DHS Secret Service Awards $28.3M Contract for Next Generation Limousines to General Motors

Contract Overview

Contract Amount: $28,291,755 ($28.3M)

Contractor: General Motors LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-16

End Date: 2027-12-31

Contract Duration: 1,201 days

Daily Burn Rate: $23.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEXT GENERATION LIMOUSINES (NGL4).

Place of Performance

Location: WARREN, MACOMB County, MICHIGAN, 48093

State: Michigan Government Spending

Plain-Language Summary

Department of Homeland Security obligated $28.3 million to GENERAL MOTORS LLC for work described as: NEXT GENERATION LIMOUSINES (NGL4). Key points: 1. The contract is for the manufacturing of specialized vehicles, indicating a need for secure and advanced transportation. 2. General Motors is a major automotive manufacturer, suggesting significant production capacity and established supply chains. 3. The lack of competition raises questions about potential price inflation and missed opportunities for cost savings. 4. The sector is automotive manufacturing, with a focus on high-security vehicle production.

Value Assessment

Rating: fair

The contract value of $28.3 million for specialized limousines appears substantial. Benchmarking against similar government contracts for custom vehicle manufacturing would be necessary to assess if the pricing is competitive, especially given the lack of competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive bidding process.

Taxpayer Impact: The absence of competition may result in a higher cost to taxpayers than if multiple vendors had vied for the contract.

Public Impact

Ensures the Secret Service has advanced transportation capabilities for its protective missions. Supports domestic manufacturing jobs within the automotive sector. Potential for increased costs due to sole-source procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing

Positive Signals

Supports critical government function
Utilizes established manufacturer

Sector Analysis

This contract falls within the automotive manufacturing sector, specifically for specialized vehicle production. Government spending on such vehicles is often driven by unique security and operational requirements, which can influence cost and procurement methods.

Small Business Impact

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

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and that the government's needs are met efficiently. Further oversight may be required to justify the lack of competition.

Related Government Programs

Motor Vehicle Body Manufacturing
Department of Homeland Security Contracting
U.S. Secret Service Programs

Risk Flags

Lack of competitive bidding
Potential for inflated costs
Limited transparency in pricing
Dependency on a single supplier for future support

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $28.3 million to GENERAL MOTORS LLC. NEXT GENERATION LIMOUSINES (NGL4).

Who is the contractor on this award?

The obligated recipient is GENERAL MOTORS LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Secret Service).

What is the total obligated amount?

The obligated amount is $28.3 million.

What is the period of performance?

Start: 2024-09-16. End: 2027-12-31.

What specific technological advancements or security features justify the 'Next Generation' designation and the sole-source award?

The 'Next Generation' designation likely refers to advanced security features, specialized armor, communication systems, and potentially unique powertrain or chassis modifications tailored to the Secret Service's demanding operational requirements. A sole-source award might be justified if only General Motors possesses the proprietary technology, manufacturing capabilities, or existing integration expertise necessary to meet these highly specific and critical needs within the required timeframe.

How does the $28.3 million price tag compare to the cost of similar, albeit less specialized, high-security vehicles procured competitively?

Without specific details on the 'Next Generation' features, a direct comparison is difficult. However, typical armored SUVs or sedans can range from $150,000 to $500,000+. If this contract implies a significant number of vehicles or exceptionally advanced, custom-built limousines, the total cost could be justified. A thorough review of the cost breakdown and comparison with industry benchmarks for comparable security features is essential to validate the value.

What is the long-term strategy for maintaining and upgrading these specialized vehicles, and does the current contract facilitate or hinder future cost-effective solutions?

The contract duration extends to late 2027, suggesting a focus on initial acquisition and delivery. The long-term maintenance and upgrade strategy is not detailed here. A sole-source award might create a dependency on General Motors for future support, potentially limiting options for more cost-effective third-party maintenance or upgrades. The government should ensure provisions for future supportability are considered.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Motor Vehicle Body Manufacturing

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Motors Company

Address: 300 RENAISSANCE CTR STE L1, DETROIT, MI, 48243

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: $40,978,708

Exercised Options: $28,291,755

Current Obligation: $28,291,755

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline