GSA awards $844K for 4x2 plug-in hybrid vans, highlighting a shift towards fuel-efficient federal fleet vehicles

Contract Overview

Contract Amount: $843,982 ($844.0K)

Contractor: FCA US LLC

Awarding Agency: General Services Administration

Start Date: 2023-04-19

End Date: 2026-10-06

Contract Duration: 1,266 days

Daily Burn Rate: $667/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 4X2 VAN WAGON, COMPACT, 7 PASSENGER PLUG-IN HEV

Place of Performance

Location: AUBURN HILLS, OAKLAND County, MICHIGAN, 48326

State: Michigan Government Spending

Plain-Language Summary

General Services Administration obligated $843,982 to FCA US LLC for work described as: 4X2 VAN WAGON, COMPACT, 7 PASSENGER PLUG-IN HEV Key points: 1. The contract leverages a firm-fixed-price structure, providing cost certainty for the government. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The vehicle type indicates a focus on reducing operational costs and environmental impact. 4. Delivery orders are a common mechanism for acquiring specific assets like vehicles. 5. The contract duration of over three years allows for phased delivery and integration. 6. The North American Industry Classification System (NAICS) code points to domestic automobile manufacturing.

Value Assessment

Rating: good

The contract value of $843,982 for 10 plug-in hybrid vans appears reasonable given the specifications and current market conditions for specialized vehicles. While specific per-unit cost comparisons are difficult without detailed trim and option information, the firm-fixed-price nature suggests the government secured predictable pricing. Benchmarking against similar federal fleet vehicle procurements would provide further insight into value for money.

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 a bid. The presence of multiple bidders, though not explicitly stated in the provided data, is implied by this competition type. This level of competition generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price for these fuel-efficient vehicles, ensuring federal funds are used efficiently.

Public Impact

Federal agencies will benefit from access to modern, fuel-efficient plug-in hybrid vans, reducing reliance on traditional gasoline vehicles. These vehicles will support agency operations requiring transport for up to 7 passengers. The geographic impact is likely nationwide, as GSA procures vehicles for various federal agencies across the country. The contract supports the automotive manufacturing sector, specifically plug-in hybrid vehicle production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher upfront cost compared to traditional gasoline vehicles, though offset by long-term fuel savings.
Dependence on charging infrastructure availability for optimal utilization of plug-in capabilities.

Positive Signals

Significant reduction in fuel consumption and greenhouse gas emissions.
Lower operational and maintenance costs over the vehicle's lifecycle.
Alignment with federal sustainability goals and mandates for cleaner fleets.

Sector Analysis

The automotive manufacturing sector is a significant part of the U.S. economy. This contract falls under NAICS code 336111 (Automobile Manufacturing). Federal fleet procurement represents a substantial market segment, with agencies increasingly seeking vehicles that meet environmental standards and reduce operating expenses. The trend towards electrification and hybrid technology is evident across the industry, and this contract reflects that shift within government purchasing.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). FCA US LLC is a large automotive manufacturer. There is no explicit information on subcontracting plans for small businesses within this award, but large prime contractors often engage small businesses for parts and services.

Oversight & Accountability

The General Services Administration (GSA) Federal Acquisition Service is responsible for this contract. Oversight is typically managed through contract administration, performance monitoring, and adherence to the firm-fixed-price terms. Transparency is generally maintained through public contract databases like FPDS. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Fleet Management
GSA Vehicle Procurement
Alternative Fuel Vehicle Programs
Plug-in Hybrid Electric Vehicle (PHEV) Acquisition

Risk Flags

Potential for charging infrastructure limitations at federal facilities.
Technological obsolescence risk in a rapidly evolving EV/HEV market.
Dependence on specific manufacturer supply chains.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $843,982 to FCA US LLC. 4X2 VAN WAGON, COMPACT, 7 PASSENGER PLUG-IN HEV

Who is the contractor on this award?

The obligated recipient is FCA US LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $843,982.

What is the period of performance?

Start: 2023-04-19. End: 2026-10-06.

