State Dept. Awards $17.8M Fuel Management Contract to Fluid Solutions LLC

Contract Overview

Contract Amount: $17,790 ($17.8K)

Contractor: Fluid Solutions LLC

Awarding Agency: Department of State

Start Date: 2026-04-09

End Date: 2027-04-14

Contract Duration: 370 days

Daily Burn Rate: $48/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: M&R - FAC:7901SRVC:FWP#95:NEC:FUELMANAGEMENTPMSC

Plain-Language Summary

Department of State obligated $17,789.5 to FLUID SOLUTIONS LLC for work described as: M&R - FAC:7901SRVC:FWP#95:NEC:FUELMANAGEMENTPMSC Key points: 1. Contract value of $17.8 million over approximately one year. 2. Awarded under Simplified Acquisition Procedures (SAP), indicating a focus on smaller procurements. 3. The contract is for fuel dealers, suggesting a need for essential operational support. 4. No small business set-aside was utilized, which could be a missed opportunity for SMBs.

Value Assessment

Rating: fair

The contract value of $17.8 million for a one-year fuel supply agreement appears reasonable given the nature of the service. Benchmarking against similar fuel dealer contracts would provide a more precise assessment of pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, which typically involves a limited number of offers. While competed, the specific competition method and the number of bids received are not detailed, impacting the assessment of price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential fuel services. The limited competition under SAP may result in a less competitive price than a full and open competition.

Public Impact

Ensures operational readiness for Department of State activities requiring fuel. Supports diplomatic missions and personnel by providing necessary fuel resources. Potential for price fluctuations in the fuel market impacting the final cost. Reliability of Fluid Solutions LLC is critical for uninterrupted service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP
No small business participation noted

Positive Signals

Essential service for government operations
Fixed price contract provides cost certainty

Sector Analysis

The fuel services sector is critical for supporting government operations, especially for agencies with a global presence like the Department of State. Spending benchmarks for fuel procurement vary widely based on volume and location, but this contract represents a significant investment in maintaining operational capabilities.

Small Business Impact

The contract was not set aside for small businesses, and it is not indicated if small businesses participated in the competition. This represents a potential missed opportunity to support small business contractors in the fuel supply sector.

Oversight & Accountability

The Department of State is responsible for overseeing this contract. Accountability will be measured by the contractor's ability to deliver fuel services reliably and within the terms of the firm-fixed-price agreement.

Related Government Programs

Fuel Dealers
Department of State Contracting
Department of State Programs

Risk Flags

Limited competition
Potential for price volatility not borne by contractor
No small business set-aside
Dependence on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $17,789.5 to FLUID SOLUTIONS LLC. M&R - FAC:7901SRVC:FWP#95:NEC:FUELMANAGEMENTPMSC

Who is the contractor on this award?

The obligated recipient is FLUID SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17,789.5.

What is the period of performance?

Start: 2026-04-09. End: 2027-04-14.

What was the specific number of bids received under the SAP competition, and how did the winning bid compare to the government estimate?

The provided data does not specify the number of bids received under the Simplified Acquisition Procedures (SAP) competition, nor does it include the government's estimate for this fuel management contract. Understanding these details would allow for a more robust assessment of the price discovery process and whether the government achieved optimal value for the $17.8 million award.

What are the potential risks associated with relying on a single vendor for fuel supply, especially in diverse operational environments?

Relying on a single vendor, even if competed, carries risks such as potential supply chain disruptions, price gouging if competition was weak, and reduced flexibility in adapting to changing needs. For fuel supply, geopolitical events, natural disasters, or the vendor's own operational issues could impact delivery, potentially jeopardizing critical government functions.

How effectively does this firm-fixed-price contract mitigate risks related to fuel price volatility for the Department of State?

A firm-fixed-price contract is designed to transfer the risk of price fluctuations to the contractor. In this case, Fluid Solutions LLC assumes the risk of rising fuel costs. This provides the Department of State with cost certainty for the duration of the contract, preventing budget overruns due to market volatility.

Industry Classification

NAICS: Retail Trade › Fuel Dealers › Fuel Dealers

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 LYON LN, BIRMINGHAM, AL, 35211

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,790

Exercised Options: $17,790

Current Obligation: $17,790

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline