DHS Secret Service Spends $10.4M on Automobiles from General Motors LLC

Contract Overview

Contract Amount: $10,404,595 ($10.4M)

Contractor: General Motors LLC

Awarding Agency: Department of Homeland Security

Start Date: 2007-09-24

End Date: 2009-04-01

Contract Duration: 555 days

Daily Burn Rate: $18.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 07-SSD-PR-008

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20223

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.4 million to GENERAL MOTORS LLC for work described as: 07-SSD-PR-008 Key points: 1. The contract awarded to General Motors LLC for automobile manufacturing totals $10.4 million. 2. This procurement was not competed, raising questions about potential price discovery. 3. The contract duration is 555 days, ending in April 2009. 4. The primary sector for this spending is Automobile Manufacturing.

Value Assessment

Rating: fair

The contract value of $10.4 million for automobiles needs comparison against similar government procurements for vehicles of comparable specifications and quantities. Without specific details on the vehicles purchased, a precise pricing assessment is difficult.

Cost Per Unit: $18,747

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This method can lead to higher prices as there is no competitive pressure to drive down costs.

Taxpayer Impact: The lack of competition may have resulted in taxpayers paying more than necessary for these vehicles.

Public Impact

Government reliance on specific manufacturers for essential vehicle fleets. Potential for increased costs due to non-competitive procurement. Impact on the automotive market through direct government contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Limited transparency in award justification

Positive Signals

Specific vehicle type procured for a government agency
Fixed price contract can offer cost certainty if priced appropriately

Sector Analysis

The automobile manufacturing sector is a significant part of the US economy. Government contracts, especially for fleet vehicles, can represent substantial spending. Benchmarks for vehicle procurement vary widely based on type and volume.

Small Business Impact

This contract was awarded to General Motors LLC, a large corporation. There is no indication that small businesses were involved as subcontractors or partners in this specific award.

Oversight & Accountability

The award was made by the Department of Homeland Security to the U.S. Secret Service. Oversight would typically involve contract management and performance monitoring by the agency to ensure delivery and adherence to terms.

Related Government Programs

Automobile Manufacturing
Department of Homeland Security Contracting
U.S. Secret Service Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency on award justification
No indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.4 million to GENERAL MOTORS LLC. 07-SSD-PR-008

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 $10.4 million.

What is the period of performance?

Start: 2007-09-24. End: 2009-04-01.

What specific types of vehicles were procured under this contract, and how do their features compare to commercially available models?

The provided data indicates the North American Industry Classification System (NAICS) code is 336111 for Automobile Manufacturing, suggesting the procurement was for vehicles manufactured by General Motors. However, specific model details, trim levels, or specialized equipment are not listed. A comparison to commercially available models would require further investigation into the exact vehicle specifications to determine if the government received a standard or customized product.

What was the justification for awarding this contract on a sole-source basis rather than through full and open competition?

The data explicitly states 'NOT COMPETED' for the contract type, implying a sole-source or limited competition award. The specific justification for this approach is not provided in the data. Typically, sole-source awards require a documented justification, such as unique capabilities, urgent need, or lack of viable alternatives, which would need to be reviewed separately.

How does the per-unit cost of $18,747 compare to similar government vehicle procurements or commercial fleet sales during the contract period?

The per-unit cost of $18,747 needs to be contextualized by the specific vehicle type (e.g., sedan, SUV, truck) and any modifications or fleet discounts applied. Without this information, a direct comparison is challenging. Benchmarking against other government contracts for similar vehicles or against commercial fleet pricing from 2007-2009 would be necessary to assess value for money.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Manufacturing › Automobile Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSSS01-07-R-0037

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Government of the United States (UEI: 161906193)

Address: 300 RENAISSANCE CENTER, DETROIT, MI, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,404,595

Exercised Options: $10,404,595

Current Obligation: $10,404,595

Timeline