Interior Department's $80,000 truck lease BPA call with VT&T LLC runs for over two years

Contract Overview

Contract Amount: $80,000 ($80.0K)

Contractor: VT&T LLC

Awarding Agency: Department of the Interior

Start Date: 2025-05-23

End Date: 2027-05-31

Contract Duration: 738 days

Daily Burn Rate: $108/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VT&T LLC TRUCK LEASE BPA CALL 5.23.2025 - 5.31.2026

Place of Performance

Location: BOISE, ADA County, IDAHO, 83705

State: Idaho Government Spending

Plain-Language Summary

Department of the Interior obligated $80,000 to VT&T LLC for work described as: VT&T LLC TRUCK LEASE BPA CALL 5.23.2025 - 5.31.2026 Key points: 1. The contract leverages a Blanket Purchase Agreement (BPA) Call, suggesting a pre-negotiated framework for efficiency. 2. Leasing vehicles avoids upfront capital expenditure and associated depreciation costs for the agency. 3. The firm-fixed-price structure provides cost certainty for the Bureau of Land Management. 4. The contract duration of over two years allows for stable operational planning. 5. The specific use of utility trailers indicates a need for specialized equipment for land management tasks. 6. The contract was competed under Simplified Acquisition Procedures (SAP), implying a focus on smaller value procurements.

Value Assessment

Rating: good

The contract value of $80,000 over approximately two years for truck and trailer leasing appears reasonable for the specified duration and equipment type. Benchmarking against similar federal contracts for vehicle leasing suggests that this price point is competitive, especially considering the potential for specialized utility trailer needs. The firm-fixed-price nature further enhances value by locking in costs and mitigating the risk of price escalations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition for procurements under the simplified acquisition threshold. While specific details on the number of bidders are not provided, SAP is designed to encourage competition among responsible sources. The use of SAP suggests that the agency sought competitive offers within established streamlined procedures.

Taxpayer Impact: Competing under SAP generally leads to better price discovery and ensures taxpayer funds are used efficiently by obtaining competitive rates for essential services like vehicle leasing.

Public Impact

The Bureau of Land Management benefits from access to necessary vehicles for its operations. Services delivered include the rental and leasing of trucks and utility trailers. The geographic impact is focused on Idaho, where the contract is being performed. Workforce implications include enabling field personnel to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased wear and tear on leased vehicles beyond normal operational use.
Dependence on a single vendor for critical equipment could lead to supply chain risks if not managed.

Positive Signals

Leasing provides flexibility to upgrade or change vehicle types as needs evolve.
The BPA Call structure implies a pre-vetted vendor, potentially reducing onboarding time.
Firm-fixed-price contract limits cost uncertainty for the agency.

Sector Analysis

The federal government is a significant consumer of vehicle leasing and rental services across various agencies. This contract falls within the broader transportation and logistics sector, specifically focusing on equipment rental. The market for such services is generally competitive, with numerous commercial providers capable of meeting federal requirements. The $80,000 value places this within the smaller end of federal vehicle leasing contracts, often handled through simplified acquisition procedures.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside or if subcontracting opportunities for small businesses are a requirement. As it was competed under SAP, it's possible small businesses participated in the bidding process. Further analysis would be needed to determine the specific impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Bureau of Land Management contracting officers and program managers. As a BPA Call, it operates under the umbrella of a larger BPA, which likely has its own set of oversight mechanisms. Transparency is facilitated through contract databases, and any specific Inspector General jurisdiction would depend on the nature of any potential issues arising from the contract's performance.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule (FSS) for vehicle leasing
Department of Defense vehicle procurement and leasing programs
Other agency-specific vehicle fleet management contracts

Risk Flags

Contract duration exceeds one year
Potential for wear and tear beyond normal use
Reliance on leased assets for core operations

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $80,000 to VT&T LLC. VT&T LLC TRUCK LEASE BPA CALL 5.23.2025 - 5.31.2026

Who is the contractor on this award?

The obligated recipient is VT&T LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Land Management).

What is the total obligated amount?

The obligated amount is $80,000.

What is the period of performance?

Start: 2025-05-23. End: 2027-05-31.

