Sold Soldiers’ Cars – Gets a $98M PAYDAY?

San Antonio awarded a $98 million contract to a company previously penalized for illegally auctioning off active-duty military members’ vehicles, raising concerns about oversight and accountability.

At a Glance

San Antonio granted a $98 million, 10-year contract to Vehicle Management Solutions (VMS).

VMS, formerly URVMS, previously auctioned 227 military-owned vehicles without court orders.

The city paid over $100,000 in penalties and established a settlement fund for affected service members.

New systems have been implemented to prevent unauthorized vehicle sales.

The decision has sparked criticism from residents and offici

als concerned about past misconduct.

A Controversial Contract Renewal

San Antonio, known as Military City U.S.A., has reignited controversy by awarding a substantial contract to Vehicle Management Solutions (VMS), a company with a troubling history. Between 2011 and 2019, VMS, then operating as URVMS, illegally auctioned off at least 227 vehicles belonging to active-duty military personnel without obtaining the necessary court orders. This violation led to a U.S. Justice Department investigation, resulting in the city paying over $100,000 in penalties and creating a settlement fund for the affected service members.

One such service member, former Air Force Staff Sergeant Paula Rangel, returned from a seven-month deployment in Afghanistan to find her car, containing personal belongings and military equipment, had been sold. “I was devastated and I felt let down,” Rangel said, highlighting the emotional toll of the incident.

Watch a report: $98 million impound contract awarded to firm fined for auctioning military members’ cars.

Implementing Safeguards Amidst Skepticism

In response to past violations, San Antonio officials assert that new measures have been put in place to prevent similar incidents. The city has introduced tools and procedures to ensure that vehicles are not sold without proper notification, including verifying military status before proceeding with auctions. These systems, approved by the Justice Department, have been operational since 2022.

Despite these assurances, the decision to rehire VMS has been met with criticism. Residents and local advocates question the city’s judgment, especially given the company’s previous misconduct. Some city council members have refrained from commenting on whether they were fully briefed on VMS’s history before the contract vote.

Balancing Efficiency and Accountability

The San Antonio Police Department evaluated two bidders for the contract and recommended VMS, citing the new safeguards as sufficient to prevent future issues. Assistant Director Rick Riley emphasized that the city has implemented processes to ensure vehicles are not sold without proper notification and verification of ownership, particularly concerning military personnel.

However, the move has raised broader concerns about accountability and the message it sends to the military community. Critics argue that awarding such a significant contract to a company with a history of violating service members’ rights undermines trust and fails to uphold the city’s commitment to its military residents.

As San Antonio moves forward with VMS overseeing its impound operations, the effectiveness of the new safeguards and the city’s commitment to accountability will be closely scrutinized by both residents and the broader public.