State Department awards $4.87M for Haitian ammunition, raising questions on value and competition

Contract Overview

Contract Amount: $4,871,806 ($4.9M)

Contractor: Olgoonik Support Services, LLC

Awarding Agency: Department of State

Start Date: 2026-01-15

End Date: 2026-05-15

Contract Duration: 120 days

Daily Burn Rate: $40.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NEW PURCHASE ORDER IN THE AMOUNT OF $4,871,805.82 FOR HNP AMMUNITION WITH A DELIVERY DATE OF 05/15/2026. THIS REQUIREMENT IS IN SUPPORT OF THE INL SECTION AT THE U.S. EMBASSY PORT-AU-PRINCE, HAITI.

Plain-Language Summary

Department of State obligated $4.9 million to OLGOONIK SUPPORT SERVICES, LLC for work described as: NEW PURCHASE ORDER IN THE AMOUNT OF $4,871,805.82 FOR HNP AMMUNITION WITH A DELIVERY DATE OF 05/15/2026. THIS REQUIREMENT IS IN SUPPORT OF THE INL SECTION AT THE U.S. EMBASSY PORT-AU-PRINCE, HAITI. Key points: 1. Ammunition procurement for Haiti raises concerns about strategic necessity and potential misuse. 2. Sole-source award limits price discovery and potentially inflates costs for taxpayers. 3. Limited competition increases risk of contractor lock-in and reduced service quality. 4. Fixed-price contract shifts some risk to the government if costs escalate. 5. Short delivery window suggests urgent need, but lacks detailed justification. 6. Contractor's track record with similar high-risk procurements requires scrutiny.

Value Assessment

Rating: questionable

The $4.87 million purchase order for HNP ammunition lacks sufficient detail for a robust value assessment. Benchmarking ammunition costs is difficult without specific itemization and quantity. The sole-source nature of the award prevents comparison with other potential suppliers, making it impossible to determine if the price is competitive or represents fair market value. The urgency implied by the short delivery window could also lead to premium pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one source is capable of meeting the requirement, or in urgent situations. However, without a detailed justification for the sole-source award, it is unclear if alternative sources were explored or if this was truly the only viable option. The lack of competition means potential savings from a competitive bidding process were forgone.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price, potentially leading to higher costs for taxpayers. It also bypasses opportunities to foster broader market engagement and innovation.

Public Impact

The primary beneficiary is the U.S. Embassy in Port-au-Prince, Haiti, which requires the ammunition. The services delivered involve the supply of small arms ammunition. The geographic impact is focused on Haiti, specifically supporting security operations. Workforce implications are minimal for the U.S. government, but the contractor will utilize its workforce for fulfillment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and taxpayer value.
Procurement for a high-risk environment like Haiti warrants enhanced scrutiny.
Lack of detailed justification for sole-source award.
Potential for price inflation due to limited competition and urgency.

Positive Signals

Contract is firm fixed-price, providing cost certainty for the government.
Contractor is identified, allowing for some level of accountability.
Delivery date is specified, providing a timeline for receipt.

Sector Analysis

This contract falls under the 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' sector. This is a specialized niche within the broader defense industrial base. The market for such goods can be influenced by geopolitical factors, government demand, and regulatory environments. Benchmarking spending is challenging as specific ammunition types and quantities vary significantly, but government procurements of this nature are common, though often subject to competitive bidding.

Small Business Impact

The contract data indicates that this is not a small business set-aside. There is no information provided regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor engages small businesses for subcontracting opportunities, which is not specified.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's Bureau of Diplomatic Security and the relevant contracting officers. Given the location in Haiti, there may also be oversight from the Special Inspector General for Haiti Reconstruction (SIGHR) or other relevant oversight bodies depending on the specific use and funding source. Transparency is limited due to the sole-source nature and lack of public justification.

Related Government Programs

Department of State Security Assistance Programs
Foreign Military Sales
Department of Defense Ammunition Procurement
Non-Lethal Weapons Procurement

Risk Flags

Sole-source award
Procurement for high-risk environment
Lack of detailed justification
Potential for price inflation
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $4.9 million to OLGOONIK SUPPORT SERVICES, LLC. NEW PURCHASE ORDER IN THE AMOUNT OF $4,871,805.82 FOR HNP AMMUNITION WITH A DELIVERY DATE OF 05/15/2026. THIS REQUIREMENT IS IN SUPPORT OF THE INL SECTION AT THE U.S. EMBASSY PORT-AU-PRINCE, HAITI.

