DoD awards $200M for vehicle parts, with General Dynamics Land Systems as primary contractor

Contract Overview

Contract Amount: $199,066,800 ($199.1M)

Contractor: General Dynamics Land Systems - Force Protection Inc.

Awarding Agency: Department of Defense

Start Date: 2010-04-23

End Date: 2012-12-25

Contract Duration: 977 days

Daily Burn Rate: $203.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SEAT STANCHION KITS

Place of Performance

Location: LADSON, CHARLESTON County, SOUTH CAROLINA, 29456

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $199.1 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC. for work described as: SEAT STANCHION KITS Key points: 1. Contract value is substantial, indicating significant demand for these specialized vehicle components. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 977 days points to a sustained need for these parts. 4. The primary contractor, General Dynamics Land Systems, is a major player in defense manufacturing. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The contract is for 'SEAT STANCHION KITS', a specific but critical component for military vehicles.

Value Assessment

Rating: good

The total award of approximately $200 million over a period of roughly 3 years represents a significant investment in vehicle sustainment. Benchmarking this against similar contracts for specialized vehicle components is challenging without more granular data on the specific kits. However, the firm fixed-price nature of the contract suggests that the government has negotiated a price that the contractor is expected to adhere to, providing a degree of cost certainty. The number of delivery orders (10) indicates a phased delivery approach, which can help manage cash flow and inventory.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 10 delivery orders suggests that multiple bids were likely considered, and the award was made to the most advantageous offer. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential suppliers.

Public Impact

The primary beneficiaries are military units relying on armored vehicles equipped with these seat stanchion kits. The services delivered involve the manufacturing and supply of critical components for vehicle maintenance and readiness. The geographic impact is likely concentrated around military bases and operational theaters where these vehicles are deployed. Workforce implications include jobs in manufacturing, logistics, and quality assurance at the contractor's facilities and potentially at supplier sites.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed price does not adequately account for unforeseen material or labor cost increases.
Dependence on a single primary contractor could create supply chain vulnerabilities if not managed proactively.
The specific nature of the 'SEAT STANCHION KITS' might limit the pool of qualified suppliers, even under full and open competition.

Positive Signals

Firm Fixed Price contract structure transfers cost risk to the contractor.
Full and open competition suggests a robust bidding process, likely yielding competitive pricing.
The contract's duration indicates a stable, long-term need, allowing for efficient production planning.
General Dynamics Land Systems is an established defense contractor with a proven track record.

Sector Analysis

The defense industrial base relies heavily on specialized component manufacturers to sustain its vast fleet of vehicles and equipment. This contract falls within the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' sector, which is a critical sub-segment of the broader defense manufacturing industry. The market for such components is often characterized by long-term relationships between prime contractors and specialized suppliers, driven by stringent quality requirements and the need for interoperability. Comparable spending benchmarks would typically be found within other large-scale sustainment contracts for armored vehicle fleets.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this contract (ss: false, sb: false). While the prime contractor is a large entity, there may be opportunities for small businesses to participate as subcontractors to General Dynamics Land Systems. The extent of small business subcontracting would depend on the prime contractor's procurement strategy and the availability of small businesses capable of supplying the necessary components or services.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor compliance with contract terms and quality standards. Accountability measures are embedded within the firm fixed-price structure, incentivizing the contractor to control costs. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Armored Vehicle Sustainment Programs
Military Vehicle Component Procurement
Defense Logistics and Maintenance Contracts
General Dynamics Land Systems Contracts

Risk Flags

Potential for cost overruns due to long contract duration.
Risk of technological obsolescence if requirements change.
Dependence on a single supplier for critical components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $199.1 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC.. SEAT STANCHION KITS

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $199.1 million.

What is the period of performance?

Start: 2010-04-23. End: 2012-12-25.

What is the historical spending pattern for 'SEAT STANCHION KITS' or similar components by the Department of Defense?

