State Department awards $21M+ for diesel fuel, highlighting reliance on established suppliers for critical operations

Contract Overview

Contract Amount: $21,009 ($21.0K)

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

Awarding Agency: Department of State

Start Date: 2026-01-28

End Date: 2026-02-26

Contract Duration: 29 days

Daily Burn Rate: $724/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DIESEL

Plain-Language Summary

Department of State obligated $21,009.16 to MEDITERRANEAN OIL SHIPPING & TRANSPORT COMPANY (MEDCO) S.A.L. for work described as: DIESEL Key points: 1. Contract value appears reasonable given the duration and essential nature of fuel supply. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a delivery order, indicating a need for immediate or phased fuel provision. 4. Fixed-price contract type mitigates cost overrun risks for the government. 5. The awardee has experience in shipping and transport, relevant to fuel delivery. 6. Limited duration suggests a specific operational need rather than long-term strategic sourcing.

Value Assessment

Rating: good

The contract value of over $21 million for a one-month delivery period for diesel fuel is substantial. Benchmarking against similar fuel supply contracts is difficult without more specific details on volume and delivery locations. However, the firm fixed-price structure suggests that the government has secured a predictable cost for this essential commodity. The duration of the contract (29 days) implies a focused need, potentially for a specific operation or contingency, which could influence the per-unit cost compared to longer-term agreements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which should theoretically lead to better pricing and terms for the government. The number of bidders is not specified, but the use of full and open competition is a positive sign for price discovery and market responsiveness.

Taxpayer Impact: Full and open competition maximizes the opportunity for taxpayers to benefit from the most competitive pricing available in the market for diesel fuel.

Public Impact

The Department of State benefits from a reliable supply of diesel fuel for its operations. Essential services requiring diesel power, such as generators or vehicles, are supported. The geographic impact is likely tied to the operational needs of the State Department, potentially including diplomatic missions or logistical hubs. The contract supports the logistics and transportation sector through the provision of fuel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility in the diesel market impacting future contracts.
Dependence on a single awardee for a critical resource during the contract period.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type provides cost certainty.
Awardee has relevant experience in shipping and transport.

Sector Analysis

The energy sector, specifically fuel distribution and supply, is critical for government operations. This contract falls within the broader category of fuel procurement, which is a recurring need for various federal agencies. The market for diesel fuel is global and subject to significant price fluctuations based on geopolitical events, supply chain dynamics, and demand. The size of this contract, over $21 million for a short duration, suggests a significant volume requirement, potentially for a large operational area or a specific event.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of large-scale fuel procurement and the awardee's likely scale of operations, it is probable that small businesses would be involved as subcontractors if they possess specialized capabilities in logistics or distribution within specific regions. However, without explicit set-aside provisions or reporting, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a delivery order under a larger contract vehicle (implied by 'delivery order'), oversight would likely involve the contracting officer and relevant program managers within the Department of State. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Fuel Procurement
General Services Administration (GSA) Schedules for Fuel
Federal Aviation Administration (FAA) Fuel Contracts

Risk Flags

Potential for price volatility
Dependence on specific delivery locations and timing
Limited contract duration may not reflect long-term needs

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $21,009.16 to MEDITERRANEAN OIL SHIPPING & TRANSPORT COMPANY (MEDCO) S.A.L.. DIESEL

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 $21,009.16.

What is the period of performance?

Start: 2026-01-28. End: 2026-02-26.

What is the specific volume of diesel fuel being procured under this contract, and how does it compare to typical monthly fuel needs for the relevant Department of State operations?

The provided data does not specify the exact volume of diesel fuel being procured. The total award amount is $21,009,160.00 for a 29-day period. To assess typical monthly needs, one would need to analyze historical fuel consumption data for the specific Department of State facilities or operations this contract is intended to support. Without this granular data, it's challenging to determine if the volume is standard, excessive, or insufficient. However, the substantial dollar value suggests a significant quantity, potentially supporting multiple large facilities or extensive logistical operations.

How does the per-gallon price benchmarked against market rates for diesel fuel during the contract period, considering potential variations in delivery location and timing?

The provided data does not include the per-gallon price or the specific delivery locations and timing, making a direct benchmark against market rates impossible. The total award amount of $21,009,160.00 over a 29-day period for diesel fuel (NAICS 454310) needs to be divided by the total gallons procured to establish a unit cost. Market rates for diesel fluctuate based on global oil prices, refining capacity, transportation costs, and regional demand. To perform a meaningful benchmark, one would need to access real-time or historical market data for diesel fuel prices in the relevant delivery regions during the contract's performance period (February 2026) and compare it to the calculated unit price.

What is the track record of MEDITERRANEAN OIL SHIPPING & TRANSPORT COMPANY (MEDCO) S.A.L. in fulfilling federal contracts, particularly for fuel supply, and have there been any performance issues?

Information regarding the specific track record of MEDITERRANEAN OIL SHIPPING & TRANSPORT COMPANY (MEDCO) S.A.L. in fulfilling federal contracts, especially for fuel supply, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for MEDCO on previous government contracts. This would reveal their history of on-time delivery, quality of service, and adherence to contract terms. Without access to such performance data, it is difficult to definitively assess their reliability and past performance in meeting government requirements.

What specific operational requirements or contingencies necessitate such a large diesel fuel purchase for a relatively short period (29 days)?

The provided data indicates a 29-day contract duration for over $21 million in diesel fuel. This short timeframe coupled with a high value suggests a specific, potentially urgent, operational need rather than routine, long-term supply. Possible scenarios include supporting a major diplomatic event, providing fuel for emergency power generation during a critical period, supplying fuel for a large-scale logistical operation (e.g., evacuation or humanitarian aid), or fulfilling a surge requirement in a region with disrupted fuel supply chains. The Department of State's specific mission requirements and the geopolitical context of the delivery location would provide the necessary details to understand this procurement's purpose.

How does the $21 million award for diesel fuel compare to historical spending patterns for fuel by the Department of State, both in terms of annual expenditure and the nature of procurement vehicles u

The provided data offers a single contract award of $21,009,160.00 for diesel fuel. To compare this to historical spending patterns, one would need access to the Department of State's historical procurement data, likely available through sources like the Federal Procurement Data System (FPDS). This would allow for an analysis of total annual spending on fuel, the average value of fuel contracts, the frequency of such large awards, and the types of contract vehicles (e.g., Indefinite Delivery/Indefinite Quantity - IDIQ, fixed-price, cost-plus) previously utilized. Without this historical context, it is difficult to ascertain if this $21 million award represents a typical expenditure, an anomaly, or a shift in procurement strategy.

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: $21,009

Exercised Options: $21,009

Current Obligation: $21,009

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