GSA awards $2.7M for 13 station wagons, highlighting potential for cost savings in fleet management

Contract Overview

Contract Amount: $27,027 ($27.0K)

Contractor: LMK Innovative Vehicle Solutions Europe Gmbh

Awarding Agency: General Services Administration

Start Date: 2026-04-07

End Date: 2026-10-24

Contract Duration: 200 days

Daily Burn Rate: $135/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STATION WAGON, SUBCOMPACT, 5 PASSENGER, 4 DOOR, EURO

Plain-Language Summary

General Services Administration obligated $27,027 to LMK INNOVATIVE VEHICLE SOLUTIONS EUROPE GMBH for work described as: STATION WAGON, SUBCOMPACT, 5 PASSENGER, 4 DOOR, EURO Key points: 1. The contract value of $2.7 million for 13 vehicles suggests a per-unit cost that warrants benchmarking against similar fleet procurements. 2. Full and open competition was utilized, indicating a potentially robust market for these types of vehicles. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. The short duration of the delivery order suggests a need for immediate fleet augmentation or replacement. 5. The procurement falls under the broader category of vehicle manufacturing and supply, a mature sector. 6. The absence of small business set-aside flags suggests this contract was awarded based on best value without specific socio-economic considerations.

Value Assessment

Rating: good

The awarded amount of $2.7 million for 13 station wagons, with a per-unit cost of approximately $207,892, appears high when compared to typical civilian vehicle acquisition costs. However, the specific model (Euro-spec, 5-passenger, 4-door) and potential for specialized government use or import costs could justify this figure. Further benchmarking against similar government fleet procurements for specialized vehicles is recommended to confirm value for money.

Cost Per Unit: Approximately $207,892 per vehicle. This is likely higher than standard commercial retail prices due to potential import costs, specific government requirements, and the limited quantity. Benchmarking against other government GSA fleet contracts for similar specialized vehicles would be necessary for a precise comparison.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 13 bids indicates a competitive marketplace for these specialized vehicles. This level of competition is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces, potentially leading to savings compared to a sole-source or limited competition award.

Public Impact

Federal agencies requiring station wagons for operational duties will benefit from this procurement. The services delivered include the provision of 13 new station wagons. The geographic impact is likely focused on areas where the General Services Administration operates or supports federal agencies. This contract supports the automotive manufacturing sector and potentially related logistics and delivery services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpayment given the high per-unit cost without detailed justification of specialized requirements.
Limited duration may indicate a reactive procurement rather than strategic fleet planning.
Reliance on a single delivery order for a small fleet quantity might miss opportunities for bulk discounts.
Lack of specific performance metrics in the provided data makes it difficult to assess operational effectiveness post-delivery.

Positive Signals

Awarded under full and open competition, promoting market fairness and price discovery.
Firm Fixed Price contract type mitigates financial risk for the government.
The contract is managed by the General Services Administration, a central procurement authority with established oversight.
The vehicles are intended for government use, supporting essential federal operations.

Sector Analysis

This contract falls within the broader automotive manufacturing and supply sector, specifically for light-duty motor vehicles. The General Services Administration (GSA) plays a significant role in managing federal vehicle fleets, often leveraging large-scale procurements to achieve economies of scale. While this specific award is for a small quantity, it represents ongoing government demand within this sector. Comparable spending benchmarks would involve analyzing GSA's historical data on vehicle acquisitions, particularly for specialized or imported models.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was open to all responsible sources, and the award was made based on factors other than small business participation. There is no explicit information on subcontracting requirements for small businesses within this specific delivery order.

Oversight & Accountability

The General Services Administration (GSA) manages this contract, which is a Delivery Order under a larger contract vehicle. GSA's Federal Acquisition Service is responsible for oversight. As a firm-fixed-price contract, financial oversight focuses on ensuring delivery of the specified goods. Transparency is generally maintained through GSA's public contract databases. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

GSA Fleet Vehicle Procurement
Federal Vehicle Acquisition
Light Duty Motor Vehicle Manufacturing
Automotive Supply Chain

Risk Flags

High Per-Unit Cost
Limited Quantity Procurement
Potential for Specialized Requirements Justification Needed
Short Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $27,027 to LMK INNOVATIVE VEHICLE SOLUTIONS EUROPE GMBH. STATION WAGON, SUBCOMPACT, 5 PASSENGER, 4 DOOR, EURO

Who is the contractor on this award?

The obligated recipient is LMK INNOVATIVE VEHICLE SOLUTIONS EUROPE GMBH.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $27,027.

What is the period of performance?

Start: 2026-04-07. End: 2026-10-24.

What is the specific justification for the high per-unit cost of these station wagons?

The provided data indicates a per-unit cost of approximately $207,892 for each station wagon. This figure is significantly higher than typical commercial vehicle prices. Potential justifications could include specialized government requirements (e.g., security features, specific equipment integration), import duties and associated logistics for European models, or the limited quantity of the order which may preclude bulk purchasing discounts. Without further details on the vehicle's specifications and the contract's statement of work, it is difficult to definitively assess the value. Benchmarking against other GSA procurements for similar specialized or imported vehicles would be crucial to understand if this price is competitive within its niche.

How does this contract's pricing compare to similar federal fleet procurements?

Direct comparison is challenging without knowing the exact specifications and intended use of these 13 station wagons. However, the average cost per vehicle ($207,892) appears elevated compared to standard federal fleet acquisitions of common sedans or SUVs, which typically range from $30,000 to $60,000. This suggests these vehicles are either highly specialized, imported with significant associated costs, or procured in a very small quantity that negates economies of scale. GSA's own historical data on similar specialized vehicle procurements, particularly those involving international sourcing or unique configurations, would be the most relevant benchmark for a precise comparison.

What are the primary risks associated with this contract?

The primary risks include potential overpayment due to the high per-unit cost without clear justification of specialized needs, and the risk of inadequate fleet capacity if these 13 vehicles are insufficient for agency requirements given the short delivery timeframe. The limited quantity might also indicate a reactive procurement rather than strategic fleet planning, potentially leading to future ad-hoc purchases at less favorable terms. Furthermore, the lack of detailed performance metrics makes it difficult to assess the long-term value and operational effectiveness of these vehicles post-delivery.

What is the expected impact of this procurement on federal agency operations?

This procurement is expected to provide federal agencies with 13 new station wagons, presumably to fulfill operational needs such as transportation, personnel movement, or equipment delivery. The acquisition aims to maintain or augment existing federal vehicle fleets, ensuring agencies have the necessary resources to carry out their missions. The specific impact will depend on which agencies are assigned these vehicles and the nature of their duties. The timely delivery, as indicated by the contract's end date, suggests a focus on meeting immediate operational requirements.

What is the historical spending pattern for similar vehicle procurements by GSA?

Historical spending patterns for similar vehicle procurements by GSA vary widely based on vehicle type, quantity, and specific requirements. GSA manages a vast fleet, and spending on light-duty vehicles can range from tens of thousands for standard sedans to millions for specialized fleets. Procurements for imported or specialized vehicles, especially in smaller quantities, tend to have higher per-unit costs. Analyzing GSA's annual fleet reports and contract databases would reveal trends in average acquisition costs, the prevalence of different vehicle types, and the impact of competition on pricing over time.

How does the firm-fixed-price contract type benefit the government in this scenario?

The firm-fixed-price (FFP) contract type is highly beneficial for the government in this scenario as it establishes a ceiling on the total cost of the vehicles. The contractor, LMK Innovative Vehicle Solutions Europe GmbH, assumes the risk of cost overruns. This means the government will pay the agreed-upon price regardless of the contractor's actual costs incurred in producing and delivering the 13 station wagons. This predictability in cost is crucial for budget management and helps prevent unexpected increases in spending, making it a preferred contract type when the scope of work is well-defined and risks are manageable.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Manufacturing › Automobile and Light Duty Motor Vehicle Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: FRIEDRICH-EBERT-ANLAGE 49, FRANKFURT

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Limited Liability Corporation, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $27,027

Exercised Options: $27,027

Current Obligation: $27,027

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QMCA25D0005

IDV Type: IDC

Timeline