General Dynamics Land Systems awarded $27.5M for Cougar Cat I armored vehicles

Contract Overview

Contract Amount: $27,518,949 ($27.5M)

Contractor: General Dynamics Land Systems - Force Protection Inc.

Awarding Agency: Department of Defense

Start Date: 2010-04-30

End Date: 2013-04-30

Contract Duration: 1,096 days

Daily Burn Rate: $25.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COUGAR CAT I

Place of Performance

Location: LADSON, CHARLESTON County, SOUTH CAROLINA, 29456, UNITED STATES OF AMERICA

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $27.5 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC. for work described as: COUGAR CAT I Key points: 1. Contract value represents a significant investment in specialized military hardware. 2. Sole-source award suggests limited market alternatives or specific contractor capabilities. 3. Vehicle type indicates a focus on survivability and protection for personnel. 4. Contract duration of approximately three years points to a defined production or upgrade cycle. 5. Fixed-price contract type shifts cost risk to the contractor. 6. Awarded by the Department of the Navy, indicating a specific branch's equipment needs.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of work (e.g., number of vehicles, upgrades, or services). However, the $27.5 million award for armored vehicles suggests a substantial procurement. Comparing it to similar contracts for mine-resistant ambush-protected (MRAP) vehicles or other armored platforms would provide better context. The firm fixed-price nature indicates that the contractor bears the risk of cost overruns, which can be a positive for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This typically occurs when only one responsible source is available or when there is a compelling justification for not seeking competitive proposals. The lack of competition means that price discovery through market forces was limited, potentially leading to higher costs than if multiple bidders had participated.

Taxpayer Impact: The absence of competition means taxpayers may not have benefited from the cost savings that can arise from a competitive bidding process.

Public Impact

Personnel in the Department of the Navy benefit from enhanced protection through these armored vehicles. The contract supports the acquisition or upgrade of specialized military equipment. Geographic impact is likely concentrated around military bases or deployment areas. Workforce implications include employment at General Dynamics Land Systems and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Lack of transparency in the justification for sole-sourcing.
Potential for cost inefficiencies due to absence of competitive pressure.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Award to a known defense contractor with experience in armored vehicles.
Specific vehicle type (Cougar) suggests a focus on proven survivability.

Sector Analysis

The defense sector, particularly armored vehicle manufacturing, is characterized by high R&D costs, long production cycles, and significant government procurement. Companies like General Dynamics Land Systems are key players in this market, often holding contracts for specialized platforms. The market size for such vehicles is substantial, driven by global defense spending and the need for advanced protection technologies. This contract fits within the broader category of military vehicle procurement, a critical component of national defense.

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 a large defense firm. While large prime contractors are often required to subcontract a portion of their work to small businesses, the specific subcontracting plan and its impact on the small business ecosystem are not detailed in the provided data. Without further information, it's difficult to assess the direct benefits to small businesses from this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management systems. The firm fixed-price nature provides some level of cost control. Accountability measures would be tied to contract performance and delivery schedules. Transparency might be limited due to the sole-source nature of the award, but contract award data is generally made public. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

MRAP vehicles
Tactical Wheeled Vehicles
Armored Personnel Carriers
Mine-Resistant Ambush Protected Vehicles

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for cost inefficiencies

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC.. COUGAR CAT I

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 $27.5 million.

What is the period of performance?

Start: 2010-04-30. End: 2013-04-30.

What specific capabilities or upgrades does the Cougar Cat I vehicle offer compared to previous models or other armored vehicles in the Navy's fleet?

The provided data does not specify the exact capabilities or upgrades associated with the Cougar Cat I under this contract. However, the Cougar platform is generally known for its mine-resistant, ambush-protected (MRAP) design, emphasizing survivability against IEDs and ambushes. It is often used for troop transport in high-threat environments. Without more detailed contract documentation, a precise comparison to other vehicles or previous models is not possible. Typically, such contracts would detail specific performance enhancements, armor levels, or mission system integrations.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is often synonymous with a sole-source award. The specific justification is not provided. Common reasons for sole-source awards in defense contracting include unique technical requirements that only one contractor can meet, urgent needs where competition would cause unacceptable delays, or follow-on work to an existing system where only the original manufacturer possesses the necessary knowledge and tooling. Without the official justification document, the precise rationale remains unknown, but it implies a perceived lack of viable alternatives or a critical need.

How does the $27.5 million contract value compare to the total historical spending on the Cougar Cat I program by the Department of Defense?

The provided data only includes the value of this specific contract ($27,518,948.74). It does not offer historical spending figures for the Cougar Cat I program. To assess how this award fits into the overall program cost, one would need to access historical contract databases or program budget documents. This $27.5 million represents a single procurement action and may cover a specific quantity of vehicles, upgrades, or support services within a defined period. It is not indicative of the total life-cycle cost or cumulative spending on the platform.

What is the typical performance track record of General Dynamics Land Systems in delivering armored vehicle contracts of similar scope and value?

General Dynamics Land Systems (GDLS) is a major defense contractor with extensive experience in producing armored vehicles, including the Abrams main battle tank and various Stryker variants. Their track record generally includes successful delivery of large, complex programs, though like many large defense firms, they have faced scrutiny over cost, schedule, and performance on specific contracts. For contracts of this approximate value ($27.5 million), GDLS typically delivers within established timelines and specifications, leveraging their established manufacturing capabilities and supply chains. However, a detailed assessment would require examining past performance reviews and contract completion data specific to GDLS's armored vehicle programs.

What are the primary risks associated with this contract, considering its sole-source nature and the type of equipment being procured?

The primary risks associated with this sole-source contract include potential cost overruns if the fixed-price structure is not adequately managed by the contractor, and a lack of competitive pressure that could lead to suboptimal pricing for the government. Given that it involves armored vehicles, there are also risks related to technological obsolescence, performance in demanding operational environments, and potential delays in delivery impacting military readiness. The sole-source aspect amplifies the risk of paying a premium due to the absence of market-driven price discovery. Ensuring robust oversight and clear performance metrics is crucial to mitigate these risks.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 9801 HWY 78 STE 3, LADSON, SC, 29456

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,518,949

Exercised Options: $27,518,949

Current Obligation: $27,518,949

Contract Characteristics

Cost or Pricing Data: NO

Timeline