DoD's $27.7M MRAP contract to General Dynamics awarded under full and open competition

Contract Overview

Contract Amount: $27,768,646 ($27.8M)

Contractor: General Dynamics Land Systems - Force Protection Inc.

Awarding Agency: Department of Defense

Start Date: 2008-03-14

End Date: 2010-06-30

Contract Duration: 838 days

Daily Burn Rate: $33.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CATEGORY I MRAP

Place of Performance

Location: LADSON, CHARLESTON County, SOUTH CAROLINA, 29456

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $27.8 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC. for work described as: CATEGORY I MRAP Key points: 1. Contract awarded for armored vehicles, indicating a need for enhanced troop protection. 2. Full and open competition suggests a potentially competitive bidding process. 3. Firm Fixed Price contract type aims to control costs and provide predictability. 4. Contract duration of over two years implies a significant, ongoing requirement. 5. Awarded by the Department of the Navy, highlighting naval force modernization efforts. 6. The contract falls under the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' NAICS code.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more granular data on the MRAP variant and quantities. However, the total award amount of $27.7 million over approximately two years suggests a moderate investment in armored vehicle acquisition. The firm fixed-price structure is a positive indicator for cost control. Further analysis would require comparing the per-unit cost against similar MRAP procurements during that period and assessing the contractor's performance history on this and comparable contracts.

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 bids. The presence of 10 bidders (no) suggests a healthy level of interest and competition for this requirement. This broad competition is generally favorable for price discovery and potentially leads to more competitive pricing for the government.

Taxpayer Impact: A competitive bidding process like this one helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Troops requiring enhanced protection in combat zones benefit from the delivery of MRAP vehicles. The contract supports the Department of the Navy's operational readiness and force projection capabilities. Manufacturing and assembly activities likely created or sustained jobs within the defense industrial base. The geographic impact is primarily centered around the contractor's facilities in South Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the delivered vehicles.
The contract's value, while significant, is a single data point; long-term sustainment and operational costs are not detailed.
Limited information on the specific MRAP variant procured hinders a precise comparison to market alternatives.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
The contract addresses a critical need for protected mobility, enhancing soldier safety.

Sector Analysis

This contract falls within the broader 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' sector. This industry is characterized by high barriers to entry, significant R&D investment, and long production cycles. General Dynamics Land Systems is a major player in this space. Comparable spending benchmarks would involve analyzing other large-scale armored vehicle procurement contracts awarded by the DoD during the same period.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (sb: false) and did not involve small business subcontracting goals (st: SC, likely referring to South Carolina, not set-aside status). Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though the prime contractor may engage small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and acquisition oversight mechanisms. The firm fixed-price nature provides some cost control. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Mine-Resistant Ambush Protected (MRAP) Vehicles
Tactical Wheeled Vehicles
Department of Defense Vehicle Procurement
Naval Surface Warfare

Risk Flags

Contract awarded during a period of high demand for MRAPs.
Limited detail on specific variant and performance metrics.
No explicit small business subcontracting goals mentioned.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.8 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC.. CATEGORY I 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 $27.8 million.

What is the period of performance?

Start: 2008-03-14. End: 2010-06-30.

What was the specific variant of the MRAP vehicle procured under this contract, and how did its capabilities compare to other available options at the time?

The provided data does not specify the exact MRAP variant procured. The MRAP program encompassed several variants (e.g., Category I, II, III) with differing protection levels, payload capacities, and mission roles. Without this detail, a direct comparison of capabilities is not possible. However, the overarching goal of the MRAP program was to provide enhanced protection against IEDs and ambushes compared to traditional armored personnel carriers. The selection of a specific variant would depend on the intended operational environment and mission requirements of the Department of the Navy at the time of award.

How does the per-unit cost of the MRAP vehicles procured under this contract compare to other similar procurements by the DoD during the 2008-2010 timeframe?

The provided data does not include per-unit cost information, only the total contract value of $27.7 million. To perform a meaningful comparison, the total value would need to be divided by the number of units procured. Furthermore, the specific MRAP variant, configuration, and any included support packages would significantly influence per-unit costs. Benchmarking would require accessing detailed procurement data for comparable MRAP variants awarded to different contractors or the same contractor during the same period, factoring in inflation and any unique contract terms.

What was General Dynamics Land Systems' track record with MRAP production or similar armored vehicle contracts prior to this award?

General Dynamics Land Systems (GDLS) has a long history and extensive experience in producing armored vehicles for the U.S. military and international customers. Prior to this specific 2008 contract, GDLS was already a significant defense contractor involved in various armored vehicle programs. While the data doesn't detail their specific MRAP experience before this award, their established presence in the armored vehicle manufacturing sector suggests they possessed the necessary manufacturing capabilities and expertise. Their broader portfolio likely included tracked and wheeled armored vehicles, providing a foundation for undertaking the MRAP contract.

What were the primary performance expectations or Key Performance Parameters (KPPs) associated with this MRAP contract?

The provided data does not specify the Key Performance Parameters (KPPs) or detailed performance expectations for this particular contract. Typically, MRAP contracts would include requirements related to blast protection levels (against mines and IEDs), mobility (speed, range, off-road capability), survivability, crew protection, and potentially payload capacity. The firm fixed-price nature suggests that performance standards were clearly defined and agreed upon to ensure accountability for the contractor.

How has the total federal spending on MRAP vehicles evolved since this contract was awarded in 2008?

Federal spending on MRAP vehicles saw a significant surge following the initial awards in the mid-2000s, driven by urgent operational needs in Iraq and Afghanistan. This $27.7 million contract from 2008 falls within that peak period. Post-2010, as troop levels decreased in those theaters and focus shifted, spending on new MRAP procurements generally declined, although sustainment, upgrades, and refurbishment contracts continued. The total federal outlay for MRAPs reached billions of dollars across various manufacturers and variants throughout the height of the conflicts.

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: $27,768,646

Exercised Options: $27,768,646

Current Obligation: $27,768,646

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785407D5031

IDV Type: IDC

Timeline