Analyzing historical spending for 'SEAT STANCHION KITS' specifically is difficult without more granular contract data. However, the Department of Defense (DoD) consistently allocates significant portions of its budget to vehicle sustainment and modernization. Contracts for armored vehicle components, including seating systems, are typically long-term and can range from tens to hundreds of millions of dollars over their lifecycle. Factors influencing historical spending include the size and age of the vehicle fleet, operational tempo, and technological upgrades. For instance, major platform upgrades or extended combat operations often drive increased demand for replacement parts and kits, leading to higher spending in this category. The current $200 million award suggests a sustained or potentially increased need compared to previous periods, possibly linked to current operational requirements or fleet readiness initiatives.

How does the unit cost of these seat stanchion kits compare to industry benchmarks or similar military applications?

Determining the precise unit cost for these 'SEAT STANCHION KITS' is not possible with the provided data, as the total award amount is for a large quantity over several years. To benchmark unit costs, one would need to divide the total contract value by the total number of kits procured, which is not explicitly stated. Furthermore, 'SEAT STANCHION KITS' are specialized components for military vehicles, likely designed to meet stringent durability, safety, and environmental standards (e.g., blast resistance, vibration dampening) that differ significantly from commercial applications. Therefore, direct comparison to civilian automotive or industrial seating components may not be appropriate. Industry benchmarks for military-grade vehicle components are often proprietary or found in specialized defense market analysis reports. The firm fixed-price nature of the contract implies that the government has assessed the proposed unit costs as reasonable and competitive within the defense market context.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance on this contract?

Key Performance Indicators (KPIs) for a contract like this typically revolve around delivery timeliness, quality of manufactured parts, and adherence to specifications. For 'SEAT STANCHION KITS,' specific KPIs might include: 1. On-Time Delivery Rate: Measuring the percentage of delivery orders fulfilled by the specified due dates. 2. Defect Rate: Tracking the number of non-conforming parts per batch or total units delivered, ensuring high quality and reliability. 3. Conformance to Specifications: Verifying that the kits meet all technical requirements, including material composition, dimensions, and performance characteristics. 4. Warranty Claims: Monitoring any post-delivery issues or failures that fall under warranty. The Defense Contract Management Agency (DCMA) would likely monitor these KPIs, potentially using contractor self-reporting and government inspections. Performance against these KPIs can influence future contract awards and contractor ratings in systems like the Contractor Performance Assessment Reporting System (CPARS).

What is the track record of General Dynamics Land Systems (GDLS) in delivering similar vehicle components or fulfilling large defense contracts?

General Dynamics Land Systems (GDLS) has a long and extensive track record as a major prime contractor for the U.S. Department of Defense and allied nations, particularly in the area of armored vehicles. They are well-known for producing platforms such as the Abrams Main Battle Tank and the Stryker family of vehicles. Their experience extends beyond vehicle manufacturing to include sustainment, modernization, and the provision of spare parts and components. GDLS has a history of managing large, complex contracts, often involving firm-fixed-price structures and full-and-open competition. While specific performance details on every contract are not always public, GDLS is generally considered a reliable, albeit expensive, supplier within the defense industrial base. Their ability to secure contracts of this magnitude, like the $200 million award for seat stanchion kits, underscores their established position and capability in meeting the demanding requirements of military vehicle programs.

What are the potential risks associated with the long duration and substantial value of this contract?

The long duration (977 days) and substantial value ($~200 million) of this contract present several potential risks. For the government, risks include: 1. Cost Escalation: Despite the firm-fixed-price structure, unforeseen economic shifts (inflation, supply chain disruptions) could impact the contractor's profitability and potentially lead to future pricing pressures or requests for equitable adjustments if contract terms allow. 2. Technological Obsolescence: Over the contract period, vehicle technology or operational requirements might evolve, potentially making the delivered kits less relevant or requiring modifications. 3. Contractor Performance Degradation: Long-term contracts can sometimes see a decline in contractor focus or quality over time if not actively managed. For the contractor, risks include: 1. Inaccurate Cost Estimation: Underestimating material, labor, or overhead costs at the outset could lead to significant losses. 2. Market Changes: Shifts in defense spending priorities or the emergence of superior alternative components could impact future demand. Effective risk mitigation involves robust contract oversight, clear communication channels, and contingency planning by both parties.

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: $199,066,800

Exercised Options: $199,066,800

Current Obligation: $199,066,800

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785407D5031

IDV Type: IDC

Timeline