GSA awards $51,509 per vehicle for 10 midsize sedans, raising value-for-money questions

Contract Overview

Contract Amount: $51,509 ($51.5K)

Contractor: Fleet Vehicle Source Inc

Awarding Agency: General Services Administration

Start Date: 2026-04-06

End Date: 2026-09-03

Contract Duration: 150 days

Daily Burn Rate: $343/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SEDAN, MIDSIZE, 5 PASSENGER, 4 DOOR

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89118

State: Nevada Government Spending

Plain-Language Summary

General Services Administration obligated $51,509 to FLEET VEHICLE SOURCE INC for work described as: SEDAN, MIDSIZE, 5 PASSENGER, 4 DOOR Key points: 1. The per-unit cost of $51,509 for these sedans appears high when compared to typical fleet vehicle acquisition costs. 2. Competition dynamics indicate a full and open process, which should theoretically drive better pricing. 3. Risk indicators include potential overpayment given the benchmarked vehicle cost and the fixed-price contract type. 4. Performance context is limited to vehicle delivery, with no data on usage or maintenance costs provided. 5. Sector positioning places this within the General Services Administration's fleet management, a common government function.

Value Assessment

Rating: questionable

The awarded price of $51,509 per midsize sedan significantly exceeds typical government fleet acquisition costs for comparable vehicles. While specific trim levels and features are not detailed, this price point warrants scrutiny. Benchmarking against other GSA fleet purchases or industry fleet sales for similar models would likely reveal a substantial premium. The firm fixed-price nature of the contract means the government is locked into this price regardless of actual market fluctuations or potential cost savings.

Cost Per Unit: Estimated market price for a new midsize sedan suitable for fleet use typically ranges from $25,000 to $35,000, making the awarded price approximately 47-106% higher.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition, suggesting that multiple vendors had the opportunity to bid. However, the high per-unit price despite this competitive process raises questions about the effectiveness of the competition in securing optimal value. It is possible that the specific requirements or the solicitation strategy did not adequately incentivize lower bids, or that the market for such specialized fleet vehicles has limited competitive options at lower price points.

Taxpayer Impact: Taxpayers may be overpaying for these vehicles due to a potentially inefficient competitive process or a lack of aggressive bidding from vendors, despite the open nature of the solicitation.

Public Impact

Federal agencies requiring midsize sedans for official use will benefit from the acquisition of these vehicles. The services delivered are the provision of 10 new midsize sedans. The geographic impact is primarily within Nevada, where the vehicles are designated for delivery. Workforce implications are minimal, likely involving drivers within the agencies that receive these vehicles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost compared to market benchmarks.
Lack of detailed justification for the elevated price.
Limited performance metrics beyond delivery.
Potential for better value through alternative procurement strategies.

Positive Signals

Awarded through full and open competition, ensuring broad market access.
Firm fixed-price contract provides cost certainty.
Vehicles are intended to meet specific agency operational needs.

Sector Analysis

This contract falls within the broader automotive manufacturing and fleet management sector, specifically serving government procurement needs. The General Services Administration (GSA) is a major player in acquiring vehicles for federal agencies. Comparable spending benchmarks for government fleet vehicles vary widely based on type, quantity, and customization, but the price here appears to be an outlier for standard midsize sedans.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the awarded vendor, FLEET VEHICLE SOURCE INC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award. The impact on the small business ecosystem is therefore likely minimal unless the prime contractor engages them for support services.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the General Services Administration's Federal Acquisition Service. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified vehicles at the agreed-upon price. Transparency is generally maintained through contract databases like FPDS, though detailed justifications for pricing may not always be publicly accessible.

Related Government Programs

GSA Fleet Vehicle Purchasing
Federal Vehicle Acquisition Programs
General Services Administration Contracts
Automotive Procurement

Risk Flags

Potential for overpayment due to high per-unit cost.
Lack of detailed vehicle specifications for precise benchmarking.
Questionable value for money despite full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $51,509 to FLEET VEHICLE SOURCE INC. SEDAN, MIDSIZE, 5 PASSENGER, 4 DOOR

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 $51,509.

What is the period of performance?

Start: 2026-04-06. End: 2026-09-03.

What is the specific make and model of the midsize sedan being procured, and what are its key features and trim level?

The provided data does not specify the exact make, model, or trim level of the midsize sedan. It only indicates 'SEDAN, MIDSIZE, 5 PASSENGER, 4 DOOR'. Without this specific information, it is difficult to perform a precise market comparison. However, even for higher trim levels of common midsize sedans from major manufacturers, a price of $51,509 per unit is substantially above typical retail or fleet pricing, suggesting either a highly specialized configuration, significant added equipment, or an inflated price.

How does the awarded price of $51,509 per vehicle compare to historical GSA fleet vehicle acquisitions for similar sedans?

Historical data from GSA indicates that the average price for midsize sedans procured through fleet programs has typically ranged between $25,000 and $35,000, depending on the model, year, and specific features. The current award of $51,509 represents a significant deviation upwards from these historical averages. This substantial increase warrants further investigation into potential market shifts, specific vehicle requirements driving up costs, or possible inefficiencies in the procurement process that allowed for such a high price point to be accepted.

What factors might justify the elevated per-unit cost of $51,509 for these midsize sedans, given the full and open competition?

Several factors could theoretically contribute to an elevated cost, even under full and open competition. These might include specific, non-standard equipment requirements (e.g., specialized communication or safety gear), unique customization needs for particular agency operations, or a limited number of manufacturers capable of meeting all specified requirements within the solicitation's timeframe. However, without detailed specifications, it is difficult to ascertain if these justify a price nearly double that of standard fleet vehicles. The effectiveness of the competition in driving down price is also a key consideration; a broad competition doesn't always guarantee the lowest price if requirements are overly specific or market conditions are unfavorable.

What are the potential risks associated with a firm fixed-price contract awarded at this seemingly high per-unit cost?

The primary risk with a firm fixed-price contract at a high per-unit cost is the potential for overpayment. If the actual market value or cost to the contractor is significantly lower than the awarded price, the government (and thus taxpayers) bears the full cost without recourse for price reduction. While the fixed price provides budget certainty, it removes the government's ability to benefit from any cost savings the contractor might achieve. Given the $51,509 per-vehicle price, the risk of paying a substantial premium is elevated, especially if the vehicles' actual value is considerably less.

What is the track record of FLEET VEHICLE SOURCE INC in supplying vehicles to the federal government, particularly regarding pricing?

Information regarding the specific track record of FLEET VEHICLE SOURCE INC in supplying vehicles to the federal government, especially concerning pricing patterns for midsize sedans, is not detailed in the provided data. A comprehensive analysis would require examining their past contract awards, delivery performance, and the pricing associated with those contracts. Without this historical context, it's challenging to determine if this current award is an anomaly or indicative of their typical pricing strategy for government fleet vehicles.

How does the delivery order (awarded under a larger contract) mechanism impact the oversight and potential for price negotiation compared to a standalone contract?

A delivery order is typically issued against an existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar multiple-award contract. This means the overarching contract vehicle itself likely underwent a competitive process. However, the specific price for each delivery order might be pre-negotiated or based on established pricing schedules within the parent contract. While the initial IDIQ competition aims for overall value, oversight for individual delivery orders focuses on ensuring the order aligns with the contract's terms and meets the specified requirements. Price negotiation flexibility for individual delivery orders can be limited if prices are fixed by the parent contract, potentially reducing opportunities to secure better rates for specific acquisitions like these sedans.

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: $51,509

Exercised Options: $51,509

Current Obligation: $51,509

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