What all of you fail to realize (except for jaden) is that there are laws in place that prevent a company from being unfairly knocked out of bidding for a government contract once they've reached a certain point. The bids must be "unbiasedly" or objectively reviewed or you'll end up with a lawsuit that will cost lots of money if it's found out that you (the contract officers on the government side) unfairly turned down a bid, then you could lose your job and the government gets sued. Yes, there are cases like this.
Depends on the agency, but there is a general set of steps that must be followed to win a contract such as initial bids, prelim contracts, final bids, etc.
Obviously, BP was already in talks and had some sort of lock in agreement. It would have been illegal for the government to tell BP to hit the road while the final decision was made between 1 or 2 other bidders. Is there reason to believe that BP would be detrimental to the military operations that require the use of that BP fuel? No. Is there a way to supply fuel in case of a major oil spill? Aboslutely. Did the contracing officers question BP's safetey record and ask for conecssions/changes in their initial offer and SOPs? Probably and BP probably had to make additioanal quanrentees that they wouldn't have had to make.
Let's not forget that BP is not the only oil company that makes mistakes...it just happens that BP is involved a massive oil spill.
I'd certainly like to move away from using oil as an energy source, though.