State Department awards $1.4M purchase order to MVATION WORLDWIDE for warehouse services

Contract Overview

Contract Amount: $14,069 ($14.1K)

Contractor: Mvation Worldwide, Inc.

Awarding Agency: Department of State

Start Date: 2026-01-26

End Date: 2026-02-04

Contract Duration: 9 days

Daily Burn Rate: $1.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UPS FOR WAREHOUSE

Plain-Language Summary

Department of State obligated $14,068.98 to MVATION WORLDWIDE, INC. for work described as: UPS FOR WAREHOUSE Key points: 1. Value appears reasonable given the short duration and fixed-price nature of the contract. 2. Competition was limited under the Simplified Acquisition Procedures (SAP), suggesting potential for higher pricing. 3. The contract's short duration (9 days) may indicate an urgent or temporary need. 4. Performance is tied to electronics and appliance retail, a niche within broader logistics. 5. The award is a purchase order, typically used for smaller, simpler acquisitions. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

The contract value of $1.4M for a 9-day period is substantial on a daily basis. Without more context on the specific services and scale of operations, it's difficult to benchmark against similar contracts. The fixed-price nature provides cost certainty for the government, but the limited competition could have led to a less favorable price than if it were fully competed. The benchmark of $156,300 per day is high, but may be justified by the specific requirements.

Cost Per Unit: $156,300 per day

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which allows for less formal competition than full and open procedures. While the specific number of bidders is not provided, SAP typically involves fewer bidders than larger, more complex procurements. This limited competition may have restricted price discovery and potentially led to a higher price for the government.

Taxpayer Impact: Limited competition under SAP means taxpayers may not have received the most competitive pricing available in the market.

Public Impact

The Department of State is the primary beneficiary, receiving essential warehouse services. Services likely involve the storage, handling, and potentially distribution of electronics and appliances. The geographic impact is localized to the area where the warehouse services are provided. Workforce implications are likely limited to the contractor's employees managing the warehouse operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpayment.
Lack of detail on specific services makes value assessment difficult.
Short contract duration could indicate a lack of long-term planning or an emergency situation.

Positive Signals

Fixed-price contract provides cost certainty.
Awarded to a single vendor, indicating a clear point of accountability.
Contract is for a defined, short period, limiting long-term financial commitment.

Sector Analysis

This contract falls within the logistics and warehousing sector, specifically supporting the retail of electronics and appliances. The market for such services is competitive, with numerous providers offering warehousing, inventory management, and distribution. The value of this specific contract, while large in absolute terms, represents a small fraction of the overall federal spending on logistics and supply chain management, which often runs into billions annually across various agencies.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates the awardee is not a small business. There is no information provided regarding subcontracting plans. This means opportunities for small businesses to participate in this specific contract are likely minimal, and the broader impact on the small business ecosystem for warehouse services is not directly addressed by this award.

Oversight & Accountability

As a purchase order, oversight would typically be managed by the contracting officer's representative (COR) within the Department of State. Accountability rests with MVATION WORLDWIDE, INC. to fulfill the terms of the fixed-price contract. Transparency is limited as detailed performance metrics and specific service requirements are not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule Contracts
Department of Defense Logistics and Warehousing Contracts
Other Agency-Specific Supply Chain Management Contracts

Risk Flags

Limited Competition
High Per-Day Cost
Short Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $14,068.98 to MVATION WORLDWIDE, INC.. UPS FOR WAREHOUSE

Who is the contractor on this award?

The obligated recipient is MVATION WORLDWIDE, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14,068.98.

What is the period of performance?

Start: 2026-01-26. End: 2026-02-04.

What specific services are included under this "warehouse" contract, and what is the scale of operations?

The provided data is limited and does not specify the exact services included under the 'warehouse' designation. It is categorized under 'Electronics and Appliance Retailers,' suggesting the storage and handling of such goods. The scale of operations is also not detailed, making it difficult to ascertain the volume of goods, the size of the facility, or the specific logistical processes involved. Further details would be needed from the contract's statement of work to understand the precise nature and scope of the services provided by MVATION WORLDWIDE, INC.

How does the $156,300 per day cost benchmark compare to industry standards for similar warehouse services?

The per-day cost benchmark of $156,300 is exceptionally high for standard warehousing services. Typical industry benchmarks for warehousing, depending heavily on factors like location, facility type (e.g., temperature-controlled, hazardous materials), inventory volume, and included services (e.g., kitting, fulfillment), usually range from a few cents to a few dollars per square foot per month, or are based on per-pallet storage fees. A daily rate of this magnitude suggests either an extremely high volume of high-value goods, specialized handling requirements for sensitive electronics/appliances, or potentially includes significant value-added services beyond basic storage. Without a detailed breakdown of services and scale, this benchmark is difficult to validate against typical market rates.

What are the potential risks associated with a short-duration, high-value purchase order for warehouse services?

A significant risk with a short-duration, high-value purchase order is the potential for inflated pricing due to the urgency or limited competition often associated with such awards. The government might pay a premium for rapid deployment or immediate availability. Another risk is inadequate vetting of the contractor's capabilities for the specific, potentially critical, services required, especially if the procurement process was expedited. Furthermore, the short timeframe might not allow for thorough performance monitoring, increasing the risk of substandard service delivery or unmet requirements. Finally, if this is a recurring need, the short duration indicates a lack of strategic sourcing and could lead to repeated, potentially inefficient, sole-source or limited-competition procurements.

What is MVATION WORLDWIDE, INC.'s track record with the Department of State or other federal agencies?

The provided data indicates that MVATION WORLDWIDE, INC. was awarded this contract by the Department of State. However, the data does not include information on the company's past performance, contract history, or track record with the Department of State or other federal agencies. To assess the contractor's reliability and past performance, a review of contract databases (like FPDS or SAM.gov) for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes would be necessary.

How does this $1.4M award fit into the Department of State's overall spending on logistics and warehousing?

This $1.4 million award for a 9-day period represents a significant expenditure on a per-day basis for warehouse services. However, in the context of the Department of State's overall budget and spending on logistics and warehousing, it may be a relatively small or specialized component. The Department manages a vast global infrastructure, including embassies, consulates, and operational support facilities, which require extensive logistics and supply chain management. Without access to the Department's total logistics budget or historical spending data on warehousing contracts, it is difficult to determine the relative significance of this particular award. It could represent a critical, short-term need or a routine, albeit high-value, operational requirement.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Retailers › Electronics and Appliance Retailers

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 70 GLEN ST STE 260, GLEN COVE, NY, 11542

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,069

Exercised Options: $14,069

Current Obligation: $14,069

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline