DoD's $118M Universal Lift Kits contract awarded to General Dynamics, raising value-for-money questions

Contract Overview

Contract Amount: $118,022,364 ($118.0M)

Contractor: General Dynamics Land Systems - Force Protection Inc.

Awarding Agency: Department of Defense

Start Date: 2010-08-10

End Date: 2012-06-15

Contract Duration: 675 days

Daily Burn Rate: $174.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UNIVERSAL LIFT KITS-HST

Place of Performance

Location: LADSON, CHARLESTON County, SOUTH CAROLINA, 29456

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $118.0 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC. for work described as: UNIVERSAL LIFT KITS-HST Key points: 1. The contract's value appears high relative to its duration and the number of bids received. 2. Limited public data makes a precise value-for-money assessment challenging. 3. The award was made under full and open competition, suggesting a competitive market. 4. The contract duration of 675 days is relatively short for a major defense procurement. 5. The fixed-price contract type shifts some risk to the contractor. 6. The specific nature of 'lift kits' for military vehicles warrants further investigation into necessity and alternatives.

Value Assessment

Rating: fair

The total award of $118 million over approximately 22 months suggests a significant per-month expenditure. Benchmarking against similar military vehicle component contracts is difficult without more specific details on the 'lift kits' themselves. The relatively high total value for a fixed-price contract with a limited number of bids could indicate potential overpricing or a lack of aggressive competition on price.

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. While the specific number of bids received (10) is a positive sign of market interest, it's important to understand if this number was sufficient to drive robust price competition for specialized military components.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to offer their best prices, potentially leading to cost savings. However, the final price still depends on the specific market dynamics and the number of truly competitive bids submitted.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Department of the Navy, through the acquisition of essential vehicle components. The contract supports the operational readiness and mobility of military armored vehicles. The contract was performed in South Carolina, potentially impacting the local and regional economy through employment and related services. The workforce implications include skilled labor in manufacturing, engineering, and logistics within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for all development and production expenses.
Risk of performance issues if the 'lift kits' do not meet stringent military specifications.
Dependence on a single contractor for a critical component could pose supply chain risks.

Positive Signals

Awarded under full and open competition, suggesting a broad market approach.
Fixed-price contract type helps control costs and shifts risk to the contractor.
The contractor, General Dynamics Land Systems, is a major defense contractor with significant experience.

Sector Analysis

The defense industrial base, specifically the manufacturing of military vehicle components, is a highly specialized sector. This contract falls under the broader category of defense manufacturing, which is characterized by stringent quality requirements, long product development cycles, and significant government oversight. Spending in this sector is driven by national security needs and technological advancements in military hardware. Comparable spending benchmarks are difficult to establish without detailed specifications of the 'lift kits'.

Small Business Impact

The data indicates that small business participation was not a primary focus, as the 'sb' (small business set-aside) field is false. There is no explicit mention of subcontracting goals for small businesses within the provided data. This suggests that the primary contractor, General Dynamics, likely handled the majority of the work, potentially limiting opportunities for small businesses in this specific contract's execution.

Oversight & Accountability

Oversight for this Department of Defense contract would typically be managed by the contracting activity within the Department of the Navy. Accountability measures would include contract performance monitoring, quality assurance inspections, and adherence to delivery schedules. Transparency is often limited in defense contracts due to national security considerations, but contract award data is generally made public through systems like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Armored Vehicle Manufacturing
Defense Logistics Support
Vehicle Component Procurement
Department of the Navy Contracts
General Dynamics Land Systems Contracts

Risk Flags

High contract value relative to duration and competition.
Lack of detailed public information on technical specifications and performance metrics.
Potential for increased maintenance requirements due to vehicle modifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $118.0 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC.. UNIVERSAL LIFT KITS-HST

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 $118.0 million.

What is the period of performance?

Start: 2010-08-10. End: 2012-06-15.

What is the specific function and technical complexity of the 'UNIVERSAL LIFT KITS-HST' being procured?

The term 'UNIVERSAL LIFT KITS-HST' suggests components designed to increase the ground clearance or suspension travel of military vehicles, likely for enhanced mobility in varied terrains or to accommodate larger payloads. The 'HST' designation might refer to a specific system or variant. The technical complexity would depend on factors such as the weight capacity, durability requirements under combat conditions, integration with existing vehicle systems, and the materials used. Without detailed technical specifications or product descriptions, it's difficult to ascertain the precise complexity, but military vehicle components typically require high standards for reliability and performance in extreme environments.

How does the $118 million award compare to historical spending on similar vehicle components by the Department of the Navy?

Comparing this $118 million award to historical spending on similar components requires access to detailed historical contract data for the Department of the Navy, specifically for armored vehicle upgrades or component replacements. Publicly available data often aggregates spending by broader categories, making it challenging to isolate spending on 'lift kits' specifically. However, given the duration of the contract (approximately 22 months) and the nature of specialized military hardware, $118 million represents a substantial investment. A thorough comparison would involve analyzing trends in procurement costs for vehicle mobility systems over the past decade, considering inflation, technological advancements, and changes in operational requirements.

What were the key performance metrics and evaluation criteria used in the selection of General Dynamics Land Systems - Force Protection Inc. for this contract?

While the provided data confirms the award to General Dynamics Land Systems - Force Protection Inc. under full and open competition, it does not detail the specific performance metrics or evaluation criteria used. Typically, for defense contracts, evaluation criteria would include factors such as technical approach, past performance, management capability, and price. The selection process would have involved assessing how well each bidder's proposal met the government's requirements outlined in the solicitation. The government likely weighed these factors, along with price, to determine the best value offering, though the exact weighting and specific metrics remain undisclosed in this summary.

What is the anticipated impact of these lift kits on the operational capabilities and maintenance requirements of the affected military vehicles?

The installation of 'universal lift kits' is anticipated to enhance the operational capabilities of military vehicles by improving their off-road mobility, enabling them to traverse more challenging terrain, and potentially increasing their ability to carry heavier loads or additional equipment. This could be crucial for deployment in diverse operational environments. However, such modifications can also introduce new maintenance requirements. Increased stress on other vehicle components (like axles, suspension, and drivetrain) due to altered geometry or higher loads may necessitate more frequent inspections and part replacements. The long-term impact on maintenance schedules and overall vehicle lifespan would depend on the design, integration, and operational usage of the modified vehicles.

Are there any known issues or concerns regarding the performance or reliability of General Dynamics Land Systems - Force Protection Inc.'s previous work on similar vehicle components?

Assessing past performance issues requires a review of contract performance reports, quality assurance data, and any documented disputes or claims related to General Dynamics Land Systems - Force Protection Inc.'s prior work on similar vehicle components. While General Dynamics is a major defense contractor with a long history, specific performance records for individual contracts are not always readily available in public summaries. Any concerns would typically be flagged during the source selection process if they significantly impacted past contract delivery or quality. Without access to detailed performance histories or specific contract close-out reports, it is difficult to definitively state whether there are known issues related to their work on comparable components.

What is the total historical spending by the Department of Defense on 'UNIVERSAL LIFT KITS-HST' or similar components over the last five fiscal years?

Determining the total historical spending by the Department of Defense on 'UNIVERSAL LIFT KITS-HST' or precisely similar components over the last five fiscal years is challenging with the provided data alone. This specific contract award of $118 million is a single data point. To establish a comprehensive historical spending picture, one would need to query federal procurement databases (like FPDS or SAM.gov) using relevant keywords and product service codes (PSCs) related to vehicle suspension, mobility enhancement systems, or specific military vehicle platforms. Aggregating this data across multiple fiscal years and different branches of the DoD would be necessary to provide an accurate total, which is beyond the scope of this single contract analysis.

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: $118,022,364

Exercised Options: $118,022,364

Current Obligation: $118,022,364

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785407D5031

IDV Type: IDC

Timeline