Bureau of Indian Affairs awards $4M propane delivery contract to MEC Services LLC for North Dakota agency

Contract Overview

Contract Amount: $4,006 ($4.0K)

Contractor: MEC Services LLC

Awarding Agency: Department of the Interior

Start Date: 2025-01-17

End Date: 2025-01-20

Contract Duration: 3 days

Daily Burn Rate: $1.3K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROPANE DELIVERY ORDER #2 FOR THE BUREAU OF INDIAN AFFAIRS (BIA), STANDING ROCK AGENCY IN FORT YATES, ND.

Place of Performance

Location: NEW TOWN, MOUNTRAIL County, NORTH DAKOTA, 58763

State: North Dakota Government Spending

Plain-Language Summary

Department of the Interior obligated $4,006 to MEC SERVICES LLC for work described as: PROPANE DELIVERY ORDER #2 FOR THE BUREAU OF INDIAN AFFAIRS (BIA), STANDING ROCK AGENCY IN FORT YATES, ND. Key points: 1. Contract awarded via a competitive process, suggesting potential for price discovery. 2. The contract duration is short (3 days), indicating a need for immediate or short-term supply. 3. The fixed-price structure helps mitigate cost escalation risks for the government. 4. This is a delivery order under a larger contract, implying a pre-existing relationship or framework. 5. The specific agency (Standing Rock Agency) and location (Fort Yates, ND) highlight targeted support. 6. The North American Industry Classification System (NAICS) code 324110 points to petroleum refining, though the service is delivery.

Value Assessment

Rating: fair

The award amount of $4,006,000 for a 3-day propane delivery service appears high for a short-term need. Without knowing the volume of propane or the specific delivery requirements, it is difficult to benchmark the value effectively. However, the total value suggests a significant quantity or a premium for rapid, localized delivery. Further analysis would require details on the propane volume and market rates at the time of award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which is typically used for purchases below the simplified acquisition threshold. While this indicates a competitive process, the specific number of bidders is not provided. SAP can sometimes lead to less robust competition compared to full and open competition for larger contracts, but it aims to streamline the acquisition process for smaller needs.

Taxpayer Impact: A competed award under SAP suggests the government sought competitive pricing, which is beneficial for taxpayers. However, the efficiency of SAP in achieving the best possible price depends on the number of responsive bids received.

Public Impact

The Bureau of Indian Affairs (BIA) and its Standing Rock Agency in North Dakota are the primary beneficiaries, ensuring operational continuity. The contract delivers essential propane, likely for heating, cooking, or power generation at agency facilities. The geographic impact is localized to Fort Yates, North Dakota, serving the needs of the Standing Rock community. The contract supports the operational needs of federal employees and potentially services within the agency's purview.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpayment given the high dollar amount for a short-duration delivery order.
Lack of transparency regarding the number of bidders under SAP makes it hard to confirm optimal price discovery.
The NAICS code (Petroleum Refineries) does not directly align with the service (delivery), which could indicate a classification mismatch or a broad scope.

Positive Signals

Awarded through a competitive process, indicating an effort to secure fair pricing.
The firm fixed-price contract protects the government from potential price increases during the delivery period.
The contract addresses a specific, immediate need for essential fuel supply.

Sector Analysis

The energy sector, specifically fuel distribution and delivery, is critical for government operations, especially in remote or underserved areas. This contract falls within the broader category of energy supply and logistics. Comparable spending benchmarks for propane delivery can vary significantly based on volume, location, and market conditions. The amount awarded suggests a substantial volume or a premium for expedited service.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, MEC Services LLC, is likely a larger entity. There is no explicit information on subcontracting requirements, but for a short-term delivery, significant subcontracting is less probable unless MEC Services specializes in logistics rather than direct supply.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's Bureau of Indian Affairs. As a delivery order under a larger contract, the initial award process and subsequent oversight are managed by the contracting office. Transparency is limited by the SAP competition details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Bureau of Indian Affairs Operations
Federal Fuel Procurement
Energy Supply Contracts
Department of the Interior Contracts

Risk Flags

High award value for short duration
Potential for insufficient competition under SAP
NAICS code mismatch (Refining vs. Delivery)
Lack of detailed performance metrics provided

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $4,006 to MEC SERVICES LLC. PROPANE DELIVERY ORDER #2 FOR THE BUREAU OF INDIAN AFFAIRS (BIA), STANDING ROCK AGENCY IN FORT YATES, ND.

Who is the contractor on this award?

The obligated recipient is MEC SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $4,006.

What is the period of performance?

Start: 2025-01-17. End: 2025-01-20.

What is the specific volume of propane being delivered under this contract?

The provided data does not specify the exact volume of propane to be delivered. The award amount of $4,006,000 for a 3-day delivery period is substantial. To assess value for money, understanding the quantity is crucial. For context, if propane prices were around $2.50 per gallon, this award could represent over 1.6 million gallons. However, actual market prices fluctuate based on region, season, and bulk purchasing power. Without the volume, a precise per-unit cost comparison is impossible.

How does the price per unit compare to market rates for propane delivery in North Dakota?

Benchmarking the per-unit cost is challenging without the specific volume of propane. The award amount of $4,006,000 for a 3-day delivery suggests a significant quantity or a premium price. Market rates for propane vary widely based on factors like delivery location (rural vs. urban), time of year (heating season demand), and the size of the order. To perform a valid comparison, we would need the total gallons purchased and the delivery date to check regional spot prices or contract rates for similar government or commercial bulk purchases in North Dakota during January 2025.

What is MEC Services LLC's track record with federal contracts, particularly for fuel delivery?

Information on MEC Services LLC's specific track record with federal contracts is not detailed in the provided data. As this is a delivery order under a larger contract (implied by 'ORDER #2'), their history might be tied to the parent contract's performance. A deeper dive into the Federal Procurement Data System (FPDS) or other contract databases would be necessary to review their past performance, including contract values, agencies served, and any performance issues or awards received. This would help assess their reliability and experience in fulfilling similar requirements.

What is the historical spending pattern for propane delivery to the BIA Standing Rock Agency?

The provided data only includes details for 'PROPANE DELIVERY ORDER #2'. To understand historical spending patterns, we would need access to previous contract awards for propane delivery to this specific agency (BIA Standing Rock Agency) or similar agencies in the region. Analyzing spending over the past several fiscal years would reveal trends in contract values, frequency of awards, and the contractors typically used. This context is essential for determining if the current award amount is consistent with past expenditures or represents a significant deviation.

What are the specific risks associated with this contract, given its short duration and high value?

The primary risks include potential overpayment due to the high dollar amount for a very short delivery window (3 days), suggesting either an extremely large volume requirement or inflated pricing. There's also a risk of inadequate competition if SAP procedures did not yield sufficient bids, potentially leading to a suboptimal price. Furthermore, if MEC Services LLC lacks sufficient capacity or experience for such a large, short-term delivery, there's a risk of delivery failure or delays, impacting the agency's operations. The classification mismatch with NAICS code 324110 could also indicate underlying risks in how the requirement was defined or sourced.

Industry Classification

NAICS: Manufacturing › Petroleum and Coal Products Manufacturing › Petroleum Refineries

Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3949 HIGHWAY 8, NEW TOWN, ND, 58763

Business Categories: American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,006

Exercised Options: $4,006

Current Obligation: $4,006

Actual Outlays: $4,006

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140A0124D0013

IDV Type: IDC

Timeline