GSA Awards $26,489 Per Subcompact Station Wagon to LMK Innovative Vehicle Solutions Europe GmbH

Contract Overview

Contract Amount: $26,489 ($26.5K)

Contractor: LMK Innovative Vehicle Solutions Europe Gmbh

Awarding Agency: General Services Administration

Start Date: 2026-04-09

End Date: 2026-10-26

Contract Duration: 200 days

Daily Burn Rate: $132/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 $26,489 to LMK INNOVATIVE VEHICLE SOLUTIONS EUROPE GMBH for work described as: STATION WAGON, SUBCOMPACT, 5 PASSENGER, 4 DOOR, EURO Key points: 1. High per-unit cost for a subcompact vehicle. 2. Limited competition may have impacted pricing. 3. Potential risk associated with a single award. 4. Automobile manufacturing sector context is relevant.

Value Assessment

Rating: questionable

The average price of $26,489 per subcompact station wagon appears high when compared to similar government or commercial fleet purchases. Further benchmarking against comparable models is recommended.

Cost Per Unit: $26,489

Competition Analysis

Competition Level: full-and-open

While the contract was awarded under full and open competition, the data indicates only one award was made. This limited awardee pool might have restricted price discovery and potentially led to a higher per-unit cost.

Taxpayer Impact: Taxpayer funds are being used for vehicle procurement. The high per-unit cost suggests potential overspending if comparable vehicles could be acquired at a lower price.

Public Impact

Government fleet acquisition costs. Procurement practices for standard vehicles. Value for money in vehicle purchases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost
Limited awardees despite full and open competition

Positive Signals

Standard vehicle type
Firm fixed price contract

Sector Analysis

The Federal Acquisition Service procures vehicles for government use. Benchmarks for subcompact station wagons typically fall within a lower price range, making this award notable.

Small Business Impact

The data does not indicate if small businesses were involved in this procurement, 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 contract. Oversight would involve ensuring the vehicles meet specifications and the price is justified through competitive processes.

Related Government Programs

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

Risk Flags

High per-unit cost
Potential lack of robust competition despite 'full and open'
Single awardee for a standard item
Limited duration of the delivery order period

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $26,489 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 $26,489.

What is the period of performance?

Start: 2026-04-09. End: 2026-10-26.

What is the justification for the high per-unit cost of these subcompact station wagons compared to market averages?

The high per-unit cost warrants further investigation. While awarded under full and open competition, the single awardee may have limited competitive pressure. Factors such as specific vehicle features, customization, or unique logistical requirements could contribute, but a detailed cost breakdown and comparison to industry benchmarks are necessary to fully assess the value.

What are the risks associated with a single awardee for a standard vehicle procurement?

A single awardee, even under full and open competition, can pose risks. It may indicate a lack of sufficient bidders or a dominant market player. This can lead to reduced negotiation leverage for the government, potentially higher prices, and a lack of alternative sources if the awardee fails to perform or faces supply chain issues.

How effective is the current procurement strategy in securing cost-effective vehicle acquisitions for the government?

The effectiveness is questionable given the high per-unit cost. While the firm fixed price and full and open competition are positive indicators, the outcome suggests potential inefficiencies. Re-evaluating solicitation requirements, expanding outreach to potential bidders, or exploring different contract vehicles might enhance cost-effectiveness for future procurements.

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: $26,489

Exercised Options: $26,489

Current Obligation: $26,489

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