Mar 13, 2025
Eyebrows are being raised following a report that San Antonio, Texas, also known as Military City, U.S.A., awarded a multimillion-dollar contract to a company that was previously linked to the unlawful sale of vehicles belonging to active-duty military service members.
Now, years after paying a hefty settlement, the city has granted Vehicle Management Solutions (VMS) a 10-year, $98 million contract to help run one of its impound lots again, according to News 4 San Antonio.
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Former Air Force Staff Sergeant Paula Rangel was one of the complainants in the vehicle auction case. She says her car had been sold off while she was deployed in Afghanistan.
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“I was devastated and I felt let down,” she told the local broadcaster in a story published Feb. 26. “I had just come back from a combat zone for seven months and to be just told ‘Oh, well, got to start over.’”
Vehicle auctions
Rangel wasn’t the only military member to experience the same plight.
An investigation by the U.S. Justice Department found San Antonio had auctioned at least 227 vehicles registered to active military personnel between 2011 and 2019 without obtaining the necessary court orders first. The city was ordered to pay over $100,000 in penalties and set up a settlement fund to compensate victims.
“Service members who serve our country honorably should not have to come home to find that that their only means of transportation and its contents have been auctioned off to the highest bidder,” Assistant Attorney General Eric Dreiband of the Civil Rights Division said in a news release.
The company used to sell the vehicles, according to News 4 San Antonio, was called UR Vehicle Management Solutions (URVMS) — since changed to simply VMS.
Around the time of the settlement, the broadcaster says it reported the company had also auctioned 67 civilian vehicles without the required notifications. This prompted the city to temporarily halt auctions, conduct an audit and replace URVMS with a new contractor.
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New systems in place
So, after paying a big settlement due to problems with this company, News 4 San Antonio asked, why would the city hire them again?
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“The city has put in place tools and processes to ensure that citizens’ vehicles are not sold without them receiving notification two times and then 30 days passing,” San Antonio Police Department assistant director Rick Riley told the news outlet.
He also pointed out that the city has implemented new systems to better identify military member vehicles. However, questions remain.
When asked by News 4 San Antonio whether city council members were briefed on the lawsuit and settlement before voting on the contract, the city responded: “Since the Justice Department alerted us to the issue involving protected service members’ vehicles, the City of San Antonio has implemented new tools, procedures and training to ensure it will not happen again. For example, the City hired a third party that enables us to search for vehicle ownership and military status when vehicles are impounded. These tools were approved by the Justice Department and have been in place since 2022. This history was not discussed before the Council’s vote last week because the issue has been resolved.”
The broadcaster says it reached out to three city council members on the public safety committee, but none wanted to comment. It also contacted VMS, which referred them to city officials.
Service members and their dependents who feel their rights under the Servicemembers Civil Relief Act — which provides legal and financial protections to active military members — have been violated can reach out to the nearest military legal office for support.
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Freelance writer with an economic development and consulting background.
