Introduction

The Defense Logistics Agency (DLA) is seeking contractors to provide chemicals, packaged petroleum, oil and lubricants (CPOL) in support of all US military, foreign military and non-military customers worldwide. This is a huge opportunity for government contractors who have experience and expertise in supplying CPOL products and services. The contract, known as CHEMPOL, has an estimated value of $1.7 billion and a duration of 10 years. In this article, we will provide an overview of the CHEMPOL contract, its historical background, the RFP description, who should participate, and the challenges that contractors may face.

Historical Background

The CHEMPOL contract is a follow-on to the previous CPOL contracts that DLA awarded in 2013 and 2018. The 2013 contract was a multiple-award, indefinite-delivery/indefinite-quantity (IDIQ) contract with a base period of five years and one five-year option period. The contract had a maximum value of $1.5 billion and was awarded to 12 contractors. The 2018 contract was a single-award, firm-fixed-price (FFP) contract with a base period of one year and four one-year option periods. The contract had a maximum value of $375 million and was awarded to Valero Marketing and Supply Company.

RFP Description

The CHEMPOL contract is a multiple-award, IDIQ contract with a base period of five years and one five-year option period. The contract has a maximum value of $1.7 billion and is expected to be awarded to six contractors. The scope of the contract includes the following CPOL products and services:

  • Aviation fuels
  • Diesel fuels
  • Gasoline
  • Lubricating oils
  • Hydraulic fluids
  • Antifreeze
  • Greases
  • Brake fluids
  • Coolants
  • Solvents
  • Cleaners
  • Degreasers
  • Corrosion inhibitors
  • Paints
  • Coatings
  • Sealants
  • Adhesives

The contractors will be required to provide these products and services to various locations across the world, including the continental United States (CONUS), Alaska, Hawaii, Puerto Rico, Guam, Europe, Africa, Middle East, Pacific, and other locations as specified by the DLA. The contractors will also be responsible for quality assurance, testing, packaging, labeling, transportation, storage, delivery, inventory management, environmental compliance, reporting, invoicing, and customer service.

Who Should Participate

The CHEMPOL contract is open to all qualified government contractors who have the capability and capacity to provide CPOL products and services to the DLA and its customers. The contractors must have a valid registration in the System for Award Management (SAM) and meet the following minimum requirements:

  • Have at least three years of experience in providing CPOL products and services to the US government or commercial customers within the past five years.
  • Have at least one active contract or subcontract for providing CPOL products and services with a minimum annual value of $10 million.
  • Have at least one active facility that can store and distribute CPOL products within each geographic region where they intend to bid.
  • Have at least one active quality management system that complies with the International Organization for Standardization (ISO) 9001 or equivalent standards.
  • Have at least one active environmental management system that complies with the ISO 14001 or equivalent standards.
  • Have at least one active safety management system that complies with the Occupational Safety and Health Administration (OSHA) or equivalent standards.

The contractors must also submit a proposal that demonstrates their technical approach, past performance, price, and socioeconomic factors. The DLA will evaluate the proposals using a best value trade-off method and award the contract to the most advantageous offerors.

Challenges

The CHEMPOL contract is a highly competitive and complex opportunity that poses several challenges for government contractors. Some of these challenges are:

  • Compliance with the DLA’s specifications, standards, regulations, policies, and procedures for CPOL products and services.
  • Coordination with multiple stakeholders, such as DLA personnel, military customers, foreign customers, subcontractors, suppliers, vendors, carriers, and regulators.
  • Management of multiple tasks, such as sourcing, procurement, production, quality control, packaging, transportation, delivery, inventory control, reporting, invoicing, and customer service.
  • Mitigation of various risks, such as supply chain disruptions, price fluctuations, currency exchange rates, political instability, security threats, environmental issues, legal disputes, and customer satisfaction.
  • Optimization of performance metrics, such as quality, timeliness, cost-effectiveness, reliability, safety, and sustainability.

Conclusion

The CHEMPOL contract is a lucrative opportunity for government contractors who can provide CPOL products and services to the DLA and its customers. The contract offers a long-term and stable source of revenue, as well as a chance to expand their market presence and reputation. However, the contract also requires a high level of expertise, experience, and resources, as well as a competitive and comprehensive proposal. Therefore, contractors who are interested in pursuing the CHEMPOL contract should start preparing early and seek professional guidance from experts like GDI Consulting. We can help you with market research, opportunity assessment, capture planning, proposal development, proposal review, and proposal submission. Contact us today at www.gdicwins.com to learn how we can help you win the CHEMPOL contract.