 months; major IDVs have ultimate completion dates ranging from April 2026 through January 2027, positioning renewal activity as a 2026–2027 event.

Valero competes exclusively as a prime contractor, with zero recorded sub-award activity in the source. The company's contract structure reflects its role as a critical logistics provider embedded directly in DLA Energy's fuel supply chain rather than as a component of larger system integrators. Valero's parent company, Valero Energy Corporation, is a substantial independent refiner with domestic refining capacity positioned to meet high-volume, consistent delivery demands. The division's competitive posture in full and open competition, absence of small business set-asides, and billion-dollar IDV ceilings underscore its scale and established role as the federal government's primary turbine and distillate fuel supplier for military operations worldwide.