Manas Fuel Contracting: Is the Pentagon Responding to Congressional Pressure?
Amid a congressional probe into its fuel contracting practices at the Manas Transit Center in Kyrgyzstan, the Pentagon now appears ready to open up what has been a no-bid system for suppliers.
The US Defense Energy Support Center (DESC) has launched a pre-solicitation for Russian grade TS-1 jet fuel deliveries to Manas. According to the pre-solicitation posted on the Federal Business Opportunities website on May 24, “The estimated award quantity is 240,000,000 gallons of TS-1 to be delivered over a two-year ordering period. The solicitation is anticipated to be released on June 9, 2010.”
“All responsible sources may submit a proposal, which shall be considered by the agency,” the announcement added.
The current holder of the Manas fuel-supply contract is Mina Corp, which along with an earlier supplier, Red Star Enterprises Ltd, is the focus of the congressional probe. Representatives of Red Star/Mina Corp have adamantly denied any wrongdoing. [For background see EurasiaNet’s archive].
Manas is a key logistics hub for the US and NATO war effort in Afghanistan. In March, the facility consumed a record amount of 12 million gallons of fuel, and handled some 35,000 troops rotating into and out of Afghanistan. [For background see EurasiaNet’s archive].
Mina Corp’s current contract at Manas, signed last July by deputy director of operations Edward M. Graves, is worth up to $730.9 million over three years. It contains an option clause that could allow it to be re-bid later this year. [For background see EurasiaNet’s archive].
There were no other bidders for the Manas fuel contract in 2009. The justification cited was the “national security” clause of the Federal Acquisition Regulations system.
Speaking at a news conference in Bishkek back in April, Assistant Secretary of State for South and Central Asian Affair, Robert Blake, said the contract could subject to a re-bid if “irregularities” were discovered. “The contracts are managed by the Pentagon. The US is committed to full transparency, and if there have been irregularities we are prepared to review and, if necessary, re-bid the contracts,” he said. [For background see EurasiaNet's archive].
Earlier in May, Michael McFaul, the senior director for Russian and Central Asian affairs at the National Security Council, was quoted by Kyrgyz media outlets as saying the United States was “interested” in buying jet fuel directly from state-owned Kyrgyz enterprises. Such a move would help promote transparency in the fuel-supply process, McFaul indicated.
Deirdre Tynan is a Bishkek-based reporter specializing in Central Asian affairs.
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