VA Renews Williams Scotsman Lease for $2.3M, Covering 121 Days for Industrial Equipment Rental

Contract Overview

Contract Amount: $23,026 ($23.0K)

Contractor: Williams Scotsman Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-30

End Date: 2025-01-29

Contract Duration: 121 days

Daily Burn Rate: $190/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LEASE RENEWAL

Place of Performance

Location: BEDFORD, MIDDLESEX County, MASSACHUSETTS, 01730

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23,025.7 to WILLIAMS SCOTSMAN INC for work described as: LEASE RENEWAL Key points: 1. Lease renewal for industrial equipment rental valued at $2.3M. 2. Contract awarded to Williams Scotsman Inc. 3. Spending falls under Other Commercial and Industrial Machinery Rental and Leasing. 4. The contract was competed under SAP, indicating a competitive process.

Value Assessment

Rating: good

The lease renewal is for a short duration (121 days) with a firm fixed price. The total value of $2.3M for this period suggests a potentially high per-unit cost, but without specific equipment details, a direct comparison is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), which typically allows for broader competition for purchases below certain thresholds. This method likely facilitated price discovery and ensured a competitive award.

Taxpayer Impact: The renewal ensures continued operational capability for the VA, with the cost determined through a competitive process, aiming for taxpayer value.

Public Impact

Ensures continued operational support for the Department of Veterans Affairs. Supports the rental and leasing industry for commercial and industrial equipment. The competitive award process aims to provide value for taxpayer funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration may indicate a temporary need or a bridge to a longer-term solution.
High total value for a 121-day lease warrants scrutiny of the underlying equipment and services.

Positive Signals

Awarded through a competitive process (SAP).
Firm fixed price contract provides cost certainty.

Sector Analysis

This spending falls within the Other Commercial and Industrial Machinery and Equipment Rental and Leasing sector. Benchmarks for this sector can vary widely based on the specific equipment and lease terms.

Small Business Impact

The data does not indicate if small businesses were involved in this procurement. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract was awarded via Purchase Order under SAP, suggesting it underwent standard procurement review. Oversight would focus on ensuring the equipment meets VA needs and the price remains competitive.

Related Government Programs

Other Commercial and Industrial Machinery and Equipment Rental and Leasing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

High total cost for a short lease duration.
Lack of specific equipment details hinders precise value assessment.
Potential for premium pricing due to short-term nature.
Use of SAP for a $2.3M contract warrants further investigation into procurement justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23,025.7 to WILLIAMS SCOTSMAN INC. LEASE RENEWAL

Who is the contractor on this award?

The obligated recipient is WILLIAMS SCOTSMAN INC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $23,025.7.

What is the period of performance?

Start: 2024-09-30. End: 2025-01-29.

What specific industrial equipment is being leased, and how does its cost compare to market rates for similar equipment over the 121-day period?

The specific industrial equipment leased is not detailed in the provided data. To assess value, a comparison of Williams Scotsman Inc.'s pricing for similar machinery (e.g., generators, temporary structures, heavy equipment) against market rates from competitors like Sunbelt Rentals or United Rentals for a 121-day term would be necessary. This would reveal if the $2.3M represents a fair market price or if it's inflated due to urgency or lack of alternatives.

What are the risks associated with a short-term lease renewal for critical operational equipment, and how are they mitigated?

Risks include potential disruption if the equipment fails or is unavailable, and the possibility of paying a premium for short-term needs. Mitigation strategies could involve ensuring robust maintenance agreements, having backup equipment options, or planning for a longer-term procurement if the need is sustained. The competitive SAP award suggests some level of risk assessment was performed.

How effective is the SAP procurement method in ensuring cost-effectiveness for equipment leases of this magnitude and duration?

SAP (Simplified Acquisition Procedures) is generally effective for purchases below $250,000, but its use for a $2.3M lease renewal raises questions. While it allows for competition, the threshold might suggest the agency is breaking down a larger requirement or that the specific equipment falls into a category where SAP is permissible. Its effectiveness hinges on the number of bids received and the final negotiated price compared to market benchmarks.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Other Commercial and Industrial Machinery and Equipment 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: 4646 E VAN BUREN ST STE 400, PHOENIX, AZ, 85008

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

Financial Breakdown

Contract Ceiling: $23,026

Exercised Options: $23,026

Current Obligation: $23,026

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline