In June of 2012 SXL entered into 3 year tank cleaning contract with Midwestern Services. Midwestern were awarded all crude tanks for the next three years from Ohio to Texas. As part of the agreement the pricing was assignable to all tanks with similar characteristics as those listed in the agreement. Therefore, Sunoco leveraged the SXL contract to utilize MSI to clean 7 – 115FT diameter 55,000 BBL crude tanks at the Cromwell Station in Oklahoma. These tanks were part of a remediation project from when SXL split from Sunoco. Midwestern provided their SXL pricing for all 7 tanks and executed the scope of work as written in the SXL Agreement.
Below are the highlighted project stats and included pictures from the project. Also, I visited the site on three occasions and they have a great tank cleaning process for these types of tanks in remote locations.
Final costs were within 8% of bid price – 700K bid 750K actual (removed 5,000 barrels of extra material)
No safety incidents during the 4 month cleaning duration and working in excessive heat conditions
Actual price was b/w 25-50% less than the 5 other suppliers that offered pricing
Net zero cost of disposal (salvageable material)
Zero environmental impacts
Applied SXL volume discounts to Sunoco contract
Assisted in RFP development for demolition contract at no cost (including travel)
Extremely clean crude tanks – ready for hot work and/or demo (see pics attached)
Due to the success of this project we have sole sourced Midwestern to clean the remaining crude tanks that are part of our remediation project in Oklahoma.
Senior Sourcing Specialist
Procurement & Supply Chain
Sunoco Inc. R&M