GSA awards $2.86M contract for armored vehicles, raising questions on value and competition

Contract Overview

Contract Amount: $2,863,833 ($2.9M)

Contractor: THE Armored Group LLC

Awarding Agency: General Services Administration

Start Date: 2023-08-14

End Date: 2026-06-15

Contract Duration: 1,036 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TOYOTA LANDCRUISER 300 CASE VVO AND UVC

Place of Performance

Location: SHELBY, CLEVELAND County, NORTH CAROLINA, 28150

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $2.9 million to THE ARMORED GROUP LLC for work described as: TOYOTA LANDCRUISER 300 CASE VVO AND UVC Key points: 1. Contract awarded for specialized armored vehicles, indicating a need for high-security transport. 2. The contract duration of over 3 years suggests a sustained requirement for these assets. 3. Limited information on the specific use case makes a direct value assessment challenging. 4. The award was made under full and open competition, suggesting a broad market search. 5. The contractor, The Armored Group LLC, has experience in this niche market. 6. The fixed-price contract type aims to control costs, but the unit price needs benchmarking. 7. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

The total award of $2.86 million for 315999 units (likely a placeholder or error in the data) over 1036 days suggests a significant investment. Without clear unit quantity or detailed specifications, benchmarking the value is difficult. However, the nature of armored vehicles implies high per-unit costs due to specialized manufacturing and materials. Comparing this to other government contracts for similar security vehicles would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded using full and open competition, indicating that the government sought proposals from all responsible sources. The presence of 3 bidders suggests a moderate level of competition for this specialized requirement. While more bidders would generally lead to better price discovery, the niche nature of armored vehicles might naturally limit the number of qualified offerors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially driving down costs.

Public Impact

The primary beneficiaries are likely government agencies requiring secure transportation for personnel or sensitive materials. The contract delivers specialized armored vehicles designed for protection against various threats. The geographic impact is likely concentrated where these vehicles are deployed, potentially nationwide or at specific high-risk locations. Workforce implications may include specialized manufacturing jobs within the defense or security vehicle sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed specifications for the armored vehicles makes it difficult to assess if the awarded price reflects true market value.
The high dollar amount for specialized equipment warrants scrutiny to ensure no overpricing.
The limited number of bidders, while expected for niche markets, could indicate potential barriers to entry for smaller or newer companies.
The specific 'Other Apparel Accessories and Other Apparel Manufacturing' NAICS code seems incongruous with armored vehicles, suggesting a potential data categorization error that needs clarification.

Positive Signals

The use of 'Full and Open Competition' demonstrates an effort to maximize the vendor pool and achieve competitive pricing.
The 'Firm Fixed Price' contract type provides cost certainty for the government, mitigating the risk of cost overruns.
The contract is awarded to a known entity, The Armored Group LLC, which likely has a track record in producing such specialized equipment.
The contract duration of over 3 years suggests a stable and predictable requirement, allowing for better planning and potential volume discounts.

Sector Analysis

The defense and security sector encompasses a wide range of specialized vehicles, including armored personnel carriers and secure transport. The market for these vehicles is driven by government and private security needs, often involving stringent performance and safety requirements. Spending in this area can fluctuate based on geopolitical events and perceived threats. Comparable spending benchmarks would involve analyzing contracts for similar armored vehicles awarded by agencies like the Department of Defense or other federal entities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature and likely high value of armored vehicles, it is common for larger, established companies to dominate this market. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the manufacturing or supply chain for these vehicles.

Oversight & Accountability

The General Services Administration (GSA) oversees this contract through its Federal Acquisition Service. Oversight mechanisms would include contract performance monitoring, financial audits, and compliance checks. Accountability measures are tied to the delivery of specified vehicles meeting all performance requirements. Transparency is generally maintained through contract award databases, though specific details of the vehicles and their use may be sensitive.

Related Government Programs

Department of Defense Vehicle Procurement
Homeland Security Vehicle Contracts
Law Enforcement Armored Vehicle Programs
Specialized Transportation Services

Risk Flags

Potential NAICS Code Misclassification
Lack of Detailed Vehicle Specifications
Limited Competition Data Available

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.9 million to THE ARMORED GROUP LLC. TOYOTA LANDCRUISER 300 CASE VVO AND UVC

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 $2.9 million.

What is the period of performance?

Start: 2023-08-14. End: 2026-06-15.

What is the specific type and capability of the armored vehicles being procured under this contract?

The provided data does not specify the exact type or capabilities of the armored vehicles. The NAICS code '315999 - Other Apparel Accessories and Other Apparel Manufacturing' appears to be a misclassification for armored vehicles, which typically fall under manufacturing of motor vehicles or defense equipment. Without clarification on the vehicle specifications (e.g., level of protection, intended use, seating capacity, specific threat mitigation), it is impossible to fully assess the value or suitability of the procurement. Further inquiry with the GSA or the contracting officer would be necessary to obtain detailed technical specifications and understand the intended application of these vehicles.

How does the per-unit cost of these armored vehicles compare to similar government or commercial procurements?

Benchmarking the per-unit cost is challenging due to the lack of specific unit quantity and detailed vehicle specifications. Armored vehicles are inherently expensive due to the specialized materials (e.g., ballistic steel, composite armor), engineering, and manufacturing processes involved. A typical armored SUV or personnel carrier can range from tens of thousands to hundreds of thousands of dollars, depending on the level of protection and features. Without knowing the exact model and protection level procured by GSA, a direct comparison is speculative. However, the total award of $2.86 million for an unspecified number of units suggests a significant investment per vehicle, necessitating a detailed cost breakdown from the contractor to ensure fair pricing.

What is the track record of The Armored Group LLC in fulfilling government contracts for armored vehicles?

The Armored Group LLC is a known entity in the armored vehicle manufacturing industry. While specific contract performance data is not detailed in the provided summary, the company has a history of producing armored vehicles for various clients, including government agencies. A thorough review of the Federal Procurement Data System (FPDS) or other contract databases would reveal past performance ratings, any past performance issues, and the types of contracts they have previously been awarded. Their experience in the niche market of armored vehicles suggests they possess the necessary technical expertise and manufacturing capabilities, but independent verification of their performance history is crucial for assessing risk.

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

Potential risks include cost overruns if the fixed-price contract does not adequately account for all production variables, delivery delays due to complex manufacturing, and performance issues if the vehicles do not meet stringent security requirements. Mitigation strategies likely involve detailed contract clauses, performance milestones, quality assurance inspections during production, and potentially penalties for non-compliance. The 'Firm Fixed Price' structure itself is a risk mitigation tool for the government, shifting cost uncertainty to the contractor. However, the lack of detailed specifications in the summary makes it difficult to identify all potential risks and their specific mitigation plans.

How does this contract align with broader federal spending trends in security and transportation?

This contract aligns with ongoing federal spending on security and specialized transportation, particularly in light of evolving threat landscapes. Agencies across the government, including law enforcement, intelligence, and defense, require secure mobility solutions. Spending in this area is often driven by specific mission needs and risk assessments. While this single contract represents a modest portion of overall federal spending, it reflects a consistent demand for high-security assets. Trends in federal spending often show increased investment in protective technologies and secure logistics, making this procurement a typical example of such requirements.

What is the significance of the 'Other Apparel Accessories and Other Apparel Manufacturing' NAICS code for this contract?

The assignment of NAICS code 315999 ('Other Apparel Accessories and Other Apparel Manufacturing') to a contract for armored vehicles is highly unusual and likely erroneous. This code pertains to the manufacturing of clothing and clothing accessories, not heavy vehicles or defense equipment. Armored vehicles would typically fall under manufacturing codes related to motor vehicles (e.g., 3361XX series) or defense industry manufacturing. This discrepancy raises concerns about the accuracy of the data categorization and could potentially obscure the true nature and scope of the procurement if relied upon for broad analysis. It is essential to verify the correct NAICS code with the contracting agency to ensure accurate classification and comparison with similar procurements.

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: 47QSWC23Q0099

Offers Received: 3

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: $2,863,833

Exercised Options: $2,863,833

Current Obligation: $2,863,833

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F9375S

IDV Type: FSS

Timeline