GSA awards $15.9M contract for heavy-duty trucks to Boyer Ford Trucks Inc
Contract Overview
Contract Amount: $15,947,113 ($15.9M)
Contractor: Boyer Ford Trucks Inc
Awarding Agency: General Services Administration
Start Date: 2010-03-31
End Date: 2010-09-27
Contract Duration: 180 days
Daily Burn Rate: $88.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 999
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Transportation
Official Description: DESCR N.A.
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55413
Plain-Language Summary
General Services Administration obligated $15.9 million to BOYER FORD TRUCKS INC for work described as: DESCR N.A. Key points: 1. Contract awarded for heavy-duty trucks. 2. Boyer Ford Trucks Inc. is the contractor. 3. Full and open competition was used. 4. The contract value is $15.9 million. 5. Fixed price with economic price adjustment pricing.
Value Assessment
Rating: fair
The contract value of $15.9 million for heavy-duty trucks appears reasonable given the quantity of 999 units. However, without specific truck configurations and features, a precise benchmark is difficult. The economic price adjustment clause introduces potential for cost increases.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government compared to limited or sole-source procurements.
Taxpayer Impact: The use of full and open competition is positive for taxpayers, as it aims to secure the best value through market forces. However, the economic price adjustment could lead to higher-than-anticipated costs if market prices rise significantly.
Public Impact
Ensures availability of essential heavy-duty trucks for government operations. Supports the automotive manufacturing and dealership sector. Potential for price fluctuations due to economic price adjustment. Contract duration of 180 days is relatively short for truck acquisition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause may increase final cost.
- Limited contract duration might not cover all operational needs.
- Lack of detailed specifications makes cost comparison difficult.
Positive Signals
- Full and open competition utilized.
- Contract awarded to a known entity (Boyer Ford Trucks Inc.).
Sector Analysis
The procurement falls under heavy-duty truck manufacturing, a segment within the broader transportation and logistics sector. Spending benchmarks for such specialized vehicles can vary widely based on make, model, and customization requirements.
Small Business Impact
This contract was awarded to Boyer Ford Trucks Inc., which is not explicitly identified as a small business. The procurement method (full and open competition) does not inherently exclude small businesses from participating, but the awardee's size is not specified.
Oversight & Accountability
The General Services Administration (GSA) is responsible for this contract. Oversight would involve ensuring delivery of specified trucks, adherence to contract terms, and proper management of the economic price adjustment.
Related Government Programs
- Heavy Duty Truck Manufacturing
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Economic Price Adjustment (EPA) clause.
- Lack of detailed specifications for trucks.
- Contract duration is relatively short.
- Contractor size not specified.
Tags
heavy-duty-truck-manufacturing, general-services-administration, mn, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $15.9 million to BOYER FORD TRUCKS INC. DESCR N.A.
Who is the contractor on this award?
The obligated recipient is BOYER FORD TRUCKS INC.
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $15.9 million.
What is the period of performance?
Start: 2010-03-31. End: 2010-09-27.
What specific types and configurations of heavy-duty trucks were procured, and how do their features compare to market standards?
The provided data lacks specific details on the truck models, configurations, and features. To assess value, a comparison of the procured trucks against similar government or commercial sales, considering factors like engine specifications, payload capacity, and specialized equipment, would be necessary. Without this, it's challenging to determine if the $15.9 million price reflects optimal value.
What is the potential impact of the economic price adjustment (EPA) on the final contract cost, given market volatility?
The economic price adjustment clause allows for changes in the contract price based on fluctuations in specific economic indicators, often related to labor or material costs. The potential impact depends heavily on the chosen index and the volatility of the underlying market. If the EPA is tied to volatile commodity prices or labor rates, the final cost could significantly exceed the initial $15.9 million estimate, posing a risk to the government's budget.
How effectively did the full and open competition process ensure the best possible price and quality for these heavy-duty trucks?
Full and open competition is designed to maximize price discovery and quality by allowing all responsible sources to submit offers. Its effectiveness in this case hinges on the clarity of the solicitation's specifications and the number and competitiveness of the bids received. If the specifications were well-defined and multiple qualified bidders participated, it likely resulted in a competitive price. However, the EPA clause introduces a layer of uncertainty regarding the final cost.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Manufacturing › Heavy Duty Truck Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 999
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Equipoise Corporation (UEI: 038384822)
Address: 2601 BROADWAY ST NE, MINNEAPOLIS, MN, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business
Financial Breakdown
Contract Ceiling: $15,947,113
Exercised Options: $15,947,113
Current Obligation: $15,947,113
Parent Contract
Parent Award PIID: GS30F0027U
IDV Type: FSS
Timeline
Start Date: 2010-03-31
Current End Date: 2010-09-27
Potential End Date: 2010-09-27 00:00:00
Last Modified: 2014-02-14
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