DoD's $371.8M LRIP 10 contract for armored vehicles awarded to General Dynamics, facing full and open competition

Contract Overview

Contract Amount: $371,769,370 ($371.8M)

Contractor: General Dynamics Land Systems - Force Protection Inc.

Awarding Agency: Department of Defense

Start Date: 2007-12-18

End Date: 2011-05-31

Contract Duration: 1,260 days

Daily Burn Rate: $295.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LRIP 10 DO 0007 VEHICLES, ILS AND ECP'S

Place of Performance

Location: LADSON, CHARLESTON County, SOUTH CAROLINA, 29456, UNITED STATES OF AMERICA

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $371.8 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC. for work described as: LRIP 10 DO 0007 VEHICLES, ILS AND ECP'S Key points: 1. The contract value of $371.8M for LRIP 10 is significant, indicating a substantial investment in military hardware. 2. General Dynamics Land Systems - Force Protection Inc. is the sole awardee, highlighting their position in this specialized manufacturing sector. 3. The award was made under full and open competition, suggesting a competitive bidding process aimed at achieving best value. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor and provides budget certainty for the government.

Value Assessment

Rating: good

The contract value of $371.8M for 10 Low Rate Initial Production (LRIP) lots appears reasonable given the specialized nature of armored vehicles. Benchmarking against similar defense contracts for advanced military platforms is necessary for a precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and allows the government to select the most advantageous offer based on technical merit and price.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently by securing the best possible price for these critical defense assets.

Public Impact

Enhances military armored vehicle capabilities for the Department of the Navy. Supports advanced manufacturing and defense industrial base in South Carolina. Represents a significant investment in national defense readiness. Potential for follow-on production contracts based on LRIP success.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific unit cost data makes detailed value assessment difficult.
Reliance on a single contractor for this specific LRIP lot.
Firm Fixed Price contracts can lead to contractor claims if scope changes significantly.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm Fixed Price contract provides cost certainty.
Supports critical defense modernization efforts.
Contractor has experience in armored vehicle production.

Sector Analysis

This contract falls within the Defense sector, specifically Military Armored Vehicle, Tank, and Tank Component Manufacturing. Spending in this area is driven by national security needs and technological advancements in military hardware. Benchmarks are highly specific to platform type and quantity.

Small Business Impact

The data indicates that the prime contractor is General Dynamics Land Systems - Force Protection Inc., a large business. There is no explicit information provided regarding subcontracting to small businesses within this specific award notice.

Oversight & Accountability

The award was made under a Low Rate Initial Production (LRIP) contract, suggesting it is part of a larger program potentially subject to ongoing oversight. The Firm Fixed Price nature implies cost controls are built-in, but monitoring performance and scope is crucial.

Related Government Programs

Military Armored Vehicle, Tank, and Tank Component Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost growth if scope changes significantly.
Dependence on a single large contractor.
Limited visibility into specific unit costs.
Long-term sustainment and upgrade costs not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $371.8 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC.. LRIP 10 DO 0007 VEHICLES, ILS AND ECP'S

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 $371.8 million.

What is the period of performance?

Start: 2007-12-18. End: 2011-05-31.

What is the specific unit cost for the vehicles and associated components under this contract, and how does it compare to industry benchmarks for similar armored platforms?

The provided data does not detail the specific unit cost for the vehicles or components. The total award value of $371.8M for 10 LRIP lots makes calculating a precise per-unit cost challenging without knowing the exact quantities of vehicles and items included. A thorough analysis would require access to detailed contract line item numbers (CLINs) and comparison with publicly available data on similar defense procurements.

What are the key performance metrics and potential risks associated with the contractor's ability to deliver these armored vehicles on time and to specification, given the firm fixed price structure?

Key performance metrics likely include delivery schedules, quality standards, and technical specifications adherence. The firm fixed price structure shifts cost overrun risk to the contractor, but potential risks include contractor performance issues, delays due to unforeseen technical challenges, or scope creep if not managed tightly. The government's oversight will focus on ensuring timely delivery and meeting all contractual requirements.

How does the government ensure effective price discovery and value for money when awarding large defense contracts like this, even under full and open competition?

Effective price discovery under full and open competition is achieved through detailed requirement specifications, robust source selection criteria, and evaluation of multiple proposals. The government likely uses independent cost estimates, historical pricing data, and competitive analysis to validate proposed prices. The selection process would weigh technical factors alongside price to ensure the best overall value, not just the lowest cost.

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, 29456

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $372,309,895

Exercised Options: $372,309,895

Current Obligation: $371,769,370

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785407D5031

IDV Type: IDC

Timeline