GSA awards $26,489 contract for 5-passenger, 4-door station wagons to LMK Innovative Vehicle Solutions Europe

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. Contract awarded for specialized vehicles, indicating a specific operational need. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. Delivery Order signifies a specific call against a larger contract vehicle. 4. Short performance period (200 days) implies a focused, short-term requirement. 5. No small business set-aside noted, suggesting a focus on larger prime contractors. 6. Contractor is based in Europe, potentially for overseas operations.

Value Assessment

Rating: fair

The contract value of $26,489 for a single station wagon appears high when compared to typical domestic retail or fleet purchase prices for similar vehicles. However, the specific model ('EURO') and potential overseas delivery or specialized features could justify a premium. Without more detail on the exact specifications and intended use, a definitive value assessment is challenging. Benchmarking against other government procurements for similar specialized European-market vehicles would be necessary for a more precise evaluation.

Cost Per Unit: N/A

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. With 13 bidders, this suggests a reasonably competitive environment for this specific vehicle type. The number of bidders provides some assurance that the government received multiple proposals, which typically aids in price discovery and achieving a fair market price.

Taxpayer Impact: Full and open competition with multiple bidders generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better terms.

Public Impact

Benefits personnel requiring specialized transportation, likely in overseas locations. Provides 5-passenger, 4-door station wagons for official use. Geographic impact is likely overseas, given the contractor's European base. Workforce implications are minimal, primarily affecting the end-users of the vehicles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher cost due to specialized European model and overseas logistics.
Limited transparency on specific vehicle features and their necessity.
Short performance period may indicate urgent or temporary need, requiring quick fulfillment.

Positive Signals

Awarded through full and open competition, ensuring broad market access.
Firm Fixed Price contract provides cost certainty.
Multiple bidders (13) suggest a competitive process.

Sector Analysis

This contract falls within the broader automotive manufacturing and sales sector, specifically related to light-duty motor vehicles. The General Services Administration (GSA) frequently procures vehicles for federal agencies. While the dollar amount is small, it represents a niche procurement for a specific type of vehicle, likely for use in a particular region or for a specialized function. Benchmarking would involve comparing prices for similar specialized vehicles procured by government entities, particularly those intended for international use.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). The presence of 13 bidders suggests that larger companies or those with established international operations were likely participants. There is no explicit information on subcontracting requirements, but given the nature of vehicle procurement, it's possible that components or services could be sourced from smaller businesses, though this is not a direct set-aside.

Oversight & Accountability

The contract is managed by the General Services Administration (GSA), which has established oversight mechanisms for federal procurements. As a Delivery Order against a larger contract vehicle, it likely falls under the existing oversight of that vehicle. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

GSA Fleet Vehicle Procurement
Automotive and Light Duty Motor Vehicle Manufacturing
Federal Supply Schedule Contracts

Risk Flags

Potential for higher cost due to specialized European model.
Logistical complexities and potential delays for overseas delivery.
Limited information on specific vehicle features and their necessity.
Short performance period may indicate urgent need, increasing delivery risk.

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 specific model and intended use of the 'STATION WAGON, SUBCOMPACT, 5 PASSENGER, 4 DOOR, EURO'?

The provided data describes the vehicle as a 'STATION WAGON, SUBCOMPACT, 5 PASSENGER, 4 DOOR, EURO'. The 'EURO' designation likely indicates a model designed for or originating from the European market, potentially differing in specifications, emissions standards, or features compared to domestic models. The intended use is not explicitly detailed but is for federal agency operations, likely requiring personnel transport. Without further details from the contract's statement of work or performance work statement, the precise features and specific operational context (e.g., overseas assignment, specialized duty) remain unspecified, making a full assessment of its necessity and value challenging.

How does the per-unit cost of $26,489 compare to similar government vehicle procurements?

A direct per-unit cost comparison is difficult without knowing the exact model, year, and specific features of the vehicle, as well as its intended operating environment (e.g., domestic vs. overseas). However, $26,489 for a subcompact station wagon is on the higher end for typical domestic government fleet purchases, which often aim for lower-cost, high-volume models. The 'EURO' designation suggests it might be a European-market vehicle, which can carry a premium due to import costs, different manufacturing standards, or specialized features not common domestically. Benchmarking against other GSA procurements for similar specialized or overseas-deployed vehicles would be necessary for a more accurate comparison of value.

What are the potential risks associated with procuring vehicles from a European-based supplier for potential overseas use?

Procuring vehicles from a European-based supplier, such as LMK Innovative Vehicle Solutions Europe GmbH, can introduce several risks. These include potential delays in delivery due to international shipping and customs, higher transportation and logistical costs, and complexities in warranty service and maintenance if the vehicle is intended for use in a region far from the supplier's base. Ensuring compliance with local regulations and standards in the destination country is also critical. Furthermore, currency exchange rate fluctuations could impact the final cost if payments are made in different currencies. The short performance period might exacerbate delivery risks if unforeseen international logistical challenges arise.

What does the 'Firm Fixed Price' contract type imply for cost management and potential overruns?

A 'Firm Fixed Price' (FFP) contract type is generally favorable for the government in terms of cost certainty. It means the price is set and not subject to adjustment based on the contractor's cost experience. This shifts the risk of cost overruns entirely to the contractor, LMK Innovative Vehicle Solutions Europe GmbH. For taxpayers, this implies that the $26,489 award amount is the maximum the government will pay for the specified goods. While this protects against unexpected cost increases from the contractor's side, it does not guarantee the price represents the best possible value if the initial fixed price was set too high due to lack of competition or inaccurate cost estimation by the contractor.

Given the 13 bidders, what is the likelihood that this contract achieved optimal price discovery?

With 13 bidders participating in the full and open competition, there is a reasonably good likelihood that the contract achieved a degree of optimal price discovery. A larger number of bids generally indicates a more competitive marketplace, which pressures bidders to offer more competitive pricing to win the contract. This scenario increases the probability that the awarded price reflects a fair market value for the specified vehicles. However, 'optimal' price discovery also depends on the bidders' understanding of the market, their cost structures, and the specific requirements of the solicitation. Without knowing the bid spread or the specific nature of the vehicles, it's difficult to definitively state it was 'optimal', but 13 bidders is a positive indicator.

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