Pentagon Fills Up, Buys $5.04 Billion Worth of Aviation Fuel

After taking a brief break from awarding defense contracts Tuesday, the Department of Defense got back to the business of handing out contracts Wednesday -- with a vengeance. Over the course of 22 separate defense contract announcements, the Pentagon awarded well more than $5.18 billion in new work -- and 97% of these funds went solely to purchase fuel for its aircraft.

The day's biggest contracts -- $3.28 billion of the total amounts awarded -- went to mega-oil companies ExxonMobil, Royal Dutch Shell, and Valero (NYSE: VLO  ) . But smaller oil firms weren't entirely left out in the cold, either. Here are a few of the other winners:

  • Phillips 66 (NYSE: PSX  ) : awarded a fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract to supply the Defense Logistics Agency with up to $292 million worth of aviation turbine fuel through April 30, 2015.
  • Calumet Specialty Products Partners LP (NASDAQ: CLMT  ) : awarded a similar contract worth up to $189.7 million.
  • Alon USA Energy (NYSE: ALJ  ) : $159.6 million.
  • Tesoro (NYSE: TSO  ) : $89.6 million.

All four contracts -- indeed, all of the 16 separate fuel supply contracts awarded Wednesday -- purchased aviation turbine fuel with the same April 30, 2015, termination date, all destined for the Defense Logistics Agency.


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