- and GSA Fleet vehicles are available. In such cases, the contracting agency should consider requesting alternate offers: a) an offer that reflects the contract price with contractor provided vehicles, and; b) an offer that reflects the contract price with government furnished (GSA Fleet) vehicles; or
- (3) Include the provision of GSA Fleet vehicles for use by the contractor as a separate, cost- reimbursable line item in the solicitation/request for proposals. In this case, the contract is treated in the same manner as a cost-reimbursement contract if this cost reimbursable portion of the contract is a substantial dollar portion of the contract. (See FAR 51.101(a)(2).) If this alternative is used, and the vehicle portion of the contract is not a substantial dollar portion of the overall contract, the agency must then request specific approval from GSA Fleet; or,
- (4) Include a provision that the vehicles are being provided as government furnished property (GFP). The vehicles will remain assigned to the contracting agency and the actual GSA Fleet bill is paid by the agency. This scenario functions the same as a cost reimbursement contract in one aspect, namely that the prospective contractor's offer does not include vehicles (and associated pricing for vehicles) because the contracting agency will provide GSA Fleet vehicles to be used by the contractor in performance of the contract. The provisions of FAR Part 45 apply to this scenario.

The four options above, related to fixed-price contractor use, all require approval of GSA, with the exception of (3) if the cost reimbursable portion of the contract constitutes a substantial dollar portion of the contract. Regardless of the option chosen, the Contracting Officer is responsible for ensuring that the cost to the government is reduced through the use of GSA Fleet vehicles, and the contract file must document the projected savings. The first option above is the most time consuming, as it requires a cost study (see the requirements for a cost study, 4A below). The second option effectively eliminates the need for a cost study because the alternate offers, one with contractor supplied vehicles and the other with GSA Fleet vehicles, will clearly show any savings. The pricing for the alternate offers should be provided to GSA Fleet, in lieu of a cost study, to demonstrate the projected savings to the government. The third option simplifies the process, as it makes the provision of GSA Fleet vehicles a cost reimbursable line item and therefore treated on the same basis as cost reimbursement contracts if the cost reimbursable portion of the contract is a substantial dollar portion of the contract. Under the fourth option, the contracting agency provides motor vehicles as government furnished property and therefore vehicles are not part of the contractor's offer. As with cost reimbursement contracts, satisfaction of these requirements does not guarantee that GSA Fleet will provide vehicles; it only makes the contractor eligible to use GSA Fleet vehicles, subject to availability.

- 4. OTHER ISSUES AND INFORMATION

## A. Cost Study Requirements (Fixed-Price Contracts only):

The purpose of the cost study is to ensure that the savings, if any, accrue to the government; otherwise there is no justification for providing government owned or leased motor vehicles to the contractor. Cost studies to support the provision of GSA Fleet vehicles to fixed-price contractors should compare use of GSA Fleet vehicles and the alternative most likely to be used, whether leasing from a commercial source, purchase of vehicles by the contractor, use of vehicles owned by the contracting agency, etc. The study should address all elements of cost over either the base period of the contract or the life cycle of the vehicles requested, whichever is shorter. Elements of cost that should be included for both options under study are, at minimum, fixed monthly lease cost including overhead, projected fuel and maintenance expense, incidental expenses (accident and maintenance management, car washes, etc.) any up-front outlays required (down payment or deposit), and any end-of-lease outlays required (excess mileage penalties, etc.). (Note: GSA Fleet monthly and mileage rates include fuel and maintenance, while commercial lease rates typically do not. Also, GSA Fleet requires no up-front outlays or end-of-lease