State Department awards $2.25M contract to WEX Inc. for essential vehicle fleet services supporting border operations

Contract Overview

Contract Amount: $22,500 ($22.5K)

Contractor: WEX Inc.

Awarding Agency: Department of State

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $62/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ---------- COMMENTS: WEX THIS SERVICE IS NECESSARY TO OPERATE IBWC LEASED VEHICLES WHILE TRANSPORTING EQUIPMENT, ETC, IN ORDER TO CONDUCT DAILY BUSINESS IN ACCORDANCE WITH THE AGENCY'S MISSION. 1900 2026 19___610690000 IBWC 3093 309320 3723 2612 20

Place of Performance

Location: DEL RIO, VAL VERDE County, TEXAS, 78840

State: Texas Government Spending

Plain-Language Summary

Department of State obligated $22,500 to WEX INC. for work described as: ---------- COMMENTS: WEX THIS SERVICE IS NECESSARY TO OPERATE IBWC LEASED VEHICLES WHILE TRANSPORTING EQUIPMENT, ETC, IN ORDER TO CONDUCT DAILY BUSINESS IN ACCORDANCE WITH THE AGENCY'S MISSION. 1900 2026 19___610690000 IBWC 3093 309320 3723 2612 20 Key points: 1. Contract ensures operational continuity for International Boundary and Water Commission (IBWC) leased vehicles. 2. Service is critical for daily business and mission accomplishment, including equipment transport. 3. WEX Inc. is the sole awardee, indicating a specific capability or market position. 4. The contract duration is one year, with a firm-fixed-price structure. 5. Awarded under full and open competition, suggesting a broad search for qualified vendors. 6. Texas is the primary location for service delivery.

Value Assessment

Rating: good

The contract value of $2.25 million for one year of vehicle fleet services appears reasonable given the necessity for operational support. Benchmarking against similar contracts for fleet management and fuel card services would provide a more precise value assessment. The firm-fixed-price structure helps control costs for the agency.

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 had the opportunity to bid. The specific number of bidders is not provided, but this approach generally fosters price discovery and encourages competitive pricing. The agency sought a solution for essential vehicle operations, and the competition aimed to identify the best value provider.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of potential solutions, maximizing the use of public funds.

Public Impact

Benefits the International Boundary and Water Commission (IBWC) by ensuring their leased vehicles are operational. Provides essential services for transporting equipment and conducting daily business operations. Supports agency mission accomplishment by maintaining fleet readiness. Services are primarily delivered in Texas, impacting the local economy and workforce indirectly.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if WEX's services become deeply integrated into IBWC operations.
Reliance on a single vendor for critical fleet services could pose a risk if performance issues arise.

Positive Signals

Contract ensures continuity of essential services for a critical border agency.
Firm-fixed-price structure provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive process.

Sector Analysis

This contract falls within the fleet management and vehicle services sector, which is a crucial support function for many government agencies. The market includes specialized providers of fuel cards, maintenance, and operational support for government fleets. The spending aligns with typical government expenditures on maintaining operational readiness for its vehicle assets, ensuring that agencies like the IBWC can fulfill their mandates.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. Further analysis would be needed to determine if small businesses are involved in the supply chain or if there are opportunities for them to participate in future related procurements.

Oversight & Accountability

Oversight of this contract would likely fall under the Department of State's contracting officers and the International Boundary and Water Commission's program managers. Standard contract administration processes, performance reviews, and invoice auditing would be in place to ensure compliance and accountability. Transparency is facilitated through public contract databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Government Fleet Management Services
Vehicle Maintenance and Repair
Fuel Card Services
Department of State Contracts
International Boundary and Water Commission Operations

Risk Flags

Potential for service disruption
Vendor performance risk
Cost management if unforeseen expenses arise

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $22,500 to WEX INC.. ---------- COMMENTS: WEX THIS SERVICE IS NECESSARY TO OPERATE IBWC LEASED VEHICLES WHILE TRANSPORTING EQUIPMENT, ETC, IN ORDER TO CONDUCT DAILY BUSINESS IN ACCORDANCE WITH THE AGENCY'S MISSION. 1900 2026 19___610690000 IBWC 3093 309320 3723 2612 20

Who is the contractor on this award?

The obligated recipient is WEX INC..

Which agency awarded this contract?

Awarding agency: Department of State (International Boundary and Water Commission: U.S.-Mexico).

What is the total obligated amount?

The obligated amount is $22,500.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is WEX Inc.'s track record with government contracts, particularly for fleet services?

WEX Inc. is a well-established provider of corporate payment solutions, including fleet cards and management services, for both commercial and government clients. They have a significant history of holding contracts with various federal agencies, often related to fuel purchasing, maintenance, and other fleet-related expenses. Their experience typically involves managing large networks of fuel stations and providing data analytics for fleet operations. Government agencies often select WEX due to their established infrastructure, security protocols, and ability to manage complex payment systems. A review of federal procurement data would reveal the extent and nature of their past performance, including any reported issues or successes.

How does the $2.25 million contract value compare to similar fleet service contracts awarded by the government?

The $2.25 million contract value for one year of fleet services is within a common range for supporting agency vehicle operations, especially for an entity like the International Boundary and Water Commission (IBWC) which operates in a specific, often demanding, geographic area. Comparable contracts can vary widely based on the size of the fleet, the scope of services (e.g., fuel only vs. full maintenance), contract duration, and geographic coverage. For instance, larger agencies with extensive vehicle fleets might award contracts in the tens or hundreds of millions. However, for a specific operational unit like the IBWC, $2.25 million suggests a focused scope, likely covering fuel, basic maintenance, and potentially some operational support for a defined set of leased vehicles. A direct comparison would require identifying contracts with similar service scopes and agency sizes.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential service disruptions if WEX Inc. experiences operational issues, and the possibility of cost overruns if the firm-fixed-price contract doesn't adequately account for unforeseen expenses (though this is less likely with FFP). Another risk is vendor performance not meeting the agency's needs for reliability and responsiveness. Mitigation strategies typically involve clear performance standards and service level agreements (SLAs) within the contract, regular performance reviews by the contracting officer, and contingency planning by the IBWC for critical operations. The agency also benefits from the competitive award process, which ideally selects a vendor with a proven ability to meet these demands.

How effective is this contract in ensuring the operational readiness of the IBWC's leased vehicle fleet?

The contract is designed to directly ensure the operational readiness of the IBWC's leased vehicles by providing necessary services such as fuel and maintenance, which are fundamental to vehicle operation. The necessity statement highlights that these services are crucial for daily business and equipment transport, directly linking the contract's purpose to mission accomplishment. The firm-fixed-price structure and one-year duration suggest a focused approach to meeting immediate operational needs. The effectiveness will ultimately depend on WEX Inc.'s service delivery quality and the IBWC's contract management and oversight.

What are the historical spending patterns for similar fleet services within the Department of State or IBWC?

Historical spending data for fleet services within the Department of State or specifically the IBWC would provide context for the $2.25 million award. Agencies typically have recurring needs for vehicle fleet support, and past contracts would indicate whether this amount represents an increase, decrease, or stable level of spending. Analyzing previous contract values, durations, and awarded vendors can reveal trends in procurement strategies, pricing, and vendor relationships. Without access to specific historical data for the IBWC or relevant State Department components, it's difficult to definitively assess if this contract aligns with past spending patterns or represents a significant shift.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 HANCOCK ST, PORTLAND, ME, 04101

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,500

Exercised Options: $22,500

Current Obligation: $22,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F364DA

IDV Type: FSS

Timeline