DoD awards $42.7M for Combat Assault Vehicles, raising questions on competition and value

Contract Overview

Contract Amount: $42,701,492 ($42.7M)

Contractor: General Dynamics Land Systems - Force Protection Inc.

Awarding Agency: Department of Defense

Start Date: 2006-06-07

End Date: 2007-12-31

Contract Duration: 572 days

Daily Burn Rate: $74.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200608!005880!2100!W56HZV!TACOM - WARREN !W56HZV06C0245 !A!N! !N! !P00004!20060607!20070203!003268989!003268989!878090687!N!FORCE PROTECTION INDUSTRIES, I!9801 HIGHWAY 78 !LADSON !SC!29456!39220!019!45!LADSON !CHARLESTON !S CAROLINA!-000002123254!N!N!000000000000!2350!COMBAT ASSAULT & TACTICAL VEH, TRACKED !A4A!COMBAT VEHICLES !000 !NOT DISCERNABLE !336999!E! !3! ! !C! ! !99990909!B! ! !N!A!D!Y!J!2!001!N!2A!Z!N!E! ! !Y!B!N!N! ! !A! !B!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: LADSON, CHARLESTON County, SOUTH CAROLINA, 29456

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $42.7 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC. for work described as: 200608!005880!2100!W56HZV!TACOM - WARREN !W56HZV06C0245 !A!N! !N! !P00004!20060607!20070203!003268989!003268989!878090687!N!FORCE PROTECTION INDUSTRIES, I!9801 HIGHWAY 78 !LADSON !SC!29456!39220!019!45!LADSON !CHAR… Key points: 1. Contract awarded to Force Protection Industries for Combat Assault Vehicles. 2. Significant spending on specialized vehicles highlights defense sector needs. 3. Competition method raises concerns about price discovery and taxpayer value. 4. Sector context: Defense spending on tactical vehicles is a critical area.

Value Assessment

Rating: questionable

The contract value of $42.7M for 1 unit of Combat Assault Vehicles appears high. Benchmarking against similar specialized vehicle procurements is difficult without more detailed specifications, but the per-unit cost seems elevated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may restrict the pool of potential bidders, potentially impacting price discovery and leading to higher costs.

Taxpayer Impact: The limited competition raises concerns about whether the government secured the best possible price, potentially impacting taxpayer funds.

Public Impact

Taxpayers may be overpaying for specialized military equipment due to limited competition. The procurement of combat vehicles is critical for national defense, but efficiency is paramount. Oversight is needed to ensure fair pricing and robust competition in future defense contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potentially high per-unit cost
Lack of detailed cost breakdown

Positive Signals

Critical defense procurement
Contract awarded to a known entity in the sector

Sector Analysis

This contract falls within the Defense sector, specifically focusing on the manufacturing of combat vehicles. Spending in this area is driven by national security needs, but efficiency and cost-effectiveness are crucial for responsible stewardship of taxpayer funds.

Small Business Impact

The data does not indicate any specific set-asides or participation from small businesses in this particular contract award.

Oversight & Accountability

The contract's limited competition and potentially high cost warrant further review by oversight bodies to ensure accountability and value for money in defense spending.

Related Government Programs

All Other Transportation Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition raises concerns about price fairness.
Potentially high per-unit cost requires further justification.
Lack of transparency in source exclusion.
Need for detailed cost-benefit analysis.
Potential for cost overruns in specialized procurements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.7 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC.. 200608!005880!2100!W56HZV!TACOM - WARREN !W56HZV06C0245 !A!N! !N! !P00004!20060607!20070203!003268989!003268989!878090687!N!FORCE PROTECTION INDUSTRIES, I!9801 HIGHWAY 78 !LADSON !SC!29456!39220!019!45!LADSON !CHARLESTON !S CAROLINA!-000002123254!N!N!000000000000!2350!COMBAT ASSAULT & TACTICAL VEH, TRACKED !A4A!COMBAT VEHICLES !000 !NOT DISCERNABLE !336999!E! !3! ! !C! ! !999

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 Army).

What is the total obligated amount?

The obligated amount is $42.7 million.

What is the period of performance?

Start: 2006-06-07. End: 2007-12-31.

What specific factors contributed to the exclusion of other potential sources in this 'full and open competition after exclusion of sources' award, and how were these justified?

The justification for excluding other sources typically involves technical specifications, unique capabilities, or proprietary technology that only a specific vendor can meet. Without detailed documentation, it's difficult to ascertain the precise reasons. However, such exclusions can limit competition and potentially increase costs, necessitating a thorough review to ensure the exclusion was genuinely warranted and not a barrier to fair market access.

How does the per-unit cost of these Combat Assault Vehicles compare to similar vehicles procured by other agencies or allies, and what is the rationale for any significant differences?

A comprehensive comparison of per-unit costs is challenging without access to detailed specifications and procurement histories of similar vehicles. Factors like unique features, technological advancements, quantity ordered, and contract terms can significantly influence pricing. If this vehicle's cost is substantially higher, an investigation into the specific requirements and market conditions would be necessary to understand the variance and ensure cost-effectiveness.

What measures are in place to ensure the long-term effectiveness and operational readiness of these vehicles, considering the significant investment and the specialized nature of the procurement?

Ensuring long-term effectiveness involves robust testing, validation of performance against requirements, and comprehensive sustainment planning. This includes provisions for maintenance, spare parts, and potential upgrades. The Department of Defense likely has established protocols for lifecycle management of major weapon systems, but ongoing monitoring and performance reviews are critical to confirm the investment's continued value and the vehicles' readiness.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › All Other Transportation Equipment Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Force Protection, Inc. (UEI: 878090687)

Address: 9801 HIGHWAY 78, LADSON, SC, 01

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $10,426,927

Exercised Options: $10,426,927

Current Obligation: $42,701,492

Contract Characteristics

Cost or Pricing Data: NO

Timeline