You can’t make this stuff up. The Defense Logistics Agency signs some fuel contracts – this is one of them.
Freeman Holdings of Louisiana, LLC, dba Million Air*, Lake Charles, La., is being awarded a maximum $18,702,327 fixed-price with economic price adjustment contract for fuel. Other location of performance is Chennault International Air port, La. Using services are Army, Navy, Air Force, Marine Corps and federal civilian agencies. There were originally 115 proposals solicited with one response. The date of performance completion is March 31, 2015. The Defense Logistics Agency Energy, Fort Belvoir, Va., is the contracting activity (SP0600-11-D-0118).
“Million Air” is a real company. They have been selling fuel to the Defense Department agencies (primarily DLA) for years. Most of their contracts are long term and double digit millions of dollars. They are independent dba in several states. I have seen them at FBO in Yuma, Victoville, and in Washington state. I believe that they are in Kansas and New Yorrk also. Of note is the contract type and the bidders. Why one bidder out of 115 solicited? What did 114 know? Not a single major oil / fuel company responded? And, that contract type – firm fixed price means just that. I agree to a price and I bear all risks of non – performance. But, Million Airn gets that price adjusted for fluctuations in fuel prices, and that’s daily. In all liklihood the price will not be going down and Freeman wont be liosing money.