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 healthy market for specialized vehicle acquisition. 3. Risk indicators are low, with a firm fixed-price contract and clear delivery terms. 4. Performance context is established through a defined delivery period and quantity. 5. This contract fits within the broader category of federal fleet management and vehicle acquisition. 6. The use of a delivery order under an existing contract streamlines procurement.

Value Assessment

Rating: good

The price of $28,875 per 8-passenger van, right-hand drive, and sourced from Japan, seems reasonable when considering the specialized nature of the vehicle and potential import costs. Benchmarking against similar government vehicle procurements for specialized vans suggests this price is within an acceptable range. The firm fixed-price structure provides cost certainty for the government, mitigating the risk of price escalation.

Cost Per Unit: Approximately $28,875 per unit.

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 10 bids suggests a robust competitive environment for this type of specialized vehicle. A higher number of bidders generally leads to better price discovery and potentially lower prices for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces, providing the best value for specialized vehicle needs.

Public Impact

Federal agencies requiring right-hand drive passenger vans for specific operational needs will benefit from this procurement. The contract will deliver 10 eight-passenger vans, enhancing operational capabilities for the acquiring agency. The geographic impact is primarily within the United States, where the vehicles will be deployed. Workforce implications are minimal, primarily related to the operation and maintenance of the new vehicles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for longer lead times due to international sourcing and shipping.
Ensuring compliance with all U.S. import regulations and safety standards for vehicles.
Availability of maintenance and repair services for specialized right-hand drive vehicles within the U.S.

Positive Signals

Firm fixed-price contract provides budget certainty.
Full and open competition likely resulted in a competitive price.
Delivery order mechanism suggests an existing, efficient procurement vehicle.
Clear specifications for the vehicle type and capacity.

Sector Analysis

The automotive manufacturing sector, particularly for specialized vehicles, is a significant part of the global economy. Federal agencies rely on this sector for a wide range of transportation needs. This contract, for a specific type of passenger van, fits within the broader federal vehicle procurement landscape, which includes everything from sedans to heavy-duty trucks. Comparable spending benchmarks for fleet vehicles vary widely based on type and specifications, but specialized vehicles often command higher prices.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, the direct impact on small businesses through this specific award is likely limited unless they are part of the supply chain for the prime contractor. Subcontracting opportunities would depend on the prime contractor's strategy and the nature of the supply chain for these specialized vehicles.

Oversight & Accountability

The General Services Administration (GSA) Federal Acquisition Service is responsible for overseeing this contract. Oversight mechanisms include contract administration, performance monitoring, and ensuring compliance with contract terms. Transparency is facilitated through public contract databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Fleet Management
Vehicle Procurement
General Services Administration Contracts
Automotive Supply Chain

Risk Flags

International Sourcing Logistics
Right-Hand Drive Vehicle Availability
Compliance with U.S. Vehicle 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 readily available in this data snippet. Typically, federal agencies would assess a contractor's past performance, including delivery timeliness, quality of goods, and adherence to contract terms, before awarding contracts. For a comprehensive understanding, one would need to consult GSA's contract performance databases or agency-specific procurement histories. If this is a new entrant or a contract awarded through a broader vehicle, their performance on this specific delivery order will establish a new data point for future evaluations.

How does the price of $28,875 per van compare to similar government vehicle procurements?

The price of $28,875 per 8-passenger, right-hand drive van sourced from Japan appears competitive, especially considering the specialized nature and potential import costs. Benchmarking against typical government procurements for standard passenger vans might show a difference, as specialized vehicles often have higher unit costs. For instance, standard police interceptors or fleet sedans can range from $25,000 to $40,000, while larger SUVs or specialized trucks can exceed $50,000. The right-hand drive and Japanese origin suggest specific operational needs or sourcing strategies that justify this price point within the broader context of federal fleet acquisition.

What are the primary risks associated with procuring vehicles internationally for federal use?

Procuring vehicles internationally for federal use introduces several risks. These include extended lead times due to shipping and customs, potential currency fluctuations impacting final cost, and complexities in ensuring compliance with U.S. safety and emissions standards. Furthermore, establishing reliable maintenance and repair networks within the U.S. for foreign-manufactured vehicles can be challenging. The firm fixed-price contract mitigates some financial risk, but logistical and compliance risks remain key considerations for the contracting agency.

What is the significance of the 'VAN WAGON, 8 PASSENGER, RHD, JAPAN' specification?

The specification 'VAN WAGON, 8 PASSENGER, RHD, JAPAN' is critical as it defines the exact requirements for the vehicle. '8 PASSENGER' indicates the capacity needed, crucial for transporting personnel. 'RHD' (Right-Hand Drive) signifies a specific operational requirement, often necessary for driving in countries where traffic keeps to the left, or for specialized roles like mail delivery or certain security details. 'JAPAN' indicates the country of origin or manufacture, which can influence logistics, cost, and potentially specific vehicle features or compliance standards.

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

The GSA's Federal Acquisition Service (FAS) employs several strategies to ensure value for money in vehicle procurements. They leverage bulk purchasing power, establish Multiple Award Schedules (MAS) with pre-negotiated pricing, and conduct competitive solicitations for specific requirements. For this contract, the use of 'full and open competition' and the presence of 10 bidders suggest a robust process for price discovery. FAS also provides tools and data to help agencies make informed decisions, focusing on total cost of ownership, including acquisition, maintenance, and disposal costs, not just the initial purchase price.

What is the typical duration and value of similar federal vehicle procurement contracts?

The duration and value of federal vehicle procurement contracts can vary significantly based on the type of vehicle, quantity, and contract vehicle used. Delivery orders, like this one with a duration of 539 days (approximately 1.5 years), are often for specific quantities and immediate needs. Larger, indefinite-delivery indefinite-quantity (IDIQ) contracts for fleet vehicles can span multiple years and involve millions or billions of dollars in potential spending. The value of this specific order is $288,756 (10 units x $28,875.60), which is modest compared to large fleet-wide contracts but significant for acquiring specialized vehicles.

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