DoD's $29.2M bus contract to Taylor Motors, Inc. for school and employee transport in Kentucky shows fair value

Contract Overview

Contract Amount: $29,190,720 ($29.2M)

Contractor: Taylor Motors, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-07-21

End Date: 2021-07-31

Contract Duration: 1,836 days

Daily Burn Rate: $15.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: IGF::CL::IGF DAILY TRANSPORTATION - REG - CAMPBELL

Place of Performance

Location: MURRAY, CALLOWAY County, KENTUCKY, 42071

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $29.2 million to TAYLOR MOTORS, INC. for work described as: IGF::CL::IGF DAILY TRANSPORTATION - REG - CAMPBELL Key points: 1. The contract's value appears reasonable given the duration and scope of services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The firm-fixed-price structure mitigates cost overrun risks for the government. 4. Performance occurred over a significant period, allowing for assessment of sustained service delivery. 5. This contract falls within the transportation services sector, specifically school and employee transport. 6. The award was made to a single contractor, Taylor Motors, Inc.

Value Assessment

Rating: good

The contract's total value of approximately $29.2 million over five years suggests an average annual cost of roughly $5.84 million. This figure appears competitive for providing comprehensive school and employee transportation services across a state. Benchmarking against similar large-scale transportation contracts would provide a more precise value-for-money assessment, but initial indications suggest fair pricing for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the data does not specify the number of bids received, this procurement method generally fosters a competitive environment, which should lead to more favorable pricing for the government. The use of full and open competition is a positive indicator for price discovery and efficient use of taxpayer funds.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing, potentially leading to cost savings compared to less competitive procurement methods.

Public Impact

Students and employees of the Department of Defense Education Activity (DoDEA) in Kentucky benefit from reliable transportation services. The contract ensures the safe and efficient transport of personnel to and from educational facilities and workplaces. The geographic impact is concentrated within Kentucky, serving the specific needs of DoD installations and associated communities in the state. The contract supports local employment through the provision of transportation services, potentially including drivers and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to fully assess service quality and reliability.
The long contract duration (over 5 years) could potentially lead to vendor complacency if not actively managed.
No information is available on the number of bids received, which limits a deeper analysis of the competitive landscape.

Positive Signals

The contract was awarded using full and open competition, suggesting a robust bidding process.
The firm-fixed-price contract type helps control costs and provides budget certainty for the government.
The services provided are essential for the functioning of DoD schools and facilities, indicating a critical need being met.

Sector Analysis

This contract falls within the broader transportation services sector, specifically focusing on school and employee bus transportation. The market for such services is often characterized by a mix of large national providers and smaller regional operators. Government contracts for transportation are significant, driven by the need to move personnel and resources efficiently. This award to Taylor Motors, Inc. represents a substantial commitment within this niche.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses mandated by this award. The primary focus was on securing the best value through full and open competition, rather than targeting small business participation.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of Defense, subject to standard federal procurement oversight. Oversight would typically involve contract administration by the relevant DoD agency (Department of Defense Education Activity) to ensure compliance with terms and conditions. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Education Activity (DoDEA) Operations
School Transportation Services
Employee Commute Programs
Federal Fleet Management
Logistics and Transportation Services

Risk Flags

Potential for cost increases not fully captured by fixed price
Risk of service quality degradation over long contract term
Limited transparency on number of bidders impacting competition assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.2 million to TAYLOR MOTORS, INC.. IGF::CL::IGF DAILY TRANSPORTATION - REG - CAMPBELL

Who is the contractor on this award?

The obligated recipient is TAYLOR MOTORS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of Defense Education Activity).

What is the total obligated amount?

The obligated amount is $29.2 million.

What is the period of performance?

Start: 2016-07-21. End: 2021-07-31.

What is the track record of Taylor Motors, Inc. with federal contracts, particularly in transportation services?

Information on Taylor Motors, Inc.'s specific track record with federal contracts is not detailed in the provided data snippet. However, the award of this definitive contract by the Department of Defense suggests a level of capability and experience deemed sufficient for the scope of services. A comprehensive assessment would require reviewing their past performance on similar federal contracts, including any past performance evaluations, contract modifications, or disputes. Understanding their history with the DoD or other federal agencies would provide further insight into their reliability and effectiveness as a contractor.

How does the per-vehicle cost or per-mile cost of this contract compare to industry benchmarks for school and employee transportation?

The provided data does not include granular details such as the number of vehicles utilized, total miles driven, or specific routes, making a direct per-vehicle or per-mile cost comparison impossible. The total contract value of $29.2 million over approximately 1836 days (roughly 5 years) averages to about $15,899 per day. To benchmark effectively, one would need to know the fleet size, operational hours, and geographic coverage. Industry benchmarks for school bus transportation can vary widely based on region, type of service (e.g., special needs vs. general student transport), and operational model. Without more specific operational data, a precise comparison to industry benchmarks for per-unit costs cannot be made.

What are the primary risks associated with a long-term, firm-fixed-price contract for transportation services?

A primary risk with long-term, firm-fixed-price contracts for transportation services is the potential for the contractor to face unforeseen cost increases (e.g., fuel price volatility, increased labor costs, unexpected maintenance) that erode profit margins, potentially leading to service quality degradation or requests for contract modification. Conversely, if costs decrease significantly, the government might be overpaying relative to actual service delivery. Another risk is vendor complacency over the long duration, where the contractor may become less responsive or innovative if competition is limited post-award. Effective contract management, including performance monitoring and clear communication channels, is crucial to mitigate these risks.

How effective has the Department of Defense Education Activity been in managing similar transportation contracts?

Assessing the effectiveness of the Department of Defense Education Activity (DoDEA) in managing similar transportation contracts requires a review of their broader contract management performance, including data on contract performance ratings, dispute resolutions, and successful contract completions. The provided data focuses solely on this one contract. Generally, DoDEA manages a complex portfolio of services to support military-connected students worldwide. Their effectiveness in managing transportation contracts would likely depend on factors such as the adequacy of their contracting staff, the clarity of performance work statements, and the robustness of their oversight mechanisms. Without specific performance data on DoDEA's management of this or comparable contracts, a definitive statement on their effectiveness cannot be made.

What has been the historical spending trend for school and employee bus transportation by the Department of Defense?

The provided data snippet focuses on a single contract awarded in 2016. To understand historical spending trends for school and employee bus transportation by the Department of Defense (DoD), one would need to analyze aggregated spending data over multiple fiscal years. This would involve querying federal procurement databases for contracts categorized under relevant North American Industry Classification System (NAICS) codes (e.g., 485410 - School and Employee Bus Lines) awarded by the DoD. Analyzing this data would reveal patterns in contract values, number of awards, and key contractors over time, indicating whether spending in this category has been increasing, decreasing, or remaining stable.

Industry Classification

NAICS: Transportation and Warehousing › School and Employee Bus Transportation › School and Employee Bus Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HEVAS616R0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3820 U S HWY 641 S, MURRAY, KY, 42071

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $29,190,720

Exercised Options: $29,190,720

Current Obligation: $29,190,720

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline