State Department awards $150K for generator fuel, raising questions about competition and value

Contract Overview

Contract Amount: $150,013 ($150.0K)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of State

Start Date: 2025-09-26

End Date: 2025-10-25

Contract Duration: 29 days

Daily Burn Rate: $5.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEC/DIESEL FUEL FOR GENERATOR

Plain-Language Summary

Department of State obligated $150,012.75 to MISCELLANEOUS FOREIGN AWARDEES for work described as: NEC/DIESEL FUEL FOR GENERATOR Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Short contract duration of 29 days suggests an urgent or immediate need. 3. The award to 'Miscellaneous Foreign Awardees' lacks specificity, hindering performance assessment. 4. No indication of small business participation or set-aside, potentially excluding smaller domestic firms. 5. The fixed-price contract type offers some cost certainty but doesn't mitigate potential overpricing. 6. Lack of competition raises concerns about whether the government secured the best possible value.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of specific details on the type and quantity of diesel fuel required. The award amount of $150,012.75 for a 29-day period appears high for standard generator fuel, especially without competitive bidding. Without comparable contract data or market price analysis for the specific region and fuel grade, it is difficult to definitively assess if the price is fair or if it represents good value for money. The sole-source nature further complicates a robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT COMPETED' basis, indicating a sole-source procurement. There is no information provided on the number of bidders or the justification for not seeking competition. This approach bypasses the standard competitive process, which typically leads to better pricing and a wider selection of qualified vendors. The lack of competition suggests potential risks related to inflated pricing and limited vendor options.

Taxpayer Impact: Taxpayers may be paying a premium for this fuel due to the absence of competitive pressure to drive down costs. The government may not have accessed the most cost-effective suppliers or negotiated the best possible terms.

Public Impact

The primary beneficiaries are the 'Miscellaneous Foreign Awardees' who received the contract. The service delivered is the provision of diesel fuel for generators, essential for operational continuity. The geographic impact is likely localized to the area where the Department of State requires generator power, potentially in a foreign location given the awardee description. Workforce implications are minimal, as this is a supply contract rather than a service requiring significant labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about fair pricing and potential overpayment.
Vague description of awardees ('Miscellaneous Foreign Awardees') hinders accountability and performance verification.
Short contract duration may indicate a reactive procurement rather than strategic planning.
Absence of small business considerations could mean missed opportunities for domestic economic participation.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
The fuel is essential for generator operation, ensuring continuity of critical functions.
The contract is for a defined, short period, limiting long-term financial exposure.

Sector Analysis

The procurement of fuel falls under the broader energy and logistics sectors. While specific market data for diesel fuel for generators in foreign locations is not readily available, the global energy market is subject to significant price volatility. Government contracts for fuel often aim for stable pricing through fixed-price agreements, but the absence of competition here means the government is not leveraging market dynamics to its advantage. Comparable spending benchmarks are difficult to establish without knowing the specific location, volume, and grade of fuel required.

Small Business Impact

This contract does not appear to have any small business set-aside provisions, as indicated by 'sb': false. Furthermore, there is no mention of subcontracting plans. The award to 'Miscellaneous Foreign Awardees' suggests that domestic small businesses were likely not considered or involved in this procurement. This represents a missed opportunity to support the small business ecosystem and leverage their capabilities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's internal contracting and financial management divisions. Given the award is a purchase order, standard procurement regulations apply. However, the lack of competition and the vague description of the awardees may present challenges for robust oversight and accountability. Transparency is limited due to the sole-source nature and the absence of detailed justification for the procurement method. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Department of State Fuel Purchases
Generator Maintenance and Operations
Foreign Operations Support
Emergency Fuel Supplies

Risk Flags

Lack of Competition
Vague Awardee Identification
Potential for Overpricing
Limited Transparency
No Small Business Inclusion

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $150,012.75 to MISCELLANEOUS FOREIGN AWARDEES. NEC/DIESEL FUEL FOR GENERATOR

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $150,012.75.

What is the period of performance?

Start: 2025-09-26. End: 2025-10-25.

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

The provided data indicates the contract was 'NOT COMPETED'. A formal justification for sole-source procurement is typically required by federal acquisition regulations (FAR). This justification would outline why full and open competition was not feasible or not in the government's best interest. Common reasons include urgency, unique capabilities of a single source, or circumstances where only one responsible source exists. Without this documentation, it's impossible to assess the validity of the sole-source decision and whether it was appropriate for acquiring diesel fuel.

Can the 'Miscellaneous Foreign Awardees' be identified, and what is their track record?

The designation 'Miscellaneous Foreign Awardees' is highly non-specific and does not provide actionable information to identify the actual entities receiving the funds. This lack of specificity hinders any assessment of their track record, reliability, or capacity to deliver the required diesel fuel. Federal procurement databases typically require more precise identification of contractors, including legal business names and addresses. The vagueness here raises concerns about due diligence and the ability to hold the awardees accountable for performance or quality standards.

How does the price of $150,012.75 for 29 days of generator fuel compare to market rates or similar government contracts?

Direct comparison is difficult without knowing the exact quantity, grade, and location of the fuel. However, $150,012.75 for approximately one month's supply of diesel fuel for generators appears substantial. If this is for a single large generator or multiple units in a high-cost area, it might be justifiable. Yet, the absence of competition means the government likely did not benefit from competitive pricing. Standard government fuel contracts often include detailed pricing structures per gallon or liter, allowing for easier benchmarking. This contract's value proposition is obscured by the lack of competitive data and specific volume details.

What are the risks associated with awarding fuel contracts to 'Miscellaneous Foreign Awardees'?

Awarding contracts to unspecified 'Miscellaneous Foreign Awardees' introduces several risks. These include potential difficulties in verifying the legitimacy and financial stability of the suppliers, challenges in ensuring compliance with quality standards and delivery schedules, and increased complexity in payment processing and dispute resolution. Furthermore, it raises concerns about the government's ability to conduct adequate due diligence and ensure that taxpayer funds are being used responsibly. Without clear identification, tracking performance and enforcing contractual obligations becomes significantly more challenging.

What is the expected operational impact of this fuel purchase?

This purchase is intended to ensure the continuous operation of generators, which are critical for maintaining essential services and functions for the Department of State, likely at a foreign post or facility. Generators provide backup power during outages of the primary electricity grid, supporting communications, IT infrastructure, security systems, and potentially living quarters. The short duration suggests it might be for immediate operational needs, a temporary solution, or routine replenishment during a specific period, ensuring uninterrupted power supply critical for diplomatic and operational activities.

Industry Classification

NAICS: Retail Trade › Fuel Dealers › Fuel Dealers

Product/Service Code: FUELS, LUBRICANTS, OILS, WAXES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $150,013

Exercised Options: $150,013

Current Obligation: $150,013

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline