DoD's $24.3M contract for armored vehicle components awarded to General Dynamics Land Systems

Contract Overview

Contract Amount: $24,334,905 ($24.3M)

Contractor: General Dynamics Land Systems - Force Protection Inc.

Awarding Agency: Department of Defense

Start Date: 2011-02-24

End Date: 2011-12-31

Contract Duration: 310 days

Daily Burn Rate: $78.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: OCONUS LEVEL II FSR

Place of Performance

Location: LADSON, CHARLESTON County, SOUTH CAROLINA, 29456

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC. for work described as: OCONUS LEVEL II FSR Key points: 1. Contract value represents a significant investment in specialized military vehicle manufacturing. 2. Competition dynamics suggest a potentially competitive bidding environment for this type of specialized equipment. 3. Risk indicators may include supply chain dependencies and the need for specialized manufacturing capabilities. 4. Performance context is tied to the Department of the Navy's requirements for armored vehicle support. 5. Sector positioning places this contract within the broader defense industrial base for vehicle production.

Value Assessment

Rating: good

The contract value of $24.3 million for armored vehicle components appears reasonable given the specialized nature of the equipment. Benchmarking against similar contracts for military vehicle manufacturing and component supply indicates that pricing is generally in line with market expectations for high-specification defense articles. The firm fixed-price contract type suggests that the contractor assumed the majority of the cost risk, which can be favorable for the government when managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of 10 bidders suggests a robust competitive landscape for this type of defense procurement. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The full and open competition for this contract likely resulted in a more competitive price for taxpayers, as multiple companies were incentivized to offer their best terms.

Public Impact

The primary beneficiaries are the U.S. Navy personnel who rely on the operational readiness of armored vehicles. Services delivered include the manufacturing and supply of critical components for military armored vehicles. Geographic impact is primarily within the United States, supporting domestic defense manufacturing capabilities. Workforce implications include employment opportunities within the defense manufacturing sector, particularly in South Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise in manufacturing complex components.
Dependence on a single contractor for critical components could pose supply chain risks.
Ensuring consistent quality and performance of specialized components is crucial for vehicle reliability.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract structure shifts cost risk to the contractor.
Contractor's specialization in military vehicle systems indicates relevant expertise.

Sector Analysis

This contract falls within the defense industrial base, specifically the manufacturing sector for military vehicles and their components. The market for armored vehicle production is characterized by high barriers to entry due to specialized technology, stringent quality requirements, and significant capital investment. Spending in this sector is driven by national security needs and modernization efforts, with contracts often being long-term and high-value.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have significant subcontracting requirements for small businesses based on the provided information. The primary awardee is a large defense contractor, suggesting that the focus was on specialized capabilities rather than small business participation. This may limit opportunities for small businesses to directly participate in this specific contract, though they may be involved further down the supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the firm fixed-price contract terms, requiring the contractor to deliver specified components within budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided.

Related Government Programs

Military Armored Vehicle Manufacturing
Defense Component Supply
Department of Defense Procurement
Naval Systems Command Contracts

Risk Flags

Supply Chain Vulnerability
Manufacturing Quality Control
Technical Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC.. OCONUS LEVEL II FSR

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 $24.3 million.

What is the period of performance?

Start: 2011-02-24. End: 2011-12-31.

What is the track record of General Dynamics Land Systems - Force Protection Inc. in delivering similar armored vehicle components?

General Dynamics Land Systems (GDLS) has a long-standing and extensive track record in the design, manufacturing, and support of armored vehicles and their components for the U.S. military and international allies. Force Protection Inc., which was acquired by GDLS, specialized in mine-resistant ambush-protected (MRAP) vehicles. Their combined expertise covers a wide range of armored platforms, including tanks, infantry fighting vehicles, and specialized support vehicles. This specific contract likely leverages their established manufacturing capabilities and experience in producing high-quality, durable components essential for the survivability and operational effectiveness of armored platforms. GDLS's history includes numerous large-scale production contracts and sustainment programs, indicating a capacity to manage complex supply chains and meet demanding delivery schedules for critical defense systems.

How does the awarded amount of $24.3 million compare to the estimated value or benchmark for similar armored vehicle component contracts?

The awarded amount of $24.3 million for armored vehicle components is within a typical range for specialized defense manufacturing contracts. Without specific details on the exact components being procured (e.g., engine parts, armor plating, transmission systems), a precise benchmark is difficult. However, considering the complexity, materials, and quality assurance required for military-grade components, this value suggests a substantial order. Comparable contracts for major sub-assemblies or critical systems for armored vehicles often run into tens of millions of dollars. The firm fixed-price nature of this contract also implies that the price was negotiated to cover all costs and profit, making it a definitive figure for the scope of work.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks for this contract include potential supply chain disruptions for specialized raw materials or sub-components, manufacturing defects leading to delays or rework, and the possibility of cost increases if unforeseen technical challenges arise, despite the firm fixed-price structure. Mitigation strategies likely involve robust quality control processes, strong supplier management by General Dynamics Land Systems, and detailed technical specifications in the contract. The government's mitigation also includes the competitive award process, which ideally selects a contractor with proven capabilities and a realistic cost proposal. The firm fixed-price contract itself is a risk mitigation tool, placing the onus on the contractor to manage costs effectively.

What is the expected program effectiveness or impact of these armored vehicle components on military operations?

The effectiveness and impact of these armored vehicle components are directly tied to enhancing the reliability, survivability, and operational readiness of the military platforms they are integrated into. High-quality, precisely manufactured components are crucial for ensuring that armored vehicles can withstand demanding combat environments, protect personnel, and perform their intended missions without failure. For the Department of the Navy, this could translate to improved capabilities for amphibious operations, troop transport, or reconnaissance missions requiring protected mobility. The successful delivery and integration of these components contribute to the overall effectiveness of the naval forces by ensuring their equipment is dependable and mission-capable.

How has historical spending in the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' category evolved, and where does this contract fit?

Historical spending in the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' (NAICS code 336992) category has fluctuated based on defense budgets, geopolitical events, and modernization priorities. Following periods of intense conflict, spending often increases to replenish fleets and upgrade existing platforms. This $24.3 million contract represents a specific procurement action within this broader category. While not a massive program in itself, it contributes to the ongoing sustainment and potential modernization of armored vehicle fleets. Analyzing historical spending trends for this NAICS code would reveal patterns of investment in vehicle production, component manufacturing, and upgrades, providing context for the significance and timing of this particular award.

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: $24,334,905

Exercised Options: $24,334,905

Current Obligation: $24,334,905

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785407D5031

IDV Type: IDC

Timeline