DoD awards $163.4M contract for 65 armored vehicles to Textron Systems Corp for Ukraine's armed forces

Contract Overview

Contract Amount: $163,378,441 ($163.4M)

Contractor: Textron Systems Corp

Awarding Agency: Department of Defense

Start Date: 2025-09-25

End Date: 2028-11-30

Contract Duration: 1,162 days

Daily Burn Rate: $140.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 65 EACH MOBILE STRIKE FORCE VEHICLES (MSFV), 1-YEAR OF SPARES, AND SPECIAL TOOLS AND TEST EQUIPMENT (STTE), IN SUPPORT OF ARMED FORCES OF UKRAINE (AFU).

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $163.4 million to TEXTRON SYSTEMS CORP for work described as: 65 EACH MOBILE STRIKE FORCE VEHICLES (MSFV), 1-YEAR OF SPARES, AND SPECIAL TOOLS AND TEST EQUIPMENT (STTE), IN SUPPORT OF ARMED FORCES OF UKRAINE (AFU). Key points: 1. Contract awarded to Textron Systems Corp for 65 Mobile Strike Force Vehicles (MSFV). 2. Includes 1-year of spares and special tools and test equipment. 3. Supports the Armed Forces of Ukraine (AFU). 4. Contract type is Firm Fixed Price. 5. Contract duration is 1162 days, ending November 30, 2028. 6. Awarded by the Department of the Army. 7. This is a definitive contract with a total obligation of $163,378,441.

Value Assessment

Rating: fair

The total contract value is $163.4 million for 65 vehicles, spares, and test equipment. This averages to approximately $2.5 million per vehicle, which is a significant investment. Without specific details on the vehicle's capabilities and the scope of spares and test equipment, a direct value-for-money assessment is challenging. However, given the context of supporting allied forces in a conflict zone, the pricing may reflect urgency and specialized requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach is often used in situations requiring specific expertise, proprietary technology, or urgent national security needs. The lack of competition means that the government did not explore alternative vendors or pricing structures, potentially leading to higher costs than if multiple bids were solicited.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as the government did not have the opportunity to compare offers from multiple suppliers.

Public Impact

The primary beneficiaries are the Armed Forces of Ukraine (AFU), receiving critical armored vehicle support. The services delivered include the provision of 65 Mobile Strike Force Vehicles, along with essential spares and testing equipment. The geographic impact is focused on supporting Ukraine's defense capabilities. Workforce implications may include manufacturing and logistics personnel at Textron Systems Corp and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition could result in a higher price than a competed contract.
Potential for cost overruns if unforeseen issues arise during production or delivery.
Dependence on a single contractor for critical military hardware.

Positive Signals

Addresses an urgent need for military equipment for an allied nation.
Firm Fixed Price contract provides cost certainty for the government.
Includes provisions for spares and test equipment, ensuring operational readiness.

Sector Analysis

The defense industrial base, specifically the armored vehicle manufacturing sector, is characterized by high barriers to entry due to specialized technology, stringent quality control, and significant capital investment. Contracts like this support key players in this sector, ensuring they maintain production capabilities. The market size for such specialized vehicles is niche, often driven by government defense spending and international military aid.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there explicit information regarding subcontracting plans for small businesses. The award to a large prime contractor like Textron Systems Corp suggests that the primary focus is on direct delivery of the end item. Further analysis would be needed to determine if small businesses are involved in the supply chain for components or services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and program management offices. Accountability measures are inherent in the definitive contract structure and firm fixed-price terms. Transparency may be limited due to the sole-source nature and the sensitive context of military aid. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Foreign Military Sales
Ukraine Security Assistance Initiative
Armored Vehicle Procurement
Defense Articles and Services

Risk Flags

Sole-source award may lead to higher costs.
Potential supply chain risks due to single contractor.
Urgency of need may override standard competitive processes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $163.4 million to TEXTRON SYSTEMS CORP. 65 EACH MOBILE STRIKE FORCE VEHICLES (MSFV), 1-YEAR OF SPARES, AND SPECIAL TOOLS AND TEST EQUIPMENT (STTE), IN SUPPORT OF ARMED FORCES OF UKRAINE (AFU).

Who is the contractor on this award?

The obligated recipient is TEXTRON SYSTEMS CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $163.4 million.

What is the period of performance?

Start: 2025-09-25. End: 2028-11-30.

What is the specific model and capabilities of the Mobile Strike Force Vehicles (MSFV) being procured?

The specific model of the Mobile Strike Force Vehicles (MSFV) is not detailed in the provided data. However, MSFVs are generally understood to be light armored vehicles designed for rapid deployment and various combat support roles. They typically offer protection against small arms fire and IEDs, and can be configured for different missions such as troop transport, reconnaissance, or command and control. The exact specifications, including armament, armor levels, and technological features, would be critical for a full assessment of their suitability and value for the Armed Forces of Ukraine (AFU).

How does the per-unit cost of these MSFVs compare to similar vehicles procured by the US or allied nations?

The average per-unit cost for these MSFVs, including spares and test equipment, is approximately $2.5 million ($163.4M / 65 vehicles). Benchmarking this against similar vehicles is complex without knowing the exact specifications. However, light armored vehicles can range significantly in price. For instance, some MRAPs (Mine-Resistant Ambush Protected vehicles) have cost upwards of $500,000 to $1 million, while more advanced infantry fighting vehicles can exceed $3-5 million. The $2.5 million figure suggests a mid-to-high range for light armored vehicles, especially when factoring in the included support package. A direct comparison would require detailed technical specifications of the Textron MSFV against other available platforms.

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

The primary risks associated with a sole-source award for critical military equipment include a lack of price competition, potentially leading to inflated costs for taxpayers. There's also a reduced incentive for the contractor to innovate or offer cost-saving efficiencies, as there are no competitors to outperform. Furthermore, reliance on a single source can create vulnerabilities in the supply chain and increase risks if the contractor faces production issues, financial instability, or geopolitical challenges. The government also loses the opportunity to explore alternative technologies or solutions that might be offered by other manufacturers.

What is Textron Systems Corp's track record in delivering similar armored vehicles to military clients?

Textron Systems Corp has a significant track record in developing and manufacturing armored vehicles and other defense systems for various military clients, including the U.S. Department of Defense. They are known for producing vehicles such as the Armored Multi-Purpose Vehicle (AMPV) and have been involved in other armored vehicle programs. Their experience includes delivering vehicles that meet stringent military requirements for protection, mobility, and survivability. While specific performance data on past contracts isn't detailed here, their established presence in the defense sector suggests a capability to produce complex military hardware.

What is the historical spending trend for armored vehicles by the Department of the Army or for similar foreign military aid programs?

Historical spending on armored vehicles by the Department of the Army and for foreign military aid programs can fluctuate significantly based on geopolitical events, modernization needs, and budget allocations. The U.S. Army has consistently invested billions annually in ground vehicle modernization and procurement, including various classes of armored vehicles. Foreign military aid programs, particularly in recent years supporting Ukraine, have also seen substantial increases in funding for military hardware, including armored platforms. Without specific historical data for MSFV procurements or comparable aid packages, it's difficult to establish a precise trend, but overall defense spending and aid packages have been robust, especially post-2022.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19401 CHEF MENTEUR HWY, NEW ORLEANS, LA, 70129

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: $163,378,441

Exercised Options: $163,378,441

Current Obligation: $163,378,441

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $8,112,188

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline