GSA awards $473K for 10 SUVs, exceeding average price by 15.8% 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: 2026-04-08

End Date: 2027-02-02

Contract Duration: 300 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 15.8% higher than the benchmark. 2. Competition was robust, with a full and open process. 3. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The vehicles are specified as 4X4 SUVs with a minimum 5500 GVWR. 5. The contract duration is approximately 300 days. 6. The award was made by the General Services Administration (GSA) Federal Acquisition Service.

Value Assessment

Rating: fair

The average price per vehicle is $47,295. Benchmarking data indicates that the average price for similar intermediate 4x4 SUVs with a 5500 GVWR is approximately $40,833. This contract's price is 15.8% above the benchmark, suggesting a potential overpayment or a need for further justification of the higher cost based on specific features or market conditions at the time of award. The firm fixed-price nature of the contract, however, limits the government's exposure to cost overruns.

Cost Per Unit: $47,295 per vehicle, 15.8% above benchmark

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided in the data, but a full and open competition generally fosters a competitive environment. This approach is intended to ensure the government receives the best possible pricing and value by allowing a wide range of potential suppliers to participate.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a broader base of suppliers, which can lead to cost savings and better value.

Public Impact

Federal agencies requiring intermediate 4x4 SUVs for operational needs will benefit from this contract. The contract will deliver 10 new 4x4 SUVs. The vehicles are specified for use in Nevada (SN: NEVADA). The acquisition supports the operational readiness of federal law enforcement or other field personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Price is 15.8% above benchmark, raising concerns about value for money.
Limited detail on specific vehicle configurations beyond basic requirements.
Delivery order structure may obscure true total cost if multiple orders are placed.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Firm fixed-price contract provides cost certainty for the government.
Contract awarded by GSA, a primary vehicle procurement agency with established processes.

Sector Analysis

The automotive manufacturing sector (NAICS 336111) is a mature industry. Federal agencies are significant purchasers of vehicles, often utilizing large IDIQ contracts managed by GSA to streamline procurement. Spending on fleet vehicles is a consistent requirement across many government functions. Benchmarking vehicle prices against market rates and historical contract data is crucial for ensuring cost-effectiveness, especially given fluctuations in supply chains and manufacturing costs.

Small Business Impact

The data indicates that small business participation (SB: false) was not a specific set-aside requirement for this contract. As this is a delivery order under a potentially larger IDIQ contract, subcontracting opportunities for small businesses may exist within the prime contractor's operations or through other components of the IDIQ. However, without more information on the prime contractor's small business subcontracting plan, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

The General Services Administration (GSA) oversees this contract through its Federal Acquisition Service. GSA has established procurement regulations and oversight mechanisms to ensure fair and competitive bidding. The firm fixed-price contract type provides a degree of accountability by locking in costs. Transparency is generally maintained through contract award databases, though specific details of the competition beyond the award itself may be limited.

Related Government Programs

GSA Fleet Vehicle Purchasing
General Services Administration - Federal Acquisition Service
Automobile Manufacturing (NAICS 336111)

Risk Flags

Price above benchmark
Limited competition details (number of bidders)
Potential for higher total cost across multiple delivery orders

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: 2026-04-08. End: 2027-02-02.

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

Historical spending data for similar 4x4 SUVs by the GSA would provide crucial context for evaluating the current award. Analyzing past awards for intermediate, 4-door, 5-passenger SUVs with a minimum 5500 GVWR, particularly those awarded under full and open competition, can reveal trends in pricing, average cost per unit, and the typical range of prices paid. If past awards show significantly lower prices for comparable vehicles, it would strengthen the concern that the current contract's price is elevated. Conversely, if historical data shows similar or higher prices, it might indicate that market conditions or specific vehicle features justify the current cost. Without specific historical data points, it is difficult to definitively assess if this contract represents a deviation from established spending patterns or if it aligns with previous procurement outcomes.

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

The requirement for a minimum Gross Vehicle Weight Rating (GVWR) of 5500 lbs significantly impacts the cost of the vehicle compared to standard SUVs. Vehicles with higher GVWRs are typically built on more robust chassis, often derived from truck platforms, to handle heavier loads. This includes stronger frames, more heavy-duty suspension components, larger brakes, and often more powerful engines and transmissions. These enhanced components add to the manufacturing cost. Standard SUVs typically have GVWRs in the range of 4500-5000 lbs. Exceeding this threshold necessitates a more substantial and therefore more expensive build. The 15.8% premium observed in this contract could be partially attributed to this specific requirement, as it pushes the vehicle into a heavier-duty category than a typical consumer-grade SUV.

What are the potential risks associated with a firm fixed-price delivery order for vehicles?

While a firm fixed-price (FFP) contract generally offers cost certainty, a delivery order for vehicles can still present risks. One primary risk is that the FFP price might be set too high, leading to the government overpaying if market prices decrease before delivery or if the contractor secured components at a lower cost than anticipated. Conversely, if the FFP price was set too low based on optimistic cost projections, the contractor might face financial strain, potentially leading to delays, quality compromises, or even contract default, although this is less common with established vehicle manufacturers. Another risk is the specificity of the requirements; if the government's needs change after the order is placed but before delivery, modifying the FFP contract can be complex and costly. Furthermore, the 'delivery order' aspect means this is one of potentially many orders under a larger IDIQ, and the cumulative cost and performance across all orders need careful management.

What is the typical profit margin for automotive manufacturers on government fleet contracts?

Determining the exact profit margin for automotive manufacturers on government fleet contracts is challenging, as this information is proprietary and varies significantly based on the manufacturer, the specific vehicle model, the volume of the order, and the competitive landscape at the time of award. However, government fleet contracts are generally considered stable, predictable revenue streams. Manufacturers often aim for profit margins in the range of 5-10% on large fleet sales, though this can be influenced by factors such as year-end inventory clearance, strategic market penetration goals, or the inclusion of specialized equipment. The 15.8% price difference above the benchmark in this specific contract could reflect a combination of factors including the specialized requirements (like the GVWR), the specific trim level, and the contractor's assessed profit margin, which may be higher than the typical average if competition was less intense than anticipated or if unique features commanded a premium.

How does the Federal Acquisition Service (FAS) ensure competitive pricing for vehicles procured through IDIQ contracts?

The Federal Acquisition Service (FAS) employs several strategies to ensure competitive pricing for vehicles procured through IDIQ contracts. Firstly, FAS typically establishes large, multi-year IDIQ contracts through robust full and open competitions, leveraging economies of scale and encouraging broad participation. These contracts often have pre-negotiated pricing structures or established methods for calculating fair market prices. When agencies place delivery orders against these IDIQs, FAS often provides guidance and tools for agencies to validate pricing against established benchmarks and market research. Furthermore, the terms of the IDIQ itself may include provisions for price adjustments based on market fluctuations or require contractors to provide justification for prices that deviate significantly from established norms. The sheer volume of vehicles procured by GSA also gives them significant leverage in negotiations with manufacturers.

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