Caltrans has committed to buying nearly 1,000 Rivian electric vehicles under a single state contract, a purchase that has drawn scrutiny over whether California taxpayers got the best possible deal. The agency placed its orders in two rounds, and state officials have offered only partial answers about how the numbers add up.
According to ABC10, Caltrans spent more than $100 million in taxpayer dollars on nearly 1,000 Rivian electric vehicles. That figure sits somewhat higher than the tally reported by procurement-industry outlets: electrive.com put the combined commitment at 977 vehicles worth around $97.1 million. Both figures describe the same underlying purchase, but the exact gap between them has not been reconciled by either outlet.
The deal took shape in two separate orders. Caltrans first ordered 453 vehicles from Rivian in June 2025, a purchase the trade outlet evwire.com reports was comprised of 138 R1S SUVs and 315 R1T pickups worth $44.3 million. A second order followed for 524 more vehicles — 201 R1S SUVs and 323 R1T pickups — valued at approximately $52.7 million, per the same electrive.com report, pushing the state's total commitment to 977 Rivians.
One Contract, Dozens of State Agencies
Both orders fall under a single standing agreement, California Department of General Services contract 1-25-23-01J, described by evwire.com as an Alternative Fuel Vehicles framework between Rivian and the department. A contract listing reviewed by withpavilion.com labels the agreement MANDATORY — 1-25-23-01J — Alternative Fuel Vehicles — Rivian, underscoring that it functions as a standing procurement vehicle rather than a one-off purchase.
ABC10's reporting indicates that California and Rivian signed a contract beginning in February 2025 and running through February 2028, and notes that a range of state agencies beyond Caltrans have Rivian contracts tied to the arrangement, including the Department of Pesticide Regulation, the California Department of Parks and Recreation, the California Department of Public Health, the California Department of Conservation and the California Department of Veterans Affairs. Under the deal, ABC10 reports, California purchased R1S Dual Standard models priced at $77,635 each, R1S Dual Max models at $91,635 each, R1T Dual Large models at $80,610 each and R1T Dual Max models at $87,610 each.
Competitive Bidding and the Price Question
Caltrans selected Rivian for the purchase exceeding $100 million, and the deal has raised questions about competitive bidding and whether the state received the best available price, per ABC10's reporting. The California Department of General Services told the outlet that state contracts are awarded through competitive bids, and said Rivian offered a price 2% below sticker price at the time of the bid. ABC10 also reports that California received a bulk-purchase discount of about $1,700 per vehicle, according to Rivian.
Not everyone is convinced that adds up to a strong deal. Chris Micheli told ABC10 that the state should ensure it gets the best possible deal, and separately said the state would be expected to receive a discount on a purchase of this size. Susan Shelley, also speaking to the outlet, said the purchase is backed by California taxpayers — a reminder of whose money is on the line regardless of how the bidding played out.
Caltrans Stays Quiet on Vehicle Selection
Despite the scale of the purchase, Caltrans did not answer ABC10's questions about its vehicle selection, the purchase quantity, how many vehicles are on the road or how they are being used. The outlet reports that Caltrans did not respond to multiple requests for comment about why it chose Rivian specifically, even though the agency was contacted for the story, along with the Governor's Office and the Department of General Services.
State rules require agencies to buy only from manufacturers on California's approved vehicle list, which according to ABC10 includes Rivian alongside Jeep, Kia, Hyundai and Dodge — meaning Caltrans had other zero-emission options available when it placed its orders. The evidence reviewed does not show a complete bid tabulation or explain why Rivian was chosen over those other approved manufacturers.
Fitting Into California's Clean-Fleet Push
The purchase lands inside a broader state mandate. California law requires zero-emission vehicles to make up at least half of light-duty fleet purchases starting in the 2024-25 fiscal year, according to evwire.com. Caltrans has said nearly 10% of its light-duty vehicles are already electric, backed by 567 workplace charging ports, per the same outlet's reporting.
Kristi Armstrong told ABC10 that Caltrans aims to make its fleet the greenest in the nation, an ambition that tracks with the agency's broader zero-emission vehicle goals. Governor Gavin Newsom has issued executive orders requiring an end to sales of new gas-powered cars by 2035 and calling for medium- and heavy-duty trucks to go zero-emission by 2045 where feasible, ABC10 reports, framing the Rivian purchase as part of the state's wider clean-energy agenda.
The scale of Caltrans' commitment stands out even within Rivian's public-sector business. Evwire.com reports that Rivian sold about 700 vehicles to public agencies in the three years through August 2025 — meaning the Caltrans orders alone, at 977 vehicles, exceed everything the automaker had previously sold to government buyers combined. Electrive.com similarly notes that the 524-vehicle order surpasses the majority of Rivian's previous public-sector contracts, underscoring just how large a single customer California has become for the automaker.
