GSA awards $15.5M for automotive repair services to Kenworth Sales Co

Contract Overview

Contract Amount: $15,540 ($15.5K)

Contractor: Kenworth Sales CO

Awarding Agency: General Services Administration

Start Date: 2026-04-09

End Date: 2026-06-05

Contract Duration: 57 days

Daily Burn Rate: $273/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AUTOMOTIVE MECHANICAL REPAIRS

Place of Performance

Location: WEST VALLEY CITY, SALT LAKE County, UTAH, 84119

State: Utah Government Spending

Plain-Language Summary

General Services Administration obligated $15,539.59 to KENWORTH SALES CO for work described as: AUTOMOTIVE MECHANICAL REPAIRS Key points: 1. Contract awarded for essential vehicle maintenance, ensuring fleet operational readiness. 2. Competition was conducted under Simplified Acquisition Procedures, suggesting a focus on efficiency for smaller procurements. 3. The firm-fixed-price contract type aims to provide cost certainty for the government. 4. Awarded to a single vendor, Kenworth Sales Co., for services in Utah. 5. The contract duration is relatively short, indicating potential for re-competition or adjustments. 6. Services fall under the General Automotive Repair NAICS code.

Value Assessment

Rating: good

The contract value of $15.5 million for automotive mechanical repairs appears reasonable given the scope and duration. While specific per-unit cost benchmarks are not provided in the data, the firm-fixed-price structure suggests an expectation of predictable costs. Comparing this to similar large-scale fleet maintenance contracts would offer further insight into its value-for-money proposition. The award to Kenworth Sales Co., a known entity in the automotive sector, suggests a degree of confidence in their ability to deliver.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves less formal competition than full and open solicitations. While the exact number of bidders is not specified, SAP is often used for procurements under the simplified acquisition threshold, where competition may be more limited. This approach prioritizes efficiency for smaller dollar value contracts. The limited competition under SAP might result in less aggressive pricing compared to a full and open competition.

Taxpayer Impact: For taxpayers, limited competition under SAP can mean potentially higher prices than if a broader range of vendors were solicited. However, the efficiency gains of SAP can also lead to cost savings in the procurement process itself.

Public Impact

Federal agencies operating vehicle fleets in Utah will benefit from reliable mechanical repair services. Ensures the operational readiness and safety of government vehicles. Supports the maintenance of vehicles used for various federal missions within the state. Indirectly supports the local automotive repair workforce in Utah through subcontracting opportunities or demand for parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited price negotiation due to competition under SAP.
Reliance on a single vendor may create future dependency risks.
Scope of services might not cover all specialized repair needs.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Award to an established vendor suggests capability.
Services are essential for maintaining government fleet functionality.

Sector Analysis

The automotive repair industry is a critical support sector for government operations, particularly for agencies managing large vehicle fleets. This contract falls within the broader 'Automotive Mechanical Repair' services category, which includes maintenance and repair of vehicles. The market for these services is competitive, with numerous independent shops and dealership service centers. Government contracts often represent a stable revenue stream for providers, though they require adherence to specific procurement regulations and pricing structures. Benchmarking this contract's value would involve comparing it to similar fleet maintenance agreements across different federal agencies or state governments.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Kenworth Sales Co., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Kenworth Sales Co. actively seeks small business subcontractors for specialized services or parts procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. GSA has established procurement policies and contract administration procedures to ensure compliance and performance. The firm-fixed-price nature of the contract helps in managing costs. Transparency is facilitated through contract award databases like FPDS. Inspector General oversight may be involved if any performance issues or allegations of fraud arise.

Related Government Programs

GSA Fleet Vehicle Purchasing
Federal Vehicle Maintenance Services
General Automotive Repair Contracts
Purchase Orders for Services

Risk Flags

Limited Competition
Potential for Price Inflation
Vendor Performance Risk
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $15,539.59 to KENWORTH SALES CO. AUTOMOTIVE MECHANICAL REPAIRS

Who is the contractor on this award?

The obligated recipient is KENWORTH SALES CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15,539.59.

What is the period of performance?

Start: 2026-04-09. End: 2026-06-05.

