GSA awards $157M contract for heavy-duty trucks to International Motors, LLC, with 7 bids received

Contract Overview

Contract Amount: $157,190 ($157.2K)

Contractor: International Motors, LLC

Awarding Agency: General Services Administration

Start Date: 2026-04-02

End Date: 2027-09-24

Contract Duration: 540 days

Daily Burn Rate: $291/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 4X2 DRY VAN, 12-26 FEET, 33,000 LBS GVWR

Place of Performance

Location: KNOXVILLE, KNOX County, TENNESSEE, 37919

State: Tennessee Government Spending

Plain-Language Summary

General Services Administration obligated $157,190 to INTERNATIONAL MOTORS, LLC for work described as: 4X2 DRY VAN, 12-26 FEET, 33,000 LBS GVWR Key points: 1. Contract awarded for heavy-duty trucks, a critical component for federal logistics and operations. 2. The firm-fixed-price structure aims to control costs and provide predictable spending. 3. Competition level indicates a healthy market for these specialized vehicles. 4. Delivery order type suggests this is part of a larger, pre-established contract vehicle. 5. The contract duration spans over a year, ensuring sustained availability of essential equipment. 6. Focus on heavy-duty trucks highlights agency needs for robust transportation solutions.

Value Assessment

Rating: good

The contract value of $157,190,000 for heavy-duty trucks appears reasonable given the scale and duration. Without specific per-unit pricing or detailed specifications for the 4X2 DRY VAN trucks, a direct benchmark is challenging. However, the firm-fixed-price nature suggests that the government has negotiated a set price, which can be advantageous. Comparing this to similar large-scale federal procurements for commercial vehicles would provide a more precise value assessment, but the competitive bidding process likely contributed to a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with seven bids received. This indicates a robust and accessible market for heavy-duty truck manufacturing and supply. The presence of multiple bidders generally fosters price discovery and encourages competitive pricing, suggesting that the government likely received favorable terms. The agency's decision to pursue full and open competition is a positive sign for efficient use of taxpayer funds.

Taxpayer Impact: The full and open competition ensures that taxpayers benefit from the most competitive pricing available in the market for these essential vehicles. A higher number of bids typically leads to lower prices and better value.

Public Impact

Federal agencies requiring reliable heavy-duty transportation for logistics, maintenance, and operational support will benefit. Services delivered include the provision of 4X2 DRY VAN trucks with a 33,000 LBS GVWR. The contract is managed by the General Services Administration (GSA), indicating broad federal applicability. Workforce implications may include support roles for vehicle maintenance, operation, and logistics within federal agencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for long-term reliance on a single supplier if future orders are concentrated.
Need for ongoing monitoring to ensure vehicle specifications meet evolving operational requirements.
Risk of price increases in subsequent delivery orders if market conditions change significantly.

Positive Signals

Award to a known entity, International Motors, LLC, suggests a degree of confidence in their capabilities.
Firm-fixed-price contract provides cost certainty for the government.
Full and open competition ensures a broad base of potential suppliers and competitive pricing.

Sector Analysis

The heavy-duty truck manufacturing sector is a significant part of the industrial economy, supplying essential vehicles for logistics, construction, and public services. Federal spending in this area supports national infrastructure and operational readiness. This contract, valued at $157 million, represents a substantial investment within this sector, likely contributing to the production and supply chain for specialized commercial vehicles. Comparable spending benchmarks would involve analyzing other large federal vehicle procurements or major fleet acquisitions by state and local governments.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The award to International Motors, LLC, a likely larger entity, suggests that the primary focus was on meeting the technical and volume requirements of the federal government. This may limit direct opportunities for small businesses within this specific procurement, though they may participate as suppliers or indirectly through the broader automotive industry.

Oversight & Accountability

The General Services Administration (GSA) typically employs robust oversight mechanisms for its contracts, including performance monitoring and compliance checks. As a delivery order under a larger contract vehicle, oversight would likely involve adherence to the terms and conditions of the base contract. Transparency is generally maintained through public contract databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to this award.

Related Government Programs

Federal Fleet Management
Commercial Vehicle Procurement
Logistics and Transportation Services
Heavy Equipment Acquisition

Risk Flags

Potential for cost overruns if contractor's estimates are inaccurate.
Need for robust quality assurance to ensure vehicle specifications are met.
Dependence on contractor's supply chain for timely delivery.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $157,190 to INTERNATIONAL MOTORS, LLC. 4X2 DRY VAN, 12-26 FEET, 33,000 LBS GVWR

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL MOTORS, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $157,190.

What is the period of performance?

Start: 2026-04-02. End: 2027-09-24.

What is the historical spending pattern of the General Services Administration (GSA) on heavy-duty trucks?

Analyzing GSA's historical spending on heavy-duty trucks requires access to detailed procurement data over several fiscal years. Generally, GSA procures vehicles through various contract vehicles to meet the needs of federal agencies. Spending patterns can fluctuate based on agency requirements, fleet modernization initiatives, and budget allocations. Large-scale awards like this one suggest periods of significant fleet replenishment or expansion. Without specific historical data for this exact vehicle type (4X2 DRY VAN, 33,000 LBS GVWR), it's difficult to pinpoint precise trends. However, consistent federal investment in transportation assets is typical for maintaining operational capabilities across numerous agencies.

How does the number of bids (7) compare to typical competition levels for similar federal heavy-duty truck contracts?

Receiving seven bids for a federal heavy-duty truck contract, especially under full and open competition, generally indicates a healthy level of market interest and competition. For specialized or high-value procurements, the number of bidders can vary significantly. Some complex or niche requirements might attract fewer bidders, while more standardized, high-volume procurements could see more. Seven bids suggest that the market is sufficiently robust and that International Motors, LLC likely faced meaningful competition. This number is often considered a positive indicator, suggesting that the government had a reasonable selection of qualified offerors, which typically translates to better value for taxpayers.

What are the potential risks associated with a firm-fixed-price contract for heavy-duty trucks?

While firm-fixed-price (FFP) contracts are favored for cost control, they can present risks. For the contractor (International Motors, LLC), the primary risk is bearing the full cost overrun if production or material costs exceed estimates. This could incentivize them to cut corners on quality or service if not adequately monitored. For the government, the risk lies in potentially paying a premium if the contractor inflates their price to cover perceived risks, or if unforeseen circumstances (like major supply chain disruptions) significantly increase costs beyond what was reasonably foreseeable. Effective performance monitoring and clear contract specifications are crucial to mitigate these risks and ensure the government receives the intended value.

What is the track record of International Motors, LLC in fulfilling federal contracts, particularly for heavy-duty vehicles?

Assessing the track record of International Motors, LLC requires a review of their past performance on federal contracts. This would typically involve examining contract award histories, past performance evaluations (if publicly available), and any reported instances of contract disputes or terminations. For a contract of this magnitude ($157 million), it is reasonable to assume that GSA conducted due diligence regarding the contractor's capacity, experience, and reliability. A history of successful deliveries and positive performance reviews would increase confidence in their ability to meet the current contract's requirements. Conversely, any significant past performance issues could represent a risk factor.

How does the specified GVWR (33,000 LBS) and truck configuration (4X2 DRY VAN) align with typical federal agency needs?

The Gross Vehicle Weight Rating (GVWR) of 33,000 lbs indicates these are medium to heavy-duty trucks, suitable for significant cargo loads. The '4X2 DRY VAN' configuration specifies a two-axle truck with a standard enclosed cargo box, commonly used for general freight, mail, supplies, and equipment transport. This configuration is versatile and aligns well with the needs of various federal agencies, including logistics commands, administrative support units, and facilities management. It's a workhorse configuration for moving goods efficiently within the continental United States, suggesting the contract addresses a widespread and recurring need for reliable, medium-capacity delivery vehicles.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Manufacturing › Heavy Duty Truck Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Volkswagen Aktiengesellschaft

Address: 625 S GAY ST STE 450, KNOXVILLE, TN, 37902

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $157,190

Exercised Options: $157,190

Current Obligation: $157,190

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QMCA23D000E

IDV Type: IDC

Timeline