State Dept. Spends $904K on BMW Armored Vehicles, No Competition Found
Contract Overview
Contract Amount: $9,046,640 ($9.0M)
Contractor: BMW of North America LLC
Awarding Agency: Department of State
Start Date: 2025-08-28
End Date: 2026-08-27
Contract Duration: 364 days
Daily Burn Rate: $24.9K/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 $9.0 million to BMW OF NORTH AMERICA LLC for work described as: BMW SECURITY X5 ARMORED VEHICLE. Key points: 1. High cost for a single vehicle suggests premium pricing. 2. Lack of competition raises concerns about price discovery. 3. Sole-source procurement limits potential savings. 4. Armored vehicle sector is specialized, potentially justifying limited competition.
Value Assessment
Rating: questionable
The cost of $904,664 for a single armored BMW X5 appears exceptionally high compared to standard luxury vehicles. Benchmarking against similar government contracts for specialized armored vehicles is necessary to determine fair pricing.
Cost Per Unit: $904,664
Competition Analysis
Competition Level: sole-source
This contract was sole-sourced, meaning only one vendor, BMW of North America LLC, was considered. This method bypasses competitive bidding, potentially leading to higher prices and limiting the government's ability to secure the best value.
Taxpayer Impact: The lack of competition means taxpayers may have paid a premium for this vehicle, as there was no pressure on the vendor to offer the lowest possible price.
Public Impact
Taxpayers fund high-value, specialized security equipment. Procurement decisions impact agency operational capabilities. Sole-source awards warrant scrutiny for fairness and value.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High per-unit cost
- Lack of competition
Positive Signals
- Specific vehicle type procured
- Clear end-user agency
Sector Analysis
The Department of State's purchase falls within the specialized 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' sector. Spending in this niche area can be high due to advanced technology and security requirements, but competitive analysis is crucial.
Small Business Impact
This contract was awarded directly to BMW of North America LLC and does not indicate any specific provisions or benefits for small businesses. The nature of specialized armored vehicles often involves large manufacturers.
Oversight & Accountability
The sole-source nature of this award suggests limited oversight in the initial selection process. Further review of the justification for sole-sourcing and the negotiation process is needed to ensure accountability.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of State Contracting
- Department of State Programs
Risk Flags
- Sole-source procurement lacks competition.
- High per-unit cost raises value concerns.
- Potential for overpayment due to limited price discovery.
- Lack of transparency in justification for sole-sourcing.
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 $9.0 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 $9.0 million.
What is the period of performance?
Start: 2025-08-28. End: 2026-08-27.
What is the justification for procuring this specific BMW model as a sole-source acquisition, and were alternative armored vehicles considered?
The justification for a sole-source acquisition of a specific BMW model would typically involve unique capabilities, existing integration, or urgent requirements that only this vendor can meet. Without this justification, it's difficult to assess if alternatives were truly unavailable or if the agency simply opted for a known entity, potentially at a higher cost than a competitive process might yield.
How does the $904,664 per-unit cost compare to similar armored vehicles procured by other government agencies or in the commercial market?
Benchmarking this cost against similar armored vehicles is critical. While specialized features drive up prices, $904,664 is exceptionally high. Comparisons with other agencies' procurements of comparable security-grade vehicles, or even high-end commercial armored SUVs, would reveal if this price is within an acceptable range or if it represents a significant overpayment due to the lack of competitive pressure.
What are the specific security and operational requirements that necessitate an armored BMW X5, and could these needs be met by less expensive or more competitively sourced alternatives?
Understanding the precise security threats and operational demands is key. If the requirements are standard for executive protection or diplomatic security, then exploring a wider range of armored vehicle manufacturers through a competitive bid process could identify more cost-effective solutions. The sole-source award suggests these specific needs might be narrowly defined, but without transparency, it's hard to confirm if this was the only viable option.
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: $9,477,480
Exercised Options: $9,046,640
Current Obligation: $9,046,640
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 19AQMM20D0110
IDV Type: IDC
Timeline
Start Date: 2025-08-28
Current End Date: 2026-08-27
Potential End Date: 2026-08-27 00:00:00
Last Modified: 2026-01-13
More Contracts from BMW of North America LLC
- BMW Security X5 Armored Vehicle — $8.6M (Department of State)
Other Department of State Contracts
- Care Logistical Support Services - Clss — $2.3B (Xator LLC)
- Task Order to Provide Project Management Support, Transition Support, Engineering and Design Support, Securing the Infrastructure Support and O&M Support for the Department's IT Consolidation Program — $2.1B (Science Applications International Corporation)
- Global Security Engineering&supply Chain Services — $1.5B (General Dynamics Information Technology, Inc.)
- Slmaqm04c0030 — $1.2B (Dyncorp International LLC)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (General Dynamics Information Technology, Inc.)