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: 2026-04-06

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. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type aims to provide cost certainty for the government. 3. Delivery order issued against an existing contract, indicating potential for streamlined procurement. 4. The vehicle specification points to a need for robust, high-capacity utility vehicles. 5. The short duration of the delivery order suggests a specific, immediate requirement. 6. Award to a major manufacturer like General Motors indicates reliance on established automotive supply chains.

Value Assessment

Rating: good

The contract value of $71,088 for a single 4x4 SUV appears within a reasonable range for a full-size, heavy-duty vehicle. Benchmarking against similar government fleet purchases and commercial sales of comparable models would provide a more precise value assessment. The firm-fixed-price structure helps mitigate cost overruns for this specific acquisition.

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 bids. The presence of 10 bids suggests a healthy level of competition for this requirement, which typically leads to better pricing and value for the government.

Taxpayer Impact: A competitive bidding process ensures that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

Federal agencies requiring robust transportation for personnel and equipment will benefit from this acquisition. The contract facilitates the delivery of essential 4x4 SUVs, likely for operational use. The geographic impact is primarily within Michigan, where the delivery order is managed. 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 robust despite the number of bids.
Dependence on a single manufacturer for a critical fleet asset could pose supply chain risks.
Short delivery window might strain production capacity or lead to expedited shipping costs.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Firm-fixed-price contract provides budget certainty and limits government exposure to cost increases.
Delivery order against an existing contract suggests efficient procurement and established supplier relationship.
Selection of a major manufacturer like GM ensures access to established quality and support networks.

Sector Analysis

The automotive manufacturing sector is a significant part of the U.S. economy. Government fleet acquisitions represent a consistent, albeit small, portion of this market. This contract fits within the broader category of vehicle procurement for federal agencies, which often relies on large manufacturers like General Motors, Ford, and Stellantis.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by '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 for this specific award is likely minimal.

Oversight & Accountability

The contract is a delivery order under a larger contract, implying that oversight mechanisms were established during the initial award. The firm-fixed-price nature provides a degree of financial oversight. Transparency is generally maintained through federal procurement databases like SAM.gov. Specific oversight details would depend on the parent contract and agency policies.

Related Government Programs

Federal Fleet Management
General Services Administration Vehicle Procurement
Automotive Manufacturing Contracts
Heavy-Duty Vehicle Acquisition

Risk Flags

Potential for supply chain disruption impacting delivery timelines.
Vehicle performance may be strained if consistently operated at maximum GVWR.
Short contract duration may not reflect long-term fleet needs or support.

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 track record of General Motors LLC in fulfilling federal government contracts, particularly for vehicle acquisitions?

General Motors LLC has a long and extensive history of fulfilling federal government contracts, including significant awards for vehicle acquisitions across various agencies. As a major domestic automaker, GM frequently competes for and wins contracts for sedans, SUVs, trucks, and specialized vehicles. Their track record generally includes delivering vehicles that meet stringent government specifications and performance requirements. While specific performance metrics for past contracts are not detailed here, their continued presence as a primary supplier indicates a generally positive history of meeting contractual obligations. However, like any large contractor, there can be instances of delivery delays or minor specification deviations that are managed through contract modifications or performance discussions.

How does the awarded price of $71,088 for this 4x4 SUV compare to similar government or commercial purchases?

The awarded price of $71,088 for a full-size, 4-door, 8-passenger 4x4 SUV with a minimum 7000 lbs GVWR appears to be within a reasonable range for a specialized, heavy-duty vehicle. Government fleet vehicles, especially those with specific performance requirements like high GVWR and 4x4 capability, often command higher prices than standard consumer models due to their robust construction and intended use. Commercial benchmarks for similar heavy-duty SUVs from manufacturers like Chevrolet (a GM brand), Ford, or Ram can range from $50,000 to over $80,000 depending on trim level, options, and fleet discounts. The firm-fixed-price nature of this contract suggests the government has secured a set price, but a detailed comparison would require analyzing specific comparable models and current market conditions.

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

The primary risks associated with this contract include potential delivery delays, especially given the short 90-day duration for the delivery order, which might strain production or logistics. There's also a risk related to the specific utility of the vehicle; if the 7000 lbs GVWR is a minimum requirement and actual loads frequently exceed this, it could lead to premature wear or performance issues. Furthermore, reliance on a single vehicle type from one manufacturer, even if competitively procured, could pose a risk if that model experiences significant supply chain disruptions or quality control issues. Finally, while firm-fixed-price mitigates cost escalation, the initial price itself could be considered a risk if it proves to be significantly above market value upon deeper analysis.

What does the 'Automobile Manufacturing' North American Industry Classification System (NAICS) code (336111) imply about the nature of this contract?

The NAICS code 336111, 'Automobile Manufacturing,' signifies that this contract is directly related to the production of complete automobiles. This implies that the government is procuring finished vehicles manufactured by General Motors LLC. This code covers establishments primarily engaged in manufacturing complete motor vehicles, including passenger cars, light trucks, and utility vehicles. It indicates that the contract is for the end product itself, rather than components, parts, or related services like maintenance or repair, although those could be separate contracts. The award to a company classified under this code reinforces that the government is purchasing vehicles directly from the manufacturer or their authorized representative.

How does the 'Delivery Order' (aw) status impact the overall contract structure and potential for future spending?

The 'Delivery Order' (aw) status indicates that this contract is not a standalone award but rather a specific order placed against a previously established indefinite-delivery, indefinite-quantity (IDIQ) or similar type of contract. This structure allows agencies to procure goods or services as needed over a period, often with pre-negotiated terms and pricing. For this specific contract, it means the underlying IDIQ contract likely covers a broader range of vehicles or services, and this $71,088 award represents one specific instance of procurement. The impact is that future spending on similar vehicles would likely also be through delivery orders against the same or similar IDIQ contracts, potentially offering continued streamlined procurement and consistent pricing, but also requiring monitoring of the overall ceiling and duration of the parent contract.

What is the significance of the 'State' (ST) being 'MI' (Michigan) for this contract?

The indication that the State (ST) is 'MI' (Michigan) likely refers to the location of the contractor's facility or the delivery point for this specific order, rather than the end-user agency's location. Michigan is a historical hub for the U.S. automotive industry, with General Motors having significant manufacturing and operational presence there. This suggests the vehicle may be manufactured in or shipped from a facility within Michigan. While not directly impacting the operational use of the vehicle by a federal agency, it provides context regarding the supply chain and logistics involved in fulfilling the contract. It could also imply that the contract was awarded through a regional procurement office or that the specific vehicle configuration is produced in that state.

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