Department of Energy Awards Management and Operating (M&O) Contract for Strategic Petroleum Reserve

 

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Press Release – Original

Following a rigorous competitive selection process, the Department of Energy (DOE) today announced that Strategic Storage Partners, LLC has secured a $1.4 billion contract to manage and operate the Strategic Petroleum Reserve (SPR).

WASHINGTON, D.C. — Following a rigorous competitive selection process, the Department of Energy (DOE) today announced that Strategic Storage Partners, LLC has secured a $1.4 billion contract to manage and operate the Strategic Petroleum Reserve (SPR). This includes the operation and maintenance of facilities and related systems located in Louisiana and Texas over a five-year period, with an option for DOE to extend the contract for an additional five years.

After a transition period, Strategic Storage Partners, LLC, will assume responsibility for management and operation of the SPR on June 15, 2025.

The SPR’s mission is to safeguard the United States from significant petroleum supply disruptions through the acquisition, storage, distribution, and management of emergency petroleum stocks, fulfilling U.S. obligations under the International Energy Program. Federally owned oil stocks are stored in underground salt caverns at four sites located in Texas and Louisiana. The SPR has a longstanding history of protecting the U.S. economy and livelihoods during emergency oil shortages.

This announcement underscores President Trump’s commitment to advancing initiatives that support American jobs, strengthen domestic supply chains, and reinforce the United States’ position as a global energy leader.

Comments

This is what I was able to compile in about an hour.

We need more information on the company that will be “Manageing and Operating” the SPR. I’m sharing what I’ve been able to find. From what I can gather, this company is barely qualified to operate a gas pump. Let alone the largest petroleum reserve in the world.

Another article from https://oilprice.com is here.

This is a screenshot of what is publicly available from Dun & Bradstreet:

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On the GovTribe website, they have more information. They are described as a code 561210 – Facilities Support Services company.

Short Description

This industry comprises establishments primarily engaged in providing operating staff to perform a combination of support services within a client’s facilities. Establishments in this industry typically provide a combination of services, such as janitorial, maintenance, trash disposal, guard and security, mail routing, reception, laundry, and related services to support operations within facilities. These establishments provide operating staff to carry out these support activities, but are not involved with or responsible for the core business or activities of the client. Establishments providing facilities (except computer and/or data processing) operation support services and establishments providing private jail services or operating correctional facilities (i.e., jails) on a contract or fee basis are included in this industry. Cross-References.

Summary Description

NAICS Category 561210 (Facilities Support Services) encompasses a broad range of facility maintenance, operations, and support activities across various government and commercial settings. These services include comprehensive building maintenance, repair, custodial services, security monitoring, equipment maintenance, grounds keeping, and infrastructure support. The category covers tasks ranging from routine cleaning and maintenance to specialized technical services like building automation system management, fire protection system maintenance, and energy management control.

The federal contract awards in this category demonstrate significant diversity in scope and value, with contract amounts ranging from approximately $3,000 to over $8.5 million. Frequently awarded contractors include companies like Jones Lang LaSalle (JLL), Raven Services Corp, Emcor Government Services, and various small business entities such as South Dade Air Conditioning & Refrigeration Inc. The awards predominantly involve the General Services Administration (GSA), Department of Veterans Affairs, Department of Defense, and other federal civilian agencies. Common set-aside types include service-disabled veteran-owned small businesses, women-owned small businesses, and total small business designations. Performance locations span multiple states, with a concentration in the Northeast, Mid-Atlantic, and West Coast regions.

Recent federal contract opportunities under this NAICS code focus on comprehensive facility support services across diverse government installations. Notable opportunities include custodial services for Fort Wainwright in Alaska, fire system inspections for Big Bend National Park, operation and maintenance services for Cheatham Lake in Tennessee, and building automation system maintenance for various VA medical centers. The solicitations cover a wide range of requirements such as security monitoring, equipment maintenance, landscaping, infrastructure repairs, and specialized technical services. Agencies seeking these services include the Department of Veterans Affairs, Army Corps of Engineers, National Park Service, Department of Agriculture, and Department of Defense, with performance locations spanning multiple states and territories.

Generated 1/17/25, 9:00 PM

A closer look at the “Principal” listed above on LinkedIn shows Sarah Westfall is a “Manager” at the company since 2017. The company was founded in 2019.

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On Alignable they list Alan Westfall as a Commercial Developer for Strategic Storage Parners. The About Us part of the page lists there products and services as, “Storage.”

Strategic Storage Partners does not appear to have a page on LinkedIn. There are two other people with LinkedIn profiles that list Strategic Storage Partners as their employer. One has a private profile. The other is Donald Marcotte, who is listed as a founding member of the company.

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The really interesting part is the About section of his profile.

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Except for the fact that Donald Marcotte died in 2022.

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Link to Obituary

I don’t know about you, but this does not sound like a business that is ready to assume the role of operating and managing the largest petroleum reserve in the world. My question is, What rigorous competitive selection process found a storage company is four principals, one of them dead, qualified to operate and manage the Strategic Petroleum Reserve?

Something smells fishy.

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