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 300 days, with an end date in early 2027. 6. The award was made by the General Services Administration (GSA) Federal Acquisition Service.

Value Assessment

Rating: questionable

The awarded price of $47,295 per vehicle is 15.8% above the benchmark of $40,833. This suggests a potential overpayment or a need for closer examination of the specific vehicle requirements and market conditions at the time of award. While the benchmark is a useful indicator, the specific features and options included in these vehicles may justify some of the price difference. Further analysis into the exact specifications and comparable market prices for similar configurations is recommended.

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 offers. The specific number of bidders is not provided in the data, but a full and open competition generally fosters price discovery and encourages competitive pricing. The GSA's Fleet Vehicle Source IDIQ contract likely had multiple bidders, and this delivery order would have been subject to those competitive terms.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, leading to potentially lower prices and better value. However, the price deviation from the benchmark in this instance warrants scrutiny to ensure the competitive process yielded the best possible outcome.

Public Impact

Federal agencies requiring robust, intermediate-sized SUVs for operational duties will benefit from this contract. The vehicles will be delivered to Nevada (SN: NEVADA). The contract supports the operational needs of federal law enforcement, logistical support, or other field operations. The acquisition of these vehicles contributes to the federal government's fleet modernization and operational readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Price is 15.8% above benchmark, raising concerns about value for money.
Specific vehicle requirements may be driving up costs beyond standard configurations.
Lack of detailed bid count prevents full assessment of competitive intensity.

Positive Signals

Awarded under a full and open competition, maximizing potential offerors.
Delivery order mechanism allows for efficient procurement of specific needs.
Firm Fixed Price contract provides cost certainty for the government.

Sector Analysis

The automotive manufacturing sector (NAICS 336111) is a mature industry. Federal agencies are significant purchasers of vehicles, often through large IDIQ contracts managed by agencies like GSA. Spending on federal vehicle fleets is substantial, with GSA's Federal Acquisition Service playing a key role in consolidating purchasing power. Benchmarking prices against market averages is crucial for ensuring cost-effectiveness in this segment.

Small Business Impact

The data indicates that small business participation (SB: false) was not a specific set-aside for this delivery order. While the underlying IDIQ contract may have small business subcontracting goals, this particular award does not appear to directly benefit small businesses through a set-aside. The primary contractor, FLEET VEHICLE SOURCE INC, is not identified as a small business in this context. Further investigation into the IDIQ contract's subcontracting plan would be needed to assess small business impact.

Oversight & Accountability

The General Services Administration (GSA) oversees this contract through its Federal Acquisition Service. Oversight mechanisms likely include contract performance monitoring, adherence to delivery schedules, and quality assurance of the vehicles provided. As a delivery order under an IDIQ, the initial competition and award of the IDIQ itself would have undergone significant review. Transparency is generally high for GSA contracts, with data often publicly available.

Related Government Programs

GSA Fleet Vehicle Program
General Services Administration Acquisition Contracts
Federal Vehicle Procurement
Automobile Manufacturing Contracts

Risk Flags

Price Exceeds Benchmark
Potential for Overpayment
Need for Detailed Specification Review

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 specific features or options contribute to the 15.8% price premium over the benchmark for these SUVs?

The provided data specifies '4X4 SUV, INTERMEDIATE, 4 DR, 5 PASS, MIN 5500 GVWR'. The premium could be attributed to specific manufacturer packages, higher trim levels, optional equipment such as enhanced safety features, upgraded infotainment systems, specialized tires, or specific towing/hauling packages that exceed the base benchmark configuration. The 'MIN 5500 GVWR' requirement also suggests a need for a more robust chassis and suspension, potentially increasing the cost compared to standard passenger SUVs. Without the detailed specification sheet or the exact benchmark methodology, it's difficult to pinpoint the exact drivers, but these factors are common reasons for price deviations in vehicle procurements.

How does the benchmark price of $40,833 compare to the average market price for similar 4x4 SUVs in 2023-2024?

The benchmark price of $40,833 for an intermediate 4x4 SUV appears to be a government-specific estimate or average derived from previous contract awards or market research. To accurately compare this to the broader market, one would need to analyze current Manufacturer's Suggested Retail Prices (MSRP) for comparable models from major manufacturers (e.g., Ford Explorer, Chevrolet Tahoe base models, Jeep Grand Cherokee) equipped with 4x4 capabilities and similar GVWR ratings. Considering current market conditions, including inflation and supply chain issues, the benchmark might represent a conservative estimate. The awarded price of $47,295, while 15.8% higher, might still fall within a reasonable range depending on the specific vehicle's configuration and the prevailing market rates at the time of award.

What is the track record of FLEET VEHICLE SOURCE INC in fulfilling federal contracts, particularly for vehicles?

Information regarding the specific track record of FLEET VEHICLE SOURCE INC in fulfilling federal contracts is not detailed in the provided data snippet. A comprehensive assessment would require accessing contract databases (like FPDS or SAM.gov) to review their past performance history, including the number of contracts awarded, their value, on-time delivery rates, and any reported issues or contractor performance evaluations. As this is a delivery order under an IDIQ, their performance on the parent IDIQ contract would also be a critical indicator of their reliability and capability to meet government requirements.

What are the potential risks associated with awarding a delivery order at a price significantly above the benchmark?

The primary risk is financial waste, where taxpayer dollars are spent inefficiently. A price 15.8% above the benchmark suggests that either the benchmark is outdated or inaccurate, the competition was not as effective as it could have been, or the specific requirements necessitated a higher-cost solution. Other risks include setting a precedent for higher pricing on future orders under the same IDIQ, potential for contractor overcharging if oversight is lax, and reduced overall budget flexibility for the agency. It could also indicate that the government's needs are highly specialized, making standard benchmarking less effective.

How does the 'FULL AND OPEN COMPETITION' designation ensure value for money, despite the price premium?

A 'FULL AND OPEN COMPETITION' is designed to maximize the number of potential bidders, thereby increasing the likelihood of receiving competitive offers and driving down prices. In theory, this process should yield the best value. However, the price premium observed here suggests that either the benchmark is not perfectly aligned with the actual market for these specific vehicles, or the competition, while broad, did not result in the lowest possible price for this particular configuration. It highlights that robust competition is a necessary but not always sufficient condition for achieving the lowest price; the accuracy of the benchmark and the specificity of the requirements also play crucial roles.

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

Historical spending patterns for similar intermediate 4x4 SUVs procured by the GSA would typically be analyzed through data from the Federal Procurement Data System (FPDS) or similar repositories. This analysis would involve looking at the number of awards, average prices paid over time, and the types of contracts used (e.g., IDIQ, direct purchase). Examining trends would reveal if prices have been increasing, if certain models or configurations consistently command higher prices, and how GSA's consolidated purchasing power has impacted average costs. Without access to that specific historical data, it's difficult to provide a precise pattern, but GSA generally aims to leverage its buying power to secure favorable pricing.

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