Re-Examining Best Practices for DOD Fuel Acquisition , 2011
Re-Examining Best Practices for DOD Fuel Acquisition , 2011
From the report: "In 2010, the Department of Defense (DoD) spent more than $13 billion on petroleum fuel products. This represents approximately two percent of the Department’s budget. The Department relies upon a market reserve fund, or working capital fund, to buy fuel based on spot market prices. As a result, the Department does not exercise price protection techniques for its future fuel purchases. The price of fuel has fluctuated from $35 per barrel in 2004 to $140 per barrel in 2007. Given these broad market fluctuations, DoD may be missing cost saving opportunities by not utilizing management tools to protect future prices and reduce risk."
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