GSA awards $73.6M contract for 4x4 SUVs to FCA US LLC, with 10 vehicles ordered

Contract Overview

Contract Amount: $73,589 ($73.6K)

Contractor: FCA US LLC

Awarding Agency: General Services Administration

Start Date: 2026-03-27

End Date: 2027-01-28

Contract Duration: 307 days

Daily Burn Rate: $240/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 $73,589 to FCA US LLC for work described as: 4X4 SUV, FULL SIZE, 4 DR, 8 PASS, MIN 7000 LBS GVWR Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 307 days indicates a focused procurement for specific vehicle needs. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. The North American Industry Classification System (NAICS) code 336111 points to the automobile manufacturing sector. 5. The contract is a delivery order under a larger contract, implying a streamlined acquisition process. 6. The absence of small business set-aside suggests the primary focus was on best value from all sources.

Value Assessment

Rating: good

The award amount of $73,589 per vehicle appears to be within a reasonable range for a full-size, 4-door, 8-passenger SUV with a minimum 7000 lbs GVWR. Benchmarking against similar government fleet procurements would provide a more precise value assessment. The firm fixed-price structure helps control costs, but the specific value proposition depends on the exact vehicle specifications and market conditions at the time of award.

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 vehicles ordered suggests a potentially significant requirement. The level of competition is not explicitly stated by the number of bidders, but the 'full and open' designation implies a robust process designed to solicit multiple offers and achieve competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation, leading to better value for government spending.

Public Impact

Federal agencies requiring robust, full-size SUVs for operational duties will benefit from this contract. The contract supports the acquisition of vehicles essential for transportation and logistical support across various government functions. The vehicles will likely be deployed across different government departments and field offices. The contract supports the automotive manufacturing sector, specifically FCA US LLC, contributing to employment and economic activity within that industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher-than-market prices if competition was limited despite 'full and open' designation.
Long-term maintenance and operational costs of specialized SUVs may exceed those of standard vehicles.
Dependence on a single manufacturer (FCA US LLC) could limit future flexibility and price negotiation.
The specific GVWR requirement might lead to vehicles with higher fuel consumption and environmental impact.

Positive Signals

Awarded under firm fixed-price terms, providing cost certainty for the government.
Full and open competition is intended to ensure the best possible pricing and value.
The contract specifies key features like 4x4 capability and high GVWR, meeting specific operational needs.
The General Services Administration (GSA) is a reputable agency for managing federal procurement, suggesting adherence to established processes.

Sector Analysis

The automotive manufacturing sector is a significant part of the U.S. economy. Federal vehicle procurement represents a substantial market segment within this sector. Contracts like this, for specialized vehicles, are crucial for agencies needing specific capabilities. Benchmarks for similar full-size SUVs in government fleets typically range from $50,000 to $80,000, depending on specifications and options.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). This suggests that the procurement was open to all responsible sources, including large manufacturers like FCA US LLC. There is no explicit information on subcontracting requirements for small businesses within this specific delivery order, but larger federal contracts often include provisions for small business participation.

Oversight & Accountability

The General Services Administration (GSA) oversees this contract, which is a delivery order under a larger contract. GSA's Federal Acquisition Service is responsible for managing a wide range of government procurement. Oversight mechanisms likely include contract performance monitoring, financial reviews, and adherence to acquisition regulations. Transparency is generally maintained through public contract databases, though specific performance metrics may not always be publicly detailed.

Related Government Programs

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

Risk Flags

Potential for limited competition despite 'full and open' designation due to specialized requirements.
Risk of higher-than-market pricing if competitive bids were not sufficiently numerous or aggressive.
Dependence on a single manufacturer (FCA US LLC) for delivery and potential future support.
Environmental impact associated with fuel consumption of large, high-GVWR SUVs.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $73,589 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 $73,589.

What is the period of performance?

Start: 2026-03-27. End: 2027-01-28.

What is the track record of FCA US LLC in fulfilling federal vehicle contracts, particularly for similar high-GVWR SUVs?

FCA US LLC, now part of Stellantis, has a history of supplying vehicles to the U.S. government. Their track record includes providing various models to agencies through GSA schedules and direct contracts. For high-GVWR SUVs, their Ram and Jeep lines are typically candidates. Federal procurement data often shows consistent awards to FCA for fleet vehicles. A detailed review of past performance ratings and any contract disputes or terminations related to FCA's federal contracts would provide a clearer picture of their reliability in meeting government specifications and delivery timelines for specialized vehicles like the 4x4 SUVs specified.

How does the awarded price of $73,589 per vehicle compare to market rates for similar civilian SUVs at the time of award?

The awarded price of $73,589 per vehicle for a full-size, 4-door, 8-passenger SUV with a minimum 7000 lbs GVWR is at the higher end of the spectrum for civilian market vehicles, but potentially competitive for government-specific configurations and bulk orders. Civilian equivalents like the Chevrolet Suburban or Ford Expedition with similar heavy-duty options and fleet packages can range from $60,000 to over $80,000 depending on trim level, options, and dealer incentives. Government contracts often include specific requirements (e.g., enhanced durability, specific safety features, or modifications) that can increase the per-unit cost compared to standard retail models. A direct comparison requires detailed specification matching.

What are the primary risks associated with this contract, considering it's a delivery order for specialized vehicles?

Key risks include potential supply chain disruptions affecting FCA US LLC's ability to deliver vehicles within the specified timeframe, especially given global manufacturing challenges. The firm fixed-price nature, while beneficial for cost control, could become a risk if unforeseen manufacturing cost increases impact FCA's profitability, potentially leading to quality compromises or delivery delays if not managed effectively. Furthermore, the specialized nature of the high-GVWR requirement means that if the vehicles do not precisely meet the operational needs, there could be a mismatch between acquired assets and agency requirements, leading to underutilization or the need for additional, separate procurements. The concentration of the award to one manufacturer also poses a risk of limited future competition.

How effective is the 'full and open competition' strategy in ensuring value for money for this specific vehicle procurement?

The 'full and open competition' strategy is generally considered the most effective method for ensuring value for money in federal procurement, as it theoretically maximizes the number of potential bidders and encourages competitive pricing. For this contract, it implies that GSA sought bids from all qualified manufacturers capable of producing the specified 4x4 SUVs. The effectiveness in achieving optimal value depends on the number of actual bids received and the competitiveness of those bids. If only a few manufacturers could meet the stringent GVWR and passenger requirements, the competition might have been less robust than intended. However, the firm fixed-price structure further supports value by locking in costs, assuming the initial pricing reflected a competitive market.

What are the historical spending patterns for similar full-size, high-GVWR SUVs procured by the federal government through GSA?

Historical spending patterns for similar vehicles through GSA indicate a consistent demand for robust SUVs, particularly by agencies like law enforcement, emergency services, and those operating in challenging terrains. Annual spending on such vehicles can fluctuate significantly based on agency needs, fleet replacement cycles, and budget allocations. GSA's Federal Fleet Management data often shows multi-million dollar annual expenditures across various vehicle categories. The average price per unit for comparable high-GVWR SUVs procured by the government has historically ranged from $60,000 to $85,000, influenced by make, model, specific options, and the competitive landscape at the time of each procurement. This $73,589 award falls within that historical range.

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: $73,589

Exercised Options: $73,589

Current Obligation: $73,589

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