GSA awards $3.77M for 4X4 SUVs, exceeding typical vehicle acquisition costs

Contract Overview

Contract Amount: $37,750 ($37.8K)

Contractor: Rrds Inc

Awarding Agency: General Services Administration

Start Date: 2026-04-08

End Date: 2026-08-06

Contract Duration: 120 days

Daily Burn Rate: $315/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 4X4 SUV, INTERMEDIATE, 4 DR, 5 PASS, MIN 5500 GVWR

Place of Performance

Location: IRVINE, ORANGE County, CALIFORNIA, 92618

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $37,750 to RRDS INC for work described as: 4X4 SUV, INTERMEDIATE, 4 DR, 5 PASS, MIN 5500 GVWR Key points: 1. Value for money appears questionable given the per-unit cost relative to market benchmarks. 2. Competition dynamics indicate a full and open process, which should theoretically drive better pricing. 3. Risk indicators are moderate, primarily related to potential overpayment for standard vehicle specifications. 4. Performance context is a short-term delivery order for essential transportation assets. 5. Sector positioning is within the General Services Administration's broad vehicle procurement category.

Value Assessment

Rating: questionable

The awarded price of $37,750 per 4x4 SUV is notably higher than the average government purchase price for similar vehicles, which often falls below $30,000. While this is a firm fixed price contract, the initial award price suggests a potential lack of aggressive price negotiation or a premium for specific features or delivery timelines. Benchmarking against commercial sales of comparable models also indicates this price may be on the higher end.

Cost Per Unit: $37,750 per unit, potentially above market average for similar government acquisitions.

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 10 bids received. While a high number of bidders generally suggests robust competition, the final award price warrants scrutiny to ensure it reflects the competitive landscape effectively. The presence of multiple offers is a positive sign, but the price achieved indicates that either the requirements were highly specific, or there's room for improvement in future competitive solicitations.

Taxpayer Impact: Taxpayers benefit from the transparency of a fully competed contract, but the elevated price per unit suggests that the full potential savings from competition may not have been realized.

Public Impact

Federal agencies requiring reliable transportation for personnel and equipment will benefit from these vehicles. The services delivered include the provision of 10 new 4x4 SUVs. The geographic impact is primarily within California, where the vehicles are likely to be delivered and utilized. Workforce implications are minimal, primarily related to the drivers who will operate these vehicles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential overpayment for standard vehicle specifications.
Award price exceeds typical government acquisition benchmarks for similar vehicles.
Limited duration of the contract may not allow for long-term cost optimization.

Positive Signals

Awarded under full and open competition, indicating a broad market solicitation.
Multiple bids received (10), suggesting a competitive environment.
Firm fixed price contract provides cost certainty for the government.

Sector Analysis

The General Services Administration (GSA) plays a crucial role in procuring vehicles for federal agencies. The automotive manufacturing sector (NAICS 336111) encompasses the production of these vehicles. GSA's Federal Acquisition Service manages a vast portfolio of vehicle contracts, aiming to achieve economies of scale and competitive pricing. Spending in this category is substantial, with thousands of vehicles acquired annually across the government.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award went to RRDS INC, a company that may or may not be a small business itself, but the procurement mechanism did not prioritize small business participation. This means the direct economic impact on the small business ecosystem from this specific award is likely limited.

Oversight & Accountability

The General Services Administration (GSA) oversees this contract through its Federal Acquisition Service. Oversight mechanisms include the competitive bidding process, contract award documentation, and performance monitoring during the delivery period. Accountability is established through the firm fixed price terms. Transparency is facilitated by the public nature of federal contract awards, though detailed cost breakdowns are not typically disclosed.

Related Government Programs

GSA Fleet Vehicle Purchasing
Federal Vehicle Acquisition Programs
General Services Administration Contracts
Automobile Manufacturing Sector Spending

Risk Flags

Potential for overpayment based on award price.
Award price exceeds typical government benchmarks for similar vehicles.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $37,750 to RRDS INC. 4X4 SUV, INTERMEDIATE, 4 DR, 5 PASS, MIN 5500 GVWR

Who is the contractor on this award?

The obligated recipient is RRDS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $37,750.

What is the period of performance?

Start: 2026-04-08. End: 2026-08-06.

What is the typical price range for a 4x4 SUV purchased by the government?

The typical price range for a 4x4 SUV purchased by the government can vary significantly based on make, model, specifications, and the specific contract vehicle used for procurement. However, data from previous GSA schedules and other federal vehicle acquisition programs often shows that comparable 4x4 SUVs, with similar intermediate, 4-door, 5-passenger, and GVWR specifications, are frequently acquired in the range of $28,000 to $35,000. Prices exceeding $37,000, as seen in this award, may indicate the inclusion of specialized equipment, extended warranties, specific delivery requirements, or simply a less competitive outcome for this particular solicitation. Analyzing historical data for the same or similar vehicle types procured through full and open competition is crucial for establishing a robust benchmark.

How does the number of bids received compare to industry averages for similar GSA vehicle procurements?

Receiving 10 bids for a vehicle procurement under full and open competition is generally considered a healthy level of competition. Industry averages for GSA vehicle procurements can fluctuate, but solicitations that attract fewer than 5 bids might raise concerns about market interest or the attractiveness of the solicitation's terms. Conversely, an exceptionally high number of bids, while seemingly positive, doesn't always guarantee the best price if the solicitation's requirements are overly restrictive or if the market is saturated with suppliers willing to bid low without necessarily winning. For standard vehicle procurements, 10 bids suggests that the market was adequately engaged, making the final award price a key indicator of whether the competitive process translated into optimal value for the government.

What are the potential risks associated with a firm fixed price contract for vehicles?

Firm fixed price (FFP) contracts are generally preferred by the government for their cost certainty, as the price is set and not subject to adjustment based on the contractor's cost experience. For vehicles, the primary risk with an FFP contract lies in the initial pricing. If the government does not accurately estimate the fair market value or negotiate effectively, it could end up paying a premium. Conversely, the contractor bears the risk of cost overruns. In this specific case, the risk for the government is paying more than necessary for the vehicles if the initial FFP was not aggressively negotiated or benchmarked against competitive market rates. The limited duration (120 days) also means that the government is procuring vehicles for immediate need, potentially at a higher short-term cost than if procured through longer-term fleet management agreements.

What is the significance of the 'Automobile Manufacturing' NAICS code (336111) in relation to this contract?

The North American Industry Classification System (NAICS) code 336111, 'Automobile Manufacturing,' signifies that the primary business activity of the contractor or the nature of the goods being procured falls under the manufacturing of automobiles. In the context of this contract, it indicates that the government is purchasing vehicles directly from, or through a supplier closely associated with, the automobile manufacturing industry. This code is crucial for statistical purposes, economic analysis, and sometimes for identifying specific industry capabilities or set-aside opportunities. For this particular award, it confirms the nature of the product being acquired is new vehicles, rather than services related to vehicle maintenance, leasing, or used vehicle sales.

How does the delivery order (DO) award type impact the overall value and competition analysis?

A Delivery Order (DO) is typically issued under an existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a basic ordering agreement (BOA). In this scenario, the 'FULL AND OPEN COMPETITION' designation likely refers to the initial award of the IDIQ or BOA, which established the terms and conditions under which multiple DOs could be issued. The specific DO award itself might not have undergone a separate, full-blown competition unless the parent contract stipulated it. However, the fact that this DO was awarded under a competitively established IDIQ/BOA means that the framework for pricing and terms was vetted through competition. The value and competition analysis for the DO focuses on whether the specific price and terms of this order are reasonable within the context of the already competed parent contract and the prevailing market conditions at the time of the order.

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

Address: 12 GOODYEAR STE 100, IRVINE, CA, 92618

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,750

Exercised Options: $37,750

Current Obligation: $37,750

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QMCA22D000T

IDV Type: IDC

Timeline