Vehicle Lease Program

The Texas Military Department (TMD) has issued an Invitation for Bid (IFB) number TMD25-FMO.CHE.MH-0040428 for a Vehicle Lease Program seeking qualified vendors to provide leasing services for official state vehicles. The procurement covers eleven vehicle categories ranging from economy cars to 1-ton trucks, with specific requirements that vehicles must be 2023 model year or newer, have less than 25,000 miles, include automatic transmission, and have four doors. Successful vendors must provide vehicles with unlimited mileage, a minimum 3-year/36,000-mile bumper-to-bumper manufacturer warranty, and deliver vehicles to TMD Camp Mabry in Austin, Texas. Bidders must have at least five years of vehicle leasing experience within the past decade and sufficient inventory to meet delivery requirements. The contract will have an initial 24-month term with two optional 12-month extensions, and award will be made to the lowest-price responsive bidder meeting specifications based on Texas Government Code best value standards. Written questions are due by August 12, 2025, at 4:00 PM, and final electronic bid responses must be submitted to Procurement@military.texas.gov by September 3, 2025, at 2:00 PM CST.

The solicitation includes significant Historically Underutilized Business (HUB) participation requirements, with a statewide HUB goal of 21.1% for commodities contracts. Prime contractors must notify at least three Texas certified HUB subcontractors and two trade organizations at least seven working days before submitting their bid response. Vendors must complete a comprehensive HUB Subcontracting Plan (HSP) form, and responses without a completed HSP will be automatically rejected. The contract requires comprehensive insurance coverage, including $1,000,000 commercial general liability and $500,000 automobile liability. While no specific total contract value is listed, the solicitation indicates no guaranteed minimum vehicle quantities or compensation. Contractors must comply with various state regulations including prohibitions on transactions with abortion providers, antitrust law compliance, and restrictions on doing business with entities that boycott Israel or firearm companies. The contract is subject to state funding availability and can be terminated without penalty if funds become unavailable.