US pays IOTC $40m for Iraq War Fuel

International Oil Trading Co. (IOTC) announced today that the company has reached a full settlement with the Defense Logistics Agency – Energy (DLA), resolving all issues associated with IOTC’s delivery of fuel to the Coalition troops during the Iraq War.

The $40 million payment to IOTC represents amounts due for fuel delivered and received by DLA. IOTC delivered over 332 million gallons of fuel between July 2007 and August 2009. IOTC delivered the fuel on-time and on-specification, the DLA accepted the fuel, and the fuel was used by the Coalition troops during the Iraq conflict.

IOTC received numerous accolades from DLA for its exemplary performance during the war and was a top-ten supplier of petroleum to DLA. Indeed, IOTC’s quality control was so good, that DLA authorized “Alternative Release Procedures,” whereby IOTC was authorized to deliver fuel without a DLA quality assurance representative onsite to inspect fuel quality. During contract performance, then DLA Contracting Officer John Walker determined that IOTC provided consistent, responsive and outstanding performance during a critical and complicated operation warranting a rating of “exceptional.” According to Walker, IOTC’s “operations management team [was] fully cooperative to this mission’s needs, consistently yielding excellent performance…[and] providing excellent service.”

The settlement also represents a total refutation of baseless and politically motivated allegations of fraud against IOTC leveled by Former U.S. Representative Henry Waxman (D-CA), among others. Following a comprehensive investigation, the Department of Defense ultimately concluded that “no fraud vulnerabilities were identified” relative to the IOTC fuel contracts.

As acknowledged in the settlement, “IOTC satisfactorily performed [the contracts and] DLA Energy will not consider the fraud allegations raised in these appeals associated with IOTC’s past performance…in making future contract award decisions.” Indeed, an IOTC affiliate has already begun fulfilling current DLA Energy contracts and looks forward to serving the DLA in a more robust manner moving forward.

“IOTC is pleased to have reached an amicable resolution of these issues with DLA,” said Harry Sargeant III, Chief Executive Officer of IOTC. “We can now look forward to again providing exemplary service to DLA. We are also pleased to see the end of politically charged accusations which have distracted from IOTC’s core commitment to our armed forces in mission critical operations.”

Full details of the settlement can be read here.

(Source: Press Release)