DIESEL FUEL

The contract awarded to Pinnacle Petroleum, Inc. under SPE60526FHSF4 is a fixed-price with economic price adjustment (FPEPA) requirements contract for the delivery of Grade 2-D S15 ULSD diesel fuel to multiple U.S. Government installations in Hawaii. The base contract period runs from July 1, 2026, through June 30, 2029, with an optional six-month extension through December 31, 2029, and potential further extension through January 31, 2030. Deliveries are required within 48 hours of request and are F.O.B. destination, making the contractor responsible for all transportation, unloading, and compliance at delivery sites including Fort Shafter, Pearl Harbor Naval Shipyard, Ford Island, and Tripler Army Medical Center. The awarded line item for 4,500 U.S. gallons of diesel fuel is valued at $22,127.22, though the total estimated contract value, inclusive of all options, is $7,818,771.37. Award was made on a lowest price technically acceptable (LPTA) basis, with price being the primary factor and technical acceptability—compliance with fuel specifications, valid transportation agreements, and submission of required certificates—as a binary pass/fail threshold. The contract enforces strict compliance with multiple federal and DoD regulations. Packaging and marking must adhere to MIL-STD-290 and MIL-STD-290E for container levels A and B respectively, with overseas shipments requiring specific drum standards and prohibiting reconditioned or contractor-specific colored drums unless authorized. Unique item identification follows MIL-STD-130 with mandatory data matrix barcodes encoded per ISO/IEC standards, and all shipments must be labeled per MIL-STD-129. Hazard communication protocols under 29 CFR 1910.1200 require MSDS and proper hazard labeling. The contractor must also meet extensive cybersecurity mandates under DFARS 252.204-7012 and 252.204-7008, implementing NIST SP 800-171 safeguards and reporting incidents within 72 hours. Supply chain restrictions prohibit use of ByteDance-related applications and certain foreign-owned ICT under FAR 52.204-27, 52.