GSA Awards $246K for 13 Subcompact Sedans to LMK Innovative Vehicle Solutions Europe

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. Spending focuses on acquiring subcompact sedans for government use. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract is a delivery order under a larger agreement. 4. Key data points include the total award amount and quantity of vehicles.

Value Assessment

Rating: fair

The average price per vehicle is approximately $18,942. This price needs to be benchmarked against similar subcompact sedan procurements by GSA or other agencies to determine its competitiveness.

Cost Per Unit: $18,942

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for the acquisition of standard government fleet vehicles, with the expectation of competitive pricing due to the procurement method.

Public Impact

Acquisition of vehicles impacts federal agency operational capabilities. The procurement supports the automotive manufacturing sector. Availability of government fleet vehicles can influence agency travel and operational efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher-than-market prices if benchmarking is not thorough.
Dependence on a single vendor for this specific delivery order.
Limited duration of the delivery order may require future procurements.

Positive Signals

Full and open competition utilized.
Clear quantity and delivery timeline specified.
Firm fixed price contract type mitigates cost overrun risk.

Sector Analysis

This procurement falls within the broader category of vehicle manufacturing and fleet management. Benchmarks for similar subcompact sedan acquisitions by government entities are crucial for assessing value.

Small Business Impact

The data does not indicate if small businesses were involved in this specific delivery order, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The General Services Administration (GSA) is responsible for this procurement, utilizing its Federal Acquisition Service. Oversight would involve ensuring compliance with acquisition regulations and contract terms.

Related Government Programs

Automobile and Light Duty Motor Vehicle Manufacturing
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for price variance if not benchmarked against current market rates.
Limited duration of the delivery order.
Lack of detail on small business participation.
Geographic location of the vendor (Europe) may introduce logistical complexities or currency exchange considerations.

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 is the market price for similar subcompact sedans in the specified region to assess the value for money?

To assess value for money, market research on comparable subcompact sedans (e.g., Toyota Corolla, Honda Civic, Volkswagen Golf) in the European market is essential. This includes examining base MSRP, fleet discounts offered by manufacturers, and prices from other government or large commercial fleet contracts awarded recently. Comparing the $18,942 per-unit cost against these benchmarks will reveal if the GSA secured a competitive price.

What are the risks associated with a delivery order under a larger contract, particularly regarding long-term cost and availability?

Delivery orders under larger contracts can pose risks if the base contract's terms are not fully understood or if the vendor faces supply chain issues. For long-term needs, relying on multiple delivery orders might lead to price variations over time compared to a single, larger contract. Ensuring the base contract has favorable terms and that the vendor has a robust supply chain is critical to mitigate these risks.

How does the firm-fixed-price contract type impact the government's risk and the vendor's incentive for cost control?

A firm-fixed-price (FFP) contract shifts most of the cost risk to the contractor (LMK Innovative Vehicle Solutions Europe GMBH). The vendor is obligated to deliver the vehicles at the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to manage their costs effectively and efficiently to maximize profit, while providing the government with cost certainty and predictability.

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