GSA awards $28.8M contract for light trucks, highlighting potential for economic price adjustments

Contract Overview

Contract Amount: $28,864 ($28.9K)

Contractor: Macgyver Solutions, Inc.

Awarding Agency: General Services Administration

Start Date: 2026-01-22

End Date: 2026-05-22

Contract Duration: 120 days

Daily Burn Rate: $241/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: MACGYVER SOLUTIONS-RHSOL-RAZR4

Place of Performance

Location: PINEHURST, MOORE County, NORTH CAROLINA, 28374

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $28,864.44 to MACGYVER SOLUTIONS, INC. for work described as: MACGYVER SOLUTIONS-RHSOL-RAZR4 Key points: 1. Contract value of $28.8 million over 120 days suggests a focus on immediate operational needs. 2. The use of Fixed Price with Economic Price Adjustment (FP-EPA) indicates a strategy to mitigate market volatility. 3. Competition was full and open, suggesting a robust bidding process and potential for competitive pricing. 4. The contract is for light truck and utility vehicle manufacturing, a critical component of federal logistics. 5. Awarded by the General Services Administration (GSA), this contract falls under the Federal Acquisition Service. 6. The North Carolina location of the awardee may have implications for regional economic impact and supply chain logistics.

Value Assessment

Rating: good

The contract value of $28.8 million for a 120-day period for light trucks appears reasonable given the scope. Benchmarking against similar GSA vehicle procurements would provide a clearer picture of value for money. The inclusion of economic price adjustments suggests a proactive approach to managing potential cost increases in the manufacturing sector, which could be beneficial or detrimental depending on market fluctuations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically leads to a more competitive environment, potentially driving down prices and improving the quality of offerings. The number of bidders is not specified, but the open competition framework suggests a healthy market engagement.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider selection of qualified vendors, ensuring that federal funds are used efficiently.

Public Impact

Federal agencies requiring light trucks and utility vehicles for operational purposes will benefit from this contract. The services delivered include the manufacturing and provision of essential vehicles for federal logistics and support. The geographic impact is primarily tied to the awardee's location in North Carolina and the delivery destinations for the vehicles. Workforce implications may arise in the manufacturing sector, particularly in North Carolina, supporting jobs in vehicle production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to economic price adjustments if market prices increase significantly.
Dependence on a single awardee for a critical supply of vehicles within a short timeframe.
The specific capabilities and capacity of the awardee to meet demand within the 120-day period need to be monitored.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The use of FP-EPA can provide cost stability for the government in volatile markets.
The contract supports essential federal operational needs for light vehicles.

Sector Analysis

This contract falls within the broader automotive manufacturing sector, specifically focusing on light trucks and utility vehicles. The market for these vehicles is substantial, with significant government procurement activity. GSA plays a crucial role in consolidating federal purchasing power for vehicles, aiming for economies of scale and competitive pricing. Benchmarks for similar vehicle procurements by federal agencies would typically consider factors like vehicle type, quantity, and contract duration.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside criterion, as 'sb' is false. There is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus was on securing the required vehicles through the most competitive means available, rather than specifically targeting small business engagement for this particular award.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA) through its Federal Acquisition Service. Accountability measures are embedded in the contract terms, including delivery schedules and specifications. Transparency is generally maintained through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Fleet Management
Vehicle Procurement
GSA Schedules
Light Truck Manufacturing

Risk Flags

Economic Price Adjustment Clause
Short Performance Period
Potential Supply Chain Disruptions

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $28,864.44 to MACGYVER SOLUTIONS, INC.. MACGYVER SOLUTIONS-RHSOL-RAZR4

Who is the contractor on this award?

The obligated recipient is MACGYVER SOLUTIONS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $28,864.44.

What is the period of performance?

Start: 2026-01-22. End: 2026-05-22.

What is the track record of MACGYVER SOLUTIONS, INC. with federal contracts, particularly for vehicle manufacturing?

Information regarding the specific track record of MACGYVER SOLUTIONS, INC. with federal contracts, especially for vehicle manufacturing, is not detailed in the provided data. A comprehensive review would require accessing historical contract databases to assess past performance, delivery success rates, and any instances of contract disputes or terminations. Understanding their experience with similar government procurements, including the scale and complexity of previous awards, is crucial for evaluating their capability to fulfill this current contract effectively and on time.

How does the pricing structure, including the economic price adjustment, compare to similar federal light truck procurements?

The provided data indicates a Fixed Price with Economic Price Adjustment (FP-EPA) contract type. This structure allows for adjustments to the base price based on fluctuations in specified economic factors, such as material costs or labor indices. To benchmark this, one would compare the base price per vehicle against similar federal contracts awarded over comparable periods, considering the vehicle specifications and quantities. The potential impact of the economic price adjustment needs to be assessed against historical volatility in the automotive manufacturing sector. Without specific pricing details and comparable contract data, a definitive value-for-money assessment is challenging, but the FP-EPA suggests a strategy to manage risk associated with market unpredictability.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential cost increases due to the economic price adjustment clause if market conditions escalate rapidly, and the risk of delivery delays given the 120-day performance period. Mitigation strategies are inherent in the contract structure: the FP-EPA aims to manage cost volatility, and the fixed delivery timeline imposes accountability. Further mitigation would involve robust government oversight, clear communication channels with the contractor, and potentially performance bonds. The full and open competition also mitigates the risk of relying on a single, potentially underperforming vendor.

How effective is the General Services Administration (GSA) in securing competitive pricing for light vehicles through its Federal Acquisition Service?

The GSA's Federal Acquisition Service (FAS) is generally effective in leveraging the government's purchasing power to secure competitive pricing for vehicles. Through mechanisms like GSA Schedules and large-scale competitive solicitations, FAS aims to achieve economies of scale and drive down costs. The full and open competition used for this specific contract is a testament to this approach. However, effectiveness can vary based on market conditions, the specific vehicle types procured, and the number of qualified bidders. Continuous benchmarking and performance analysis are essential for GSA to maintain and enhance its effectiveness in this area.

What has been the historical spending pattern for light trucks and utility vehicles by the General Services Administration?

Historical spending patterns for light trucks and utility vehicles by the GSA typically show consistent procurement activity to support federal agency needs. GSA often procures these vehicles through various contract vehicles, including GSA Schedules and direct solicitations. Annual spending can fluctuate based on agency requirements, fleet modernization initiatives, and budget allocations. Analyzing historical data would reveal trends in average prices paid, quantities purchased, and the dominant contract types used. This specific $28.8 million award for a 120-day period represents a snapshot within this broader spending context, likely addressing immediate or specific fleet replenishment needs.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Manufacturing › Light Truck and Utility Vehicle 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: 47QSMD20R0001

Offers Received: 999

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

Evaluated Preference: NONE

Contractor Details

Address: 85 MAGNOLIA AVE, PINEHURST, NC, 28374

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

Financial Breakdown

Contract Ceiling: $28,864

Exercised Options: $28,864

Current Obligation: $28,864

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSMA18D08QH

IDV Type: FSS

Timeline