General Motors awarded $71,088 contract for 4X4 SUVs by GSA, highlighting fleet acquisition trends

Contract Overview

Contract Amount: $71,088 ($71.1K)

Contractor: General Motors LLC

Awarding Agency: General Services Administration

Start Date: 2026-03-12

End Date: 2026-07-02

Contract Duration: 112 days

Daily Burn Rate: $635/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 4X4 SUV, FULL SIZE, 4 DR, 8 PASS, MIN 7000 LBS GVWR

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48243

State: Michigan Government Spending

Plain-Language Summary

General Services Administration obligated $71,088 to GENERAL MOTORS LLC for work described as: 4X4 SUV, FULL SIZE, 4 DR, 8 PASS, MIN 7000 LBS GVWR Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for a specific vehicle type (4X4 SUV, 8-passenger) indicating specialized fleet needs. 3. Firm Fixed Price contract type provides cost certainty for the government. 4. The award duration is relatively short, suggesting a need for immediate or near-term fleet augmentation. 5. The vehicle specifications (GVWR, passenger capacity) point to operational requirements for demanding environments. 6. This award represents a small portion of overall federal vehicle procurement, but is indicative of agency needs.

Value Assessment

Rating: good

The awarded price of $71,088 for a full-size, 4-door, 8-passenger 4x4 SUV with a minimum 7000 lbs GVWR appears reasonable given the specifications. While direct comparisons are difficult without knowing the exact trim level and options, this price point is within the expected range for a government-specified heavy-duty utility vehicle. The firm fixed price nature of the contract helps manage cost risks for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With 10 bids received, this suggests a healthy level of competition for this specific vehicle requirement. A higher number of bidders generally leads to better price discovery and potentially lower prices for the government.

Taxpayer Impact: The robust competition for this vehicle acquisition is beneficial for taxpayers, as it likely drove down the final price and ensured the government received competitive offers.

Public Impact

Federal agencies requiring robust, multi-passenger utility vehicles will benefit from this contract. The contract delivers essential transportation assets for operational or logistical support. The primary geographic impact is within the United States, where the vehicles will be delivered and utilized. This contract supports jobs within the automotive manufacturing sector, specifically at General Motors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher-than-market prices if competition was not truly robust across all potential suppliers.
Risk of obsolescence if vehicle technology advances rapidly during the contract period.
Dependence on a single manufacturer (GM) for this specific award, though competition was present.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible process.
Firm Fixed Price contract provides cost predictability.
Clear vehicle specifications ensure the government receives assets meeting defined needs.
Multiple bids received suggest a competitive market for these types of vehicles.

Sector Analysis

The automotive manufacturing sector is a significant part of the U.S. economy. Federal agencies are major purchasers of vehicles, contributing to this market. This contract falls within the broader category of federal fleet management and procurement, where agencies acquire vehicles for operational use. Comparable spending benchmarks would involve analyzing other federal vehicle awards for similar types and quantities.

Small Business Impact

This contract does not appear to have a small business set-aside (sb=false). There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though General Motors may utilize small businesses in its broader supply chain.

Oversight & Accountability

The General Services Administration (GSA) oversees federal procurement, including vehicle acquisitions. Oversight mechanisms likely include pre-award reviews, contract performance monitoring, and post-award audits. Transparency is generally maintained through public contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Fleet Management
General Services Administration Vehicle Procurement
Automotive Manufacturing Contracts
Utility Vehicle Acquisition

Risk Flags

Potential for supply chain disruptions
Vehicle specification alignment with evolving needs
Ensuring true market competition beyond listed bidders

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $71,088 to GENERAL MOTORS LLC. 4X4 SUV, FULL SIZE, 4 DR, 8 PASS, MIN 7000 LBS GVWR

Who is the contractor on this award?

The obligated recipient is GENERAL MOTORS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $71,088.

What is the period of performance?

Start: 2026-03-12. End: 2026-07-02.

What is the track record of General Motors LLC in fulfilling federal contracts, particularly for vehicle supply?

General Motors LLC has a long history of fulfilling federal contracts. As a major automotive manufacturer, they are a frequent supplier of vehicles to government agencies. Their track record typically involves delivering a wide range of vehicles, from sedans and SUVs to trucks and specialized equipment. Performance can vary across contracts, but generally, large manufacturers like GM have established processes for government contract fulfillment. Analyzing past performance data, such as on-time delivery rates, quality of goods, and adherence to contract terms, would provide a more detailed assessment. However, their consistent presence in federal procurement suggests a capacity to meet government requirements.

How does the awarded price of $71,088 compare to similar federal vehicle procurements for 4x4 SUVs?

The awarded price of $71,088 for a full-size, 8-passenger, 4x4 SUV with a minimum 7000 lbs GVWR is within a reasonable range for government-specified vehicles of this type. Federal procurement data often shows prices for similar vehicles varying based on specific trim levels, optional equipment, delivery locations, and the competitive landscape at the time of award. For instance, a base model might be less, while a fully optioned version with advanced safety features or specific government-mandated modifications could exceed this price. Benchmarking against other recent GSA or agency awards for comparable vehicles would be necessary for a precise comparison, but this figure does not immediately suggest overpricing, especially considering the heavy-duty specifications.

What are the primary risks associated with this contract award?

The primary risks associated with this contract include potential supply chain disruptions affecting vehicle production or delivery timelines, although the short duration (112 days) mitigates this somewhat. Another risk is the potential for the government to receive vehicles that do not perfectly meet evolving operational needs if the specifications were not sufficiently forward-looking. Price escalation risk is largely mitigated by the Firm Fixed Price (FFP) contract type. Performance risk, related to the quality and reliability of the delivered vehicles, is inherent but managed through contract terms and potential warranties. Finally, there's a minor risk of technological obsolescence if newer, more efficient models become available shortly after delivery, though this is less likely for standard utility vehicles within a short contract period.

How effective is the 'full and open competition' strategy for acquiring specialized vehicles like this 4x4 SUV?

The 'full and open competition' strategy is generally highly effective for acquiring specialized vehicles like this 4x4 SUV, provided the solicitation is well-defined and reaches the relevant market. It maximizes the pool of potential bidders, increasing the likelihood of receiving competitive pricing and innovative solutions. The fact that 10 bids were received indicates that the market was responsive and the competition level was robust. This approach ensures that the government isn't limited to a few pre-selected vendors, fostering a dynamic marketplace. The effectiveness is further enhanced when the specifications accurately capture the required capabilities, ensuring that the competition is meaningful and leads to the best value for the taxpayer.

What are the historical spending patterns for similar vehicle procurements by the General Services Administration?

The General Services Administration (GSA) historically spends billions annually on vehicle procurement across various categories. Spending patterns for 4x4 SUVs, particularly those with heavy-duty specifications like the 7000 lbs GVWR, are influenced by agency needs for law enforcement, emergency response, and operational support in challenging terrains. GSA often utilizes large, multi-year contracts and indefinite-delivery/indefinite-quantity (IDIQ) vehicles to streamline procurement and achieve economies of scale. Awards like this delivery order represent individual task orders against broader contract vehicles. Historical data would show fluctuations based on federal budget appropriations, agency fleet modernization initiatives, and shifts in vehicle technology and fuel efficiency standards.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Manufacturing › Automobile Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QMCA21R0008

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Motors Company

Address: 30400 VAN DYKE AVE, WARREN, MI, 48093

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $71,088

Exercised Options: $71,088

Current Obligation: $71,088

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QMCA22D000Q

IDV Type: IDC

Timeline