DoD Awards $145M for Military Armored Vehicles to General Dynamics, Full and Open Competition
Contract Overview
Contract Amount: $145,110,975 ($145.1M)
Contractor: General Dynamics Land Systems - Force Protection Inc.
Awarding Agency: Department of Defense
Start Date: 2011-11-14
End Date: 2012-12-31
Contract Duration: 413 days
Daily Burn Rate: $351.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JORDAN LEVEL III FSR
Place of Performance
Location: LADSON, CHARLESTON County, SOUTH CAROLINA, 29456
Plain-Language Summary
Department of Defense obligated $145.1 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC. for work described as: JORDAN LEVEL III FSR Key points: 1. Significant award for armored vehicle manufacturing, a critical defense sector. 2. General Dynamics Land Systems is a major player in this specialized market. 3. Full and open competition suggests potential for competitive pricing. 4. The contract value is substantial, indicating a large-scale procurement.
Value Assessment
Rating: good
The contract value of $145M for armored vehicles appears reasonable given the nature of the equipment. Benchmarking against similar large-scale military vehicle procurements would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive bidding and can lead to better price discovery. The number of offers received would further clarify the competitive landscape.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces.
Public Impact
Ensures continued production of vital military armored vehicles. Supports a key segment of the defense industrial base. Potential for technological advancements in armored vehicle capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on performance metrics.
- Potential for cost overruns in complex manufacturing.
- Dependence on a single large contractor for critical components.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type.
- Significant investment in defense capabilities.
Sector Analysis
This contract falls within the Defense sector, specifically military vehicle manufacturing. Spending in this area is driven by national security needs and technological advancements, with large contracts often awarded to established prime contractors.
Small Business Impact
The data indicates the prime contractor is General Dynamics Land Systems, a large business. There is no explicit information on small business participation in this specific award, which warrants further investigation.
Oversight & Accountability
The Department of the Navy awarded this contract, implying oversight from a major defense agency. The firm fixed price structure provides some cost control, but ongoing monitoring of delivery and quality is essential.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of small business participation details.
- Potential for supply chain vulnerabilities in defense manufacturing.
- Complexity of military vehicle production can lead to unforeseen issues.
- Long-term sustainment and maintenance costs are not detailed.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, sc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $145.1 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC.. JORDAN LEVEL III 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 $145.1 million.
What is the period of performance?
Start: 2011-11-14. End: 2012-12-31.
What was the competitive landscape like for this award, and did the full and open competition result in significant cost savings compared to other procurement methods?
The contract was awarded under full and open competition, suggesting a robust bidding process. While this method generally promotes cost savings, the exact degree of savings compared to sole-source or limited competition would require analysis of the bid prices received and the final negotiated amount. The number of bids submitted would also indicate the level of market interest and competitive pressure.
What are the specific risks associated with the performance and delivery of these military armored vehicles, and how are they being mitigated?
Risks in military vehicle production can include manufacturing defects, supply chain disruptions, and schedule delays. Mitigation strategies often involve stringent quality control, detailed performance specifications, and robust contract management by the procuring agency. The firm fixed price nature of this contract incentivizes the contractor to manage these risks effectively to avoid cost overruns.
How does this $145M contract contribute to the overall modernization and effectiveness of the Navy's armored vehicle fleet?
This substantial award directly contributes to the acquisition or upgrade of critical military armored vehicles, enhancing the Navy's operational capabilities. The specific type and quantity of vehicles procured will determine the extent of their impact on fleet modernization and overall combat effectiveness. This investment signals a commitment to maintaining and advancing armored force readiness.
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: $145,110,975
Exercised Options: $145,110,975
Current Obligation: $145,110,975
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785407D5031
IDV Type: IDC
Timeline
Start Date: 2011-11-14
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2016-02-18
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