DoD's $90.7M Buffalo Vehicle contract awarded to General Dynamics, highlighting armored vehicle manufacturing

Contract Overview

Contract Amount: $90,722,393 ($90.7M)

Contractor: General Dynamics Land Systems - Force Protection Inc.

Awarding Agency: Department of Defense

Start Date: 2007-04-27

End Date: 2013-07-07

Contract Duration: 2,263 days

Daily Burn Rate: $40.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BUFFALO VEHICLE

Place of Performance

Location: LADSON, CHARLESTON County, SOUTH CAROLINA, 29456

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $90.7 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC. for work described as: BUFFALO VEHICLE Key points: 1. Contract value of $90.7M for armored vehicles suggests significant investment in defense capabilities. 2. Sole-source award indicates potential limitations in competitive bidding for specialized defense equipment. 3. Contract duration of 2263 days points to a long-term need and commitment for these vehicles. 4. Fixed-price contract type aims to control costs, but requires careful monitoring of scope creep. 5. Awarded to General Dynamics, a major defense contractor, suggesting established relationships and capabilities. 6. The contract's focus on armored vehicles aligns with ongoing military modernization efforts.

Value Assessment

Rating: fair

The total contract value of $90.7 million for the Buffalo Vehicle program is substantial. Without specific benchmarks for this particular vehicle type or comparable contracts, a precise value-for-money assessment is challenging. However, the duration of the contract (over 6 years) suggests a significant investment. The fixed-price nature of the contract is generally favorable for cost control, but the lack of competitive bidding could lead to less optimal pricing compared to an open market scenario. Further analysis would require comparing the per-unit cost to similar armored vehicle procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means that the government did not benefit from price discovery through a bidding process, potentially leading to higher costs than if multiple firms had competed.

Taxpayer Impact: Sole-source awards can mean taxpayers may not be getting the best possible price, as there was no competitive pressure to drive down costs. This necessitates strong oversight to ensure fair pricing.

Public Impact

The primary beneficiaries are the U.S. Department of Defense, specifically units requiring advanced armored vehicles for personnel protection and mobility. The contract delivers specialized Buffalo vehicles, likely used for route clearance, explosive ordnance disposal (EOD), and troop transport in high-risk environments. The geographic impact is primarily within military operational theaters where these vehicles are deployed, and potentially at the contractor's manufacturing facilities. Workforce implications include employment at General Dynamics Land Systems and its supply chain, supporting specialized manufacturing and engineering roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Lack of competition may reduce incentives for innovation and efficiency from the contractor.
Long contract duration could lead to cost overruns if not managed tightly.
Fixed-price contract requires careful scope management to prevent unexpected cost increases.

Positive Signals

Award to a major defense contractor like General Dynamics suggests proven capability and reliability.
Fixed-price contract type provides cost certainty if scope is well-defined.
The specific nature of the Buffalo vehicle indicates a critical capability being addressed.
Long-term contract suggests a sustained need for this capability within the DoD.

Sector Analysis

The defense sector, particularly the armored vehicle manufacturing sub-sector, is characterized by high barriers to entry, significant R&D investment, and long procurement cycles. Contracts like this represent substantial portions of a company's revenue and are critical for maintaining specialized manufacturing capabilities. Benchmarking this contract's value would involve comparing it to other armored vehicle procurements, such as MRAPs or other specialized protected mobility platforms, considering their capabilities and technological sophistication.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the prime contractor is General Dynamics Land Systems, a large corporation. While large prime contractors are often required to subcontract a portion of their work to small businesses, the specific subcontracting plan for this contract is not detailed here. The absence of a direct set-aside means small businesses are less likely to be the primary recipients of this funding, though they may participate indirectly through the supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Contract Management Agency (DCMA), which is responsible for ensuring contract compliance, quality, and delivery. The Department of Defense's own Inspector General (IG) may also conduct audits or investigations into contract performance and spending. Transparency is facilitated through contract databases like FPDS, but detailed operational oversight is internal to the agency and its contracting officers.

Related Government Programs

Mine-Resistant Ambush Protected (MRAP) Vehicles
Armored Personnel Carriers
Explosive Ordnance Disposal (EOD) Equipment
Tactical Wheeled Vehicles
Defense Procurement

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns if scope is not managed
Long contract duration requires sustained oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $90.7 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC.. BUFFALO VEHICLE

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 $90.7 million.

