DoD awards $285M for MRAP vehicles, with General Dynamics Land Systems as prime contractor

Contract Overview

Contract Amount: $285,015,817 ($285.0M)

Contractor: General Dynamics Land Systems - Force Protection Inc.

Awarding Agency: Department of Defense

Start Date: 2007-06-19

End Date: 2009-07-31

Contract Duration: 773 days

Daily Burn Rate: $368.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CAT I AND II MRAP VEHICLES (USMC, NAVY, ARMY AND AIR FORCE)

Place of Performance

Location: LADSON, CHARLESTON County, SOUTH CAROLINA, 29456

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $285.0 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC. for work described as: CAT I AND II MRAP VEHICLES (USMC, NAVY, ARMY AND AIR FORCE) Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The duration of the contract is 773 days, indicating a medium-term project. 4. The award is for CAT I and II MRAP vehicles, crucial for troop protection. 5. The prime contractor, General Dynamics Land Systems, has a significant role in defense manufacturing. 6. The contract was awarded by the Department of the Navy, serving multiple branches. 7. The North American Industry Classification System (NAICS) code is 336992, related to military vehicle manufacturing.

Value Assessment

Rating: good

The total award amount of $285 million for MRAP vehicles appears to be a significant investment in troop safety. Benchmarking against similar large-scale vehicle procurements would be necessary for a precise value-for-money assessment. The firm fixed-price contract type is generally favorable for the government as it caps costs. However, without detailed cost breakdowns or comparisons to industry standards for MRAP production, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 10 bids suggests a healthy level of competition for this significant defense contract. A competitive process like this typically drives down prices and encourages innovation from bidders seeking to win the award.

Taxpayer Impact: A full and open competition for a contract of this magnitude is beneficial for taxpayers as it increases the likelihood of securing the best possible price and value for essential military equipment.

Public Impact

Troops in the U.S. Marine Corps, Navy, Army, and Air Force will benefit from enhanced protection through the delivery of MRAP vehicles. The contract supports the production and delivery of critical Mine-Resistant Ambush Protected (MRAP) vehicles. The geographic impact is national, with potential for deployment to various operational theaters. The contract has implications for the defense manufacturing workforce, particularly at General Dynamics Land Systems and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen production issues arise, despite the fixed-price nature.
Dependence on a single prime contractor for a critical defense capability.
Long-term sustainment and maintenance costs for these specialized vehicles are not detailed in this award.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm Fixed Price contract type limits government cost exposure.
Contract addresses a critical need for troop survivability in combat zones.
Multiple branches of the military are beneficiaries, indicating broad utility.

Sector Analysis

The defense manufacturing sector, specifically armored vehicle production, is characterized by high R&D costs, stringent quality requirements, and significant government contracts. This contract for MRAP vehicles fits within the broader market for military ground vehicles, which is a substantial segment of the defense industry. Comparable spending benchmarks would involve looking at other large-scale vehicle procurement contracts within the Department of Defense.

Small Business Impact

The data indicates that small business participation was not a primary set-aside focus for this specific contract, as the 'sb' field is false. However, large prime contractors like General Dynamics Land Systems often utilize small businesses for subcontracting opportunities to fulfill specialized needs or meet diversity goals. The impact on the small business ecosystem would depend on the extent of subcontracting awarded.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and acquisition oversight mechanisms. The Inspector General's office within the DoD would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is facilitated through contract award databases, but detailed performance and cost reporting would be subject to specific contractual clauses and reporting requirements.

Related Government Programs

Mine-Resistant Ambush Protected (MRAP) Vehicle Program
Department of Defense Vehicle Procurement
Tactical Wheeled Vehicle Programs
Ground Combat Vehicle Modernization

Risk Flags

Potential for production delays
High unit cost of specialized vehicles
Long-term sustainment costs not fully detailed

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $285.0 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC.. CAT I AND II MRAP VEHICLES (USMC, NAVY, ARMY AND AIR FORCE)

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 $285.0 million.

What is the period of performance?

Start: 2007-06-19. End: 2009-07-31.

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

Historical spending on MRAP vehicles has been substantial, particularly following the increased demand for troop protection in Iraq and Afghanistan. The initial surge in MRAP procurement saw billions of dollars allocated annually. Over time, as operational needs evolved and newer vehicle platforms were introduced, spending on MRAPs has generally decreased. However, periodic awards for sustainment, upgrades, and replacement parts continue. Analyzing specific award data over the years reveals fluctuations tied to wartime needs, budget cycles, and strategic shifts in military operations. This particular $285 million award in 2007-2009 represents a significant investment during a period of high operational tempo.

How does the unit cost of these MRAP vehicles compare to similar armored vehicles?

Determining the precise unit cost for these MRAP vehicles is challenging without access to the detailed contract line items and the specific configurations awarded. However, MRAP vehicles, by their nature, are complex and expensive due to their specialized blast-resistant design and advanced protection systems. Early MRAP variants could range from several hundred thousand dollars to over a million dollars per unit, depending on the model, protection level, and mission equipment. Comparing this to other armored vehicles, such as standard armored personnel carriers or lighter tactical vehicles, would show MRAPs to be on the higher end of the cost spectrum due to their unique survivability features. The total award of $285 million divided by the number of vehicles (if known) would provide an average cost, which could then be benchmarked against industry data for similar protected mobility platforms.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

Key performance indicators for a contract like this typically revolve around timely delivery of vehicles meeting specified technical requirements and quality standards. Performance measurement would likely involve tracking delivery schedules against milestones, conducting rigorous testing and acceptance procedures for each vehicle, and ensuring compliance with all contractual specifications, including armor protection levels and operational capabilities. The government would monitor defect rates, warranty claims, and adherence to safety and performance criteria. The firm fixed-price nature of the contract incentivizes the contractor to meet these KPIs to avoid penalties and ensure full payment, while the government's quality assurance representatives would be actively involved in verifying compliance throughout the contract period.

What is the track record of General Dynamics Land Systems in delivering large defense vehicle contracts?

General Dynamics Land Systems (GDLS) has a long and extensive track record of delivering large, complex defense vehicle contracts to the U.S. military and allied nations. They are a major player in the armored vehicle market, known for producing Abrams tanks, Stryker combat vehicles, and various other tactical wheeled and tracked platforms. GDLS has historically managed large-scale production programs, often involving significant technological integration and supply chain management. While specific performance details for every contract are not publicly available, their continued success in winning and executing major defense awards suggests a generally strong capability in program management, manufacturing, and on-time delivery, though like any large contractor, they may have faced challenges on specific programs.

What are the potential risks associated with the production and deployment of MRAP vehicles?

Potential risks associated with MRAP production and deployment include manufacturing defects that could compromise survivability, delays in production impacting operational readiness, and the high cost of acquisition and sustainment. Furthermore, the effectiveness of MRAP vehicles can be reduced by evolving threats, such as advanced improvised explosive devices (IEDs) or new anti-armor technologies. Logistical challenges in maintaining and repairing these complex vehicles in diverse operational environments also pose a risk. Finally, the sheer weight and size of some MRAP variants can limit their mobility in certain terrains or infrastructure, presenting operational deployment risks.

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

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, 01

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $285,015,817

Exercised Options: $285,015,817

Current Obligation: $285,015,817

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785407D5031

IDV Type: IDC

Timeline