DHS awards $11.6M for automotive repair, highlighting a need for specialized fleet maintenance

Contract Overview

Contract Amount: $11,602,557 ($11.6M)

Contractor: International Service Contractors LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-11-14

End Date: 2026-11-13

Contract Duration: 1,095 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS AWARD IS TO ESTABLISH A SINGLE AWARD HYBRID CONTRACT WITH FIRM-FIXED PRICE AND COST REIMBURSEMENT CONTRACT LINE ITEMS (CLINS). THE CONTRACTOR SHALL PROVIDE ALL PERSONNEL, EQUIPMENT, MATERIAL, AND SUPPLIES (EXCEPT AS EXPRESSLY SET

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.6 million to INTERNATIONAL SERVICE CONTRACTORS LLC for work described as: THE PURPOSE OF THIS AWARD IS TO ESTABLISH A SINGLE AWARD HYBRID CONTRACT WITH FIRM-FIXED PRICE AND COST REIMBURSEMENT CONTRACT LINE ITEMS (CLINS). THE CONTRACTOR SHALL PROVIDE ALL PERSONNEL, EQUIPMENT, MATERIAL, AND SUPPLIES (EXCEPT AS EXPRESSLY SET Key points: 1. The contract's hybrid structure (firm-fixed price and cost reimbursement) suggests a need for flexibility in managing diverse automotive repair needs. 2. A single award indicates potential consolidation of services, but raises questions about the breadth of competition. 3. The duration of 1095 days (3 years) provides stability for the contractor and consistent service for the agency. 4. Focus on General Automotive Repair (NAICS 811111) points to essential operational support for the agency's vehicle fleet. 5. The contract's value, while significant, needs to be benchmarked against similar fleet maintenance contracts to assess value for money. 6. The exclusion of sources in the competition process warrants further investigation into the justification for limited bidding.

Value Assessment

Rating: fair

Benchmarking the $11.6 million award for automotive repair services against similar contracts is crucial for assessing value. Without specific details on the scope of work and the types of vehicles serviced, a precise value-for-money assessment is challenging. However, the contract's duration and the nature of automotive repair suggest that consistent, specialized services are being procured. The pricing structure, combining firm-fixed price and cost reimbursement, may indicate an attempt to balance cost control with the unpredictable nature of repairs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the initial solicitation was open, certain sources were excluded, leading to a limited competition. The number of bidders (3) is relatively low, suggesting that the pool of qualified contractors for this specific type of specialized automotive repair might be constrained, or that the exclusion criteria significantly narrowed the field. This limited competition could impact price discovery and potentially lead to higher costs compared to a fully open and unrestricted competition.

Taxpayer Impact: The limited competition may mean taxpayers are not benefiting from the most competitive pricing achievable. The exclusion of potential bidders could restrict opportunities for cost savings that might have arisen from a broader range of proposals.

Public Impact

Federal Emergency Management Agency (FEMA) personnel and operations benefit from a well-maintained vehicle fleet, ensuring readiness for disaster response and other critical missions. Essential automotive repair and maintenance services are delivered, covering a range of vehicles within the DHS inventory. The primary geographic impact is within the District of Columbia, where the contract is managed and services are likely rendered. The contract supports jobs within the automotive repair industry, providing employment for mechanics and support staff at International Service Contractors LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition process raises concerns about whether the government secured the best possible pricing and service through a truly open market.
A limited number of bidders (3) could indicate a lack of robust competition, potentially leading to less favorable terms for the government.
The hybrid contract structure (firm-fixed price and cost reimbursement) can sometimes lead to cost overruns if not managed carefully, especially in the cost reimbursement portions.

Positive Signals

The contract establishes a multi-year agreement (3 years), providing stability and continuity of essential automotive repair services for FEMA.
The award to International Service Contractors LLC suggests they possess the necessary qualifications and capacity to meet the agency's specialized fleet maintenance needs.
The firm-fixed price components of the contract offer some cost certainty for predictable repair services.

Sector Analysis

The automotive repair and maintenance sector is a critical support industry for government operations, ensuring the functionality of essential vehicle fleets. This contract falls within the broader professional, scientific, and technical services category, specifically focusing on vehicle maintenance. The market for government automotive repair services can be competitive, but specialized needs, such as those for emergency response vehicles or unique agency requirements, may lead to more concentrated markets or specific contract awards. Benchmarking against industry standards for fleet maintenance costs is essential for evaluating the efficiency of this $11.6 million award.

Small Business Impact

This contract was not set aside for small businesses, as indicated by `ss: false` and `sb: false`. The award to International Service Contractors LLC, a single entity, does not inherently preclude subcontracting opportunities for small businesses. However, without specific subcontracting plans detailed in the award documents, the direct impact on the small business ecosystem is unclear. Further analysis would be needed to determine if small businesses are involved in fulfilling any part of this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and the Federal Emergency Management Agency (FEMA) contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing payments. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or identified.