Who is the contractor on this award?

The obligated recipient is OLGOONIK SUPPORT SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $4.9 million.

What is the period of performance?

Start: 2026-01-15. End: 2026-05-15.

What is the specific type and quantity of HNP ammunition being procured, and what is its intended use?

The provided data specifies 'HNP AMMUNITION' but does not detail the exact type (e.g., caliber, manufacturer) or quantity. HNP typically refers to 'less-lethal' or 'non-lethal' projectiles, often used for crowd control or self-defense. The intended use is stated as 'in support of the INL Section at the U.S. Embassy Port-au-Prince, Haiti.' The INL (International Narcotics and Law Enforcement Affairs) section often focuses on security sector reform, law enforcement training, and counternarcotics efforts. Therefore, this ammunition is likely intended for use by Haitian law enforcement agencies receiving training or support from INL, or for the security detail of the U.S. Embassy itself, to manage civil unrest or provide security.

What is the justification for awarding this contract on a sole-source basis?

The data explicitly states 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. However, the specific justification is not provided. Common reasons for sole-source awards include urgent and compelling needs where only one responsible source can reasonably provide the supplies or services, or when the government has unique capabilities or requirements that only a specific contractor can meet. Without further documentation, it is impossible to verify if these criteria were met. The urgency might stem from a sudden increase in security threats or a depletion of existing stocks in Haiti, necessitating rapid replenishment.

What is the track record of OLGOONIK SUPPORT SERVICES, LLC in providing ammunition or similar security equipment, particularly in challenging environments?

Information regarding OLGOONIK SUPPORT SERVICES, LLC's specific track record in providing ammunition or similar security equipment, especially in challenging environments like Haiti, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes with similar procurements. Given the sensitive nature of ammunition supply and the location, the contractor's experience with logistics, security protocols, and compliance in such regions would be critical factors in evaluating their capability and reliability for this specific purchase order.

How does the price of $4.87 million compare to market rates for similar ammunition, considering the sole-source nature of the award?

Directly comparing the $4.87 million price to market rates is challenging without knowing the exact specifications (caliber, type, manufacturer, quantity) of the HNP ammunition. Furthermore, the sole-source nature of this award inherently limits price discovery, meaning the government did not benefit from competitive bidding. This often results in prices that are higher than what might be achieved in a competitive environment. To assess value, one would need to benchmark against historical government contracts for similar items, or consult industry price lists, while acknowledging that sole-source awards may deviate significantly from these benchmarks due to lack of competition and potential urgency premiums.

What are the potential risks associated with procuring ammunition for Haiti, and what mitigation strategies are in place?

Procuring ammunition for Haiti carries significant risks, including potential diversion to unauthorized groups, escalation of violence, or misuse by recipient forces. The political and security instability in Haiti amplifies these concerns. Mitigation strategies typically involve strict end-use monitoring, vetting of recipient personnel, clear guidelines on authorized use, and robust accountability mechanisms. The Department of State's INL program usually has established protocols for such procurements, but the effectiveness of these measures in the current Haitian context would require specific evaluation. The sole-source nature of this award might also imply less scrutiny over the contractor's own security and handling procedures.

What is the historical spending pattern for ammunition or security equipment by the Department of State in Haiti?

Historical spending data for ammunition or security equipment by the Department of State in Haiti is not provided in this specific contract notice. To analyze historical patterns, one would need to access broader federal procurement databases (like FPDS or USASpending.gov) and filter for the Department of State, Haiti, and relevant product/service codes related to ammunition and security equipment over previous fiscal years. This would reveal the frequency, volume, and value of past procurements, as well as the typical contracting methods (competitive vs. sole-source) and contractors involved, providing context for the current $4.87 million award.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 191NLE26Q0009

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3201 C ST STE 700, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,871,806

Exercised Options: $4,871,806

Current Obligation: $4,871,806

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline