GSA awards $473K for 10 SUVs, exceeding average price by 15% in a full and open competition

Contract Overview

Contract Amount: $47,295 ($47.3K)

Contractor: Fleet Vehicle Source Inc

Awarding Agency: General Services Administration

Start Date: 2026-04-02

End Date: 2027-01-26

Contract Duration: 299 days

Daily Burn Rate: $158/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 4X4 SUV, INTERMEDIATE, 4 DR, 5 PASS, MIN 5500 GVWR

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89118

State: Nevada Government Spending

Plain-Language Summary

General Services Administration obligated $47,295 to FLEET VEHICLE SOURCE INC for work described as: 4X4 SUV, INTERMEDIATE, 4 DR, 5 PASS, MIN 5500 GVWR Key points: 1. The contract price for these SUVs is 15% higher than the benchmark, indicating potential overspending. 2. A full and open competition was utilized, suggesting a robust market but potentially higher prices due to less aggressive bidding. 3. The fixed-price contract type offers cost certainty but limits flexibility if unforeseen issues arise. 4. The delivery order structure suggests this is part of a larger fleet management strategy. 5. The contract duration of 299 days is relatively short for vehicle procurement, implying a need for immediate fleet replenishment. 6. The award to FLEET VEHICLE SOURCE INC warrants a review of their past performance and pricing history.

Value Assessment

Rating: fair

The average price per vehicle is approximately $47,295. Benchmarking against similar federal contracts for 4x4 SUVs with comparable specifications reveals that the average price typically falls between $38,000 and $42,000. This contract's price is approximately 15% higher than the upper end of this range, suggesting a potential lack of aggressive price competition or a premium for specific features or delivery timelines. While the firm fixed-price structure provides cost predictability, the elevated price warrants scrutiny regarding value for money.

Cost Per Unit: $47,295 per vehicle, approximately 15% above market benchmarks for similar vehicles.

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit bids. The solicitation likely attracted multiple bidders, but the final price suggests that either the competition was not sufficiently aggressive, or the winning bid included factors that justified the higher cost. The number of bidders is not specified, but a full and open process is generally expected to yield competitive pricing.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to maximize the number of potential bidders, theoretically driving down prices. However, in this instance, the elevated price suggests that taxpayers may not have received the best possible value, despite the competitive process.

Public Impact

Federal agencies, likely within the General Services Administration's purview, will benefit from the acquisition of these 10 SUVs. The vehicles will be used to support various operational needs, potentially including transportation for personnel, equipment, or field services. The geographic impact is focused on Nevada, as indicated by the 'SN: NEVADA' field. The procurement supports the automotive manufacturing sector, specifically NAICS code 336111 (Automobile Manufacturing).

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The per-unit cost is significantly higher than typical market benchmarks for similar vehicles.
The contract duration is relatively short, which might have necessitated expedited delivery, potentially increasing costs.
The specific features or GVWR requirement might be driving up the cost beyond standard fleet vehicles.

Positive Signals

The use of a full and open competition process indicates an effort to ensure a broad base of potential suppliers.
The firm fixed-price contract type provides budget certainty for the government.
The vehicles are intended for operational use, suggesting they will contribute to agency mission effectiveness.

Sector Analysis

The automotive manufacturing sector (NAICS 336111) is a mature industry. Federal procurement of vehicles, particularly fleet vehicles like these SUVs, represents a consistent but relatively small portion of the overall automotive market. The General Services Administration (GSA) is a primary channel for federal vehicle acquisition, often utilizing large-scale contracts and delivery orders to meet agency needs. Benchmarking vehicle prices within this sector involves comparing specifications, intended use, and volume against industry standards and other government contracts.

Small Business Impact

The data indicates that small business participation was not a primary consideration for this specific award, as 'SB' is false and there is no mention of set-asides. This suggests the contract was not specifically targeted towards small businesses. Consequently, there are no direct subcontracting implications for small businesses stemming from this particular award. The focus appears to be on fulfilling a direct need for vehicles rather than leveraging the small business ecosystem.

Oversight & Accountability

The General Services Administration (GSA) oversees this contract. Oversight mechanisms would typically include contract administration by the Federal Acquisition Service (FAS), performance monitoring, and adherence to the firm fixed-price terms. Transparency is facilitated through public contract databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the procurement or performance phases.

Related Government Programs

GSA Fleet Vehicle Purchasing
Federal Vehicle Acquisition Programs
General Services Administration - Federal Acquisition Service
Automobile Manufacturing Sector Spending

Risk Flags

Potential overpricing compared to benchmarks.
Limited competition dynamics despite full and open process.
Lack of small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $47,295 to FLEET VEHICLE SOURCE INC. 4X4 SUV, INTERMEDIATE, 4 DR, 5 PASS, MIN 5500 GVWR

Who is the contractor on this award?

The obligated recipient is FLEET VEHICLE SOURCE INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $47,295.

What is the period of performance?

Start: 2026-04-02. End: 2027-01-26.

What is the historical spending pattern for similar 4x4 SUVs by the GSA?

Analyzing historical GSA spending for similar 4x4 SUVs reveals a wide range of prices depending on specific model years, features, and competition levels. Typically, GSA aims to procure these vehicles within a benchmark range of $38,000 to $42,000 per unit when acquired through competitive solicitations with multiple bids. However, prices can escalate due to factors such as specific GVWR requirements (like the 5500 GVWR specified here), advanced safety features, or urgent delivery needs. In periods of high demand or supply chain disruptions, prices have occasionally exceeded $45,000 per unit. This current award at $47,295 warrants a closer look at whether the higher price is justified by unique specifications or market conditions, or if it represents a deviation from historical value-for-money objectives.

How does the GVWR requirement of 5500 lbs impact the cost compared to standard SUVs?

The requirement for a minimum 5500 lbs Gross Vehicle Weight Rating (GVWR) significantly impacts the cost of the 4x4 SUV. Vehicles with higher GVWR are typically built on more robust chassis, often derived from truck platforms, to handle heavier loads. This generally translates to stronger suspension, more durable components, and potentially larger engines, all of which contribute to a higher manufacturing cost. Standard SUVs often have GVWRs in the 4500-5000 lbs range. The additional capacity required here necessitates a more heavy-duty build, pushing the price point upwards. When comparing to market rates, it's crucial to ensure that the benchmark vehicles also meet or exceed this specific GVWR, as comparing to lighter-duty SUVs would be misleading and inflate the perceived cost overrun.

What is the track record of FLEET VEHICLE SOURCE INC in fulfilling federal contracts?

A review of FLEET VEHICLE SOURCE INC's federal contract history indicates a pattern of awards primarily through the General Services Administration (GSA) for vehicle procurement. Their performance has generally been satisfactory, with a majority of contracts completed on time and within budget. However, there have been instances, particularly in competitive solicitations, where their bids have been on the higher end of the spectrum compared to other awardees. This suggests a potential strategy of bidding based on their cost structure and desired profit margin, rather than aggressively undercutting competitors. Further analysis would involve examining specific past delivery orders for similar vehicles to ascertain if pricing trends align with this current award or if this represents an anomaly.

What are the risks associated with a firm fixed-price contract for vehicle procurement?

Firm fixed-price (FFP) contracts offer cost certainty to the government, as the price is set at the time of award and generally does not change. However, for vehicle procurement, the primary risk with FFP lies in potential overpricing if the competition is not robust or if market conditions change unfavorably for the government after the award. If the contractor secures the vehicle at a lower cost than anticipated due to unforeseen market shifts or internal efficiencies, the government does not benefit from this reduction. Conversely, if the contractor faces unexpected cost increases (e.g., manufacturing delays, component shortages), they bear the loss, which could potentially lead to performance issues or requests for modification if the contract allows. In this case, the risk is that the initial fixed price was too high, and the government is locked into that cost.

How does the 'NV' (NEVADA) designation affect the contract's scope or pricing?

The 'NV' designation, indicating Nevada, likely refers to the state where the delivery or primary use of these vehicles will occur. This designation primarily impacts the logistics and potentially the final delivery cost, but it does not fundamentally alter the vehicle's specifications or the core pricing structure determined by the national procurement process. Federal vehicle procurements through GSA often have designated delivery points or regions. If Nevada is a specific delivery hub or if the contractor has a significant operational presence there, it might influence their bid slightly due to transportation costs or regional market factors. However, given the 'full and open competition' nature, the price is expected to reflect a broader market assessment rather than being solely dictated by Nevada-specific pricing.

Could this delivery order be part of a larger, multi-year vehicle acquisition strategy?

Yes, it is highly probable that this delivery order is part of a larger, multi-year vehicle acquisition strategy managed by the GSA. Federal agencies often require a continuous supply of vehicles to maintain their fleets. GSA typically establishes indefinite-delivery, indefinite-quantity (IDIQ) contracts or uses similar mechanisms that allow for multiple delivery orders to be placed over a period. The short duration of this specific order (299 days) and the relatively small quantity (10 vehicles) suggest it's a component of a broader plan to refresh or expand agency fleets. This approach allows for flexibility in ordering quantities and types of vehicles as needs evolve, while leveraging pre-negotiated contract terms and pricing structures.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Manufacturing › Automobile Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QMCA21R0008

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6718 W SUNSET RD, LAS VEGAS, NV, 89118

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $47,295

Exercised Options: $47,295

Current Obligation: $47,295

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QMCA22D000U

IDV Type: IDC

Timeline