GSA Awards $710,880 for 10 Full-Size SUVs from General Motors LLC

Contract Overview

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

Contractor: General Motors LLC

Awarding Agency: General Services Administration

Start Date: 2026-04-06

End Date: 2026-07-05

Contract Duration: 90 days

Daily Burn Rate: $790/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. Spending on 10 large SUVs totals $710,880. 2. General Motors LLC secured the contract. 3. The contract was awarded under full and open competition. 4. This purchase falls under the Automobile Manufacturing sector.

Value Assessment

Rating: fair

The average price per vehicle is $71,088. This price appears high for a standard full-size SUV, especially considering the quantity. Benchmarking against similar government or commercial fleet purchases would be necessary for a definitive assessment.

Cost Per Unit: $71,088

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the final price per unit warrants scrutiny to ensure it reflects true market value and effective price discovery.

Taxpayer Impact: Taxpayer funds are used for this purchase. The final price will determine the overall impact, with higher prices leading to greater expenditure.

Public Impact

Government fleet acquisition of large passenger vehicles. Potential use for executive transport or specialized agency needs. Impact on the automotive manufacturing sector and supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost for SUVs.
Limited duration of the contract.
No indication of small business participation.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract type.

Sector Analysis

This purchase falls within the Automobile Manufacturing sector, specifically for large, heavy-duty SUVs. Government spending in this area can be influenced by agency operational needs, fleet modernization efforts, and the availability of specific vehicle models.

Small Business Impact

The data indicates that small businesses were not involved in this specific contract award, as the prime contractor is General Motors LLC. Further analysis would be needed to determine if small businesses were subcontractors.

Oversight & Accountability

The General Services Administration (GSA) is responsible for this contract. Oversight would involve ensuring the vehicles meet specifications, the price is fair, and the delivery schedule is met.

Related Government Programs

Automobile Manufacturing
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

High per-unit cost.
Lack of small business participation.
Limited contract duration for vehicle acquisition.
No justification for vehicle type provided.

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: 2026-04-06. End: 2026-07-05.

What is the justification for the high per-unit cost of these SUVs compared to market benchmarks?

The high per-unit cost of $71,088 warrants further investigation. Factors could include specific government-mandated modifications, specialized equipment, or the inclusion of extensive warranty and service packages. A detailed comparison with similar government fleet purchases and commercial retail pricing for comparable models is essential to determine if the price is justified or if there is an opportunity for cost savings.

What are the specific operational requirements driving the need for 10 full-size, 7000+ lbs GVWR SUVs?

The specific operational requirements driving the need for these large SUVs are not detailed in the provided data. Agencies typically procure such vehicles for roles requiring significant cargo or passenger capacity, towing capabilities, or operation in challenging terrains. Understanding the intended use, such as law enforcement, specialized field operations, or executive transport, is crucial for assessing the necessity and appropriateness of this expenditure.

How does the firm fixed price contract type mitigate potential cost overruns for the government?

A firm fixed price (FFP) contract type is advantageous for the government as it shifts the risk of cost overruns to the contractor. The agreed-upon price remains constant regardless of the contractor's actual costs incurred. This provides budget certainty for the agency and incentivizes the contractor to manage their expenses efficiently to maintain profitability, thereby protecting taxpayer funds from unexpected price increases.

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