What is the period of performance?

Start: 2007-04-27. End: 2013-07-07.

What is the specific role and capability of the Buffalo Vehicle?

The Buffalo Vehicle is a mine-resistant ambush-protected (MRAP) vehicle designed primarily for route clearance and explosive ordnance disposal (EOD) operations. It features a distinctive V-shaped hull to deflect blasts from underbelly explosions and is equipped with a robotic arm for manipulating and clearing explosive devices. Its robust armor provides protection against small arms fire and IEDs. The Buffalo is crucial for ensuring the safety of personnel and the security of supply routes in high-threat environments, allowing military engineers to safely identify, access, and neutralize explosive threats.

How does the $90.7M contract value compare to similar armored vehicle procurements?

Comparing the $90.7 million contract value requires context regarding the number of units procured and the specific capabilities of the Buffalo vehicle. As a specialized MRAP with advanced EOD capabilities, its unit cost is likely higher than standard armored personnel carriers. For instance, other MRAP variants procured in large quantities during peak conflicts might have had lower average unit costs due to economies of scale. However, for a specialized platform like the Buffalo, this value could be reasonable if it covers a significant number of vehicles and associated support over its contract life. Without specific unit counts or detailed feature comparisons, a definitive benchmark is difficult.

What are the primary risks associated with a sole-source award for defense equipment?

The primary risks associated with a sole-source award for defense equipment like the Buffalo Vehicle include: 1) Higher Costs: Without competition, the contractor may not be incentivized to offer the lowest possible price, potentially leading to taxpayer overspending. 2) Reduced Innovation: The lack of competitive pressure can stifle innovation, as the contractor may face fewer demands to improve technology or efficiency. 3) Vendor Lock-in: The government can become dependent on a single supplier, making it difficult and costly to switch providers or adopt alternative solutions in the future. 4) Quality Concerns: While less common with established contractors, the absence of competitive benchmarking could theoretically allow for less stringent quality control if not rigorously overseen.

What is General Dynamics Land Systems' track record with similar defense contracts?

General Dynamics Land Systems (GDLS) has a long and extensive track record in manufacturing a wide array of armored vehicles for the U.S. military and international allies. They are a prime contractor for programs such as the Abrams Main Battle Tank, Stryker family of vehicles, and have been involved in numerous other armored vehicle development and production contracts. GDLS is known for its engineering capabilities, manufacturing capacity, and experience in delivering complex defense systems. Their history includes both successful large-scale production runs and development of specialized platforms, indicating a strong capability to handle contracts like the Buffalo Vehicle.

How has spending on armored vehicles evolved over the past decade?

Spending on armored vehicles has evolved significantly, shifting from large-scale procurements of Mine-Resistant Ambush Protected (MRAP) vehicles during the height of conflicts in Iraq and Afghanistan towards more specialized, technologically advanced platforms. Post-conflict, the focus has moved towards modernization, upgrading existing fleets, and developing next-generation vehicles that offer enhanced protection, mobility, and network capabilities. There's also a greater emphasis on modularity and adaptability to different mission requirements. While overall spending may fluctuate based on geopolitical needs and budget cycles, the trend is towards higher-cost, lower-volume, technologically sophisticated vehicles like the Buffalo.

What are the potential performance implications of a fixed-price contract for specialized vehicles?

A Firm Fixed Price (FFP) contract, like the one used here, aims to provide cost certainty for the government by establishing a set price for the defined scope of work. For specialized vehicles, this means the contractor assumes most of the risk for cost overruns. This can incentivize efficiency and careful planning by the contractor. However, if the scope of work is not precisely defined or if unforeseen technical challenges arise during development or production, the contractor might be tempted to cut corners on quality or performance to maintain profitability. Conversely, if the government requires changes or upgrades, formal change orders will be necessary, potentially increasing the contract price and duration. Effective management by the contracting officer is crucial to ensure both cost control and desired performance outcomes.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: M6785407R5039

Offers Received: 1

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: $91,189,230

Exercised Options: $91,189,230

Current Obligation: $90,722,393

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline