Controls Over Fuel Payments.
Abstract
The Defense Fuel Supply Center (DFSC) purchases about $3.3 billion in bulk petroleum fuel annually. Bulk fuel contracts include an economic price adjustment clause. The contracts provide that the price paid for fuel will be the market price at the time fuel is delivered. The applicable market price is not determined until several months after the delivery date and usually requires that the interim payment to the contractor be adjusted. When fuel prices are rising, underpayments result. When prices are falling, overpayments occur.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 16, 1991
- Accession Number
- ADA378953
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense