State Department Awards $38.4M for Armored SUV Prototypes to GM Defense
Contract Overview
Contract Amount: $38,396,666 ($38.4M)
Contractor: GM Defense LLC
Awarding Agency: Department of State
Start Date: 2021-09-24
End Date: 2024-01-30
Contract Duration: 858 days
Daily Burn Rate: $44.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LARGE SUV COMMERCIAL MODIFICATION SERVICES - DEVELOPMENT OF ARMORED SUV PROTOTYPES FOR US GOVERNMENT USE
Place of Performance
Location: MILFORD, OAKLAND County, MICHIGAN, 48380
State: Michigan Government Spending
Plain-Language Summary
Department of State obligated $38.4 million to GM DEFENSE LLC for work described as: LARGE SUV COMMERCIAL MODIFICATION SERVICES - DEVELOPMENT OF ARMORED SUV PROTOTYPES FOR US GOVERNMENT USE Key points: 1. Significant investment in specialized vehicle development for government use. 2. GM Defense LLC secured the contract, indicating a competitive award. 3. The contract value suggests a focus on high-specification, potentially high-risk, protective capabilities. 4. Industrial Design Services sector sees substantial funding.
Value Assessment
Rating: good
The contract value of $38.4 million for prototype development appears reasonable given the specialized nature of armored vehicle modification. Benchmarking against similar defense/security vehicle development contracts 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, suggesting a robust price discovery process. GM Defense LLC's win indicates they were the most competitive bidder based on the criteria set forth.
Taxpayer Impact: Taxpayer funds are being used for critical security enhancements, with competition aiming to ensure value for money.
Public Impact
Enhances security capabilities for government personnel operating in potentially hazardous environments. Supports domestic manufacturing and technological advancement in specialized vehicle production. Prototypes will undergo rigorous testing, potentially leading to future fleet upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in advanced prototype development.
- Long-term sustainment and maintenance costs for specialized vehicles are not detailed.
- Dependence on a single contractor for initial prototype development.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract provides cost certainty.
- Supports advanced technological development in a critical sector.
Sector Analysis
This contract falls within the Industrial Design Services sector, specifically focusing on defense and security applications. Spending in this area is often driven by evolving geopolitical threats and the need for advanced protective technologies.
Small Business Impact
The contract was awarded to GM Defense LLC, a large business. There is no indication of small business subcontracting in the provided data, suggesting limited direct impact on small businesses for this specific award.
Oversight & Accountability
The award was made by the Department of State, indicating oversight by a key federal agency responsible for diplomatic security. The use of a definitive contract suggests a structured procurement process.
Related Government Programs
- Industrial Design Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- High contract value for prototype development.
- Specialized nature of armored vehicles may limit competition for future production.
- Potential for scope creep in advanced technology development.
- Dependence on GM Defense LLC for critical security technology.
Tags
industrial-design-services, department-of-state, mi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $38.4 million to GM DEFENSE LLC. LARGE SUV COMMERCIAL MODIFICATION SERVICES - DEVELOPMENT OF ARMORED SUV PROTOTYPES FOR US GOVERNMENT USE
Who is the contractor on this award?
The obligated recipient is GM DEFENSE LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $38.4 million.
What is the period of performance?
Start: 2021-09-24. End: 2024-01-30.
What is the projected lifecycle cost for these armored SUV prototypes, including sustainment and upgrades?
The provided data focuses solely on the development of armored SUV prototypes. Information regarding the projected lifecycle costs, including sustainment, maintenance, and future upgrade requirements, is not available. A comprehensive analysis would necessitate further data on the intended operational lifespan and support infrastructure for these specialized vehicles.
How will the performance and safety of these armored prototypes be validated against specific threat assessments?
Validation of prototype performance and safety will likely involve rigorous testing protocols aligned with the Department of State's threat assessments and survivability requirements. This typically includes ballistic testing, blast resistance evaluations, and operational field trials. Specific details on the validation metrics and threat levels are usually classified or internal to the agency's security protocols.
What is the potential for technology transfer or broader application of the developed armored vehicle technologies?
The development of advanced armored vehicle technologies for government use often has potential for broader application, particularly in other security-focused agencies or even commercial sectors requiring enhanced vehicle protection. Technology transfer mechanisms and intellectual property rights would be defined within the contract, potentially allowing for wider adoption or spin-off innovations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Specialized Design Services › Industrial Design Services
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 19AQMM21R0013
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Motors Company
Address: 300 RENAISSANCE CTR FL 24, DETROIT, MI, 48243
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,396,666
Exercised Options: $38,396,666
Current Obligation: $38,396,666
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-09-24
Current End Date: 2024-01-30
Potential End Date: 2025-01-30 00:00:00
Last Modified: 2024-05-06
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