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. Limited public information on specific performance metrics makes a full value-for-money assessment challenging. 3. The fixed-price contract structure mitigates cost overrun risks for the government. 4. This procurement falls within the broader category of federal vehicle acquisition, a recurring government need. 5. The contract's duration and delivery order structure suggest flexibility in meeting agency demands. 6. Competition dynamics appear favorable with a full and open bidding process.

Value Assessment

Rating: good

The awarded price of $28,875 per 8-passenger van, right-hand drive, sourced from Japan, seems reasonable when considering the specialized nature of the vehicle and international logistics. Benchmarking against similar government vehicle procurements for specialized vans of this size and configuration would provide a more precise value assessment. However, the absence of detailed performance data or comparison to commercial off-the-shelf (COTS) equivalents makes a definitive value judgment difficult. The firm fixed-price nature of the contract is a positive indicator for cost control.

Cost Per Unit: N/A

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 data does not specify the number of bidders, but the 'full and open' designation suggests a robust competitive environment. This level of competition is generally expected to drive prices down and encourage innovative solutions, leading to better value for the government.

Taxpayer Impact: A full and open competition provides taxpayers with assurance that the government sought the best possible price and quality, minimizing the risk of inflated costs due to limited bidding opportunities.

Public Impact

Federal agencies requiring specialized 8-passenger transportation, particularly those operating in regions where right-hand drive vehicles are standard or necessary, will benefit from this contract. The contract facilitates the acquisition of essential transportation assets for government operations. The geographic impact is primarily within the operational areas of the acquiring federal agencies, potentially including overseas assignments. Workforce implications are indirect, supporting the operational needs of federal employees who require such vehicles for their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics hinders a comprehensive assessment of long-term value and reliability.
International sourcing introduces potential complexities in logistics, maintenance, and parts availability.
The specific need for right-hand drive vehicles may indicate niche operational requirements that could limit broader applicability or future competition.

Positive Signals

Firm fixed-price contract structure provides cost certainty and mitigates risk of budget overruns.
Full and open competition suggests a competitive pricing environment and potential for good value.
The contract award by the General Services Administration (GSA) indicates adherence to established procurement standards and processes.

Sector Analysis

This contract falls within the broader automotive manufacturing and supply sector, specifically focusing on light-duty motor vehicles. The market for specialized government vehicles can be distinct from the general commercial market, often requiring specific configurations or compliance standards. GSA's role in vehicle procurement aims to leverage bulk purchasing power and competitive bidding to achieve economies of scale and cost efficiencies for federal agencies, setting benchmarks for vehicle acquisition across the government.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The focus appears to be on securing the required vehicles through the most competitive means available.

Oversight & Accountability

The General Services Administration (GSA) generally employs robust oversight mechanisms for its procurement contracts, including this delivery order. Accountability is maintained through contract terms, performance monitoring, and dispute resolution processes. Transparency is facilitated by public contract databases where such awards are reported. Inspector General oversight may be involved if specific concerns regarding fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

GSA Fleet Vehicle Procurement
Federal Vehicle Acquisition Programs
Light Duty Motor Vehicle Manufacturing
International Vehicle Sourcing

Risk Flags

Potential for higher maintenance/parts costs due to international sourcing.
Limited competition pool for specialized RHD vehicles.
Need for clear justification for RHD vehicle requirement.
Dependence on international shipping schedules and potential delays.

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 public databases. As a Japanese entity, their primary engagement with the U.S. federal government would likely be through GSA schedules or specific solicitations like this one. Without more data on past performance, it's difficult to assess their established reliability and experience in meeting federal procurement requirements. Future performance on this contract will be a key indicator. It is possible they are a new entrant or have supplied indirectly through other prime contractors.

How does the $28,875 per-van cost compare to similar federal vehicle procurements?

Benchmarking this specific procurement requires comparing it to similar 'VAN WAGON, 8 PASSENGER, RHD, JAPAN' vehicles awarded by the federal government. General GSA vehicle contracts for standard passenger vans typically fall within a lower price range, often under $25,000. However, the 'RHD' (Right-Hand Drive) specification and international sourcing from Japan suggest a specialized requirement that would naturally increase the cost due to limited availability, import duties, shipping, and potentially different manufacturing standards or options. Without direct comparisons of RHD, 8-passenger vans sourced internationally, a precise value-for-money assessment is challenging, but the price appears plausible for such a niche vehicle.

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

Procuring vehicles internationally introduces several risks. These include extended lead times due to shipping and customs, potential difficulties in obtaining spare parts and maintenance services, currency exchange rate fluctuations impacting final cost (though mitigated by fixed-price contracts), and ensuring compliance with U.S. safety and emissions standards. For right-hand drive vehicles, the operational context must be clearly defined, as their use in standard U.S. driving environments is restricted. The specific sourcing from Japan for Ryukyu Nissan Jidosha K.K. implies these factors were considered and deemed manageable within the contract's scope.

What is the expected effectiveness of this contract in meeting agency transportation needs?

The effectiveness of this contract hinges on the timely delivery of vehicles that meet the specified requirements (8-passenger, RHD, Japan-origin) and the operational context for which they are needed. As a delivery order under a larger contract, it suggests a pre-vetted supplier and pricing structure, aiming for efficiency. The firm fixed-price nature provides budget certainty. Assuming the vehicles are delivered as specified and function reliably in their intended environment, the contract should be effective in fulfilling a specific transportation requirement. However, the long-term effectiveness depends on durability, maintenance, and suitability for the mission.

How does this contract's spending compare to overall federal spending on vehicles?

This single contract award of $28,875 per van represents a very small fraction of the overall federal spending on vehicles. The U.S. government procures thousands of vehicles annually across various agencies, with total spending often reaching billions of dollars. GSA alone manages a massive fleet. This specific contract addresses a niche requirement (RHD, 8-passenger van from Japan). While important for the specific agency's needs, its financial scale is minor compared to the aggregate federal vehicle acquisition budget, which includes a wide range of vehicle types, from sedans to heavy-duty trucks.

What are the implications of the 'VAN WAGON, 8 PASSENGER, RHD, JAPAN' specification for future procurements?

The specific 'VAN WAGON, 8 PASSENGER, RHD, JAPAN' designation indicates a potentially limited market for future procurements of identical vehicles. While GSA aims for broad competition, the requirement for right-hand drive sourced from Japan narrows the pool of potential manufacturers and suppliers. This could lead to less competitive bidding in the future if demand persists, potentially driving up prices compared to more common vehicle configurations. Agencies needing such specialized vehicles must carefully consider the long-term availability and cost implications when defining requirements.

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