DoD awards $44.8M for 287 Infantry Squad Vehicles and ABS/ESC kits to GM Defense

Contract Overview

Contract Amount: $44,884,510 ($44.9M)

Contractor: GM Defense LLC

Awarding Agency: Department of Defense

Start Date: 2025-02-05

End Date: 2025-12-31

Contract Duration: 329 days

Daily Burn Rate: $136.4K/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 287 EACH INFANTRY SQUAD VEHICLES (ISVS) AND 287 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 $44.9 million to GM DEFENSE LLC for work described as: THE PURPOSE OF THIS ACTION IS TO PROCURE 287 EACH INFANTRY SQUAD VEHICLES (ISVS) AND 287 EACH ANTI-LOCK BRAKING SYSTEM (ABS)/ELECTRONIC STABILITY CONTROL (ESC) KITS IN SUPPORT OF ISV FIELDING. Key points: 1. Contract awarded to GM Defense LLC for 287 Infantry Squad Vehicles (ISVs) and associated kits. 2. The contract is a Firm Fixed Price Delivery Order with an estimated completion date of December 31, 2025. 3. This procurement supports the fielding of ISVs, a key component for infantry units. 4. The North American Industry Classification System (NAICS) code is 336112, indicating Light Truck and Utility Vehicle Manufacturing. 5. The contract was awarded under Full and Open Competition after Exclusion of Sources. 6. The total award amount is approximately $44.8 million. 7. The contract duration is 329 days.

Value Assessment

Rating: good

The contract value of $44.8 million for 287 vehicles and kits suggests a per-unit cost of approximately $156,392. This figure needs to be benchmarked against similar military vehicle procurements and the specific capabilities of the ISV. Without detailed specifications and comparisons to other light tactical vehicles, a precise value-for-money assessment is challenging. However, the firm fixed-price nature of the contract provides cost certainty for the government.

Cost Per Unit: Approximately $156,392 per unit (vehicle + kit).

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This indicates that while the competition was intended to be open, specific sources were excluded, potentially limiting the competitive pool. The exact reasons for excluding other sources are not detailed, but this approach can sometimes lead to less competitive pricing if not carefully managed. Further information on the exclusion rationale would be needed for a complete assessment.

Taxpayer Impact: The limited competition may have implications for taxpayers if it resulted in higher prices than a broader, unrestricted competition might have achieved. Transparency regarding the exclusion of sources is crucial for ensuring the best value for public funds.

Public Impact

The primary beneficiaries are U.S. Army infantry units receiving enhanced mobility and protection through the new ISVs. The contract delivers 287 Infantry Squad Vehicles and 287 Anti-Lock Braking System/Electronic Stability Control kits. The geographic impact is primarily within the United States, supporting military readiness and deployment capabilities. Workforce implications include support for manufacturing jobs within GM Defense and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources may impact price competitiveness.
Firm Fixed Price contract type, while providing cost certainty, can lead to higher initial prices compared to cost-reimbursement contracts if risks are high.
The specific capabilities and technological advancements of the ISV compared to existing platforms need further evaluation for long-term value.

Positive Signals

Award to a known defense contractor (GM Defense LLC) suggests established manufacturing capabilities and experience.
Firm Fixed Price contract type minimizes cost overrun risk for the government.
Procurement supports a critical modernization effort for infantry units, enhancing combat effectiveness.

Sector Analysis

The defense manufacturing sector, specifically light tactical vehicle production, is characterized by high technological requirements and significant government investment. This contract fits within the broader strategy of modernizing ground vehicle fleets to meet evolving battlefield demands. Comparable spending benchmarks would involve analyzing the unit costs of other light armored or tactical vehicles procured by the DoD and allied nations.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no mention of small business set-asides (ss). This suggests that the prime contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist within GM Defense's supply chain, but this contract does not appear to have a direct small business set-aside component.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. Accountability measures are inherent in the Firm Fixed Price contract type, which holds the contractor responsible for delivering the specified goods within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Infantry Fighting Vehicles
Light Tactical Vehicles
Ground Combat Vehicle Modernization
Armored Personnel Carriers

Risk Flags

Limited competition
Potential supply chain risks
Manufacturing quality control

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.9 million to GM DEFENSE LLC. THE PURPOSE OF THIS ACTION IS TO PROCURE 287 EACH INFANTRY SQUAD VEHICLES (ISVS) AND 287 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 $44.9 million.

What is the period of performance?

Start: 2025-02-05. End: 2025-12-31.

What is the track record of GM Defense LLC in delivering similar military vehicles on time and within budget?

GM Defense LLC, a subsidiary of General Motors, has a history of producing military vehicles, including the Stryker family of vehicles and the Humvee. Their track record involves large-scale production and integration of complex systems. While specific performance data for recent contracts is often not fully public, the company's long-standing presence in the defense sector suggests established manufacturing processes and program management capabilities. Benchmarking their past delivery performance against contract schedules and budget adherence for similar vehicle types would provide a clearer picture of their reliability in fulfilling this ISV contract.

How does the per-unit cost of the ISV compare to other light tactical vehicles procured by the U.S. military?

The per-unit cost of approximately $156,392 for the ISV (vehicle + kit) needs careful comparison. Light tactical vehicles can vary significantly in cost based on armor, payload, mobility features, and mission systems. For instance, simpler utility vehicles might cost under $100,000, while more heavily protected or specialized platforms can exceed $500,000. The ISV's cost should be benchmarked against vehicles with comparable protection levels, seating capacity, and off-road performance. Without direct comparisons to vehicles fulfilling a similar role (e.g., MRAPs, JLTVs, or other infantry transport vehicles), it's difficult to definitively state if this price represents excellent or fair value.

What are the primary risks associated with the production and delivery of these Infantry Squad Vehicles?

Key risks include potential supply chain disruptions for specialized components, manufacturing complexities in meeting stringent military specifications, and integration challenges with the ABS/ESC kits. Schedule delays are also a risk, particularly given the firm fixed-price nature, which incentivizes the contractor to manage costs tightly but could lead to pressure on timelines if unforeseen issues arise. Furthermore, ensuring consistent quality across all 287 units to meet operational demands is critical. The exclusion of sources in the competition might also introduce a risk if it limits the contractor's ability to source components competitively or if it masks underlying issues that a broader competition might have revealed.

What is the expected impact of these ISVs on the operational effectiveness of infantry squads?

The Infantry Squad Vehicle (ISV) is designed to provide enhanced mobility, protection, and carrying capacity for infantry squads, enabling them to move more rapidly and safely across various terrains. It aims to bridge the gap between traditional light tactical vehicles and heavier armored personnel carriers. The ISV's ability to transport a full nine-soldier squad, along with their equipment, directly improves tactical flexibility and reduces soldier fatigue during dismounted operations. The inclusion of ABS/ESC kits further enhances vehicle control and safety, particularly in challenging operational environments, contributing to overall mission success and survivability.

What has been the historical spending trend for similar light tactical vehicle procurements by the Department of the Army?

Historical spending on light tactical vehicles by the Department of the Army has varied significantly based on program modernization cycles and specific vehicle requirements. Major programs like the Joint Light Tactical Vehicle (JLTV) involved billions of dollars over multiple years, reflecting the scale of fleet replacement. Spending on less complex utility vehicles or specialized platforms tends to be lower per unit and in aggregate. Analyzing past Army budgets for ground vehicle procurement, particularly for infantry transport and light armored vehicles, would reveal trends in investment levels, average unit costs, and the number of vehicles procured annually, providing context for the current ISV award.

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: $44,884,510

Exercised Options: $44,884,510

Current Obligation: $44,884,510

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV20D0066

IDV Type: IDC

Timeline