DHS awarded $10.6M for vehicle consignment services, with 2 delivery orders over 6 years

Contract Overview

Contract Amount: $10,579,885 ($10.6M)

Contractor: ROD Robertson Enterprises, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2007-10-01

End Date: 2013-06-28

Contract Duration: 2,097 days

Daily Burn Rate: $5.0K/day

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VEHICLE CONSIGNMENT SERVICE ALONG THE SOUTHWEST BORDER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20229

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.6 million to ROD ROBERTSON ENTERPRISES, INC. for work described as: VEHICLE CONSIGNMENT SERVICE ALONG THE SOUTHWEST BORDER Key points: 1. The contract value appears reasonable for the duration and scope of services. 2. Limited competition was noted, with only two bidders participating. 3. The contract was awarded as a delivery order, suggesting it was part of a larger framework. 4. Performance context is limited due to the nature of delivery orders. 5. This contract falls within the broader category of logistics and support services for border operations.

Value Assessment

Rating: fair

The total award of $10.6 million over approximately six years suggests an average annual spend of around $1.76 million. Benchmarking this against similar vehicle consignment or towing services for federal agencies is challenging without more specific service details. However, the fixed-price nature of the contract provides some cost certainty. The number of delivery orders (2) indicates a potentially infrequent need for the full scope of services, which could influence the effective per-unit cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded as a delivery order, and the data indicates only two bidders participated. This suggests that the competition may have been limited to pre-qualified vendors or that the specific requirements of this delivery order restricted broader participation. A limited number of bidders can sometimes lead to less competitive pricing, as the vendor has less incentive to offer the lowest possible price.

Taxpayer Impact: With only two bidders, taxpayers may not have received the full benefit of competitive pricing that a larger pool of bidders could have provided.

Public Impact

This contract directly benefits U.S. Customs and Border Protection (CBP) by providing essential vehicle consignment services. The services delivered are critical for managing seized or impounded vehicles along the Southwest Border. The geographic impact is concentrated along the Southwest Border, a key operational area for CBP. Workforce implications are likely related to the personnel required by the contractor to perform vehicle intake, storage, and processing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could result in higher costs for taxpayers.
The duration of the contract (over 6 years) with only two delivery orders might indicate inefficient utilization of the contract vehicle.

Positive Signals

The contract was awarded as a firm fixed price, providing cost predictability.
The services provided are essential for border security operations.

Sector Analysis

This contract falls within the broader logistics and support services sector, specifically focusing on vehicle management for government operations. The market for such services can be specialized, particularly when tailored to the unique demands of federal law enforcement agencies operating in sensitive environments like the border. Comparable spending benchmarks would depend on the specific volume and type of vehicles handled, as well as the geographic scope.

Small Business Impact

The provided data does not indicate whether this contract included small business set-asides or subcontracting goals. Without this information, it is difficult to assess the impact on the small business ecosystem. Typically, large contracts for specialized services may not always be fully set aside for small businesses, but subcontracting opportunities can still exist.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Customs and Border Protection (CBP), a component of the Department of Homeland Security (DHS). Accountability measures would be tied to the performance standards outlined in the delivery order and the contract's terms. Transparency is generally facilitated through contract databases, though specific performance details may be less publicly accessible.

Related Government Programs

Department of Homeland Security Logistics Support Contracts
Federal Vehicle Management Services
Border Security Support Services

Risk Flags

Limited competition
Potential for cost overruns if scope was not well-defined initially (though FFP mitigates this for the government)

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.6 million to ROD ROBERTSON ENTERPRISES, INC.. VEHICLE CONSIGNMENT SERVICE ALONG THE SOUTHWEST BORDER

Who is the contractor on this award?

The obligated recipient is ROD ROBERTSON ENTERPRISES, INC..

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 $10.6 million.

What is the period of performance?

Start: 2007-10-01. End: 2013-06-28.

What was the specific nature of the 'vehicle consignment service' provided under this contract?

The 'vehicle consignment service' likely refers to the process of taking custody of, storing, and managing vehicles that have been seized, impounded, or are otherwise under the control of U.S. Customs and Border Protection (CBP). This could include intake procedures, secure storage, maintenance if required, and eventual processing for auction, disposal, or return. The exact scope would be detailed in the specific delivery orders issued against the contract. Given the location (Southwest Border), these vehicles could be related to smuggling activities or other border enforcement actions.

How does the $10.6 million award compare to similar vehicle consignment contracts for federal agencies?

Direct comparison is difficult without knowing the precise volume of vehicles, storage duration, and specific services rendered. However, $10.6 million over six years averages to approximately $1.76 million annually. This figure needs to be contextualized by the operational tempo and needs of CBP along the Southwest Border. Larger federal agencies with significant vehicle fleets or seizure operations might have contracts in the tens or hundreds of millions. For a specialized service like consignment of seized assets, this amount appears within a plausible range, assuming a moderate volume of activity.

What are the potential risks associated with a contract having only two bidders?

A contract with only two bidders, as indicated for this delivery order, presents several potential risks. Primarily, it suggests limited competition, which can lead to higher prices than might be achieved in a more robustly competed environment. There's also a risk of vendor lock-in if these two vendors are the only ones capable or willing to perform the service. Furthermore, if one of the vendors experiences performance issues or exits the market, the government has very few alternatives, potentially disrupting critical services. This limited pool also reduces the incentive for vendors to innovate or offer superior service to gain market share.

What does the 'Motor Vehicle Towing' NationalНаименование (NAICS) code suggest about the contract's primary function?

The NAICS code '488410 - Motor Vehicle Towing' strongly indicates that the primary function of this contract was related to the towing and transportation of vehicles. While the description mentions 'vehicle consignment service,' the NAICS code suggests that the physical movement and potentially short-term holding of these vehicles were central to the service. This could include towing vehicles from points of seizure to consignment facilities, or towing them between different locations as needed by CBP. It implies a focus on the logistical and transportation aspects of managing vehicles.

How does the contract type 'FIRM FIXED PRICE' impact the financial risk for the government and the contractor?

A 'FIRM FIXED PRICE' (FFP) contract type places the majority of the financial risk on the contractor. The contractor agrees to perform the specified work for a predetermined price, regardless of their actual costs. If the contractor's costs exceed the fixed price, they absorb the loss. Conversely, if their costs are lower than anticipated, they retain the profit. For the government, this provides cost certainty and predictability, as the total price is fixed. This contract type is generally preferred when the scope of work is well-defined and the risks of cost overruns are manageable by the contractor.

What is the significance of the contract being awarded as a 'DELIVERY ORDER'?

Being awarded as a 'DELIVERY ORDER' signifies that this contract was likely issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar multiple-award framework. This means the government had already established the terms, conditions, and pricing structure with one or more vendors. A delivery order then specifies the exact quantity, delivery schedule, and price for a particular task or requirement. This approach allows for flexibility and faster procurement for specific needs that arise over time, rather than initiating a new full-scale contract each time. It also implies that the initial competition, if any, occurred when the parent IDIQ contract was awarded.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Road Transportation › Motor Vehicle Towing

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

Contractor Details

Address: 11507 ELM BLF, SAN ANTONIO, TX, 78230

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $53,776,701

Exercised Options: $13,939,885

Current Obligation: $10,579,885

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSBP1006D01275

IDV Type: IDC

Timeline