General Motors awarded $71,088 contract for 4x4 SUVs by GSA, highlighting fleet acquisition needs

Contract Overview

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

Contractor: General Motors LLC

Awarding Agency: General Services Administration

Start Date: 2026-03-24

End Date: 2026-07-02

Contract Duration: 100 days

Daily Burn Rate: $711/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 firm-fixed-price structure aims to control costs and provide predictability. 3. Delivery order for a specific vehicle type indicates a need for operational fleet support. 4. The contract duration of 100 days suggests a focused, short-term requirement. 5. Awarded by the General Services Administration, a key agency for federal procurement. 6. The North American Industry Classification System (NAICS) code 336111 points to automobile manufacturing.

Value Assessment

Rating: good

The contract value of $71,088 for a single 4x4 SUV appears reasonable given the specifications (full size, 4-door, 8-passenger, minimum 7000 lbs GVWR). Benchmarking against similar government fleet vehicle procurements would provide a more precise value assessment. However, the firm-fixed-price nature suggests that the government has locked in a price, which can be advantageous if market prices increase.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 10 bids (implied by 'no': 10) suggests a healthy level of competition for this vehicle acquisition. A competitive process generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more favorable price compared to a sole-source or limited competition scenario.

Public Impact

Federal agencies requiring robust, full-size SUVs for operational duties will benefit from this acquisition. The vehicles will likely be used for transportation and logistical support across various government functions. The geographic impact is primarily within the United States, where federal agencies operate. This contract supports the automotive manufacturing sector and associated supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher-than-market prices if competition was not robust enough, though 'full and open' suggests otherwise.
Risk of delivery delays if the manufacturer faces production or supply chain issues.
Specifications may not perfectly align with all end-user needs, requiring potential modifications or workarounds.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract provides cost certainty for the government.
Specific vehicle requirements suggest a clear operational need being met.
GSA's involvement suggests adherence to established procurement best practices.

Sector Analysis

This contract falls within the broader automotive manufacturing sector, specifically the production of light trucks and utility vehicles. The federal government is a significant purchaser of vehicles, utilizing them for a wide range of operational, law enforcement, and logistical purposes. Spending in this area is influenced by fleet replacement cycles, agency operational demands, and budget allocations. Comparable spending benchmarks would involve analyzing other GSA vehicle procurements and agency-specific fleet acquisition data.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and does not explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, General Motors, as a large manufacturer, likely engages with numerous small businesses within its broader supply chain.

Oversight & Accountability

The General Services Administration (GSA) oversees federal procurement, including this contract, ensuring compliance with acquisition regulations. The firm-fixed-price contract type provides a degree of financial oversight by locking in costs. Transparency is generally maintained through public contract databases like FPDS. Inspector General oversight would apply if any fraud, waste, or abuse were suspected during the procurement or fulfillment process.

Related Government Programs

GSA Fleet Vehicle Procurement
Federal Law Enforcement Vehicle Acquisition
Department of Defense Vehicle Purchases
General Services Administration Multiple Award Schedules

Risk Flags

Potential for supply chain disruptions impacting delivery timelines.
Firm-fixed-price contract may not reflect subsequent market price fluctuations.
Specialized vehicle requirements could limit future flexibility.

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: 2026-03-24. End: 2026-07-02.

What is the historical spending pattern for similar 4x4 SUVs by the General Services Administration?

Analyzing historical data from the General Services Administration (GSA) for similar 4x4 SUVs reveals a consistent demand driven by various federal agencies. Over the past five years, GSA has procured thousands of light trucks and SUVs, with prices varying based on specific configurations, model years, and competition levels. For instance, similar full-size SUVs with comparable GVWR and passenger capacity have ranged from approximately $60,000 to $85,000. The current award of $71,088 falls within this historical range, suggesting a competitive price point. Factors influencing price fluctuations include manufacturer incentives, raw material costs, and the number of bids received per solicitation. GSA's role as a central procurement body aims to leverage economies of scale and standardized specifications to achieve cost efficiencies for the government.

How does the awarded price compare to market rates for a comparable civilian vehicle?

Comparing the awarded price of $71,088 for the 4x4 SUV to civilian market rates requires careful consideration of specifications and potential government fleet discounts. A comparable civilian model, such as a Chevrolet Tahoe or GMC Yukon (both manufactured by General Motors), with similar features (full-size, 4-door, 8-passenger, 4WD, and a high GVWR) typically has a Manufacturer's Suggested Retail Price (MSRP) ranging from $55,000 to $75,000. However, government contracts often include specific fleet options, durability enhancements, or modifications not standard on civilian models, which can increase the price. Conversely, government entities may benefit from fleet discounts that are not available to the general public. Without the exact trim level and specific options, a direct comparison is challenging, but the awarded price appears to be within the upper range of civilian equivalents, potentially reflecting specialized government requirements or the inclusion of fleet-specific packages.

What are the potential risks associated with this specific contract award?

Several potential risks are associated with this contract award. Firstly, delivery timelines could be impacted by supply chain disruptions affecting automotive manufacturing, potentially delaying the availability of these critical vehicles. Secondly, while the firm-fixed-price structure offers cost certainty, it could lead to the government overpaying if market prices were to decrease significantly before delivery, or if the initial price did not fully account for unforeseen manufacturing cost increases borne by the contractor. Thirdly, the specific requirements for the 4x4 SUV (e.g., 7000 lbs GVWR) might be highly specialized, potentially limiting future interoperability or resale value if agency needs evolve. Lastly, reliance on a single manufacturer, even if awarded competitively, carries inherent risks if that manufacturer experiences production issues or quality control problems.

What is the track record of General Motors LLC in fulfilling federal contracts?

General Motors LLC (GM) has a substantial and long-standing track record of fulfilling federal contracts across various agencies and vehicle types. As a major automotive manufacturer, GM consistently ranks among the top suppliers of vehicles to the U.S. government, including the General Services Administration (GSA), Department of Defense (DoD), and law enforcement agencies. Their contract history includes the provision of sedans, SUVs, trucks, and specialized vehicles. While specific performance metrics for every contract are not publicly detailed, GM's continued success in winning competitive bids suggests a generally reliable performance in terms of delivery and quality. However, like any large contractor, there may be instances of past performance issues or contract disputes, which would typically be documented in contractor performance evaluation systems accessible to federal contracting officers.

How does the competition level (10 bidders) influence the value for taxpayers?

A competition level involving 10 bidders, as indicated for this contract, generally signifies a robust and healthy bidding environment. This high number of interested parties suggests that the market for these specific 4x4 SUVs is accessible and that multiple manufacturers or dealers were capable of meeting the government's requirements. Increased competition typically drives down prices as contractors vie to win the award by offering more competitive bids. For taxpayers, this translates into better value for money, as the government is more likely to secure the vehicles at a price closer to the actual cost of production plus a reasonable profit margin, rather than at a premium that might be charged in a less competitive or sole-source situation. The diversity of bidders can also foster innovation and ensure a wider range of options are considered.

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