State Dept. Awards $8.6M for BMW Armored Vehicles, Sole-Source Contract Raises Concerns
Contract Overview
Contract Amount: $8,616,800 ($8.6M)
Contractor: BMW of North America LLC
Awarding Agency: Department of State
Start Date: 2024-09-16
End Date: 2026-02-20
Contract Duration: 522 days
Daily Burn Rate: $16.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BMW SECURITY X5 ARMORED VEHICLE.
Place of Performance
Location: SPARTANBURG, SPARTANBURG County, SOUTH CAROLINA, 29301
Plain-Language Summary
Department of State obligated $8.6 million to BMW OF NORTH AMERICA LLC for work described as: BMW SECURITY X5 ARMORED VEHICLE. Key points: 1. High cost for specialized vehicles. 2. Sole-source award limits competition and potentially inflates price. 3. Significant taxpayer investment in security equipment. 4. Focus on high-security transportation needs.
Value Assessment
Rating: questionable
The $8.6 million contract for BMW armored vehicles appears high, especially given the sole-source nature. Benchmarking against similar specialized armored vehicle contracts is difficult without competitive data, but the lack of competition suggests a potential for overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning no other vendors were considered. This significantly limits price discovery and competition, potentially leading to a higher price than if multiple bids were solicited.
Taxpayer Impact: The sole-source award for high-value armored vehicles represents a significant expenditure of taxpayer funds without the benefit of competitive bidding to ensure the best possible price.
Public Impact
Taxpayers fund high-security vehicles for government use. Limited public information on the specific security needs driving this purchase. Potential for future sole-source awards in specialized equipment categories.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value
- Lack of competitive bidding
Positive Signals
- Addresses specific security requirements
- Procurement of specialized equipment
Sector Analysis
The Department of State's procurement falls under specialized vehicle manufacturing, a niche sector. Benchmarks for armored vehicles are highly variable based on customization and threat level, making direct comparisons challenging without competitive data.
Small Business Impact
This contract does not appear to involve small businesses, as it is a sole-source award to a large automotive manufacturer. There is no indication of subcontracting opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the justification for not competing the contract is sound and that the price is fair.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of State Contracting
- Department of State Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- High contract value.
- Limited transparency on justification for sole-source.
- Lack of small business participation.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-state, sc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $8.6 million to BMW OF NORTH AMERICA LLC. BMW SECURITY X5 ARMORED VEHICLE.
Who is the contractor on this award?
The obligated recipient is BMW OF NORTH AMERICA LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $8.6 million.
What is the period of performance?
Start: 2024-09-16. End: 2026-02-20.
What specific security threats necessitate the use of these particular BMW armored vehicles, and could alternative, more cost-effective solutions meet these needs?
The specific security threats are not detailed in the provided data. However, the use of high-end armored vehicles suggests a need for protection against significant threats. Further analysis would require understanding the threat assessment for the personnel or locations these vehicles are intended for. Exploring alternative vehicles or security measures could reveal more cost-effective options, but this depends heavily on the precise security requirements.
How was the fair and reasonable price determined for this sole-source contract, and what benchmarks were used?
Without a competitive bidding process, determining a fair and reasonable price is challenging. The agency likely relied on historical pricing, manufacturer quotes, or industry price lists. However, the absence of competing offers means there's no market validation of the price. A thorough review would involve comparing this price to similar, albeit potentially scarce, sole-source procurements or independent cost estimates for armored vehicle components and manufacturing.
What is the long-term cost implication of procuring specialized, high-value vehicles like these, considering maintenance, operational costs, and potential obsolescence?
The long-term costs extend beyond the initial purchase price. Specialized vehicles often incur higher maintenance expenses due to unique parts and expertise required. Operational costs, including fuel and specialized training for drivers, can also be significant. Furthermore, the rapid evolution of security threats and technology could lead to obsolescence, requiring further investment in upgrades or replacements, thus impacting the overall lifecycle cost for taxpayers.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 19AQMM20R0170
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Bayerische Motoren Werke Aktiengesellschaft
Address: 300 CHESTNUT RIDGE ROAD, WOODCLIFF LAKE, NJ, 07677
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $9,263,060
Exercised Options: $8,616,800
Current Obligation: $8,616,800
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 19AQMM20D0110
IDV Type: IDC
Timeline
Start Date: 2024-09-16
Current End Date: 2026-02-20
Potential End Date: 2026-02-20 00:00:00
Last Modified: 2026-01-23
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