GSA awards $620K contract for auto auction services in New Mexico to Farmington Auto Auction Inc

Contract Overview

Contract Amount: $620,202 ($620.2K)

Contractor: Farmington Auto Auction Inc

Awarding Agency: General Services Administration

Start Date: 2025-05-15

End Date: 2026-04-07

Contract Duration: 327 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE SALES/AUCTION FUNDING FOR R8 FARMINGTON

Place of Performance

Location: FARMINGTON, SAN JUAN County, NEW MEXICO, 87401

State: New Mexico Government Spending

Plain-Language Summary

General Services Administration obligated $620,201.69 to FARMINGTON AUTO AUCTION INC for work described as: PROVIDE SALES/AUCTION FUNDING FOR R8 FARMINGTON Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, common for ongoing service needs. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract is approximately one year, aligning with typical service delivery cycles. 5. The awardee, Farmington Auto Auction Inc., is a specialized wholesale trade agent and broker. 6. The contract supports the General Services Administration's Federal Acquisition Service, indicating a role in asset disposition or management.

Value Assessment

Rating: good

The contract value of $620,201.69 for approximately 327 days of service appears reasonable given the specialized nature of auto auction services. Without specific benchmarks for similar government auto auction contracts, direct comparison is difficult. However, the fixed-price nature suggests that the government has negotiated a set rate, which is generally a positive indicator for value. The General Services Administration (GSA) typically manages a high volume of such contracts, implying established processes for ensuring fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method of procurement generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The GSA's use of this method for services like auto auctions suggests a commitment to leveraging market forces.

Taxpayer Impact: Full and open competition maximizes the pool of potential offerors, increasing the likelihood of obtaining the best value for taxpayer dollars and ensuring fair market prices are achieved.

Public Impact

The primary beneficiaries are government agencies needing to dispose of surplus or seized vehicles. The service delivered is the provision of auto auction services, facilitating the sale of vehicles. The geographic impact is focused on New Mexico, where the contractor is located. Workforce implications are likely limited to the contractor's employees involved in managing and conducting the auctions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or service level agreements in the provided data.
Potential for price fluctuations in the used vehicle market impacting the ultimate value realized by the government.
Dependence on a single contractor for services in a specific geographic region.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Fixed-price contract type provides cost certainty for the government.
Contract duration is aligned with typical service needs, allowing for flexibility.
Contractor operates within the Wholesale Trade Agents and Brokers industry, indicating specialization.

Sector Analysis

The contract falls within the Wholesale Trade sector, specifically for agents and brokers. This sector is crucial for facilitating the movement of goods, including vehicles, between sellers and buyers. Government agencies often utilize auction services to efficiently dispose of surplus, forfeited, or trade-in vehicles. The market for auto auctions is competitive, with various players ranging from large national auction houses to smaller regional specialists. The GSA's role often involves consolidating such needs across multiple agencies.

Small Business Impact

The provided data indicates that small business set-aside was not utilized for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The contract was competed broadly, allowing all eligible businesses, including small businesses if they met the qualifications, to participate.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract through its Federal Acquisition Service. Oversight mechanisms likely include contract performance monitoring, financial reviews, and adherence to procurement regulations. Accountability is ensured through the contract terms and conditions, including the fixed-price structure. Transparency is generally maintained through GSA's public contract databases, although specific performance details may be internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

GSA Fleet Vehicle Sales
Department of Defense Vehicle Auctions
Asset Forfeiture Vehicle Disposal Programs
Surplus Property Disposal Services

Risk Flags

Potential market volatility impacting resale values.
Contractor performance and adherence to service level agreements (if defined).
Ensuring fair market value is achieved through the auction process.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $620,201.69 to FARMINGTON AUTO AUCTION INC. PROVIDE SALES/AUCTION FUNDING FOR R8 FARMINGTON

Who is the contractor on this award?

The obligated recipient is FARMINGTON AUTO AUCTION INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $620,201.69.

What is the period of performance?

Start: 2025-05-15. End: 2026-04-07.

