DoD awarded $94M for MRAP vehicles, with 10 contracts issued under full and open competition

Contract Overview

Contract Amount: $93,999,460 ($94.0M)

Contractor: General Dynamics Land Systems - Force Protection Inc.

Awarding Agency: Department of Defense

Start Date: 2007-08-10

End Date: 2009-04-20

Contract Duration: 619 days

Daily Burn Rate: $151.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: (125) CATEGORY I AND II MRAP VEHICLES

Place of Performance

Location: LADSON, CHARLESTON County, SOUTH CAROLINA, 29456

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $94.0 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC. for work described as: (125) CATEGORY I AND II MRAP VEHICLES Key points: 1. Value for money assessed through firm-fixed-price contracts, aiming for predictable costs. 2. Competition dynamics indicate a broad market engagement for armored vehicle manufacturing. 3. Risk indicators include contract duration and the specialized nature of military vehicle production. 4. Performance context is within the Department of the Navy's broader procurement strategy for ground vehicles. 5. Sector positioning is within the defense manufacturing industry, specifically armored vehicles.

Value Assessment

Rating: good

The total award of $94 million for MRAP vehicles appears reasonable given the specialized nature of military hardware. The firm-fixed-price contract type suggests an effort to control costs and provide predictability for the government. Benchmarking against similar large-scale military vehicle procurements would provide a more precise value assessment, but the scale of the award is consistent with major defense equipment acquisitions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The presence of 10 contracts indicates a healthy level of competition within the market for these specialized vehicles. This broad competition is generally expected to drive competitive pricing and encourage innovation among suppliers.

Taxpayer Impact: Full and open competition benefits taxpayers by ensuring that the government receives the best possible pricing and quality through a wide range of potential suppliers vying for the contract.

Public Impact

The primary beneficiaries are the U.S. military personnel who will utilize these MRAP vehicles for enhanced protection in combat zones. The services delivered include the manufacturing and supply of Category I and II MRAP vehicles. The geographic impact is primarily within the defense supply chain and potentially at the operational deployment locations of the U.S. military. Workforce implications include employment in specialized manufacturing roles within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if production complexities are underestimated.
Supply chain disruptions for specialized components could impact delivery timelines.
Ensuring interoperability and maintenance support across a fleet of newly acquired vehicles.

Positive Signals

Firm-fixed-price contracts help mitigate cost escalation risks.
Full and open competition suggests a robust supplier base capable of meeting demand.
The award is for critical force protection equipment, addressing an urgent operational need.

Sector Analysis

The defense manufacturing sector, particularly for armored vehicles, is characterized by high barriers to entry due to technological complexity, stringent quality requirements, and significant capital investment. This contract fits within the broader market for tactical wheeled vehicles, which is a substantial segment of defense spending. Comparable spending benchmarks would involve other large-scale procurements of armored personnel carriers or similar protected mobility platforms.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The prime contractor, General Dynamics Land Systems, is a large entity, suggesting that subcontracting opportunities may exist within its supply chain. However, without specific set-aside information, the direct impact on the small business ecosystem is not immediately clear and would require further investigation into the prime contractor's subcontracting plan.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified vehicles. Transparency is facilitated through contract award databases, though detailed performance metrics and oversight reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Mine-Resistant Ambush Protected (MRAP) Vehicle Program
Tactical Wheeled Vehicles
Ground Combat Systems Procurement
Department of Defense Vehicle Manufacturing Contracts

Risk Flags

Potential for schedule slippage
Cost escalation risk
Supply chain dependency
Quality assurance challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $94.0 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC.. (125) CATEGORY I AND II MRAP VEHICLES

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 $94.0 million.

What is the period of performance?

Start: 2007-08-10. End: 2009-04-20.

