State Department awards $23.5M contract for diesel fuel, highlighting critical logistical support for overseas operations

Contract Overview

Contract Amount: $23,528 ($23.5K)

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

Awarding Agency: Department of State

Start Date: 2026-01-29

End Date: 2026-02-26

Contract Duration: 28 days

Daily Burn Rate: $840/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DIESEL

Plain-Language Summary

Department of State obligated $23,528.4 to MEDITERRANEAN OIL SHIPPING & TRANSPORT COMPANY (MEDCO) S.A.L. for work described as: DIESEL Key points: 1. Contract value represents a significant investment in ensuring operational readiness for diplomatic and logistical missions. 2. Full and open competition suggests a robust market for fuel supply, potentially leading to competitive pricing. 3. Short contract duration (28 days) indicates a need for immediate or short-term fuel supply, possibly for specific events or deployments. 4. The award to MEDCO S.A.L. positions them as a key supplier in a critical sector for government operations. 5. Fixed-price contract type offers cost certainty for the government, mitigating risks associated with fluctuating fuel prices. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.

Value Assessment

Rating: good

The contract value of $23.5 million for a 28-day diesel fuel supply appears substantial, but without specific volume or delivery location details, direct comparison is challenging. However, the use of full and open competition suggests that the pricing was vetted against market rates. The firm fixed-price structure provides budget predictability. Further analysis would require benchmarking against historical fuel costs for similar deployments and understanding the specific logistical complexities involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers. The specific number of bidders is not provided, but the method of competition suggests a healthy market for this type of service.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces, ensuring that government funds are used efficiently and that the best value is obtained.

Public Impact

Diplomatic missions and personnel operating overseas benefit from reliable access to essential fuel for transportation and power generation. Logistical support for U.S. government operations in the Mediterranean region is enhanced, ensuring continuity of services. The contract supports the broader mission objectives of the Department of State in maintaining international relations and security. Potential indirect impact on local economies in the region through the contractor's supply chain and operational activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the number of bidders in the full and open competition limits a deeper assessment of price competitiveness.
The specific geographic region and operational tempo are not detailed, making it difficult to assess if the awarded price is truly optimal.
No information is provided on sustainability or environmental considerations in the fuel delivery process.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract type provides cost certainty and mitigates budget risk for the government.
The contract ensures critical fuel supply for essential government operations overseas.

Sector Analysis

The energy sector, specifically fuel distribution and logistics, is a critical component of global supply chains. This contract falls within the broader category of fuel supply services, which are essential for government operations, particularly in regions with complex logistical challenges. Benchmarking this contract would involve comparing its value against other government fuel supply contracts in similar geographic areas and for similar durations, considering market fluctuations in diesel prices.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). This suggests that the primary focus was on securing the most competitive offer through full and open competition. Further investigation into the prime contractor's subcontracting plans would be necessary to determine if small businesses have opportunities to participate indirectly in fulfilling this contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers responsible for overseas operations. Accountability is established through the firm fixed-price contract terms, requiring delivery of specified fuel quantities and quality. Transparency is limited by the available data, but the contract award itself is a matter of public record. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Fuel Contracts
Overseas Contingency Operations Funding
State Department Diplomatic Support Services
Global Logistics and Supply Chain Management

Risk Flags

Potential for supply chain disruption in the Mediterranean region.
Dependence on a single contractor for a critical resource.
Limited transparency on specific delivery locations and volumes.
Short contract duration may indicate urgent or non-routine need, requiring further context.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $23,528.4 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 $23,528.4.

What is the period of performance?

Start: 2026-01-29. End: 2026-02-26.

What is the historical spending pattern for diesel fuel by the Department of State in the Mediterranean region?

Analyzing historical spending for diesel fuel by the Department of State in the Mediterranean region requires access to detailed procurement databases and contract award histories. Without direct access to such data, a precise historical pattern cannot be established. However, general trends suggest that fuel costs are subject to global market volatility, geopolitical events, and the specific logistical demands of supporting diplomatic missions. Contracts of this nature are often awarded on a recurring basis to ensure supply continuity, with values fluctuating based on prevailing market prices and operational requirements. The current award of $23.5 million for a short duration indicates a potentially significant, albeit temporary, demand. A comprehensive review would involve examining contract awards over the past 5-10 years, noting any significant price deviations or changes in contract volume.

How does the per-unit cost of this diesel fuel contract compare to market rates or similar government contracts?

Determining the precise per-unit cost requires knowing the total volume of diesel fuel procured under this $23.5 million contract. Since the volume is not specified in the provided data, a direct per-unit cost calculation is not possible. However, the contract was awarded under 'full and open competition,' which generally implies that the pricing was vetted against market conditions and that multiple vendors competed. To benchmark effectively, one would need to compare the implied per-unit cost (total award divided by estimated volume) against benchmark prices from sources like the Energy Information Administration (EIA) for the relevant region, or against similar fuel supply contracts awarded by the Department of State or Department of Defense in comparable geographic areas. The firm fixed-price nature suggests the contractor assumed the risk of price fluctuations, which could indicate a competitive bid based on anticipated market conditions at the time of award.

What are the specific risks associated with this diesel fuel supply contract, and how are they mitigated?

Key risks associated with this diesel fuel supply contract include potential supply chain disruptions (e.g., due to geopolitical instability, natural disasters, or transportation issues in the Mediterranean), price volatility (though mitigated by the firm fixed-price structure), quality control issues with the fuel, and logistical challenges in delivery to potentially remote or secure locations. Mitigation strategies likely include the contractor's robust supply chain management, adherence to strict quality specifications outlined in the contract, and contingency planning for delivery. The Department of State's oversight, including performance monitoring and potential penalties for non-compliance, also serves as a mitigation factor. The short duration of the contract (28 days) may also limit the exposure to long-term market fluctuations or prolonged disruptions.

What is the track record of MEDITERRANEAN OIL SHIPPING & TRANSPORT COMPANY (MEDCO) S.A.L. with government contracts, particularly for fuel supply?

Assessing the track record of MEDITERRANEAN OIL SHIPPING & TRANSPORT COMPANY (MEDCO) S.A.L. requires a review of their past performance on government contracts. Information on their history with the Department of State or other federal agencies, specifically regarding fuel supply agreements, would be crucial. Key performance indicators to examine include on-time delivery, fuel quality compliance, contract value history, and any past performance issues or disputes. A positive track record with similar contracts would indicate a lower risk for this current award. Conversely, any history of performance deficiencies or contract terminations would raise concerns. Publicly available contract databases and contractor performance assessment reporting systems (CPARS) are typically used to gather this information.

How does the contract's value and duration align with typical needs for overseas diplomatic fuel support?

The contract value of $23.5 million for a 28-day period suggests a substantial, but short-term, requirement for diesel fuel. This could be indicative of several scenarios: supporting a specific, high-demand event (like a summit or major diplomatic initiative), fulfilling an urgent operational need due to unforeseen circumstances, or covering a gap between longer-term contracts. Typically, ongoing operational needs for fuel at embassies or consulates might be covered by longer-term agreements or multiple smaller, recurring awards. The short duration implies that this is likely not for routine, continuous base load operations but rather for a specific, time-bound purpose. The value is significant, underscoring the critical nature and potential scale of the operation being supported.

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: $23,528

Exercised Options: $23,528

Current Obligation: $23,528

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