GSA awards $77.4M contract for 4x4 SUVs to FCA US LLC, with delivery orders expected through March 2026

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 leverages firm-fixed-price terms, aiming for predictable costs over its duration. 2. Competition was full and open, suggesting a potentially competitive bidding environment. 3. The contract duration of 310 days indicates a focused, short-term need for these vehicles. 4. Delivery orders are anticipated through March 2024, aligning with operational timelines. 5. The North American Industry Classification System (NAICS) code 336111 points to automobile manufacturing as the primary sector. 6. The contract is categorized under 'Automobile Manufacturing', reflecting the nature of the goods procured.

Value Assessment

Rating: good

The contract value of $77.4 million for 4x4 SUVs appears reasonable given the quantity and specifications. Benchmarking against similar GSA fleet procurements would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overruns, contributing to predictable spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This 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 a structured approach to fulfilling the requirement. The level of competition is expected to drive competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where multiple vendors vie for the contract, potentially leading to lower prices and better terms.

Public Impact

Federal agencies requiring robust 4x4 vehicles for operational duties will benefit from this contract. The contract facilitates the acquisition of essential transportation assets for government use. The vehicles are intended for use within Michigan, as indicated by the 'MI' state code. This procurement supports the automotive manufacturing sector and its associated workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for long-term vehicle obsolescence if not managed proactively.
Dependence on a single manufacturer (FCA US LLC) for this specific vehicle type.
Fluctuations in fuel prices could impact the total cost of ownership beyond the initial purchase price.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a healthy market and potential for competitive pricing.
Clear specifications for the 4x4 SUVs ensure suitability for intended government use.

Sector Analysis

The automotive manufacturing sector is a significant part of the U.S. economy. This contract falls under NAICS code 336111, which covers the production of automobiles. Federal agencies are major purchasers of vehicles, and contracts like this are crucial for maintaining government fleets. Spending in this category is often benchmarked against industry standards for fleet acquisitions.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors to FCA US LLC.

Oversight & Accountability

The General Services Administration (GSA) oversees this contract through its Federal Acquisition Service. Oversight mechanisms likely include contract performance monitoring, adherence to delivery schedules, and financial accountability. Transparency is generally maintained through public contract databases, though specific oversight details are not provided.

Related Government Programs

GSA Fleet Vehicle Purchasing
Department of Defense Vehicle Procurement
Law Enforcement Vehicle Acquisition

Risk Flags

Potential for price increases if market conditions change significantly before delivery.
Ensuring timely delivery of vehicles to meet agency operational needs.
Verification of vehicle specifications to match exact requirements.

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?

Historical spending data for similar 4x4 SUVs by the GSA would reveal trends in procurement volume, average unit costs, and the types of vehicles consistently acquired. Analyzing past contracts can identify fluctuations in demand, changes in vehicle specifications, and the impact of market conditions on pricing. For instance, if GSA has consistently procured a high volume of these vehicles over several years, it suggests a sustained need. Conversely, a sporadic pattern might indicate project-specific or ad-hoc requirements. Understanding these patterns helps in forecasting future needs and budgeting more effectively, while also providing a baseline for evaluating the current contract's value and competitiveness against historical benchmarks.

How does the specified GVWR of 7000 lbs impact the vehicle's classification and cost?

A Gross Vehicle Weight Rating (GVWR) of at least 7000 lbs signifies that these are heavy-duty vehicles, capable of carrying substantial payload and towing significant weight. This specification typically places the vehicles in a category that may require different manufacturing processes, more robust components (engine, suspension, brakes), and potentially different regulatory considerations compared to lighter-duty SUVs. Consequently, vehicles meeting this higher GVWR often command a higher price point due to the enhanced engineering and materials involved. This specification is critical for government applications that require the transport of heavy equipment, personnel in demanding environments, or towing capabilities, justifying the potentially higher per-unit cost.

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

While firm-fixed-price (FFP) contracts offer cost certainty to the buyer, they can introduce risks for the contractor. If the contractor underestimates costs or market prices increase significantly during the contract period, they may incur losses. For the government, the primary risk with FFP is that the contractor may have built in a higher contingency into the price to cover potential risks, leading to a higher initial cost than a cost-reimbursable contract might have offered if costs were lower than anticipated. Additionally, if the contractor faces unforeseen production issues or supply chain disruptions, they might be incentivized to cut corners on quality to meet the fixed price, although robust quality assurance measures can mitigate this.

What is FCA US LLC's track record in supplying vehicles to the federal government?

FCA US LLC, now part of Stellantis, has a history of supplying vehicles to the U.S. federal government through various contracts, often facilitated by the General Services Administration (GSA). Their offerings typically include a range of sedans, SUVs, and trucks that meet federal specifications for law enforcement, general services, and other operational needs. Analyzing past awards to FCA US LLC can provide insights into their reliability, pricing competitiveness, and ability to meet delivery schedules for government procurements. A review of contract databases would likely show consistent awards across different agencies, indicating a recognized capacity to serve the federal market, though specific performance metrics would require deeper investigation.

How does the 'Automobile Manufacturing' NAICS code (336111) relate to the specific vehicle type (4x4 SUV)?

The NAICS code 336111, 'Automobile Manufacturing,' broadly covers establishments primarily engaged in manufacturing complete passenger automobiles, light trucks, and vans. A 4x4 SUV (Sport Utility Vehicle) falls squarely within this classification. This code signifies that the contractor is involved in the assembly and production of the finished vehicle. It distinguishes this procurement from contracts for automotive parts manufacturing (which fall under different NAICS codes) or vehicle modification services. The code confirms that the government is purchasing a fully manufactured, road-ready vehicle directly from a primary producer or assembler within the automobile industry.

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