DoD's $25.5M SSU Kit Contract Awarded to General Dynamics, Raising Questions on Value and Competition

Contract Overview

Contract Amount: $25,541,991 ($25.5M)

Contractor: General Dynamics Land Systems - Force Protection Inc.

Awarding Agency: Department of Defense

Start Date: 2014-01-29

End Date: 2015-05-31

Contract Duration: 487 days

Daily Burn Rate: $52.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FULL RATE PRODUCTION SSU KITS - US MARINE CORPS

Place of Performance

Location: LADSON, CHARLESTON County, SOUTH CAROLINA, 29456

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $25.5 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC. for work described as: FULL RATE PRODUCTION SSU KITS - US MARINE CORPS Key points: 1. The contract awarded to General Dynamics Land Systems - Force Protection Inc. for SSU Kits is for $25.5 million. 2. Competition appears limited, with General Dynamics Land Systems - Force Protection Inc. listed as the sole awardee. 3. The firm fixed-price contract type suggests price certainty but may limit flexibility. 4. The sector is Defense, specifically Military Armored Vehicle manufacturing.

Value Assessment

Rating: fair

The contract value of $25.5 million for SSU Kits needs further benchmarking against similar military vehicle component contracts. Without detailed specifications and quantities, a precise per-unit cost comparison is difficult, but the overall value seems substantial for specialized kits.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While the contract is listed as 'FULL AND OPEN COMPETITION,' the awardee is General Dynamics Land Systems - Force Protection Inc. Further investigation is needed to understand if multiple bids were received and why this specific entity was selected. The 'DEFINITIVE CONTRACT' type may indicate a longer-term relationship.

Taxpayer Impact: The $25.5 million expenditure represents taxpayer funds allocated to the Department of Defense for military readiness. The effectiveness and necessity of these SSU kits will determine the ultimate value for taxpayers.

Public Impact

Taxpayers are funding the production of specialized kits for the US Marine Corps' armored vehicles. The contract supports jobs within the defense manufacturing sector, specifically at General Dynamics. The acquisition of these kits contributes to the operational readiness and survivability of Marine Corps vehicles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clear competition details despite 'full and open' designation.
Potential for cost overruns if the firm fixed-price contract doesn't account for all eventualities.
Limited visibility into the specific components and necessity of the SSU kits.

Positive Signals

Supports US Marine Corps operational readiness.
Utilizes established defense contractor with relevant expertise.
Firm fixed-price contract provides cost certainty.

Sector Analysis

This contract falls within the Defense sector, specifically Military Armored Vehicle, Tank, and Tank Component Manufacturing. Spending in this area is driven by military modernization and readiness requirements, with significant government oversight due to the critical nature of defense assets.

Small Business Impact

The data indicates that small businesses were not directly involved in this specific contract award. Further analysis would be required to determine if small businesses are part of the supply chain for General Dynamics Land Systems - Force Protection Inc. on this contract.

Oversight & Accountability

The Department of the Navy awarded this definitive contract. Oversight would typically involve contract management teams monitoring performance, quality, and adherence to terms. The firm fixed-price nature suggests a focus on delivery and cost control.

Related Government Programs

Military Armored Vehicle, Tank, and Tank Component Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of detailed justification for sole awardee despite 'full and open' designation.
Potential for uncompetitive pricing due to limited visible competition.
Firm fixed-price contract may not adequately cover unforeseen production challenges.
Insufficient information on the specific capabilities and necessity of the SSU Kits.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.5 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC.. FULL RATE PRODUCTION SSU KITS - US MARINE CORPS

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 $25.5 million.

What is the period of performance?

Start: 2014-01-29. End: 2015-05-31.

What specific capabilities do the SSU Kits provide to the US Marine Corps' armored vehicles, and how do these capabilities justify the $25.5 million investment?

The SSU Kits likely provide enhanced protection, survivability, or operational functionality for the US Marine Corps' armored vehicles. Understanding the specific threat mitigation or performance improvements they offer is crucial to assessing their value. Without this information, it's difficult to determine if the $25.5 million expenditure aligns with the tangible benefits gained in terms of troop safety and mission effectiveness.

Given the 'full and open competition' designation, what was the competitive landscape for this $25.5 million contract, and were there any sole-source justifications that emerged?

While designated as 'full and open competition,' the award to General Dynamics Land Systems - Force Protection Inc. warrants further scrutiny regarding the actual competitive process. It's important to ascertain if multiple proposals were submitted and evaluated, or if the competition was effectively limited due to specialized requirements or pre-existing relationships. Understanding the competitive dynamics is key to ensuring fair pricing and optimal use of taxpayer funds.

How does the $25.5 million contract for SSU Kits align with the overall modernization and readiness goals of the US Marine Corps, and what is the projected return on investment?

The acquisition of SSU Kits should directly support specific Marine Corps modernization or readiness objectives, such as enhancing survivability against emerging threats or improving vehicle performance in operational theaters. Assessing the alignment requires understanding the strategic context of these kits within the broader force structure. The return on investment is measured not just in financial terms but also in the increased effectiveness and reduced risk to personnel during military operations.

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: M6785413R5512

Offers Received: 4

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: $25,541,991

Exercised Options: $25,541,991

Current Obligation: $25,541,991

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline