DOJ's Marshals Service awards $8.6M vehicle maintenance BPA call to Merchants Automotive Group

Contract Overview

Contract Amount: $8,661,128 ($8.7M)

Contractor: Merchants Automotive Group, LLC

Awarding Agency: Department of Justice

Start Date: 2025-02-01

End Date: 2025-11-30

Contract Duration: 302 days

Daily Burn Rate: $28.7K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NATIONAL VEHICLE MAINTENANCE SERVICE CONTRACT BPA CALL

Place of Performance

Location: HOOKSETT, MERRIMACK County, NEW HAMPSHIRE, 03106

State: New Hampshire Government Spending

Plain-Language Summary

Department of Justice obligated $8.7 million to MERCHANTS AUTOMOTIVE GROUP, LLC for work described as: NATIONAL VEHICLE MAINTENANCE SERVICE CONTRACT BPA CALL Key points: 1. Value for money appears fair given the firm-fixed-price structure and 10-month duration. 2. Competition dynamics indicate a competed contract under simplified acquisition procedures, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a short performance period and a single awardee. 4. Performance context is a single BPA call under a larger BPA, focused on general automotive repair. 5. Sector positioning is within the general automotive repair services sector, supporting federal fleet operations.

Value Assessment

Rating: fair

The total award amount of $8.66 million for a 10-month period for vehicle maintenance services is difficult to benchmark without more granular data on the scope of services and vehicle types. However, the firm-fixed-price contract type suggests that the government has a clear understanding of the costs involved. Compared to similar broad vehicle maintenance contracts, this award appears to be within a reasonable range, though specific per-unit cost comparisons are not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than micro-purchases but may not reach the full scope of full and open competition for larger contracts. The data indicates it was competed, suggesting multiple bids were likely solicited and evaluated. The use of SAP for an award of this size implies a focus on efficiency while still aiming for competitive pricing.

Taxpayer Impact: Competing under SAP for this vehicle maintenance BPA call likely resulted in a more competitive price than a sole-source award, benefiting taxpayers by ensuring a reasonable market rate was secured for essential fleet services.

Public Impact

Federal law enforcement agencies, specifically the U.S. Marshals Service, will benefit from reliable vehicle maintenance. Essential services include general automotive repair to ensure the operational readiness of the federal vehicle fleet. The geographic impact is focused on New Hampshire, where the contractor is located. Workforce implications include employment opportunities within Merchants Automotive Group for mechanics and support staff in New Hampshire.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration (10 months) may limit long-term planning and potentially lead to frequent re-competition.
Reliance on a single awardee for a significant BPA call could pose a risk if the contractor faces performance issues or capacity constraints.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Competition under SAP suggests an effort to achieve a fair market price.
Contract is for general automotive repair, a standard and essential service for fleet management.

Sector Analysis

The federal government is a significant consumer of automotive repair and maintenance services to support its vast fleet of vehicles. This contract falls within the broader automotive repair and maintenance industry, which includes dealerships, independent repair shops, and specialized service providers. The market size for federal vehicle maintenance is substantial, driven by agencies like the U.S. Marshals Service that require reliable fleet operations. This BPA call represents a specific procurement action to meet those needs within a defined geographic area and timeframe.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside or if the awardee is a small business. Therefore, the direct impact on the small business ecosystem cannot be determined from this information. However, as a BPA call, it may be part of a larger strategy that includes subcontracting opportunities, which could potentially benefit small businesses if Merchants Automotive Group utilizes them.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Marshals Service contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver services as specified. Transparency is facilitated by the public nature of federal contract awards, allowing for review. There is no specific mention of an Inspector General jurisdiction for this particular BPA call, but the DOJ OIG would have oversight over broader departmental spending.

Related Government Programs

Federal Fleet Management Services
General Automotive Repair Contracts
Department of Justice Vehicle Procurement
U.S. Marshals Service Operational Support

Risk Flags

Short contract duration
Single awardee for a significant BPA call

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $8.7 million to MERCHANTS AUTOMOTIVE GROUP, LLC. NATIONAL VEHICLE MAINTENANCE SERVICE CONTRACT BPA CALL

Who is the contractor on this award?

The obligated recipient is MERCHANTS AUTOMOTIVE GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $8.7 million.

What is the period of performance?

Start: 2025-02-01. End: 2025-11-30.

What is the historical spending pattern for vehicle maintenance services by the U.S. Marshals Service, and how does this award compare?

Analyzing historical spending for the U.S. Marshals Service's vehicle maintenance reveals a consistent need for these services to maintain operational readiness. While specific year-over-year dollar amounts fluctuate based on fleet size, age, and usage, the agency typically allocates significant funds to ensure its vehicles are in good working order. This $8.66 million BPA call for a 10-month period in New Hampshire represents a substantial, but not necessarily anomalous, investment. Without access to detailed historical contract data for the Marshals Service, a precise comparison is challenging. However, the firm-fixed-price nature and the competed status under SAP suggest an effort to manage costs effectively within the agency's budget for fleet support. Previous awards for similar services, if available, would provide a clearer benchmark for assessing if this award is higher or lower than historical averages on a per-vehicle or per-service basis.

What specific types of vehicles and maintenance services are covered under this BPA call?

The contract specifies 'General Automotive Repair' under the NAICS code 811111. This typically encompasses a wide range of routine and non-routine maintenance and repair services for various types of vehicles. Services likely include, but are not limited to, engine diagnostics and repair, brake system maintenance, tire services, exhaust system repairs, electrical system troubleshooting, suspension and steering work, and routine maintenance such as oil changes and fluid checks. The specific types of vehicles covered would likely be those operated by the U.S. Marshals Service within the relevant geographic area (New Hampshire), which could include sedans, SUVs, vans, and potentially specialized law enforcement vehicles. The BPA call structure allows for task orders to be issued as needed, detailing the specific services required for individual vehicles or fleets.

What is the track record of Merchants Automotive Group, LLC with federal contracts, particularly for vehicle maintenance?

Merchants Automotive Group, LLC's track record with federal contracts, especially for vehicle maintenance, is a key factor in assessing this award. A review of publicly available federal procurement data would reveal their history of performance, including the types of contracts awarded, their value, duration, and any reported performance issues or successes. Companies that have a demonstrated history of successfully delivering similar services on time and within budget, and have positive past performance reviews, are generally considered lower risk. For this specific BPA call, the U.S. Marshals Service would have likely evaluated Merchants Automotive Group's past performance, either through internal records, CPARS (Contractor Performance Assessment Reporting System) ratings, or other due diligence, to ensure they possess the capability and reliability to meet the contract requirements. Without direct access to their full federal contract history, a definitive assessment of their track record is limited.

How does the 'Competed under SAP' designation impact the potential value for money compared to a full and open competition?

The 'Competed under SAP' (Simplified Acquisition Procedures) designation suggests that the procurement process was streamlined, typically for contract awards valued between the micro-purchase threshold and the SAP threshold (currently $250,000, but agencies can use SAP up to $8.5 million for certain types of procurements, as may be the case here given the award value). While SAP aims to increase efficiency and reduce administrative burden, it may not always achieve the same level of price competition as a full and open competition, especially for larger dollar values. Full and open competition generally involves broader outreach and potentially more bidders, which can drive prices down. However, for a specialized service like vehicle maintenance, competing under SAP can still yield good value if a sufficient number of qualified vendors are solicited and submit competitive bids. The key is whether the SAP process effectively stimulated enough competition to ensure a fair market price was obtained for the government.

What are the potential risks associated with a single award BPA call for vehicle maintenance, even if competed?

Even when competed, a single award BPA call for vehicle maintenance carries inherent risks. Firstly, there's a risk of contractor underperformance or failure. If Merchants Automotive Group, LLC encounters financial difficulties, operational issues, or fails to meet service level agreements, the U.S. Marshals Service could face disruptions in vehicle maintenance, impacting operational readiness. Secondly, the limited duration (10 months) and single award may reduce leverage for future negotiations. If the contractor becomes indispensable or if market conditions change, the government might face higher prices in subsequent procurements. Lastly, while competed, the SAP process might not have attracted the absolute lowest price compared to a broader, more extensive competition. This concentration of service delivery to one vendor, even if initially competitive, warrants close monitoring.

Industry Classification

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

Product/Service Code: MAINT/REPAIR SHOP EQPT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 15M10319RA4100013

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Merchants Automotive Group, Inc.

Address: 14 CENTRAL PARK DR 1ST FL, HOOKSETT, NH, 03106

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

Financial Breakdown

Contract Ceiling: $8,742,096

Exercised Options: $8,742,096

Current Obligation: $8,661,128

Actual Outlays: $33,695

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15M10320AA4100059

IDV Type: BPA

Timeline