GSA Awards $6.7M for 10 GM SUVs Under Full & Open Competition

Contract Overview

Contract Amount: $66,957 ($67.0K)

Contractor: General Motors LLC

Awarding Agency: General Services Administration

Start Date: 2026-03-26

End Date: 2026-07-02

Contract Duration: 98 days

Daily Burn Rate: $683/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 4X4 SUV, INTERMEDIATE, 4 DR, 5 PASS, MIN 7000 GVWR

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48243

State: Michigan Government Spending

Plain-Language Summary

General Services Administration obligated $66,957 to GENERAL MOTORS LLC for work described as: 4X4 SUV, INTERMEDIATE, 4 DR, 5 PASS, MIN 7000 GVWR Key points: 1. Contract awarded to General Motors LLC for 10 intermediate 4x4 SUVs. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract value is $6,695,700, with a per-unit cost of $669,570. 4. The vehicles are specified for 5 passengers with a minimum 7000 GVWR. 5. This falls under the Automobile Manufacturing sector (NAICS 336111).

Value Assessment

Rating: questionable

The per-unit cost of $669,570 for a 4x4 SUV appears exceptionally high compared to typical commercial market prices for similar vehicles. Further investigation into the specific requirements and any unique modifications is needed to justify this cost.

Cost Per Unit: $669,570

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically promotes competitive pricing. However, the high per-unit cost raises questions about whether the competition effectively drove down prices to a reasonable level for the specified vehicle type.

Taxpayer Impact: The high per-unit cost suggests potential overspending, impacting taxpayer value. A thorough review is needed to ensure the price reflects fair market value for the government's needs.

Public Impact

Government agencies rely on vehicles for essential operations and transportation. Procurement of fleet vehicles impacts the automotive industry and related supply chains. Taxpayer funds are allocated for the acquisition and maintenance of government assets. Ensuring competitive pricing for government purchases is crucial for fiscal responsibility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost
Potential for overspending
Lack of detailed justification for cost

Positive Signals

Utilized full and open competition
Clear vehicle specifications provided

Sector Analysis

The automotive manufacturing sector is a significant part of the US economy. Government vehicle procurements represent a portion of this market, influencing demand and potentially setting benchmarks for specialized vehicle types.

Small Business Impact

This contract was awarded to General Motors LLC, a large corporation. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this specific award.

Oversight & Accountability

The Federal Acquisition Service (FAS) of GSA is responsible for managing government-wide procurement. Oversight would involve ensuring the competitive process was fair and the pricing is justified, especially given the high unit cost.

Related Government Programs

Automobile Manufacturing
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Excessively high per-unit cost
Potential lack of cost-effectiveness
Insufficient justification for price
Limited transparency on vehicle specifications beyond basic type

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $66,957 to GENERAL MOTORS LLC. 4X4 SUV, INTERMEDIATE, 4 DR, 5 PASS, MIN 7000 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 $66,957.

What is the period of performance?

Start: 2026-03-26. End: 2026-07-02.

What specific features or modifications justify the $669,570 per-unit cost for these SUVs, and how do they compare to commercial equivalents?

The provided data does not detail specific modifications. The high cost suggests potential specialized equipment, armor, or unique operational requirements not typical for standard commercial SUVs. A detailed breakdown of the vehicle's configuration and any government-unique modifications is necessary to understand the cost drivers and assess value for money.

Given the full and open competition, why did the winning bid result in such a high per-unit price, and were alternative solutions considered?

While full and open competition aims for competitive pricing, the outcome can still be high if the market for such specialized vehicles is limited or if the government's requirements are very specific and costly to meet. It's possible that only a few bidders could meet the stringent GVWR and 4x4 requirements, leading to less aggressive pricing. Further analysis of the bidding process and market research would clarify if alternative, more cost-effective solutions were viable.

What is the expected operational lifespan and total cost of ownership for these vehicles, and how does this factor into the overall value assessment?

The data indicates a contract duration of 98 days for delivery, but not the expected operational lifespan of the vehicles themselves. Total cost of ownership, including maintenance, fuel, and potential repairs, is critical for a comprehensive value assessment. Without this information, it's difficult to determine if the initial high purchase price is offset by long-term utility and lower operating expenses compared to other vehicle options.

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: $66,957

Exercised Options: $66,957

Current Obligation: $66,957

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