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Posted at 12:20 PM ET, 03/20/2012

Red Star’s Bagram contract extended again

A heavily redacted notice posted recently by the Defense Logistics Agency discloses that for [deleted] millions of dollars, Red Star Enterprises Ltd. will continue for [time period deleted] delivering roughly 10 million gallons of jet fuel a month to Bagram Air Base for aircraft flying missions that support the fighting in Afghanistan.

Red Star, the Gibraltar-registered firm that is owned by the French wife of an elusive California businessman, Douglas Edelman, who once ran a bar and hamburger shop in Kyrgyzstan, and Erkin Bekbolotov, Edelman’s then-35-year-old Kyrgyz partner, has held the contract for more than seven years.

The firm’s jet fuel contract for Bagram was supposed to expire on Aug. 31, 2011, but it was extended for six months to give U.S. officials time to award the permanent contract put up for bid in November 2010. That approach was modified in February 2012, when the contracting officer extended Red Star an additional two months because “the source selection process was not expected to be completed in enough time to allow a new contractor to begin performance.”

Now the contract is being extended again because Defense Logistics Agency Energy “was not able to meet its original projected award date of Feb.1, 2012,” according to the notice. The current new date is [deleted].

One factor that is disclosed is that the Pakistan-Afghanistan border closure, which has prevented fuel from being delivered by truck from Pakistan, played a role in determining whether the extension price demanded by Red Star was considered “fair and reasonable”compared to the projected costs of other contractors’ services.

By  |  12:20 PM ET, 03/20/2012

 
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