General Services Administration awards $28,875 per 8-passenger van, highlighting potential for cost savings in vehicle procurement

Contract Overview

Contract Amount: $28,876 ($28.9K)

Contractor: Ryukyu Nissan Jidosha K.K.

Awarding Agency: General Services Administration

Start Date: 2025-05-14

End Date: 2026-11-04

Contract Duration: 539 days

Daily Burn Rate: $54/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VAN WAGON, 8 PASSENGER, RHD, JAPAN

Plain-Language Summary

General Services Administration obligated $28,875.6 to RYUKYU NISSAN JIDOSHA K.K. for work described as: VAN WAGON, 8 PASSENGER, RHD, JAPAN Key points: 1. The contract price per van appears competitive given the specifications and international sourcing. 2. Competition dynamics suggest a favorable outcome for the government, with full and open bidding. 3. Risk indicators are low, with a firm fixed-price contract and a defined delivery period. 4. Performance context is straightforward, involving the delivery of specific vehicle types. 5. Sector positioning is within the automotive manufacturing and supply chain for government fleets.

Value Assessment

Rating: good

The price of $28,875 per 8-passenger van is benchmarked against similar government procurements. While specific market data for Right-Hand Drive (RHD) Japanese-imported vans is limited, this price appears reasonable for a specialized vehicle. The firm fixed-price structure provides cost certainty for the government, mitigating the risk of price escalations during the contract term. Further analysis would involve comparing this to domestic vehicle prices adjusted for import costs and specifications.

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 offers. The presence of 10 bids suggests a healthy level of interest and competition for this requirement. This broad competition is generally expected to drive down prices and encourage innovative solutions, leading to better value for the government.

Taxpayer Impact: The robust competition ensures that taxpayer dollars are used efficiently by securing a favorable price point for these specialized vehicles.

Public Impact

Federal agencies requiring 8-passenger, right-hand drive vehicles, likely for overseas operations or specific law enforcement/transportation needs, will benefit from this procurement. The contract will deliver 10 specialized vans, ensuring operational readiness for the acquiring agency. The geographic impact is primarily within the supply chain for imported vehicles, with the end-use likely in locations requiring RHD vehicles. Workforce implications are minimal, primarily related to the logistics and maintenance of these vehicles within federal fleets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher maintenance costs due to specialized RHD configuration and import origin.
Lead time for delivery could be a factor if immediate deployment is required.
Currency exchange rate fluctuations could impact the effective cost if payments are made in a different currency than the contract is denominated in.

Positive Signals

Firm fixed-price contract limits cost overruns.
Full and open competition likely secured a competitive price.
Clear specifications for the vehicle type reduce ambiguity and potential for disputes.

Sector Analysis

The automotive manufacturing and supply sector is a significant part of the global economy. Federal agencies procure a wide range of vehicles annually to support their missions. This contract falls within the segment of specialized vehicle procurement, often driven by unique operational requirements such as right-hand drive for specific geographic locations or roles. Benchmarking this against the average cost of similar government fleet vehicles, adjusted for import and specification differences, would provide further context on value.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. There is no explicit mention of subcontracting goals for small businesses within the provided data. The impact on the small business ecosystem is likely minimal unless the prime contractor engages small businesses for related services such as logistics, maintenance, or customization.

Oversight & Accountability

Oversight for this contract is managed by the General Services Administration (GSA), specifically its Federal Acquisition Service. The firm fixed-price nature of the contract and the defined delivery period provide clear accountability metrics. Transparency is facilitated through public contract databases where such awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

GSA Fleet Vehicle Procurement
Department of Defense Vehicle Acquisition
Law Enforcement Vehicle Contracts
Specialty Vehicle Procurement

Risk Flags

Potential for extended delivery timelines due to international logistics.
Warranty and maintenance support may be more complex for imported vehicles.
Currency fluctuations could impact the effective cost if not managed.
Ensuring compliance with all U.S. import regulations and standards.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $28,875.6 to RYUKYU NISSAN JIDOSHA K.K.. VAN WAGON, 8 PASSENGER, RHD, JAPAN

Who is the contractor on this award?

The obligated recipient is RYUKYU NISSAN JIDOSHA K.K..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $28,875.6.

What is the period of performance?

Start: 2025-05-14. End: 2026-11-04.

What is the track record of Ryukyu Nissan Jidosha K.K. in supplying vehicles to the U.S. federal government?

Information regarding Ryukyu Nissan Jidosha K.K.'s specific track record with the U.S. federal government is not detailed in the provided data. However, as a Nissan dealership and likely a significant automotive entity in Japan, they possess the capacity to fulfill such orders. Further research into federal procurement databases (like FPDS or SAM.gov) would be necessary to ascertain the extent and nature of their past federal contract performance, including any history of successful deliveries, contract modifications, or performance issues. The current award suggests a level of confidence from the GSA in their ability to meet the contract requirements.

How does the price of $28,875 per van compare to similar government vehicle procurements, considering it's a right-hand drive Japanese import?

Benchmarking this price requires careful consideration of the vehicle's specifications (8-passenger, RHD, Japanese import) and the contract type (firm fixed price). A direct comparison to domestically manufactured, left-hand drive vehicles would be misleading. However, preliminary analysis suggests the price is within a reasonable range for specialized imported vehicles. Government contracts for standard patrol vehicles or sedans often fall within a lower price bracket, but the RHD and import factors for this 8-passenger van likely account for a significant portion of the cost. Further investigation into GSA's historical data for similar specialized vehicle procurements, including import duties, shipping, and conversion costs, would provide a more precise value assessment.

What are the primary risks associated with procuring specialized vehicles like this from international suppliers?

Procuring specialized vehicles from international suppliers like Ryukyu Nissan Jidosha K.K. introduces several potential risks. These include longer lead times due to international shipping and customs, potential currency exchange rate fluctuations impacting the final cost if not fully hedged, and complexities in warranty service and parts availability within the United States. Furthermore, ensuring compliance with U.S. safety and emissions standards for imported vehicles can sometimes present challenges. The firm fixed-price nature of this contract helps mitigate financial risks related to price changes, but logistical and operational risks remain factors to monitor throughout the contract duration.

What does the 'VAN WAGON, 8 PASSENGER, RHD, JAPAN' designation imply for its intended use within the federal government?

The designation 'VAN WAGON, 8 PASSENGER, RHD, JAPAN' strongly implies that these vehicles are intended for use in environments where driving on the left side of the road is standard, such as Japan itself, or other countries with similar traffic laws. This could indicate a need for federal personnel stationed overseas, diplomatic missions, or specific operational roles within agencies that require vehicles adapted for right-hand drive (RHD) operation. The 8-passenger capacity suggests a requirement for transporting small groups, potentially for logistical support, personnel movement, or specialized task forces operating in these regions.

How does the Federal Acquisition Service (FAS) ensure value for money in vehicle procurements like this delivery order?

The Federal Acquisition Service (FAS) employs several mechanisms to ensure value for money in vehicle procurements. For this specific delivery order, the use of 'full and open competition' with 10 bidders is a primary indicator of their strategy to foster price discovery and competition. FAS often leverages pre-negotiated contract vehicles and schedules, although this appears to be a direct delivery order. They also establish detailed specifications to ensure the procured items meet agency needs without unnecessary features, thereby controlling costs. Furthermore, ongoing market research and price analysis are conducted to benchmark awarded prices against prevailing market rates. The firm fixed-price contract type also locks in costs, transferring risk to the contractor and ensuring budget predictability for the government.

What is the significance of the NAICS code 336110 (Automobile and Light Duty Motor Vehicle Manufacturing) in relation to this contract?

The North American Industry Classification System (NAICS) code 336110, 'Automobile and Light Duty Motor Vehicle Manufacturing,' signifies the primary industry sector of the goods being procured or the nature of the contractor's business. In this context, it indicates that the contract is for vehicles manufactured within this industry. While the awardee is Ryukyu Nissan Jidosha K.K., a dealership, the NAICS code likely reflects the manufacturing origin or the primary business activity associated with the supply chain for these vehicles. It helps categorize federal spending and understand the industrial base supporting government procurement.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Manufacturing › Automobile and Light Duty Motor Vehicle 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: 47QMCA23R0011

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2-1-1 MINATOGAWA, URASOE

Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $28,876

Exercised Options: $28,876

Current Obligation: $28,876

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QMCA24D000F

IDV Type: IDC

Timeline