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

The Department of Defense has historically spent billions of dollars on Mine-Resistant Ambush Protected (MRAP) vehicles, particularly during the height of conflicts in Iraq and Afghanistan. Initial procurements were rapid and substantial, driven by urgent operational needs to protect troops from Improvised Explosive Devices (IEDs). Over time, spending has shifted towards modernization, sustainment, and the procurement of newer generations of protected mobility platforms. The $94 million awarded in this instance represents a specific procurement action within a larger, ongoing lifecycle of MRAP acquisition and support, reflecting a period where the need for these vehicles was still significant, though perhaps not at the peak emergency levels of earlier years. Analyzing annual spending reports and program executive office data would reveal the broader financial commitment to MRAP sustainment and replacement.

How does the per-unit cost of these MRAP vehicles compare to industry benchmarks or similar government contracts?

Determining the precise per-unit cost for these specific MRAP vehicles is challenging without access to the detailed contract line items and the exact configuration of the awarded vehicles. However, historical data suggests that MRAP vehicles, due to their specialized armor, blast-resistant seating, and robust chassis, typically command a significant price. Early MRAP variants could range from several hundred thousand dollars to over a million dollars per unit, depending on the model, protection level, and vendor. The total award of $94 million for 10 contracts (assuming 10 vehicles, though '10 contracts' could imply multiple vehicles per contract) suggests an average of approximately $9.4 million per contract, which could translate to a high per-unit cost if each contract was for a single vehicle. A more accurate comparison would require knowing the specific MRAP variants procured and benchmarking against contemporary awards for similar configurations from other manufacturers or previous buys by the DoD.

What are the primary risks associated with the production and deployment of MRAP vehicles under this contract?

The primary risks associated with the production and deployment of MRAP vehicles under this contract include potential production delays due to the complexity of manufacturing armored vehicles and specialized components, supply chain vulnerabilities for critical materials, and quality control issues to ensure the vehicles meet stringent survivability standards. On the deployment side, risks involve maintenance and sustainment challenges, ensuring adequate training for operators and maintainers, and the potential for obsolescence as newer technologies emerge. Furthermore, the firm-fixed-price nature of the contract, while beneficial for cost control, can shift risks to the contractor if unforeseen production challenges arise, potentially impacting delivery schedules or contractor profitability, which could indirectly affect long-term support.

What is the track record of General Dynamics Land Systems in delivering complex military vehicle contracts?

General Dynamics Land Systems (GDLS) has a long and extensive track record in delivering complex military vehicle contracts for the U.S. Department of Defense and allied nations. They are a major manufacturer of armored vehicles, including the Abrams Main Battle Tank, Stryker family of vehicles, and have been involved in various MRAP programs. GDLS has demonstrated capabilities in large-scale production, systems integration, and program management for highly sophisticated defense platforms. While specific contract performance can vary, GDLS is generally considered a reliable and experienced prime contractor for major defense acquisition programs. Their history includes successfully delivering thousands of vehicles under demanding conditions, though like any large defense contractor, they have also faced scrutiny regarding cost, schedule, and performance on specific programs.

How does this contract align with the Department of the Navy's broader strategy for ground vehicle modernization?

This contract for MRAP vehicles aligns with the Department of the Navy's (DoN) broader strategy to provide protected mobility for its expeditionary forces, particularly the U.S. Marine Corps. While the Navy is not the primary user of MRAPs, it procures and manages these assets for its ground combat elements. The strategy often involves balancing the need for survivability against factors like mobility, payload, and logistical footprint. MRAPs were a critical response to the IED threat, and their continued procurement or sustainment reflects an ongoing commitment to troop protection. As the DoN modernizes its ground vehicle fleet, decisions regarding MRAP procurement are likely integrated with plans for future platforms, potentially including upgrades to existing MRAPs or the transition to next-generation vehicles that offer enhanced capabilities and potentially reduced logistical burdens.

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, 01

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $93,999,460

Exercised Options: $93,999,460

Current Obligation: $93,999,460

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785407D5031

IDV Type: IDC

Timeline