What is the track record of Farmington Auto Auction Inc. with government contracts?

The provided data does not include specific details on Farmington Auto Auction Inc.'s prior government contract history. However, their classification as a Wholesale Trade Agent and Broker (NAICS 425120) suggests they operate within a sector relevant to government asset disposition. To fully assess their track record, one would need to review their past performance on similar contracts, including any past performance evaluations, awards, or disputes. Information on their experience with federal agencies, particularly the GSA, would be crucial for a comprehensive understanding of their capabilities and reliability in fulfilling this contract.

How does the awarded amount compare to similar government auto auction contracts?

Direct comparison of the $620,201.69 award for approximately 327 days of service is challenging without access to a comprehensive database of similar government auto auction contracts, including their scope, duration, and geographic coverage. The General Services Administration (GSA) manages a vast portfolio of contracts, and pricing can vary significantly based on vehicle types, volumes, auction complexity, and regional market conditions. The fixed-price nature of this contract provides cost certainty, but a detailed benchmark analysis would require examining contracts with comparable parameters, such as the number of vehicles processed, the types of vehicles (e.g., standard fleet vs. specialized equipment), and the specific auction services rendered (e.g., online, in-person, remarketing).

What are the primary risks associated with this contract?

Key risks include potential fluctuations in the used vehicle market, which could affect the ultimate resale value of vehicles auctioned and thus the overall financial outcome for the government. Performance risk is another consideration; ensuring the contractor effectively markets and sells vehicles in a timely manner is crucial. Operational risks, such as logistical challenges in transporting or storing vehicles, or technical issues with auction platforms, could also arise. Finally, there's a reputational risk if the auction process is perceived as unfair or not maximizing returns. The fixed-price nature mitigates cost overrun risk for the government but places that risk on the contractor.

How effective is the GSA in managing vehicle disposition contracts?

The GSA's Federal Acquisition Service is generally considered experienced in managing a wide array of commodity and service contracts, including vehicle disposition. Their established procurement processes, including the use of IDIQ vehicles and competitive bidding, aim to ensure efficiency and value. However, the effectiveness of any specific contract, like this one, depends on detailed performance metrics, ongoing oversight, and the contractor's execution. GSA's large scale allows for economies of scale and specialized expertise, but the complexity of managing diverse assets across numerous agencies means that individual contract performance can vary. Continuous monitoring and feedback loops are essential for maintaining effectiveness.

What is the historical spending pattern for auto auction services by the GSA?

Historical spending data for GSA's auto auction services would reveal trends in contract values, award volumes, and contractor utilization over time. Without specific historical data, it's presumed that GSA consistently procures such services to manage the disposal of federal fleet vehicles and other assets. Spending patterns are likely influenced by factors such as the size and turnover rate of the federal vehicle fleet, changes in vehicle remarketing strategies (e.g., shift towards online auctions), and overall federal budget allocations. Analyzing past spending could indicate whether this $620K award is typical, an increase, or a decrease compared to previous periods or similar contracts.

Does the fixed-price contract type adequately protect the government's financial interests?

Yes, a Firm Fixed Price (FFP) contract type is generally considered one of the most advantageous for the government when the scope of work is well-defined and risks are manageable. It establishes a ceiling price that the contractor must not exceed, transferring most of the cost risk to the contractor. For services like auto auctions, where the primary variable might be the resale value of the vehicles (which is outside the scope of the service contract itself), an FFP contract provides budget certainty. The government knows its maximum liability upfront. The effectiveness hinges on the initial price negotiation being fair and competitive, which is supported by the 'full and open competition' award method.

Industry Classification

NAICS: Wholesale Trade › Wholesale Trade Agents and Brokers › Wholesale Trade Agents and Brokers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1661 W MURRAY DR, FARMINGTON, NM, 87401

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

Financial Breakdown

Contract Ceiling: $620,202

Exercised Options: $620,202

Current Obligation: $620,202

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QMCA20D001V

IDV Type: IDC

Timeline