Department of State awards $2.4M contract for passenger car rental services to SIXT RENT-A-CAR AG

Contract Overview

Contract Amount: $2,395,585 ($2.4M)

Contractor: Sixt Rent-A-Car AG

Awarding Agency: Department of State

Start Date: 2025-12-23

End Date: 2026-02-28

Contract Duration: 67 days

Daily Burn Rate: $35.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRAVEL

Plain-Language Summary

Department of State obligated $2.4 million to SIXT RENT-A-CAR AG for work described as: TRAVEL Key points: 1. Spending on passenger car rental services totals $2.4M. 2. SIXT RENT-A-CAR AG is the sole awardee. 3. The contract is not available for competition, raising potential risk. 4. The sector is primarily administrative support services.

Value Assessment

Rating: questionable

The contract value of $2.4M for a 67-day period appears high for standard car rental services. Without specific usage details or benchmarks, it's difficult to assess true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a limited competition approach. This lack of open competition may lead to suboptimal pricing and reduced market responsiveness.

Taxpayer Impact: Taxpayer funds are being spent without a competitive process, potentially leading to higher costs than if multiple vendors were considered.

Public Impact

Government employees will have access to rental vehicles through SIXT. The contract duration is approximately two months. Potential for increased costs due to lack of competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potentially high cost per day
Limited duration may indicate specific needs

Positive Signals

Clear awardee identified
Defined contract period

Sector Analysis

This contract falls under administrative and support services, specifically vehicle rental. Benchmarks for government car rental vary widely based on location, vehicle type, and duration, but $2.4M for under 3 months is substantial.

Small Business Impact

There is no indication that small businesses were considered or involved in this procurement, as it is not available for competition.

Oversight & Accountability

Oversight will be crucial to ensure the funds are used appropriately and that the services rendered meet the government's needs, especially given the limited competition.

Related Government Programs

Passenger Car Rental
Department of State Contracting
Department of State Programs

Risk Flags

Lack of competitive bidding
Potential for overpayment
Limited transparency in award justification
No small business participation evident

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.4 million to SIXT RENT-A-CAR AG. TRAVEL

Who is the contractor on this award?

The obligated recipient is SIXT RENT-A-CAR AG.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2025-12-23. End: 2026-02-28.

What specific circumstances justify a 'NOT AVAILABLE FOR COMPETITION' award for this car rental contract?

The justification for a 'NOT AVAILABLE FOR COMPETITION' award needs to be thoroughly documented. Typically, this is reserved for situations where only one source can fulfill the requirement due to unique capabilities, urgent and unforeseen needs, or specific government property requirements. Without this documentation, the rationale remains unclear and raises concerns about procurement practices.

How does the per-day cost of this rental agreement compare to market rates for similar government contracts?

A direct per-day cost comparison is challenging without knowing the exact number and type of vehicles rented and the specific rental locations. However, a $2.4 million expenditure over 67 days suggests a significant daily outlay. Benchmarking against General Services Administration (GSA) schedules or other competitively awarded government rental contracts would be necessary to determine if this rate is reasonable.

What is the expected impact on government operational efficiency given this sole-source award?

The impact on operational efficiency is uncertain. While a dedicated provider could streamline processes, the lack of competition might lead to service limitations or higher costs that could indirectly affect efficiency. If the 'not available for competition' status is due to a unique requirement that SIXT uniquely meets, efficiency could be high. Conversely, if it's a procedural issue, efficiency might be compromised by suboptimal service or pricing.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Automotive Equipment Rental and Leasing › Passenger Car Rental

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: SCHWARZWALDALLEE 242, BASEL

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

Financial Breakdown

Contract Ceiling: $2,395,585

Exercised Options: $2,395,585

Current Obligation: $2,395,585

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19SZ2326D0002

IDV Type: IDC

Timeline