What is the typical utilization rate for leased trucks and trailers under similar federal contracts?

Typical utilization rates for leased trucks and trailers under similar federal contracts can vary significantly based on agency mission, operational tempo, and geographic location. For agencies like the Bureau of Land Management, vehicles are often used for field operations, including transportation of personnel, equipment, and supplies to remote or rugged terrain. Utilization might be measured in miles driven per month or days utilized per month. While specific data for this $80,000 BPA call isn't available, federal agencies often aim for high utilization to maximize the value of leased assets, balancing operational needs with potential wear and tear. Contracts may include clauses addressing minimum usage or penalties for underutilization, though this is less common for fixed-price leases where the cost is predetermined.

How does the firm-fixed-price (FFP) structure compare to other contract types for vehicle leasing in terms of cost and risk?

The firm-fixed-price (FFP) structure for this truck and trailer lease contract offers the most cost certainty for the Department of the Interior. The price is set at the time of award and does not change regardless of the contractor's actual costs incurred. This shifts the risk of cost overruns entirely to the contractor (VT&T LLC). For vehicle leasing, FFP is often preferred because the primary costs (depreciation, maintenance, insurance, profit) are relatively predictable. Compared to cost-plus contracts, FFP generally results in higher initial prices to account for the contractor's risk, but it eliminates the need for extensive cost auditing and reduces the risk of contractor overcharging. For the government, FFP simplifies budgeting and financial management.

What are the potential risks associated with leasing vehicles versus purchasing them for federal agencies?

Leasing vehicles, as done in this contract, presents several potential risks compared to purchasing. Firstly, there's the risk of 'renting' equity; over the long term, cumulative lease payments might exceed the purchase price of the vehicle, meaning the agency never owns the asset. Secondly, lease agreements often have strict mileage limitations and conditions regarding wear and tear, with penalties for exceeding them or causing damage beyond normal use. This can lead to unexpected costs if operations demand more intensive use. Thirdly, agencies may become dependent on specific vendors or models, potentially limiting future flexibility or access to preferred vehicles. Finally, while leasing avoids large upfront capital outlays, it represents an ongoing operational expense that needs consistent budgeting.

What is the historical spending pattern for truck and trailer leasing by the Bureau of Land Management or the Department of the Interior?

Analyzing historical spending patterns for truck and trailer leasing by the Bureau of Land Management (BLM) or the Department of the Interior (DOI) would provide crucial context for this $80,000 BPA Call. Without specific historical data, it's difficult to ascertain if this contract represents an increase, decrease, or consistent level of spending in this category. Agencies often lease vehicles to supplement their owned fleets, especially for specialized equipment or during periods of high demand. Examining past contract awards, their values, durations, and the number of bidders for similar services could reveal trends in fleet management strategies, cost-effectiveness of leasing versus purchasing, and the reliability of specific vendors or contract vehicles like BPA Calls. This $80,000 contract appears to be a relatively small component of a larger fleet management strategy.

How does the competition level under Simplified Acquisition Procedures (SAP) typically influence pricing for vehicle leasing contracts?

Competition under Simplified Acquisition Procedures (SAP) generally influences pricing for vehicle leasing contracts by driving down costs through a streamlined, yet competitive, bidding process. SAP is designed for procurements below the simplified acquisition threshold (currently $250,000), encouraging agencies to solicit quotes from multiple sources. While the specific number of bidders for this VT&T LLC contract isn't detailed, the use of SAP implies that the Bureau of Land Management likely obtained quotes from several vendors. This competition forces vendors to offer more attractive pricing and terms to secure the contract. Compared to sole-source or limited-competition scenarios, SAP-based competition typically leads to better price discovery and ensures that the government pays a fair market price, maximizing the value of taxpayer dollars allocated for vehicle leases.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Automotive Equipment Rental and Leasing › Truck, Utility Trailer, and RV (Recreational Vehicle) Rental and Leasing

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 527 CALIFORNIA AVE, RENO, NV, 89509

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $80,000

Exercised Options: $80,000

Current Obligation: $80,000

Actual Outlays: $19,696

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 140L3725A0002

IDV Type: BPA

Timeline