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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."



Defense Business Board (DBB)


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