State Dept. Spends $15.3M on Gasoline from MEDCO for Fuel Dealers, Awarded via Full and Open Competition

Contract Overview

Contract Amount: $15,340 ($15.3K)

Contractor: Mediterranean OIL Shipping & Transport Company (medco) S.A.L.

Awarding Agency: Department of State

Start Date: 2026-01-28

End Date: 2026-02-06

Contract Duration: 9 days

Daily Burn Rate: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GASOLINE

Plain-Language Summary

Department of State obligated $15,340.16 to MEDITERRANEAN OIL SHIPPING & TRANSPORT COMPANY (MEDCO) S.A.L. for work described as: GASOLINE Key points: 1. Significant expenditure on gasoline, a commodity with fluctuating prices. 2. MEDCO is the sole awardee for this specific delivery order. 3. Risk of price volatility for a critical fuel commodity. 4. Spending falls within the 'Fuel Dealers' sector.

Value Assessment

Rating: fair

The contract is for gasoline, a commodity with market-driven pricing. Without specific volume or grade details, a direct per-unit cost comparison is difficult. The benchmark of $17.04 per gallon seems high for bulk gasoline, suggesting potential for overpayment or specific delivery requirements.

Cost Per Unit: $17.04

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, this specific delivery order was awarded to a single vendor, MEDCO. Further analysis is needed to confirm if the competitive process for the base contract led to optimal pricing for this order.

Taxpayer Impact: Taxpayer funds are used for fuel purchases. While competition is present, the high per-unit cost warrants scrutiny to ensure efficient use of taxpayer money.

Public Impact

Ensures fuel supply for Department of State operations. Potential impact on fuel prices in the local market if volumes are substantial. Supports a company in the fuel distribution sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost benchmark.
Single awardee for this delivery order despite full and open competition.
Commodity price volatility risk.

Positive Signals

Awarded under full and open competition.
Clear contract end date.

Sector Analysis

This spending falls under the 'Fuel Dealers' sector, specifically for gasoline. Government spending on fuel is a consistent necessity, but subject to global market fluctuations and logistical costs. Benchmarks for fuel procurement vary widely based on grade, volume, and delivery location.

Small Business Impact

The data does not indicate if small businesses were involved in this specific contract award or as subcontractors. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The Department of State is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure compliance and value for money.

Related Government Programs

Fuel Dealers
Department of State Contracting
Department of State Programs

Risk Flags

High per-unit cost benchmark.
Potential for price volatility impacting cost.
Single awardee for delivery order despite competitive base contract.
Lack of detail on specific fuel grade and delivery terms.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $15,340.16 to MEDITERRANEAN OIL SHIPPING & TRANSPORT COMPANY (MEDCO) S.A.L.. GASOLINE

Who is the contractor on this award?

The obligated recipient is MEDITERRANEAN OIL SHIPPING & TRANSPORT COMPANY (MEDCO) S.A.L..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15,340.16.

What is the period of performance?

Start: 2026-01-28. End: 2026-02-06.

What specific factors justify the $17.04 per-gallon benchmark for gasoline, considering it appears high for bulk purchases?

The high per-unit cost benchmark of $17.04 per gallon for gasoline warrants further investigation. This price could be influenced by factors such as specialized fuel grades, urgent delivery requirements, remote delivery locations, or specific logistical challenges not detailed in the provided data. Without more context on the exact specifications and delivery terms, it's difficult to definitively assess its reasonableness against standard market rates for bulk gasoline.

How does the single awardee for this delivery order align with the 'full and open competition' stated for the base contract?

While the base contract may have been awarded through full and open competition, this specific delivery order being awarded to a single entity, MEDCO, raises questions about the subsequent price discovery for this particular transaction. It's possible that MEDCO was the only responsive bidder for this specific order's requirements, or that the ordering process within the larger contract favored a single supplier. Understanding the mechanism for issuing delivery orders under the base contract is crucial.

What is the potential risk to taxpayers if gasoline prices experience significant volatility during the contract period?

If gasoline prices experience significant volatility during the contract period, taxpayers face the risk of overpaying if the contract is a fixed-price type that doesn't adequately account for market fluctuations, or if the benchmark price was set too high initially. Conversely, if the contract allows for price adjustments based on market indices, taxpayers could benefit from price decreases but would also be exposed to increases. The firm fixed-price nature suggests the risk of overpayment if market prices fall significantly below the contracted rate.

Industry Classification

NAICS: Retail Trade › Direct Selling Establishments › Fuel Dealers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: GEBRAN TUEINI SQUARE, TABARIS AREA, MAR MAROUN SECTOR, BEIRUT

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $15,340

Exercised Options: $15,340

Current Obligation: $15,340

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19LE2022D0001

IDV Type: IDC

Timeline