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. Further benchmarking against similar government or commercial fleet purchases is recommended.

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 optimal price discovery.

Taxpayer Impact: Taxpayers are funding the purchase of 10 large SUVs at a potentially elevated price point.

Public Impact

Government fleet acquisition of large, passenger-heavy vehicles. Potential for high per-unit cost impacting overall budget. Impact on agency mobility and operational capabilities. General Motors LLC is the sole awardee for this specific order.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost
Limited duration delivery order

Positive Signals

Full and open competition utilized
Clear contract end date

Sector Analysis

This purchase falls within the Automobile Manufacturing sector, specifically for large, passenger-oriented SUVs. Government spending benchmarks for similar vehicles should be consulted to assess value.

Small Business Impact

The contract was awarded to General Motors LLC, a large business. There is no indication that small businesses were involved in this specific delivery order.

Oversight & Accountability

The Federal Acquisition Service of GSA managed this acquisition. Oversight should focus on the justification for the high per-unit cost and adherence to procurement regulations.

Related Government Programs

Automobile Manufacturing
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

High per-unit cost
Potential for better pricing through negotiation
Lack of small business participation
Short contract duration may limit long-term planning

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 averages?

The high per-unit cost of $71,088 warrants further investigation. Factors such as specific required configurations, specialized equipment, or unique performance specifications could contribute. However, without detailed justification, it raises concerns about potential overpayment and the effectiveness of price negotiation during the full and open competition process.

What are the risks associated with purchasing high-cost, large SUVs for government use?

Risks include budget overruns, inefficient use of taxpayer funds, and potential for higher maintenance and fuel costs compared to smaller, more fuel-efficient vehicles. There's also a reputational risk if the purchase is perceived as extravagant or unnecessary, especially if the operational need for such large vehicles is not clearly demonstrated.

How effective is full and open competition in ensuring value for money in this specific vehicle procurement?

While full and open competition is the preferred method for maximizing competition, its effectiveness in ensuring value for money is contingent on the agency's ability to negotiate favorable pricing. The high per-unit cost suggests that either the market for these specific configurations is limited, or the negotiation strategy could be improved to achieve better outcomes for taxpayers.

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