http://worldcat.org/entity/work/id/195738237

Department of Defense fuel spending, supply, acquisition, and policy

The Department of Defense (DOD) consumes up to 1% of the petroleum products refined in the United States annually. Foreign purchased petroleum products may increase DOD's consumption by a third or more. In FY1997 fuel represented 1.2% of the total DOD budget authority, and by FY2007 fuel represented 1.9%. While the total defense budget authority increased 233% over the period of FY1997-FY2007 (in current dollars), fuel costs increased 373%. DOD's fuel consumption varies from year to year in response to changes in mission and the tempo of operations. The majority of DOD's bulk fuel purchases are for JP-8 jet fuel, which has ranged from 60 to 74 million barrels annually over the past decade (the equivalent of 165,000 to 200,000 barrels per day). In practice, DESC has typically awarded fuel contracts for lengths of one year. DESC uses fixed-price contracts with economic price adjustment which provide for upward and downward revision of the stated contract price upon the occurrence of specified contingencies. DESC has determined that supplies and related services are eligible for the multi-year contracting provisions under the Federal Acquisition Regulation, and has adopted contracting instructions for entering into multiyear contracts. DESC's contract delivery price is based on lowest cost to the government FOB (free-on-board), and has not included the logistical cost of delivering fuel to the area of operations. New requirements have been established for taking fuel logistics into consideration in the acquisition processes for new military capabilities.

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