What is the historical spending pattern for similar plug-in hybrid vehicles by the GSA?

Analyzing historical spending for plug-in hybrid vehicles by the GSA requires accessing detailed procurement data over several fiscal years. While this specific award is for $843,982 for 10 vans, broader trends indicate a growing investment in electric and hybrid vehicles within the federal fleet. GSA's strategic goals often include increasing the percentage of zero-emission and plug-in hybrid vehicles. Past awards might show varying quantities, models, and price points depending on market availability and agency needs. For instance, earlier procurements might have focused on different vehicle classes or had higher per-unit costs due to nascent technology. A comprehensive review would involve looking at multiple contract vehicles and delivery orders to identify consistent growth or fluctuations in this segment of federal fleet acquisition.

How does the per-unit cost of these plug-in hybrid vans compare to comparable commercial market offerings?

Determining the exact per-unit cost comparison is challenging without knowing the specific trim level, options, and any fleet discounts applied to the $843,982 award for 10 vans. However, the average per-van cost is approximately $84,398. Commercial market prices for similar 7-passenger plug-in hybrid SUVs or vans can range widely, often starting in the $50,000s and going up to $70,000 or more, depending on the model and features. Federal contracts, especially those awarded under full and open competition, aim to achieve competitive pricing. It's plausible that the government secured a price within or slightly above the higher end of the commercial range, potentially due to specific federal requirements, extended warranties, or the inclusion of specialized equipment. Further analysis would require comparing the exact vehicle specifications against current commercial MSRPs and fleet pricing.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks for this contract include potential supply chain disruptions affecting vehicle delivery, technological obsolescence given the rapid evolution of EV/HEV technology, and the availability of charging infrastructure at federal facilities. Mitigation strategies are embedded within the contract structure and GSA's management. The firm-fixed-price (FFP) contract shifts some financial risk to the contractor (FCA US LLC), protecting the government from cost overruns. The contract duration (ending Oct 2026) provides a defined period, but the evolving nature of technology means the vehicles might be less cutting-edge by the end of their service life. GSA's role in fleet management includes planning for charging infrastructure deployment and ensuring vehicles meet operational needs, thereby addressing the infrastructure risk. Performance monitoring and adherence to delivery schedules are standard oversight mechanisms.

What is the expected impact of these plug-in hybrid vans on the federal government's sustainability goals?

The acquisition of these plug-in hybrid electric vehicles (PHEVs) directly supports the federal government's sustainability goals, particularly those aimed at reducing greenhouse gas emissions and transitioning to a cleaner federal fleet. PHEVs offer a significant improvement over traditional internal combustion engine vehicles by utilizing electric power for shorter trips and hybrid mode for longer distances, thereby reducing overall fuel consumption and emissions. This contract contributes to the broader objective of increasing the number of electric and alternative fuel vehicles in the federal inventory, aligning with executive orders and agency-specific environmental performance targets. The adoption of PHEVs represents a tangible step towards decarbonizing government operations and promoting energy efficiency.

How does the contractor, FCA US LLC, perform on federal contracts generally?

FCA US LLC (now part of Stellantis) has a history of supplying vehicles to the federal government through various contracts, often awarded via GSA schedules or competitive solicitations. Their performance typically involves delivering a range of vehicles, from sedans and SUVs to light trucks, meeting federal specifications and delivery timelines. While specific performance metrics for individual contracts are not publicly detailed here, large automotive manufacturers generally have established processes for government contracting. Potential areas for review would include on-time delivery rates, vehicle quality and defect reporting, and responsiveness to contract modifications or issues. Past performance information is a key factor in federal source selection, suggesting that FCA US LLC has met required standards in previous engagements to continue securing such awards.

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

Parent Company: Stellantis N.V.

Address: 1000 CHRYSLER DR # 4851478, AUBURN HILLS, MI, 48326

Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $843,982

Exercised Options: $843,982

Current Obligation: $843,982

Actual Outlays: $843,982

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QMCA22D000N

IDV Type: IDC

Timeline