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 duration of the contract, including delivery orders, spans over two years. 4. The vehicles are specified for heavy-duty use with a minimum GVWR of 7000 lbs. 5. The award is a delivery order against an existing contract, indicating a streamlined procurement. 6. The contract is not set aside for small businesses, suggesting larger prime contractors are involved.

Value Assessment

Rating: good

The awarded amount of $77.4 million for 4x4 SUVs appears to be within a reasonable range for bulk government vehicle procurement. Benchmarking against similar large-scale vehicle acquisitions by agencies like the General Services Administration (GSA) would provide a more precise value-for-money assessment. The firm-fixed-price contract type helps mitigate cost overrun risks for the government, ensuring predictable expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 10 delivery orders suggests a structured approach to fulfilling demand over time. The level of competition, while not explicitly detailed by the number of bidders, is generally expected to drive more competitive pricing under this procurement method.

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

Public Impact

Federal agencies requiring robust, full-size 4x4 vehicles for operational needs will benefit from this contract. The contract facilitates the acquisition of essential transportation assets for government operations. The vehicles will likely be deployed across various federal agencies and potentially in diverse geographic locations. The automotive manufacturing sector, specifically FCA US LLC, is the direct beneficiary of this award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if only a few manufacturers can meet the stringent GVWR and 4x4 requirements.
Long-term maintenance and repair costs for these heavy-duty vehicles are not detailed in this award.
Dependence on a single manufacturer (FCA US LLC) for a significant portion of the government's SUV fleet could pose supply chain risks.

Positive Signals

The firm-fixed-price contract provides budget certainty for the government.
Full and open competition suggests a robust process that should yield competitive pricing.
The specified GVWR and 4x4 capabilities indicate vehicles suited for demanding operational environments.
The contract's structure allows for phased delivery, aligning with agency needs and budget cycles.

Sector Analysis

The automotive manufacturing sector is a significant part of the U.S. economy. Government vehicle procurement represents a substantial market segment within this sector. This contract for heavy-duty 4x4 SUVs fits within the broader category of federal vehicle acquisition, which includes sedans, trucks, and specialized vehicles. Comparable spending benchmarks would involve analyzing other large-scale vehicle fleet contracts awarded by agencies like GSA or the Department of Defense.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no explicit subcontracting requirements for small businesses were mandated in this specific award. This means the primary contract is with a large manufacturer, FCA US LLC. While this doesn't preclude small businesses from participating in the supply chain indirectly, it does not represent a direct set-aside opportunity or a strong focus on integrating small businesses into the prime contracting role for this particular award.

Oversight & Accountability

The General Services Administration (GSA) Federal Acquisition Service is responsible for overseeing this contract. Oversight mechanisms likely include contract performance monitoring, adherence to delivery schedules, and quality control of the vehicles provided. Accountability is ensured through the firm-fixed-price terms and the potential for corrective actions if performance standards are not met. Transparency is generally maintained through public contract databases where such awards are reported.

Related Government Programs

GSA Fleet Vehicle Purchasing
Department of Defense Vehicle Procurement
Law Enforcement Vehicle Contracts
General Services Administration Multiple Award Schedules

Risk Flags

Potential for higher lifecycle costs due to heavy-duty specifications.
Dependence on a single manufacturer for a large quantity of vehicles.
Need for further analysis on per-unit cost and comparison to market rates.

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 GSA?

Analyzing historical spending patterns for similar 4x4 SUVs by the GSA would involve reviewing past contract awards for vehicles with comparable specifications (e.g., full-size, 4-door, minimum GVWR). This would help establish a baseline for pricing and volume. For instance, if the GSA has previously awarded contracts for hundreds or thousands of similar vehicles at an average price point significantly lower than the implied per-unit cost of this $77.4 million award (assuming a substantial quantity), it might indicate a need for further price analysis or a review of the competitive landscape. Conversely, if this award aligns with or improves upon historical pricing, it suggests consistent or enhanced value. Understanding the duration and scope of previous contracts is also crucial for context.

How many bidders participated in this full and open competition?

The provided data indicates the contract was awarded under 'FULL AND OPEN COMPETITION' and notes '10' under the 'no' field, which typically signifies the number of 'offers received' or 'bidders'. Therefore, it can be inferred that 10 bidders participated in this procurement process. A higher number of bidders generally suggests a more robust competition, which can lead to better pricing and terms for the government. Conversely, a low number of bidders, even under full and open competition, might indicate market limitations or specific technical requirements that only a few firms could meet, potentially impacting price discovery and value for taxpayers.

What is the estimated per-unit cost based on the total award amount and typical vehicle quantities?

The total award amount is $77,362,000, and the contract specifies '4X4 SUV, FULL SIZE, 4 DR, 8 PASS, MIN 7000 LBS GVWR'. Without explicit information on the total number of vehicles to be procured under this award, calculating a precise per-unit cost is not possible. However, if we assume this $77.4 million represents the total value for a significant quantity of vehicles, and based on typical government vehicle procurement costs for heavy-duty SUVs, a rough estimate could be derived. For example, if 1,000 vehicles were procured, the per-unit cost would be approximately $77,362. If 500 vehicles were procured, the per-unit cost would be around $154,724. A more accurate assessment would require knowing the total quantity of vehicles covered by this contract value.

What are the specific performance requirements and potential risks associated with the 7000 lbs GVWR specification?

The specification of a minimum 7000 lbs Gross Vehicle Weight Rating (GVWR) for these 4x4 SUVs indicates a requirement for vehicles capable of carrying substantial payloads and/or towing heavy loads, suitable for demanding operational environments. This could include transporting multiple passengers along with significant equipment or operating in rugged terrain. Potential risks associated with this specification include higher acquisition costs compared to lighter-duty vehicles, increased fuel consumption, and potentially higher maintenance costs due to the robust components required. Furthermore, ensuring that the selected vehicles consistently meet or exceed this GVWR under various operating conditions is critical for safety and mission success. The contractor, FCA US LLC, must ensure their offered vehicles meet these stringent requirements.

How does this contract align with the GSA's broader goals for fleet modernization and sustainability?

This contract for 4x4 SUVs, while fulfilling a need for robust vehicles, may present a mixed picture regarding fleet modernization and sustainability goals. The focus on heavy-duty capabilities suggests operational requirements are paramount. However, the GSA has been increasingly emphasizing the procurement of electric and alternative fuel vehicles to reduce emissions and operational costs. Without knowing the specific model awarded and its fuel efficiency or emissions profile, it's difficult to definitively assess its alignment. If these are traditional internal combustion engine vehicles, they might represent a step away from aggressive sustainability targets, though they could be necessary for specific mission profiles where electric alternatives are not yet viable. Future contracts may need to balance capability with environmental considerations.

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