Secret Service awards $16.2M for Chevy Suburban SUVs, highlighting vehicle fleet needs

Contract Overview

Contract Amount: $16,185,296 ($16.2M)

Contractor: GM Defense LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-29

End Date: 2026-09-28

Contract Duration: 364 days

Daily Burn Rate: $44.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CHEVY SUBURBAN SUVS

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48243

State: Michigan Government Spending

Plain-Language Summary

Department of Homeland Security obligated $16.2 million to GM DEFENSE LLC for work described as: CHEVY SUBURBAN SUVS Key points: 1. The contract value represents a significant investment in specialized law enforcement vehicles. 2. Sole-source procurement raises questions about potential cost efficiencies and market alternatives. 3. Vehicle body manufacturing is a critical component of the automotive sector, supporting numerous jobs. 4. The firm-fixed-price structure aims to provide cost certainty for the government. 5. The duration of the contract suggests a need for ongoing fleet replenishment or expansion. 6. The award to GM Defense LLC indicates a reliance on established defense contractors for specialized vehicles.

Value Assessment

Rating: fair

The award of $16.2 million for 364 Chevy Suburban SUVs appears to be within a reasonable range for specialized law enforcement vehicles, considering the typical costs associated with fleet purchases and modifications. However, without direct comparable contract data for identical vehicles or specific configurations, a precise value-for-money assessment is challenging. The firm-fixed-price contract type provides cost predictability, but the lack of competition limits the opportunity for price discovery and potential savings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the U.S. Secret Service did not conduct a competitive bidding process. This approach is typically used when a specific product or service is required from a single source, often due to unique capabilities or existing infrastructure. The absence of competition means that taxpayers do not benefit from the potential cost reductions and innovation that can arise from a bidding process.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no market pressure to drive down costs. It also limits opportunities for other manufacturers to compete for this business.

Public Impact

The U.S. Secret Service will benefit from an updated fleet of specialized vehicles essential for its protective and investigative missions. These vehicles will support the agency's operations across various locations, ensuring mobility and security. The contract supports jobs within the automotive manufacturing sector, specifically in vehicle body production. The acquisition of these SUVs is crucial for maintaining the operational readiness of federal law enforcement personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Sole-source awards can limit innovation by not engaging a broader market.
Dependence on a single supplier could create supply chain risks.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a known defense contractor suggests reliability and established production capabilities.
The purchase addresses a clear operational need for the Secret Service.

Sector Analysis

The automotive manufacturing sector, particularly vehicle body manufacturing (NAICS 336211), is a significant industry. This contract falls within the broader defense and government procurement landscape, where specialized vehicles are often required for law enforcement and security agencies. While specific market size data for government-specific SUV procurement is not readily available, the overall automotive industry is vast, with billions in annual revenue. This contract represents a small but critical segment of government spending on essential operational assets.

Small Business Impact

This contract does not appear to have a small business set-aside. The award is to GM Defense LLC, a large defense contractor. There is no information provided regarding subcontracting plans to small businesses. This means the direct economic impact on the small business ecosystem from this specific award is likely minimal, unless GM Defense LLC voluntarily engages small businesses in its supply chain.

Oversight & Accountability

The U.S. Secret Service, as part of the Department of Homeland Security, is subject to oversight from various bodies, including the DHS Office of Inspector General. The contract's firm-fixed-price nature provides a degree of financial oversight by locking in costs. Transparency regarding sole-source justifications and procurement processes is typically available through federal contract databases, allowing for public scrutiny.

Related Government Programs

Department of Homeland Security Vehicle Procurement
Federal Law Enforcement Fleet Management
Specialized Vehicle Acquisition Programs
General Motors Defense Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency on specific vehicle configurations and modifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $16.2 million to GM DEFENSE LLC. CHEVY SUBURBAN SUVS

Who is the contractor on this award?

The obligated recipient is GM DEFENSE 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 $16.2 million.

What is the period of performance?

Start: 2025-09-29. End: 2026-09-28.

What is the typical cost per unit for a Chevrolet Suburban SUV purchased by government agencies for law enforcement purposes?

Determining a precise 'typical' cost per unit for Chevrolet Suburban SUVs for government law enforcement is complex due to variations in model year, trim levels, optional equipment, and specific agency modifications. However, based on publicly available contract data and market research, a standard Chevrolet Suburban can range from $50,000 to $70,000 for civilian models. For law enforcement or specialized government use, this cost can increase significantly, potentially reaching $80,000 to $100,000 or more when factoring in necessary upgrades such as reinforced components, specialized electronics, communication systems, and police-specific modifications. The $16.2 million award for 364 units, averaging approximately $44,465 per unit, appears low if it includes all necessary modifications and equipment for the Secret Service's demanding operational requirements. This suggests either the contract covers only the base vehicle and modifications are separate, or the stated 'per unit' cost is an average that doesn't reflect the full equipped price, or the vehicles are for a less demanding application than typical patrol units.

Why was this contract awarded on a sole-source basis instead of through full and open competition?

The contract was awarded on a sole-source basis, as indicated by the data. While the specific justification is not detailed in the provided information, common reasons for sole-source awards include unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or when only one responsible source can provide the required product or service. For vehicle procurement, this could stem from specific modifications or integration requirements that only GM Defense LLC can fulfill, or perhaps a need to maintain commonality with an existing fleet for logistical or training purposes. Without the official justification, it's difficult to ascertain the precise rationale, but it implies that the Secret Service determined that competitive bidding was not practicable or advantageous in this instance.

What are the potential risks associated with a sole-source award for vehicle procurement?

Sole-source awards for vehicle procurement carry several potential risks. Primarily, the absence of competition can lead to higher prices for taxpayers, as the government does not benefit from the price discovery and cost-reduction pressures inherent in a competitive bidding process. This can result in a less favorable value for money. Secondly, it can stifle innovation, as potential suppliers are not incentivized to develop new or improved solutions if they know they are not in contention for the contract. Thirdly, it can create vendor lock-in, making it difficult and costly to switch to alternative suppliers in the future. Finally, sole-source awards can sometimes raise concerns about fairness and equal opportunity for businesses that could otherwise compete for the contract.

How does this contract align with the U.S. Secret Service's mission and operational requirements?

The U.S. Secret Service's mission involves protecting national leaders, visiting heads of state and government, designated sites, and investigating threats against them, as well as safeguarding the nation's financial infrastructure. The acquisition of 364 Chevrolet Suburban SUVs, a vehicle known for its robust performance, cargo capacity, and suitability for protective details and mobile command operations, directly supports these functions. These vehicles are likely essential for transporting agents, equipment, and personnel securely and reliably during protective missions, investigations, and daily operations. The firm-fixed-price nature of the contract suggests a need for predictable budgeting for these critical assets, ensuring the agency can maintain its operational readiness and fulfill its demanding mandate effectively.

What is the historical spending pattern for similar vehicle procurements by the Department of Homeland Security or its components?

Historical spending patterns for vehicle procurements by the Department of Homeland Security (DHS) and its components, including the U.S. Secret Service, show a consistent need for a diverse range of vehicles, from sedans and SUVs to specialized vans and trucks. DHS agencies frequently procure vehicles through competitive contracts, often with multiple award schedules or task order awards. For instance, the Federal Government has awarded numerous contracts for SUVs and sedans to various manufacturers like Ford, General Motors, and Stellantis. The total annual spending on vehicles across DHS can run into hundreds of millions of dollars. While specific data on Secret Service SUV procurements is not detailed here, past awards for similar vehicles to other law enforcement agencies often fall within the $50,000-$100,000 range per unit, depending on specifications. The sole-source nature of this $16.2 million award for 364 units (averaging ~$44,465) warrants further investigation into whether it represents a deviation from typical competitive procurement or if the scope differs significantly from standard fleet vehicles.

Industry Classification

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

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

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

Address: 300 RENAISSANCE CTR, DETROIT, MI, 48243

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,185,296

Exercised Options: $16,185,296

Current Obligation: $16,185,296

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline