Three Middle Eastern companies won a total of $191.7 million in fixed-price contracts to help meet civilian fuel demand in southern Iraq for a 3 month period starting Apr. 1, the Pentagon said Mar. 16.
The US Department of Defense's Defense Fuel Support Center (DFSC) said Kuwait Petroleum Corp., Safat, Kuwait, won a $79.9 million contract for gasoline and diesel fuel.
The web-based solicitation received 15 offers.
Shaheen Business & Investment Group, Amman, Jordan, received a $71.8 million contract for gasoline and diesel. Solicitation for the bid also garnered 15 offers.
A third, $39.9 million contract was awarded to Altanmia Commercial Marketing Co. WLL, Sharq, Kuwait, for gasoline, kerosine, and diesel fuel. The company was a fuel subcontractor to Halliburton Co.'s KBR unit and as such is under a criminal investigation by the US Department of Justice and the Pentagon for possibly overcharging on an earlier supply contract that is being terminated.
KBR continues to deny any wrongdoing and has its own internal auditors also looking into the allegations.
For this latest contract, Altanmia beat out 18 other proposals; the Pentagon said the company provided the best competitive bid.
DFSC said that Kuwaiti-based Public Warehousing Co. will oversee the new fuel contracts under a separate management contract that extends April-October.
The company also is overseeing northern Iraq fuel contracts announced earlier this month (OGJ Online, Mar. 10, 2004).
