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Economic Development
Nov 28, 2023

Fueling Success: The Case for North Carolina Fuel Companies to Bid on the 2025 DLA Energy Fuel Request for Proposal

Sponsored Content provided by Erin Ananian-Gentile - Federal Business Development, NC Military Business Center

As the nation’s combat logistics support agency, the Defense Logistics Agency (DLA) plays a pivotal role in delivering readiness to the warfighter. DLA provides subsistence, clothing and textiles, bulk petroleum and other energy products, construction material and equipment, personal items, medical material and equipment, and repair parts for land, sea, and air systems. 

DLA Energy - one of the DLA offices - ensures a secure and reliable energy supply for the U.S. military. DLA Energy uses contractors to transport fuel to the five military services, 11 combatant commands, other federal, state, and local agencies, as well partner and allied nations.

DLA organizes fuel delivery by geography through what is called “Customer Organized Groups” (COGs). North Carolina falls within “COG 4” along with the states of Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Missouri, and South Carolina. North Carolina has more than 100 fuel delivery points, but only two NC-based companies have won fuel delivery contracts. Out-of-state brokers are bidding and winning these contracts and then subcontracting with in-state fuel delivery providers. This situation bids up the fuel price to the end user and, worst of all, provides economic benefit to companies outside of North Carolina. 

The current COG 4 contract will expire in September 2025 and is set to be recompeted in early 2025. For North Carolina fuel companies, bidding, and winning DLA Energy COG 4 contracts keeps economic development within the state. Executing these contracts here also provides the following benefits.

  1. Strategic Regional Significance: North Carolina’s fuel delivery points are located throughout the state and fuel providers are nearby each of these locations. If North Carolina companies win these contracts, it reduces logistical costs and provides more efficient fuel delivery.
  2. Supporting National Security Objectives: This contract is a direct avenue for North Carolina fuel companies to contribute to national security. By ensuring reliable and uninterrupted fuel supply for the U.S. military, these companies play a vital role in maintaining the operational readiness of our armed forces.
  3. Economic Boost and Job Creation: Winning the DLA Energy Fuels contract injects significant capital into the state and local economy which fosters economic growth and job creation. It also stimulates related, or adjacent, industries and positions North Carolina as a hub for energy-related activities.
  4. Technological Advancements and Innovation: DLA Energy contracts demand adherence to high standards of safety, efficiency, and environmental responsibility. Securing this contract can incentivize North Carolina companies to invest in cutting-edge technologies and sustainable practices, pushing the industry towards innovation.
  5. Market Diversification and Stability: Being awarded a DLA Energy Fuels contract diversifies the client portfolio for North Carolina fuel companies. By tapping into government contracts, these companies can establish a stable revenue stream, reducing susceptibility to market fluctuations and economic uncertainties.
  6. Access to Federal Resources and Networking Opportunities: Being a part of COG 4 opens doors to federal resources, support programs, and valuable networking opportunities. Government contracts often come with assistance initiatives, training programs, and collaborations that can enhance the capabilities and competitiveness of North Carolina fuel companies.
  7. Community Engagement and Responsibility: Participation in COG 4 showcases a commitment to corporate social responsibility. By engaging in government contracts, North Carolina fuel companies can actively contribute to community well-being, supporting local initiatives, and promoting sustainable practices.

To help North Carolina’s fuel providers position themselves to successfully bid on the 2025 DLA Energy Fuels COG 4 contract, the North Carolina Military Business Center will host a webinar prior to the release of the request for proposal. This virtual training opportunity will educate companies on the DLA, COG 4, and provide some helpful tips on working with the federal government. 

This is not just a business opportunity for North Carolina fuel companies; it's a chance to make a lasting impact on national security, regional development, and industry innovation. The potential benefits extend beyond financial gains, encompassing job creation, technological advancements, and community engagement. Fueling success in the defense sector can position North Carolina as a key player in the energy industry and contribute significantly to the state's economic and strategic goals.

For more information, please contact Erin Ananian-Gentile, Business Development Professional, North Carolina Military Business Center at erin@ncmbc.us

 

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