What is the track record of Kenworth Sales Co. with federal government contracts?

While the provided data does not detail Kenworth Sales Co.'s specific federal contract history, their role as an awardee suggests they possess the necessary qualifications and experience to meet government requirements. Typically, federal agencies vet potential contractors through past performance evaluations. Kenworth Sales Co. is a known entity in the commercial automotive sector, particularly for heavy-duty trucks, which implies a level of operational capacity and reliability. Further investigation into federal procurement databases would reveal the extent and nature of their previous federal awards, including performance ratings and any issues encountered.

How does the awarded price compare to market rates for similar automotive repair services?

The provided data does not include specific line-item costs or detailed service descriptions, making a direct comparison to market rates challenging. However, the contract is a firm-fixed-price award valued at $15.5 million over its duration. The General Services Administration (GSA) often negotiates favorable rates for its clients due to bulk purchasing power and established relationships with vendors. Without granular data on the types of repairs and parts included, it's difficult to definitively benchmark. A comprehensive analysis would require comparing the unit prices for common repair tasks (e.g., oil changes, brake replacements, engine diagnostics) against commercial dealership or independent repair shop pricing in the Utah region, adjusted for volume and contract terms.

What are the primary risks associated with this contract?

Key risks include potential overpricing due to limited competition under Simplified Acquisition Procedures (SAP), although the firm-fixed-price structure mitigates cost overrun risks for the government. There's also a risk of vendor lock-in if Kenworth Sales Co. becomes the sole provider for an extended period, potentially limiting future competitive opportunities. Performance risk exists, where the quality or timeliness of repairs might not meet expectations, impacting fleet readiness. Furthermore, unforeseen increases in parts costs or labor rates could strain the fixed-price agreement if not adequately accounted for in the initial pricing. The short duration also introduces a risk of disruption if a new contract is not awarded promptly.

How effective is the General Services Administration (GSA) in managing automotive repair contracts?

GSA generally has a strong track record in managing a wide array of commodity and service contracts, including fleet management and maintenance. Their established procurement processes, contract vehicles, and oversight mechanisms are designed to ensure value and compliance. For automotive repair, GSA often leverages national or regional agreements that benefit from economies of scale. The effectiveness of this specific contract's management will depend on ongoing performance monitoring, adherence to service level agreements, and proactive issue resolution by GSA contracting officers. User feedback from agencies utilizing the contracted services would provide a direct measure of effectiveness.

What is the historical spending pattern for automotive mechanical repairs by the federal government?

Historical spending on automotive mechanical repairs by the federal government is substantial, reflecting the vast size of agency vehicle fleets across numerous departments and agencies. GSA, in particular, manages a significant portion of the civilian fleet. Spending fluctuates based on fleet size, vehicle age, maintenance needs, and procurement strategies. While specific aggregate data isn't provided here, trends often show increased spending on maintenance as vehicles age and require more frequent repairs. The government continually seeks cost-saving measures, including preventative maintenance programs and consolidated repair contracts, to manage this expenditure effectively. This contract represents a portion of that ongoing federal investment in fleet upkeep.

What are the implications of the contract being awarded under Simplified Acquisition Procedures (SAP)?

Awarding under SAP implies the contract value is likely below the threshold for full and open competition, typically $250,000, though specific SAP thresholds can vary. This means the procurement process was streamlined, potentially involving fewer documentation requirements and a shorter solicitation period. While this enhances efficiency and speeds up delivery, it often results in less robust competition compared to larger procurements. The government may have solicited quotes from a limited number of pre-approved vendors or used specific purchasing methods designed for smaller acquisitions. This can impact price discovery, potentially leading to higher unit costs than if a broader market was engaged, but it also reduces administrative burden and acquisition lead time.

Industry Classification

NAICS: Other Services (except Public Administration) › Automotive Repair and Maintenance › General Automotive Repair

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kenworth Sales Company

Address: 2125 S CONSTITUTION BLVD, SALT LAKE CITY, UT, 84119

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

Financial Breakdown

Contract Ceiling: $15,540

Exercised Options: $15,540

Current Obligation: $15,540

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline