Army awards $5.5M for mortar system integration onto Infantry Support Vehicles

Contract Overview

Contract Amount: $5,515,327 ($5.5M)

Contractor: GM Defense LLC

Awarding Agency: Department of Defense

Start Date: 2025-08-12

End Date: 2026-09-30

Contract Duration: 414 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS TASK ORDER IS FOR THE INTEGRATION AND DELIVERY OF THE 120MM MORTAR SYSTEM ONTO THE ISV.

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48243

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $5.5 million to GM DEFENSE LLC for work described as: THIS TASK ORDER IS FOR THE INTEGRATION AND DELIVERY OF THE 120MM MORTAR SYSTEM ONTO THE ISV. Key points: 1. Focuses on integrating a 120mm mortar system onto an Infantry Support Vehicle (ISV). 2. Contract awarded to GM Defense LLC, a known entity in vehicle manufacturing. 3. Delivery order under an existing contract, suggesting a continuation or expansion of a program. 4. Fixed-price contract type aims to control costs for the government. 5. Performance period extends over a year, indicating a substantial integration effort. 6. The specific NAICS code (336112) points to light truck and utility vehicle manufacturing, aligning with the ISV platform.

Value Assessment

Rating: good

The contract value of $5.5 million for the integration of a specific weapon system onto a vehicle platform appears reasonable given the complexity of such modifications. Benchmarking against similar defense integration contracts is challenging without more specific details on the scope of work, but the fixed-price nature suggests an effort to ensure value. The award to GM Defense LLC, a company with established capabilities in vehicle production, implies a degree of confidence in their ability to deliver at a competitive price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the initial solicitation may have been broad, specific exclusions were applied, potentially limiting the pool of eligible bidders. The exact reasons for exclusion are not detailed, but this approach can sometimes lead to less competitive pricing compared to truly full and open competition. Further details on the exclusion criteria would be needed for a complete assessment.

Taxpayer Impact: The limited competition may result in a higher cost to taxpayers compared to a scenario with a wider range of bidders. However, if the exclusions were based on specific technical requirements or existing platform compatibility, it could ensure a more effective integration.

Public Impact

The primary beneficiaries are the U.S. Army soldiers who will operate the ISV equipped with the integrated mortar system. The service delivered is the integration and delivery of a 120mm mortar system, enhancing the firepower and support capabilities of the ISV. The geographic impact is primarily within the operational theaters of the U.S. Army. Workforce implications include specialized engineers, technicians, and manufacturing personnel at GM Defense LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if integration challenges are underestimated.
Dependence on a single contractor (GM Defense LLC) for this specific integration task.
Limited competition raises questions about optimal price discovery.

Positive Signals

Award to an established defense contractor with relevant manufacturing expertise.
Fixed-price contract type provides cost certainty.
Clear delivery timeline with an end date in late 2026.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on vehicle integration and armament systems. The market for military vehicle modification and integration is specialized, with a limited number of prime contractors possessing the necessary security clearances, engineering expertise, and production capacity. Spending in this area is driven by evolving military requirements for enhanced platform capabilities and survivability.

Small Business Impact

The contract data indicates that small business participation is not a primary focus, as the award is made to GM Defense LLC. There is no explicit mention of small business set-asides. Subcontracting opportunities for small businesses may exist within GM Defense's supply chain, but this is not detailed in the provided information. The impact on the small business ecosystem is likely indirect, depending on the extent of subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Army Contracting Command and the relevant program executive office. Accountability measures are embedded in the fixed-price contract terms, delivery schedules, and performance specifications. Transparency is facilitated through contract award databases, though detailed technical specifications and internal oversight processes are generally not public.

Related Government Programs

Infantry Support Vehicle (ISV) Program
Army Ground Vehicle Systems
Mortar Systems Procurement
Defense Vehicle Integration Contracts

Risk Flags

Limited Competition
Technical Integration Complexity
Potential for Schedule Delays

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.5 million to GM DEFENSE LLC. THIS TASK ORDER IS FOR THE INTEGRATION AND DELIVERY OF THE 120MM MORTAR SYSTEM ONTO THE ISV.

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 $5.5 million.

What is the period of performance?

Start: 2025-08-12. End: 2026-09-30.

What is the specific technical scope of integrating the 120mm mortar system onto the ISV?

The provided data indicates the task is for 'THE INTEGRATION AND DELIVERY OF THE 120MM MORTAR SYSTEM ONTO THE ISV.' This implies modifying the Infantry Support Vehicle platform to accommodate, mount, and operate a 120mm mortar. The scope likely includes structural modifications, power and control system integration, ammunition handling solutions, safety features, and potentially firing control systems. Detailed technical specifications would outline the precise engineering changes, interface requirements, and performance standards for the integrated system. Without these specifics, the full complexity and potential risks of the integration remain partially obscured.

How does the $5.5 million cost compare to similar defense integration projects?

Benchmarking the $5.5 million cost is challenging without detailed comparative data on similar defense integration projects. However, for context, integrating complex weapon systems onto existing platforms can range from hundreds of thousands to tens of millions of dollars, depending on the system's complexity, the platform's adaptability, and the required modifications. The value here is tied to GM Defense LLC's established capabilities and the specific requirements of the ISV platform. The fixed-price nature suggests a defined scope, which aids in cost control, but the true value is realized upon successful integration and operational readiness of the enhanced ISV.

What are the primary risks associated with this contract for GM Defense LLC and the Army?

For GM Defense LLC, key risks include technical challenges in integrating the mortar system with the ISV's existing architecture, potential cost overruns if unforeseen engineering issues arise (despite the fixed-price contract), and meeting the stringent performance and safety requirements. For the Army, risks involve potential schedule delays impacting operational readiness, the possibility that the integrated system may not fully meet performance expectations, and the long-term reliability and maintainability of the modified vehicles. The 'limited' competition also presents a risk of not achieving the most cost-effective solution.

What is the historical spending pattern for GM Defense LLC with the Department of Defense?

GM Defense LLC, as a subsidiary of General Motors, has a history of providing vehicles and related services to the U.S. military. While specific spending figures for this exact integration task are new, the company has secured significant contracts for various military vehicle platforms, including the ISV itself. Historical data would likely show consistent awards for vehicle production, upgrades, and integration services, reflecting their established role as a defense supplier. Analyzing past contract values and performance for GM Defense would provide context on their capacity and pricing trends for similar projects.

What are the implications of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' for future procurements?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the initial solicitation was broad, specific criteria were used to narrow down the potential bidders. This could be due to unique technical requirements, existing platform compatibility, or specific security considerations. For future procurements, this suggests that the government may continue to use such methods when specialized capabilities or specific integrations are required. It implies that potential bidders need to be aware of and potentially meet these exclusion criteria to participate, which could influence market dynamics and the range of available solutions.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Manufacturing › Light Truck and Utility Vehicle Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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: $5,515,327

Exercised Options: $5,515,327

Current Obligation: $5,515,327

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV20D0066

IDV Type: IDC

Timeline