DHS Leases Buses and Vans for $8.9M Under Full and Open Competition

Contract Overview

Contract Amount: $8,899,427 ($8.9M)

Contractor: Shuttle BUS Leasing

Awarding Agency: Department of Homeland Security

Start Date: 2023-08-08

End Date: 2024-10-31

Contract Duration: 450 days

Daily Burn Rate: $19.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: LEASE OF BUS AND VANS

Place of Performance

Location: RIVERSIDE, RIVERSIDE County, CALIFORNIA, 92507

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $8.9 million to SHUTTLE BUS LEASING for work described as: LEASE OF BUS AND VANS Key points: 1. Contract value of $8.9M for shuttle bus leasing. 2. Full and open competition was utilized. 3. Potential risk associated with vehicle leasing duration and maintenance. 4. Spending falls within the Transportation sector.

Value Assessment

Rating: good

The contract value of $8.9M for a 450-day lease appears reasonable given the scope. Benchmarking against similar large-scale vehicle leasing contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and fair market value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the leased vehicles.

Public Impact

Ensures operational capacity for U.S. Customs and Border Protection by providing necessary transportation. Supports agency missions requiring mobile personnel and equipment. Leasing avoids large capital outlays for vehicle purchase, offering flexibility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lease duration may exceed immediate needs.
Potential for unexpected maintenance costs.
Dependence on lessor for vehicle availability and condition.

Positive Signals

Competitive award process.
Firm fixed price contract provides cost certainty.
Supports critical agency operations.

Sector Analysis

This contract falls under the Transportation sector, specifically vehicle leasing. Spending benchmarks for similar government vehicle leases vary widely based on vehicle type, duration, and geographic location.

Small Business Impact

The provided data does not indicate if small businesses participated in or benefited from this contract award.

Oversight & Accountability

The contract was awarded by the Department of Homeland Security, suggesting established oversight mechanisms. Further review of contract performance reports would detail specific accountability measures.

Related Government Programs

Truck, Utility Trailer, and RV (Recreational Vehicle) Rental and Leasing
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Lease duration
Vehicle maintenance responsibility
Potential for underutilization
Lessor dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $8.9 million to SHUTTLE BUS LEASING. LEASE OF BUS AND VANS

Who is the contractor on this award?

The obligated recipient is SHUTTLE BUS LEASING.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $8.9 million.

What is the period of performance?

Start: 2023-08-08. End: 2024-10-31.

What is the total cost per day for the lease?

The total contract value is $8,899,426.84 for a duration of 450 days. Dividing the total cost by the number of days yields an approximate daily lease cost of $19,776.50. This figure represents the average daily cost across all leased vehicles and services included in the contract.

What are the specific risks associated with a 450-day lease for buses and vans?

Risks include potential obsolescence of leased vehicles during the term, unexpected maintenance and repair costs not covered by the lessor, and the possibility of the agency exceeding its operational needs, leading to underutilization. Furthermore, reliance on a single lessor for a significant duration can create dependencies and limit flexibility if needs change.

How does the firm fixed price structure impact cost effectiveness for this lease?

A firm fixed price contract provides cost certainty for the government, as the price is set regardless of the lessor's actual costs. This structure is effective in mitigating cost overrun risks for the agency. However, it may lead to a higher initial price compared to cost-reimbursement contracts if the lessor anticipates higher potential costs.

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: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70B03C23R00000078

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1863 SERVICE CT, RIVERSIDE, CA, 92507

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,899,427

Exercised Options: $8,899,427

Current Obligation: $8,899,427

Actual Outlays: $8,899,427

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline