DoD's $75.6M MRAP contract awarded to General Dynamics Land Systems - Force Protection Inc. for armored vehicles

Contract Overview

Contract Amount: $75,643,475 ($75.6M)

Contractor: General Dynamics Land Systems - Force Protection Inc.

Awarding Agency: Department of Defense

Start Date: 2007-02-14

End Date: 2009-03-24

Contract Duration: 769 days

Daily Burn Rate: $98.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CATEGORY II MRAP

Place of Performance

Location: LADSON, CHARLESTON County, SOUTH CAROLINA, 29456

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $75.6 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC. for work described as: CATEGORY II MRAP Key points: 1. Value for money appears fair given the firm fixed-price nature and the competitive award. 2. Competition dynamics indicate a full and open process, likely driving competitive pricing. 3. Risk indicators are moderate, with a firm fixed-price contract and a single delivery order. 4. Performance context is within the scope of military armored vehicle manufacturing. 5. Sector positioning is within the defense industrial base, specifically armored vehicle production.

Value Assessment

Rating: fair

The total award of $75.6 million for 10 units of CATEGORY II MRAP vehicles suggests a per-unit cost of approximately $7.56 million. Benchmarking this against similar specialized military vehicle procurements is challenging without more granular data on specific configurations and capabilities. However, the firm fixed-price contract structure provides cost certainty for the government, which is a positive indicator for value.

Cost Per Unit: Approximately $7.56 million per unit.

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 10 bidders suggests a robust competitive environment, which typically leads to better price discovery and potentially lower costs for the government. The specific details of the bidding process and the number of proposals received would provide further insight into the intensity of the competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by ensuring that the government receives the best possible pricing through market forces, rather than being limited to a restricted set of vendors.

Public Impact

The primary beneficiaries are the Department of the Navy and the broader Department of Defense, receiving critical armored vehicle capabilities. The services delivered include the manufacturing and provision of CATEGORY II Mine-Resistant Ambush Protected (MRAP) vehicles. The geographic impact is primarily within South Carolina, where the contractor is located, potentially supporting local employment and economic activity. Workforce implications include employment opportunities within the defense manufacturing sector, particularly in armored vehicle production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm fixed-price contract does not adequately account for all production complexities.
Dependence on a single contractor for a critical defense asset could pose supply chain risks.
Limited visibility into the specific technological advancements or unique features of these MRAP units without further detail.

Positive Signals

Awarded through a full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract provides cost certainty for the government.
Contract awarded to a known entity in defense manufacturing (General Dynamics Land Systems - Force Protection Inc.).

Sector Analysis

The defense industrial base, specifically the armored vehicle manufacturing sector, is characterized by high barriers to entry due to specialized technology, stringent quality requirements, and significant capital investment. This contract for MRAP vehicles fits within the broader category of military vehicle production, a segment that often sees substantial government investment driven by operational needs and technological advancements. Comparable spending benchmarks would typically involve other large-scale military vehicle procurements, where unit costs can vary widely based on complexity and quantity.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The prime contractor, General Dynamics Land Systems - Force Protection Inc., is a large entity. Subcontracting opportunities for small businesses may exist within the supply chain for components and services, but this is not explicitly detailed in the award information. The overall impact on the small business ecosystem would depend on the extent of their inclusion in the supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed performance metrics and specific oversight activities may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Mine-Resistant Ambush Protected (MRAP) Vehicle Program
Department of Defense Armored Vehicle Procurement
Tactical Wheeled Vehicle Fleet Modernization
General Dynamics Land Systems Contracts
Force Protection Inc. Contracts

Risk Flags

Single Delivery Order
Firm Fixed Price Contract
Specialized Vehicle Procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.6 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC.. CATEGORY II MRAP

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $75.6 million.

What is the period of performance?

Start: 2007-02-14. End: 2009-03-24.

What is the historical spending trend for CATEGORY II MRAP vehicles by the Department of Defense?

Analyzing historical spending trends for CATEGORY II MRAP vehicles requires access to comprehensive contract databases and budget allocations over several fiscal years. The provided data point represents a single delivery order from 2007-2009. To establish a trend, one would need to aggregate all awards for this specific vehicle category, noting variations in quantity, unit price, and contract type (e.g., firm fixed-price, cost-plus). Factors influencing spending trends include evolving battlefield requirements, technological upgrades, fleet sustainment needs, and overall defense budget priorities. A significant increase or decrease in spending could indicate shifts in strategic focus or the effectiveness of previous procurement strategies. Without broader historical data, it is difficult to ascertain if the $75.6 million award represents a typical investment or an outlier.

How does the per-unit cost of these MRAP vehicles compare to other similar armored vehicle procurements by the DoD?

The per-unit cost of approximately $7.56 million for these CATEGORY II MRAP vehicles needs careful comparison. MRAP vehicles are specialized, designed to protect against IEDs and ambushes, which inherently drives up costs compared to standard armored personnel carriers. To make a valid comparison, one must look at procurements of vehicles with similar protection levels, payload capacities, and operational roles. For instance, comparing it to a Stryker vehicle or a Abrams tank would be inappropriate due to vastly different design purposes and costs. A more relevant comparison would be to other MRAP variants or similarly protected transport vehicles procured around the same timeframe. Factors like quantity ordered, contract type (firm fixed-price vs. cost-plus), and specific technological features (e.g., advanced armor, communication systems) significantly influence unit cost. Without these comparative details, the $7.56 million figure is difficult to benchmark accurately.

What is the track record of General Dynamics Land Systems - Force Protection Inc. in delivering complex military vehicle contracts?

General Dynamics Land Systems (GDLS) has a long and extensive track record in delivering complex military vehicle contracts, including tanks, armored personnel carriers, and other specialized platforms. Force Protection Inc., which was acquired by GDATP (a subsidiary of General Dynamics), specialized in MRAP vehicles. Their combined experience suggests a strong capability in designing, manufacturing, and delivering robust, survivable vehicles. GDLS has been a primary contractor for programs like the Abrams tank and the Stryker family of vehicles. Their history includes managing large-scale production, integrating advanced technologies, and meeting stringent military specifications. While specific performance metrics for this particular MRAP contract (336992) are not detailed here, the company's overall reputation and extensive portfolio indicate a generally reliable performance in fulfilling demanding defense contracts.

What are the potential risks associated with a single delivery order for a large quantity of specialized vehicles?

A single delivery order for a large quantity of specialized vehicles, such as these MRAP units, presents several potential risks. Firstly, it concentrates the entire production effort into one order, meaning any delays or issues in manufacturing directly impact the full quantity. This can lead to significant schedule slippage. Secondly, if the initial order is large, it might limit the government's flexibility to adapt to changing requirements or incorporate mid-production upgrades without substantial change orders, which can be costly and time-consuming. Thirdly, if the contractor encounters unforeseen production challenges or cost increases, the firm fixed-price nature of the contract could lead to disputes or, in extreme cases, contractor default, jeopardizing the entire delivery. Finally, a single large order might not provide the contractor with the same incentive for continuous process improvement as a series of smaller, phased orders.

How has the market for armored vehicles evolved since this contract was awarded in 2007?

The market for armored vehicles has evolved significantly since this contract's award in 2007. The MRAP program itself was a direct response to the urgent need for enhanced survivability against IED threats in Iraq and Afghanistan. Initially, the focus was on rapid production and deployment of existing designs. Post-2007, the market saw a shift towards more versatile, multi-role armored vehicles, incorporating advanced protection systems (like active protection systems), improved mobility, and modular designs. There's also been a growing emphasis on network-centric capabilities, C4ISR integration, and reduced logistical footprints. Furthermore, the rise of unmanned systems and counter-insurgency doctrines has influenced vehicle design, leading to a broader spectrum of armored platforms beyond traditional heavy tanks and APCs. Competition has also intensified, with established players and new entrants vying for contracts focused on next-generation capabilities.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M6785407R5000

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 9801 HIGHWAY 78 # 3, LADSON, SC, 29456

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $75,643,475

Exercised Options: $75,643,475

Current Obligation: $75,643,475

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785407D5031

IDV Type: IDC

Timeline