GSA awards $24,625 contract for European-spec sedans to LMK Innovative Vehicle Solutions Europe GMBH

Contract Overview

Contract Amount: $24,625 ($24.6K)

Contractor: LMK Innovative Vehicle Solutions Europe Gmbh

Awarding Agency: General Services Administration

Start Date: 2026-04-07

End Date: 2026-09-22

Contract Duration: 168 days

Daily Burn Rate: $147/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SEDAN, SUBCOMPACT, 4 PASSENGER, 4 DOOR, EURO

Plain-Language Summary

General Services Administration obligated $24,625 to LMK INNOVATIVE VEHICLE SOLUTIONS EUROPE GMBH for work described as: SEDAN, SUBCOMPACT, 4 PASSENGER, 4 DOOR, EURO Key points: 1. Contract awarded for specialized vehicles, indicating a specific operational need. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. Short duration of 168 days points to a tactical or short-term requirement. 4. No small business set-aside, suggesting the competition was not specifically targeted towards small businesses. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 6. The North American Industry Classification System (NAICS) code 336110 relates to automobile manufacturing, aligning with the product procured.

Value Assessment

Rating: fair

The contract value of $24,625 for a single sedan appears high when considering typical government vehicle procurement. However, the description 'SEDAN, SUBCOMPACT, 4 PASSENGER, 4 DOOR, EURO' suggests a specialized, potentially imported or custom-configured vehicle that may justify a higher price point than standard domestic models. Without further details on the specific make, model, and features, a direct comparison to market rates is difficult. The price should be benchmarked against similar specialized vehicle procurements by the government or comparable international markets.

Cost Per Unit: $24,625 per vehicle

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 13 bids suggests a reasonably competitive environment for this specific vehicle requirement. A higher number of bidders generally leads to better price discovery and potentially lower prices for the government. The level of competition is a positive indicator for value, assuming the bids were evaluated rigorously.

Taxpayer Impact: Full and open competition with 13 bidders is beneficial for taxpayers as it increases the likelihood of obtaining the best possible price for the specialized sedans.

Public Impact

The primary beneficiaries are likely government personnel or agencies requiring specialized sedans for operations, potentially overseas or for specific diplomatic/protocol needs. The service delivered is the provision of 4-door, subcompact sedans configured to European specifications. The geographic impact is likely focused on areas where these specific European-spec vehicles are required, possibly including overseas assignments or specific domestic locations. Workforce implications are minimal, primarily related to the manufacturing and delivery of the vehicles by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher-than-average cost due to specialized European specifications.
Limited transparency on the specific make/model and features driving the unit price.
Short contract duration might indicate a rushed procurement or a need that could have been planned for longer-term, potentially more cost-effective solutions.

Positive Signals

Awarded under full and open competition, ensuring a broad range of potential suppliers could bid.
Multiple bids (13) indicate a healthy level of interest and competition for this requirement.
Firm Fixed Price contract type provides cost certainty for the government.

Sector Analysis

The procurement falls within the automotive manufacturing sector, specifically related to light-duty motor vehicles. The General Services Administration (GSA) often procures vehicles through various mechanisms, including IDIQ contracts, to meet agency needs. The market for specialized European-spec vehicles can be niche, with fewer manufacturers and distributors compared to standard domestic models. Benchmarking would require comparing against similar specialized vehicle procurements or international pricing for comparable models.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data indicates no indication of subcontracting plans for small businesses. This suggests that the competition was not specifically structured to benefit small businesses, and the primary contractor, LMK Innovative Vehicle Solutions Europe GMBH, is likely a larger entity or operates in a market where small business participation is not a primary focus for this type of specialized vehicle procurement.

Oversight & Accountability

The contract is managed by the General Services Administration (GSA), Federal Acquisition Service. Oversight is typically provided through contract administration, performance monitoring, and financial audits. As a delivery order under a potential larger contract, existing oversight mechanisms for the parent contract would apply. Transparency is generally maintained through public contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

GSA Fleet Vehicle Procurement
Department of State Vehicle Procurement
Overseas Motor Vehicle Procurement
Light Duty Vehicle Manufacturing

Risk Flags

Potential for high unit cost due to specialized specifications.
Limited public information on contractor's federal performance history.
Short contract duration may obscure long-term cost-effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $24,625 to LMK INNOVATIVE VEHICLE SOLUTIONS EUROPE GMBH. SEDAN, SUBCOMPACT, 4 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 $24,625.

What is the period of performance?

Start: 2026-04-07. End: 2026-09-22.

What specific European regulations or standards necessitate the procurement of these 'EURO' specified sedans, and how do these requirements impact the cost?

The 'EURO' specification likely refers to compliance with European Union emissions standards (e.g., Euro 6, Euro 7) and potentially safety regulations (e.g., ECE regulations). These standards often require more advanced and costly emission control systems, different lighting configurations, and potentially unique safety features compared to vehicles designed for the US market. The specific regulations would dictate the necessary modifications or model variants, directly influencing manufacturing costs, component sourcing, and ultimately the unit price. Without knowing the exact 'EURO' standard and the specific vehicle model, it's difficult to quantify the exact cost impact, but it is a common driver for higher prices in vehicles destined for or manufactured to European market specifications.

Can the $24,625 unit price be benchmarked against similar specialized vehicle procurements by the GSA or other federal agencies?

Benchmarking this $24,625 unit price requires identifying comparable procurements for specialized European-spec sedans. Standard subcompact sedans procured by the GSA for domestic use typically cost significantly less, often in the range of $18,000-$22,000 depending on trim and options. However, the 'EURO' specification suggests a non-standard vehicle. A thorough benchmark would involve searching contract databases for similar vehicles procured for overseas use or specific diplomatic missions, looking at make, model, year, and included options. If LMK Innovative Vehicle Solutions Europe GMBH is a European manufacturer or distributor, comparing against their commercial pricing in Europe, adjusted for import duties and shipping, could also provide context. The limited number of suppliers for such specialized vehicles might also restrict competitive pricing.

What is the track record of LMK Innovative Vehicle Solutions Europe GMBH in fulfilling federal contracts, particularly for vehicle procurements?

Information regarding LMK Innovative Vehicle Solutions Europe GMBH's track record with federal contracts is not readily available in standard public databases based solely on the provided data. A deeper search within the Federal Procurement Data System (FPDS) or other government contracting portals would be necessary to ascertain their history. Key aspects to investigate would include the number of previous federal awards, the types of vehicles or services provided, contract values, performance ratings (if available), and any history of contract modifications, disputes, or terminations. Understanding their past performance is crucial for assessing the risk associated with this current award and their capability to deliver the specified vehicles successfully.

Given the short duration (168 days), does this indicate a one-time need or a potential precursor to a larger, ongoing requirement for these specialized vehicles?

The short duration of 168 days (approximately 5.5 months) for this delivery order suggests a specific, immediate need rather than a long-term, continuous requirement. It could represent a need for a pilot program, a temporary deployment, replacement of a few specific vehicles, or a short-term project. However, it is also possible that this delivery order is part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract, where subsequent delivery orders could be issued to fulfill ongoing or expanded needs. Without visibility into the parent contract or the agency's broader vehicle strategy, it's difficult to definitively determine if this is a standalone requirement or the beginning of a larger procurement effort. Further analysis of the agency's historical spending patterns and future requirements would be needed.

How does the firm fixed price (FFP) contract type mitigate risks for the government in this specific procurement?

A Firm Fixed Price (FFP) contract type is generally advantageous for the government when the scope of work and requirements are well-defined, as is the case with procuring specific vehicles. Under an FFP agreement, the contractor, LMK Innovative Vehicle Solutions Europe GMBH, assumes the primary risk for cost overruns. This means the government is obligated to pay the agreed-upon price ($24,625 per sedan) regardless of the contractor's actual costs incurred in manufacturing and delivering the vehicles. This structure provides budget certainty and predictability for the General Services Administration, protecting taxpayers from unexpected increases in material, labor, or manufacturing expenses. The risk is shifted to the contractor, incentivizing them to manage their costs efficiently to maintain profitability.

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: $24,625

Exercised Options: $24,625

Current Obligation: $24,625

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