GSA Awards $7.7M for 10 Full-Size SUVs to FCA US LLC, High GVWR Requirement

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. High GVWR requirement (7000+ lbs) suggests specialized use, potentially limiting competition. 2. FCA US LLC is the sole awardee, indicating potential concentration in this specific vehicle type. 3. Firm Fixed Price contract provides cost certainty for the government. 4. The contract duration of 310 days is relatively short for vehicle procurement.

Value Assessment

Rating: fair

The award price of $773,620 for 10 vehicles averages $77,362 per unit. This price appears high for standard SUVs but may be justified by the specific high GVWR requirement.

Cost Per Unit: $77,362

Competition Analysis

Competition Level: full-and-open

Despite being listed as full and open competition, the award to a single vendor (FCA US LLC) suggests that only a limited number of manufacturers could meet the stringent GVWR requirement, potentially impacting price discovery.

Taxpayer Impact: Taxpayers are paying a premium for vehicles with specific heavy-duty capabilities, the necessity of which should be continually evaluated.

Public Impact

Government agencies requiring heavy-duty SUVs for specific operational needs will benefit from this procurement. The procurement ensures the availability of essential transportation assets for federal operations. Potential for higher per-unit costs due to specialized vehicle specifications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to specialized requirements.
Potential for price overruns if requirements change.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Awarded to a known manufacturer with established supply chains.

Sector Analysis

Automobile manufacturing (NAICS 336111) is a mature sector. However, specialized vehicles like those with a high GVWR may command higher prices due to limited production runs and specific engineering requirements.

Small Business Impact

This contract was awarded to FCA US LLC, a large manufacturer. There is no indication of small business participation in this specific delivery order.

Oversight & Accountability

The General Services Administration (GSA) Federal Acquisition Service manages this contract. Oversight should focus on ensuring the necessity of the high GVWR and exploring options for broader competition in future procurements.

Related Government Programs

Automobile Manufacturing
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for limited competition due to specialized requirements.
High per-unit cost requires justification.
Lack of transparency on specific use case for high GVWR.
No indication of small business participation.

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.

Is the 7000 lbs GVWR requirement truly necessary for the intended operational use, or could a less specialized, more cost-effective vehicle suffice?

The necessity of the 7000 lbs GVWR is critical. If this specification is essential for carrying specific equipment, personnel, or operating in demanding conditions, the higher cost is justified. However, if it's an over-specification, it leads to unnecessary taxpayer expense and limits competitive options. Further analysis of the mission requirements is needed to confirm the true need.

What steps were taken to ensure maximum competition given the specialized nature of the vehicle, and what is the benchmark for similar high-GVWR SUV contracts?

While listed as 'full and open,' the specific high GVWR likely narrowed the field significantly. Agencies should document market research efforts to identify all potential manufacturers capable of meeting such stringent requirements. Benchmarking against other government or commercial contracts for similar heavy-duty SUVs, if available, is crucial for assessing price reasonableness. Without this data, it's difficult to definitively assess value.

How does the per-unit cost of these specialized SUVs compare to standard full-size SUVs, and what is the projected lifecycle cost considering maintenance and fuel?

The $77,362 per-unit cost is substantially higher than typical full-size SUVs. This premium is likely due to the heavy-duty components required for the 7000 lbs GVWR. A comprehensive lifecycle cost analysis, including projected maintenance, fuel efficiency (likely lower for heavy-duty vehicles), and potential repair costs, is essential to understand the true long-term financial impact on the government.

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