Related Government Programs

General Services Administration (GSA) Fleet Management Services
Department of Defense Vehicle Maintenance Contracts
Other Agency Fleet Support Contracts

Risk Flags

Limited competition may lead to higher costs.
Justification for exclusion of sources requires further review.
Potential for cost overruns in cost-reimbursement portions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.6 million to INTERNATIONAL SERVICE CONTRACTORS LLC. THE PURPOSE OF THIS AWARD IS TO ESTABLISH A SINGLE AWARD HYBRID CONTRACT WITH FIRM-FIXED PRICE AND COST REIMBURSEMENT CONTRACT LINE ITEMS (CLINS). THE CONTRACTOR SHALL PROVIDE ALL PERSONNEL, EQUIPMENT, MATERIAL, AND SUPPLIES (EXCEPT AS EXPRESSLY SET

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL SERVICE CONTRACTORS LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $11.6 million.

What is the period of performance?

Start: 2023-11-14. End: 2026-11-13.

What specific types of vehicles are covered under this automotive repair contract, and what is the estimated size and age of the fleet being serviced?

The provided data indicates the contract is for 'General Automotive Repair' (NAICS 811111) and is awarded to International Service Contractors LLC by the Department of Homeland Security's Federal Emergency Management Agency (FEMA). While the specific types of vehicles are not detailed, 'General Automotive Repair' typically encompasses a wide range of light to medium-duty vehicles, including sedans, SUVs, and light trucks commonly used for administrative and operational purposes. The contract duration is 1095 days (3 years) with a total value of $11,602,556.80. Without further details on the fleet size and composition, it's difficult to ascertain the exact scope. However, FEMA operates a substantial fleet to support its disaster response and recovery missions, which likely includes a mix of standard and specialized vehicles. The contract's value suggests it covers a significant portion of the fleet's maintenance needs within its operational area.

How does the $11.6 million contract value compare to historical spending by FEMA or DHS on similar automotive repair services?

To accurately compare the $11.6 million contract value to historical spending, one would need to analyze FEMA's and DHS's procurement history for automotive repair services over previous years. This would involve identifying similar contracts, considering factors like contract duration, scope of work (e.g., types of vehicles, services included), and geographic coverage. Without access to detailed historical procurement data for FEMA's fleet maintenance, a direct comparison is challenging. However, the value suggests a substantial ongoing need for fleet upkeep. If previous contracts for similar services were significantly lower or higher, it could indicate changes in fleet size, service requirements, or market pricing. The current contract's three-year term and total value provide a benchmark for future analyses of spending trends in this category.

What are the specific justifications for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award process?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that while the initial solicitation was intended to be open, specific criteria or requirements led to the exclusion of certain potential bidders. The exact justifications for these exclusions are not provided in the basic award data. Typically, such exclusions might be based on stringent technical qualifications, specialized equipment requirements, specific past performance criteria, or geographic limitations that only a subset of contractors can meet. For a contract of this nature (automotive repair), exclusions could be related to the need for specialized certifications, the ability to service a particular type or brand of vehicle, or the capacity to provide on-site services. A formal Justification for Other than Full and Open Competition (JOFOC) document would typically be required and would detail these reasons, which are often related to ensuring the government receives the most advantageous offer based on specific, demonstrable needs.

What is the breakdown of the contract value between firm-fixed price and cost reimbursement line items, and what does this imply about the nature of the services procured?

The award data states the contract includes 'FIRM-FIXED PRICE AND COST REIMBURSEMENT CONTRACT LINE ITEMS (CLINS)'. However, the specific dollar allocation between these two types of CLINs is not provided. This hybrid structure suggests that the contract covers services with both predictable and unpredictable cost elements. Firm-fixed price CLINs are likely used for routine maintenance, scheduled services, or parts with stable pricing where the scope is well-defined. Cost reimbursement CLINs are typically employed for unforeseen repairs, emergency services, or situations where the exact labor hours and parts required cannot be precisely estimated upfront. This approach allows the agency to maintain cost control on predictable services while retaining flexibility to address unexpected issues that arise in fleet maintenance, balancing cost certainty with operational necessity.

What is the track record of International Service Contractors LLC in performing similar federal automotive repair contracts, and have they previously held large contracts with DHS or FEMA?

The provided data identifies International Service Contractors LLC as the awardee for this $11.6 million contract with FEMA. To assess their track record, one would need to consult federal procurement databases (like FPDS or SAM.gov) to review their past contract history. This would reveal whether they have previously performed similar automotive repair services for federal agencies, particularly DHS or FEMA. Key aspects to examine would include the size and duration of previous contracts, their performance ratings (if available), and any history of contract modifications, disputes, or terminations. A history of successful performance on comparable contracts would indicate a lower risk for this current award, while a lack of relevant experience or past performance issues might raise concerns about the contractor's ability to meet FEMA's needs effectively.

Industry Classification

NAICS: Other Services (except Public Administration) › Automotive Repair and Maintenance › General Automotive Repair

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70FB7023R00000012

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 295 E HIGHWAY 50, CLERMONT, FL, 34711

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $20,215,962

Exercised Options: $12,015,472

Current Obligation: $11,602,557

Actual Outlays: $4,251,589

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline