GSA's $9.3M IAA Contract for Wholesale Trade Agents & Brokers in FY26

Contract Overview

Contract Amount: $9,322,145 ($9.3M)

Contractor: Insurance Auto Auctions, Inc.

Awarding Agency: General Services Administration

Start Date: 2026-01-05

End Date: 2027-01-04

Contract Duration: 364 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: ZONE 1 FY26 SALES AT IAA

Place of Performance

Location: WESTCHESTER, COOK County, ILLINOIS, 60154

State: Illinois Government Spending

Plain-Language Summary

General Services Administration obligated $9.3 million to INSURANCE AUTO AUCTIONS, INC. for work described as: ZONE 1 FY26 SALES AT IAA Key points: 1. The contract is for wholesale trade agents and brokers, a niche but essential service. 2. Insurance Auto Auctions, Inc. is the sole awardee, raising questions about competition. 3. The fixed-price with economic price adjustment structure carries some inflation risk. 4. The contract falls under the Wholesale Trade Agents and Brokers sector.

Value Assessment

Rating: fair

The contract value of $9.3M for a 364-day period appears reasonable for specialized wholesale trade services. Benchmarking against similar contracts for auction services would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the awardee is Insurance Auto Auctions, Inc., indicating they were the successful bidder.

Taxpayer Impact: The competitive award process aims to secure fair pricing for taxpayers, though the specific price discovery mechanism isn't detailed.

Public Impact

Ensures availability of essential vehicle remarketing services for federal agencies. Supports the disposal and sale of government-owned vehicles. Impacts agencies needing to liquidate surplus or seized vehicles efficiently.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to economic price adjustment.
Limited visibility into the specific competitive outcomes beyond the awardee.

Positive Signals

Awarded under full and open competition.
Supports essential government operations.

Sector Analysis

This contract operates within the Wholesale Trade Agents and Brokers sector, specifically focusing on vehicle remarketing. Spending benchmarks in this niche area are difficult to ascertain without more specific data.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee is Insurance Auto Auctions, Inc., a large corporation. There is no indication of small business participation.

Oversight & Accountability

The General Services Administration (GSA) manages this contract through its Federal Acquisition Service. Standard GSA oversight procedures would apply to ensure performance and compliance.

Related Government Programs

Wholesale Trade Agents and Brokers
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Economic Price Adjustment (EPA) clause may lead to cost overruns.
Sole awardee raises questions about the extent of competition achieved.
Lack of small business participation noted.
Specific performance metrics and value realization are not detailed.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $9.3 million to INSURANCE AUTO AUCTIONS, INC.. ZONE 1 FY26 SALES AT IAA

Who is the contractor on this award?

The obligated recipient is INSURANCE AUTO AUCTIONS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.3 million.

What is the period of performance?

Start: 2026-01-05. End: 2027-01-04.

What specific services does Insurance Auto Auctions, Inc. provide under this contract, and how do they align with federal agency needs for vehicle remarketing?

The contract is for wholesale trade agents and brokers, likely encompassing services such as auctioning, titling, and transporting government-owned vehicles. This supports agencies in efficiently disposing of surplus, confiscated, or retired fleet vehicles, ensuring compliance and maximizing return on assets.

What are the potential risks associated with the 'economic price adjustment' clause in this fixed-price contract?

The economic price adjustment (EPA) clause allows for price changes based on specified economic factors, such as inflation or changes in market indices. This introduces risk of increased costs for the government if these factors trend upwards, potentially exceeding initial budget projections.

How effective is the 'full and open competition' method in ensuring the best value for this specific type of vehicle remarketing service?

While 'full and open competition' is generally the preferred method for achieving best value, its effectiveness here depends on the number and quality of bids received. The fact that Insurance Auto Auctions, Inc. was the awardee suggests they offered the most competitive proposal, but further analysis of the bidding landscape would confirm optimal value.

Industry Classification

NAICS: Wholesale Trade › Wholesale Trade Agents and Brokers › Wholesale Trade Agents and Brokers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 2 WESTBROOK CORPORATE CTR STE 1000, WESTCHESTER, IL, 60154

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

Financial Breakdown

Contract Ceiling: $9,322,145

Exercised Options: $9,322,145

Current Obligation: $9,322,145

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QMCA25D001P

IDV Type: IDC

Timeline