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Defense Fuel Supply Center Procedures for Purchasing Strategic Petroleum Reserve Oil

RCED-84-61 Published: Sep 21, 1984. Publicly Released: Sep 21, 1984.
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Highlights

Pursuant to a congressional request to monitor the development, fill, and operation of the Strategic Petroleum Reserve (SPR), GAO reviewed the Defense Fuel Supply Center's (DFSC) oil purchasing procedures during the period from February 1981 to May 1983.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should instruct the Commander, DFSC, to develop formal guidelines for the contracting officer to use for making exceptions to the DFSC purchase procedures. In particular, the guidelines should allow for consideration of offers for acceptable quality oil that slightly exceed the spot market high price but result in lower per barrel acquisition costs.
Closed – Not Implemented
DOD disagreed with this recommendation from a general policy standpoint and does not expect to take any action.

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Topics

Comparative analysisCost analysisCrude oilDefense procurementEnergy suppliesEvaluation criteriaFederal procurement policyOil resourcesPetroleum pricesBid proposals