Army awards $29.2M for 187 vehicles and kits to GM Defense LLC
Contract Overview
Contract Amount: $29,245,308 ($29.2M)
Contractor: GM Defense LLC
Awarding Agency: Department of Defense
Start Date: 2024-11-27
End Date: 2025-02-20
Contract Duration: 85 days
Daily Burn Rate: $344.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ISV DELIVERY ORDER 187 VEHICLES AND KITS
Place of Performance
Location: DETROIT, WAYNE County, MICHIGAN, 48234
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $29.2 million to GM DEFENSE LLC for work described as: ISV DELIVERY ORDER 187 VEHICLES AND KITS Key points: 1. Significant award for light truck and utility vehicle manufacturing. 2. GM Defense LLC is the sole awardee, raising questions about competition. 3. The contract is a delivery order under a larger agreement. 4. Firm fixed price contract type aims to control costs.
Value Assessment
Rating: fair
The award amount of $29.2M for 187 vehicles and kits appears reasonable given the nature of specialized defense equipment. Benchmarking against similar large-scale vehicle procurements would provide a clearer picture of value.
Cost Per Unit: $156,392
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 price discovery and potentially lead to higher costs compared to a fully open process.
Taxpayer Impact: Taxpayer funds are being used for this procurement. The limited competition raises concerns about whether the best possible price was achieved.
Public Impact
Ensures operational readiness for Army personnel by providing essential vehicles and kits. Supports the defense industrial base, specifically in vehicle manufacturing. Impacts logistics and deployment capabilities for the Army.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for higher costs due to restricted bidding
Positive Signals
- Firm fixed price contract
- Clear delivery timeline
Sector Analysis
This award falls within the Defense sector, specifically related to vehicle manufacturing. Spending in this area is critical for military readiness and modernization. Benchmarks for similar vehicle procurements can vary widely based on specialization and quantity.
Small Business Impact
The data indicates this contract was awarded to GM Defense LLC, a large corporation. There is no explicit mention of small business participation in this specific award, suggesting limited direct impact on small businesses.
Oversight & Accountability
The Department of the Army is responsible for oversight of this delivery order. The 'exclusion of sources' clause warrants scrutiny to ensure the justification for limited competition was robust and documented.
Related Government Programs
- Light Truck and Utility Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Potential for price escalation
- Lack of transparency in source exclusion
- Dependence on a single large contractor
Tags
light-truck-and-utility-vehicle-manufact, department-of-defense, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.2 million to GM DEFENSE LLC. ISV DELIVERY ORDER 187 VEHICLES AND KITS
Who is the contractor on this award?
The obligated recipient is GM DEFENSE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $29.2 million.
What is the period of performance?
Start: 2024-11-27. End: 2025-02-20.
What was the specific justification for excluding other sources in the competition?
The justification for excluding other sources is critical for understanding the procurement's fairness and potential cost implications. Without this information, it's difficult to assess if the limited competition was necessary for technical or security reasons, or if it simply restricted market access and potentially inflated the price.
How does the per-unit cost compare to similar light truck and utility vehicle procurements by other government agencies or in the commercial sector?
A comparative analysis of the per-unit cost against similar procurements is essential for evaluating value for money. If this cost is significantly higher than benchmarks, it could indicate inefficiencies in the procurement process or a lack of competitive pressure driving down prices, ultimately impacting taxpayer investment.
What are the performance metrics and quality assurance measures in place for these vehicles and kits?
Understanding the performance metrics and quality assurance measures is crucial for assessing the effectiveness of this spending. Ensuring the vehicles and kits meet stringent military standards and are delivered without defects will determine their operational utility and the overall success of the contract, preventing costly replacements or repairs.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Manufacturing › Light Truck and Utility Vehicle Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: ALTERNATIVE SOURCES
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 300 RENAISSANCE CTR FL 24, DETROIT, MI, 48243
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,245,308
Exercised Options: $29,245,308
Current Obligation: $29,245,308
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV20D0066
IDV Type: IDC
Timeline
Start Date: 2024-11-27
Current End Date: 2025-02-20
Potential End Date: 2025-02-20 00:00:00
Last Modified: 2025-09-18
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