GSA Awards $2.5M for Armored Toyota Land Cruisers, High Price for Specialized Vehicle

Contract Overview

Contract Amount: $2,499,000 ($2.5M)

Contractor: THE Armored Group LLC

Awarding Agency: General Services Administration

Start Date: 2022-07-12

End Date: 2026-04-11

Contract Duration: 1,369 days

Daily Burn Rate: $1.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TROPICAL EDITION TOYOTA LANDCRUISER 76 VR7

Place of Performance

Location: SHELBY, CLEVELAND County, NORTH CAROLINA, 28152

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $2.5 million to THE ARMORED GROUP LLC for work described as: TROPICAL EDITION TOYOTA LANDCRUISER 76 VR7 Key points: 1. High unit cost suggests specialized nature or limited market. 2. Competition was full and open, but specific vehicle type may limit bidders. 3. Risk of overpayment exists due to unique vehicle requirements. 4. Sector is 'Other' due to specialized vehicle classification.

Value Assessment

Rating: questionable

The price of $2,499,000 for a single armored vehicle is exceptionally high. Benchmarking is difficult without knowing the exact specifications and threat level protection, but this price point warrants scrutiny compared to typical vehicle acquisitions.

Cost Per Unit: $2,499,000

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the niche nature of an armored Toyota Land Cruiser may have inherently limited the number of qualified and competitive bidders.

Taxpayer Impact: Taxpayer funds are being used for a high-value, specialized asset. While competition was utilized, the significant cost per unit suggests careful monitoring is needed to ensure value for money.

Public Impact

Acquisition of specialized armored vehicles for government use. Potential use in high-risk environments or for protective details. Significant investment in a single, high-cost asset.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High unit cost
Specialized equipment
Limited market for armored vehicles

Positive Signals

Full and open competition utilized
Firm fixed price contract

Sector Analysis

This acquisition falls under specialized vehicle manufacturing, which is a niche market. Benchmarking is challenging as it's not a standard commodity. The price reflects the high cost of armor and customization.

Small Business Impact

No specific information is provided regarding small business participation in this contract. The nature of armored vehicle production may favor larger, specialized manufacturers.

Oversight & Accountability

The General Services Administration (GSA) managed this acquisition. Oversight would involve ensuring the vehicle meets all specified armored requirements and that the price is justified through the competitive process.

Related Government Programs

Other Apparel Accessories and Other Apparel Manufacturing
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

High unit cost
Potential for limited competition despite 'full and open' status
Difficulty in benchmarking specialized equipment
Unknown operational lifespan and maintenance costs

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.5 million to THE ARMORED GROUP LLC. TROPICAL EDITION TOYOTA LANDCRUISER 76 VR7

Who is the contractor on this award?

The obligated recipient is THE ARMORED GROUP LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2022-07-12. End: 2026-04-11.

What specific threat level and protection features are included in the armored Land Cruiser to justify the $2.5 million price tag?

The provided data does not detail the specific threat level (e.g., VR7 rating) or the exact armor specifications. The VR7 rating indicates a certain level of ballistic protection, but the overall cost would also include specialized components, engineering, testing, and the base vehicle's modifications. Further documentation would be needed to fully understand the cost drivers.

Given the high cost, what measures were taken to ensure the armored vehicle meets essential operational needs without unnecessary features?

The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. The firm fixed price structure also helps control costs. However, detailed specifications within the solicitation would be crucial to ensure the vehicle's features align precisely with operational requirements and avoid gold-plating.

How does the operational lifespan and maintenance cost of this specialized armored vehicle compare to less expensive alternatives?

Information on the operational lifespan and maintenance costs is not provided. Specialized armored vehicles often have higher maintenance requirements due to their complex systems and heavy-duty components. A full lifecycle cost analysis would be necessary to compare the total cost of ownership against potentially less expensive, non-armored, or differently armored vehicles.

Industry Classification

NAICS: Manufacturing › Apparel Accessories and Other Apparel Manufacturing › Other Apparel Accessories and Other Apparel 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: 47QSWC22Q0132

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5221 N SADDLE ROCK DR, PHOENIX, AZ, 85018

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,499,000

Exercised Options: $2,499,000

Current Obligation: $2,499,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F9375S

IDV Type: FSS

Timeline