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 inflated pricing. 3. Potential for better pricing through broader competition. 4. Sector benchmark for vehicle manufacturing needs review.

Value Assessment

Rating: questionable

The price of $26,489 per subcompact station wagon appears high when compared to typical government fleet vehicle procurements. Similar vehicles often cost significantly less, especially when purchased in bulk.

Cost Per Unit: $26,489

Competition Analysis

Competition Level: full-and-open

Although advertised as full and open competition, the award to a single vendor suggests limited actual participation or a highly specialized requirement. This lack of robust competition may have prevented price discovery and led to a higher-than-necessary award price.

Taxpayer Impact: Taxpayers may be overpaying for these vehicles due to potentially insufficient competition, impacting the overall value for money.

Public Impact

Government fleet costs are increased by this procurement. Limited availability of similar vehicles in the market could be a factor. Future procurements may face similar pricing challenges if competition remains limited.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost
Potential lack of true competition
Limited contract duration

Positive Signals

Clear contract type (FFP)
Defined delivery period

Sector Analysis

The automotive manufacturing sector is highly competitive, with numerous established players. Government agencies typically leverage bulk purchasing power to achieve lower prices than the commercial market for standard vehicles.

Small Business Impact

The data does not indicate whether small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The General Services Administration (GSA) is responsible for managing government vehicle fleets. Oversight should ensure competitive pricing and value for taxpayer dollars in all vehicle acquisitions.

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 for limited effective competition
Lack of detailed justification for price
Short contract duration may limit long-term savings

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 factors contributed to the high per-unit cost of these subcompact station wagons?

The high per-unit cost could be attributed to several factors, including specific vehicle features or customization required by the agency, limited availability of this particular model in the market, or potentially insufficient competition during the bidding process. The vendor's overhead and profit margins for this specialized European market delivery may also play a role.

What are the risks associated with awarding a contract at this price point with potentially limited competition?

The primary risk is paying an inflated price for the vehicles, representing poor value for taxpayer money. There's also a risk that future procurements of similar vehicles could be influenced by this higher benchmark, further increasing government spending. Additionally, a lack of robust competition can stifle innovation and efficiency within the supply chain.

How effective is this procurement in meeting the government's need for transportation at a reasonable cost?

The effectiveness is questionable given the high per-unit cost. While the vehicles may meet the agency's functional requirements, the price suggests that the government is not achieving optimal value. Alternative sourcing or a more competitive bidding process could potentially yield more cost-effective solutions for the same or similar transportation needs.

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