GSA awards $77.4M contract for 4x4 SUVs to FCA US LLC, with delivery orders extending to 2027

Contract Overview

Contract Amount: $77,362 ($77.4K)

Contractor: FCA US LLC

Awarding Agency: General Services Administration

Start Date: 2026-03-24

End Date: 2027-01-28

Contract Duration: 310 days

Daily Burn Rate: $250/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 4X4 SUV, FULL SIZE, 4 DR, 8 PASS, MIN 7000 LBS GVWR

Place of Performance

Location: AUBURN HILLS, OAKLAND County, MICHIGAN, 48326

State: Michigan Government Spending

Plain-Language Summary

General Services Administration obligated $77,362 to FCA US LLC for work described as: 4X4 SUV, FULL SIZE, 4 DR, 8 PASS, MIN 7000 LBS GVWR Key points: 1. The contract's firm-fixed-price structure aims to provide cost certainty for the government. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The contract duration of 310 days indicates a focused procurement for specific vehicle needs. 4. The North American Industry Classification System (NAICS) code 336111 points to the automobile manufacturing sector. 5. The contract is categorized under 'Automobile Manufacturing', aligning with the vehicle type procured. 6. The 'ST' (State) code 'MI' indicates the contract is associated with Michigan.

Value Assessment

Rating: fair

The contract value of $77.4 million for 4x4 SUVs appears substantial. Benchmarking this against similar large-scale vehicle procurements by the General Services Administration (GSA) would be necessary to assess value for money. The firm-fixed-price contract type offers predictability, but the specific unit price and total value should be compared to market rates for comparable vehicles with similar specifications (e.g., 8-passenger capacity, 7000 lbs GVWR) to determine if it represents a competitive price point.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition', indicating that all responsible sources were permitted to submit bids. The presence of 10 delivery orders suggests multiple vehicles or phases of delivery under this contract. The level of competition, while stated as full and open, would ideally involve a review of the number of actual bidders to confirm robust price discovery and prevent potential price inflation.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better value compared to sole-source or limited solicitations.

Public Impact

Federal agencies requiring 4x4, full-size, 4-door SUVs with a minimum 7000 lbs GVWR will benefit from this contract. The contract facilitates the acquisition of essential transportation assets for government operations. The geographic impact is primarily tied to the delivery locations of the vehicles, which are not specified but likely serve various federal agencies nationwide. The procurement supports the automobile manufacturing sector, specifically FCA US LLC, and potentially its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The specific performance metrics and delivery timelines for the vehicles are not detailed, posing a potential risk if not met.
The long-term maintenance and operational costs associated with these vehicles are not explicitly addressed in the provided data.
Reliance on a single manufacturer (FCA US LLC) for this substantial award could present supply chain risks if unforeseen issues arise with the contractor.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government, mitigating budget overruns.
The 'full and open competition' award method suggests a potentially competitive pricing environment.
The contract is awarded to a known automotive manufacturer (FCA US LLC), implying established production capabilities.

Sector Analysis

The automobile manufacturing sector (NAICS 336111) is a significant part of the U.S. economy. Federal vehicle procurements, often managed by agencies like the General Services Administration (GSA), represent a substantial portion of government spending. This contract fits within the broader category of fleet vehicle acquisition, where agencies seek reliable and capable vehicles for operational needs. Benchmarking against other large federal vehicle contracts would provide context on the scale and pricing of this award.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (SB=false) and does not specify any small business subcontracting requirements. Therefore, the direct impact on the small business ecosystem appears minimal, with the primary award going to a large manufacturer. Further analysis would be needed to determine if any subcontracting opportunities exist within FCA US LLC's supply chain that could benefit small businesses.

Oversight & Accountability

The General Services Administration (GSA) typically oversees federal vehicle procurements, implementing oversight through its Federal Acquisition Service. Accountability is established through the firm-fixed-price contract terms and delivery schedules. Transparency is generally maintained through public contract databases like FPDS. Inspector General oversight may apply depending on the specific circumstances and any potential investigations into fraud, waste, or abuse related to the contract.

Related Government Programs

GSA Fleet Vehicle Procurement
Federal Vehicle Acquisition Programs
Department of Defense Vehicle Contracts
Law Enforcement Vehicle Purchases

Risk Flags

Potential for cost overruns if market prices increase significantly post-award.
Risk of quality compromises if contractor faces production cost pressures.
Dependency on a single manufacturer could lead to supply chain vulnerabilities.
Need for robust oversight to manage multiple delivery orders effectively.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $77,362 to FCA US LLC. 4X4 SUV, FULL SIZE, 4 DR, 8 PASS, MIN 7000 LBS GVWR

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 $77,362.

What is the period of performance?

Start: 2026-03-24. End: 2027-01-28.

What is the historical spending pattern for similar 4x4 SUVs by the General Services Administration?

Analyzing historical spending patterns for similar 4x4 SUVs by the GSA is crucial for understanding value and identifying trends. This involves reviewing past contract awards for vehicles with comparable specifications (e.g., full-size, 4-door, 8-passenger, minimum 7000 lbs GVWR) over the last 5-10 years. Key metrics to examine include the number of vehicles procured, average unit prices, contract types (firm-fixed-price vs. cost-plus), and the primary manufacturers awarded contracts. Significant year-over-year increases or decreases in spending, or a shift in awarded manufacturers, could indicate changes in market conditions, agency needs, or GSA's procurement strategies. For instance, if the average unit price for similar vehicles has been consistently lower in previous years, it might raise questions about the current contract's value. Conversely, an increase in demand or new model features could justify higher costs. Understanding these historical trends provides a baseline against which the current $77.4 million award can be more effectively assessed for cost-effectiveness and market competitiveness.

How does the unit price of these 4x4 SUVs compare to commercial market rates for similar vehicles?

Comparing the unit price of the 4x4 SUVs procured under this contract to commercial market rates is essential for assessing value for money. This requires identifying the specific FCA US LLC model(s) being purchased and researching their Manufacturer's Suggested Retail Price (MSRP) and typical dealer selling prices for comparable configurations (e.g., trim level, optional packages, engine). Adjustments should be made for any government-specific discounts or bulk purchasing advantages that might be reflected in the contract price. Additionally, it's important to consider the total cost of ownership, which includes factors like warranty coverage, expected fuel efficiency, and maintenance schedules, as these can differ between commercial and government contracts. If the government's unit price significantly exceeds commercial rates, even after accounting for potential discounts, it could indicate a lack of competitive pricing or that the contract includes specific government-mandated features or services not typically found in commercial offerings. A thorough comparison helps determine if taxpayers are receiving a fair price for these essential vehicles.

What are the potential risks associated with a firm-fixed-price contract for vehicle acquisition?

While firm-fixed-price (FFP) contracts offer cost certainty, they also present potential risks, particularly in vehicle acquisition. One primary risk is that the contractor, FCA US LLC in this case, may face unforeseen cost increases during production (e.g., raw material price hikes, labor cost escalations) that are not passed on to the government. To mitigate this, the contractor might build higher profit margins or contingency into their initial bid, potentially leading to a higher overall price than a contract allowing for cost adjustments. Another risk is that the contractor might reduce quality or cut corners on features to maintain profitability if costs rise unexpectedly, although the FFP structure aims to incentivize efficiency. For the government, the risk lies in potentially overpaying if the initial bid was excessively high due to aggressive competition or if market conditions change favorably for the contractor after the bid is locked in. Furthermore, if the government requires significant changes or modifications to the vehicle specifications after the contract is awarded, managing these changes under an FFP structure can be complex and may lead to costly change orders or disputes.

What is the track record of FCA US LLC in fulfilling large federal vehicle contracts?

Assessing FCA US LLC's track record in fulfilling large federal vehicle contracts is vital for understanding their reliability and performance. This involves reviewing past contract performance data, including on-time delivery rates, adherence to specifications, and any history of contract disputes, terminations, or performance issues. Examining GSA's contract award history and any available performance evaluations or CPARS (Contractor Performance Assessment Reporting System) reports for FCA US LLC can provide insights. A history of successful, timely deliveries and high-quality performance on similar large-scale procurements would indicate a lower risk associated with this current award. Conversely, a pattern of delays, quality issues, or disputes might signal potential challenges ahead. Understanding their past performance helps in evaluating the likelihood of successful contract execution and the overall value proposition for the government.

How does the number of delivery orders (10) impact the management and oversight of this contract?

The presence of 10 delivery orders under this contract signifies a structured approach to acquiring multiple vehicles or phases of vehicle delivery over the contract period. From a management perspective, each delivery order likely represents a specific quantity of vehicles to be produced and delivered within a defined timeframe. This allows the GSA to manage the influx of vehicles and potentially adjust quantities based on evolving agency needs. However, managing multiple delivery orders increases administrative workload, requiring diligent tracking of each order's progress, compliance with terms, and final acceptance. Oversight becomes more granular, focusing on ensuring each order meets the contract's specifications and delivery schedules. While multiple orders can offer flexibility, they also necessitate robust internal controls and communication channels to prevent errors or missed deadlines across the various components of the contract. The total value of these orders, summing up to $77.4 million, underscores the significance of effective management and oversight for this substantial procurement.

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: $77,362

Exercised Options: $77,362

Current Obligation: $77,362

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