Bunker fuel is used to propel seagoing vessels and is stored in compartments, called bunkers, on shipboard. Mission requirements sometimes require that DoD-controlled vessels obtain bunker fuel at commercial ports in the continental United States or overseas where Government fuel is not available. To obtain bunker fuel at discounted commercial prices and to ensure the availability of quality fuels, the Defense Fuel Supply Center, a field level component of the Defense Logistics Agency, established the bunker fuel program. Under the bunker fuel program, bunker fuel contracts are negotiated with commercial vendors. Bunker fuel contracts contain an economic price adjustment clause that allows the Government and contractors to calculate an adjusted market price at the time fuel is delivered. During FY 1993, bunker fuel contracts were awarded at 154 locations worldwide. Payment invoices totaled about $50 million.


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