Army Awards $17.7M for 113 Infantry Squad Vehicles and ABS/ESC Kits to GM Defense
Contract Overview
Contract Amount: $17,672,298 ($17.7M)
Contractor: GM Defense LLC
Awarding Agency: Department of Defense
Start Date: 2025-01-31
End Date: 2025-06-30
Contract Duration: 150 days
Daily Burn Rate: $117.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE PURPOSE OF THIS ACTION IS TO PROCURE 113 EACH INFANTRY SQUAD VEHICLES (ISVS) AND 113 EACH ANTI-LOCK BRAKING SYSTEM (ABS)/ELECTRONIC STABILITY CONTROL (ESC) KITS IN SUPPORT OF ISV FIELDING.
Place of Performance
Location: DETROIT, WAYNE County, MICHIGAN, 48243
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $17.7 million to GM DEFENSE LLC for work described as: THE PURPOSE OF THIS ACTION IS TO PROCURE 113 EACH INFANTRY SQUAD VEHICLES (ISVS) AND 113 EACH ANTI-LOCK BRAKING SYSTEM (ABS)/ELECTRONIC STABILITY CONTROL (ESC) KITS IN SUPPORT OF ISV FIELDING. Key points: 1. The contract is for 113 Infantry Squad Vehicles (ISVs) and associated ABS/ESC kits. 2. GM Defense LLC is the sole awardee under a full and open competition after exclusion of sources. 3. The total award value is $17,672,298.26. 4. The vehicles are for fielding support by the Department of the Army. 5. The North American Industry Classification System (NAICS) code is 336112 for Light Truck and Utility Vehicle Manufacturing.
Value Assessment
Rating: good
The contract is a firm fixed price delivery order. The total award value of $17.7M for 113 vehicles averages to approximately $156,392 per vehicle, which appears reasonable given the specialized nature of an Infantry Squad Vehicle.
Cost Per Unit: $156,392
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating that multiple sources were considered. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: The competitive award process is expected to yield fair pricing, ensuring taxpayer funds are used efficiently for essential military equipment.
Public Impact
Enhances troop mobility and survivability with modern Infantry Squad Vehicles. Supports the Department of the Army's modernization efforts. Provides critical safety features through ABS/ESC kits. Leverages existing manufacturing capabilities for efficient production. Contributes to the readiness of infantry units.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for sole-source justification if competition was truly limited.
- Delivery timeline may be tight for 113 vehicles in 5 months.
Positive Signals
- Awarded via full and open competition.
- Firm fixed price contract limits cost overrun risk.
- Includes essential safety and performance upgrades (ABS/ESC).
Sector Analysis
The defense sector, particularly vehicle manufacturing, is characterized by high R&D costs and long production cycles. This award falls under light truck and utility vehicle manufacturing, a segment that supports military logistics and troop transport.
Small Business Impact
The awardee, GM Defense LLC, is a large business. There is no specific indication in the provided data about subcontracting opportunities for small businesses on this particular delivery order.
Oversight & Accountability
The Department of the Army's contracting process, including full and open competition, provides a framework for oversight. The firm fixed price nature of the contract helps in accountability for cost.
Related Government Programs
- Light Truck and Utility Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Delivery timeline feasibility
- Supply chain reliability for specialized components
- Potential for future sole-source actions if competition proves difficult
- Ensuring adequate performance and durability of vehicles
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 $17.7 million to GM DEFENSE LLC. THE PURPOSE OF THIS ACTION IS TO PROCURE 113 EACH INFANTRY SQUAD VEHICLES (ISVS) AND 113 EACH ANTI-LOCK BRAKING SYSTEM (ABS)/ELECTRONIC STABILITY CONTROL (ESC) KITS IN SUPPORT OF ISV FIELDING.
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 $17.7 million.
What is the period of performance?
Start: 2025-01-31. End: 2025-06-30.
What specific capabilities do the ISVs offer that justify their procurement and cost?
Infantry Squad Vehicles (ISVs) are designed to provide protected mobility for infantry squads, offering enhanced survivability against battlefield threats compared to unarmored vehicles. They typically feature improved speed, maneuverability, and payload capacity, enabling rapid deployment and support for dismounted operations. The specific capabilities likely include ballistic protection, mine resistance, and the ability to carry a full squad with equipment, justifying their specialized design and associated costs.
What are the potential risks associated with the delivery timeline for these vehicles?
A delivery timeline of 150 days (approximately 5 months) for 113 specialized vehicles presents a risk of delays. Factors such as supply chain disruptions for components (including the ABS/ESC kits), manufacturing capacity constraints, or unforeseen production issues could impact timely delivery. Delays could affect unit readiness and fielding schedules, potentially impacting operational capabilities.
How does the inclusion of ABS/ESC kits contribute to the overall effectiveness of the ISVs?
The inclusion of Anti-Lock Braking System (ABS) and Electronic Stability Control (ESC) kits significantly enhances the operational effectiveness and safety of the Infantry Squad Vehicles. These systems improve vehicle handling, braking performance, and stability, especially in challenging terrain or adverse weather conditions. This reduces the risk of accidents, allows for more controlled high-speed maneuvers, and ultimately contributes to safer troop transport and mission success.
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: $17,672,298
Exercised Options: $17,672,298
Current Obligation: $17,672,298
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV20D0066
IDV Type: IDC
Timeline
Start Date: 2025-01-31
Current End Date: 2025-06-30
Potential End Date: 2025-06-30 12:06:00
Last Modified: 2025-04-29
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