Army awards $97M for 829 ISV vehicles with ABS/ESC kits and covers to GM Defense LLC
Contract Overview
Contract Amount: $97,052,565 ($97.1M)
Contractor: GM Defense LLC
Awarding Agency: Department of Defense
Start Date: 2025-09-24
End Date: 2026-11-26
Contract Duration: 428 days
Daily Burn Rate: $226.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ACQUIRE 829 ISV VEHICLES WITH ABS/ESC KITS AND VEHICLE COVERS
Place of Performance
Location: DETROIT, WAYNE County, MICHIGAN, 48234
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $97.1 million to GM DEFENSE LLC for work described as: ACQUIRE 829 ISV VEHICLES WITH ABS/ESC KITS AND VEHICLE COVERS Key points: 1. The contract is for 829 Infantry Squad Vehicles (ISVs) with specific kits and covers. 2. GM Defense LLC is the sole awardee, indicating a specific supplier relationship. 3. The contract value is substantial at over $97 million. 4. The vehicles are intended for light truck and utility vehicle manufacturing sector.
Value Assessment
Rating: good
The contract value of $97,052,565.10 for 829 vehicles suggests a per-unit cost of approximately $117,072. This appears to be within a reasonable range for specialized military vehicles of this type, considering the included kits and covers.
Cost Per Unit: $117,072
Competition Analysis
Competition Level: limited
The competition method is 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while the initial intent was open competition, specific circumstances led to the exclusion of other potential sources, potentially impacting price discovery and limiting competitive pressure.
Taxpayer Impact: The limited competition may result in a higher cost to taxpayers than a fully open and unrestricted bidding process.
Public Impact
Enhances troop mobility and survivability with advanced ISVs. Supports modernization efforts within the Department of the Army. Ensures availability of critical equipment for military operations. Potential impact on the light truck and utility vehicle manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about optimal pricing.
- Sole awardee may limit future innovation and cost reduction opportunities.
Positive Signals
- Acquisition of essential military hardware.
- Delivery order under an existing contract structure.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Light Truck and Utility Vehicle Manufacturing sector. Spending benchmarks for similar military vehicle acquisitions can vary widely based on customization, quantity, and technological integration. The $97M award for 829 units suggests a significant investment in specialized transport capabilities.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. The prime contractor, GM Defense LLC, is a large entity, suggesting that subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award notice.
Oversight & Accountability
The contract is a delivery order, implying it is part of a larger contracting vehicle that has likely undergone prior oversight. Further oversight would focus on the execution of this specific order, ensuring timely delivery and adherence to specifications.
Related Government Programs
- Light Truck and Utility Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may inflate costs.
- Sole awardee could reduce future competitive pressure.
- Lack of transparency on source exclusion rationale.
- Potential for vendor lock-in.
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 $97.1 million to GM DEFENSE LLC. ACQUIRE 829 ISV VEHICLES WITH ABS/ESC KITS AND VEHICLE COVERS
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 $97.1 million.
What is the period of performance?
Start: 2025-09-24. End: 2026-11-26.
What specific factors led to the exclusion of sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and how did this impact the final price?
The exclusion of sources typically occurs due to specific technical requirements, existing platform compatibility, or urgent operational needs that can only be met by a limited number of vendors. Without detailed documentation, it's difficult to ascertain the exact reasons for exclusion in this case. However, such exclusions often reduce competitive pressure, potentially leading to higher prices than if a broader range of suppliers had been able to bid.
How does the per-unit cost of these ISVs compare to similar military vehicles acquired through more competitive processes?
Benchmarking the per-unit cost of $117,072 requires detailed comparison with other military vehicle acquisitions, considering factors like armor, weapon systems, and technological integration. While this price appears reasonable for a specialized military vehicle, a direct comparison with vehicles procured under fully open competition would be necessary to definitively assess value for money and identify potential cost savings.
What are the long-term implications of awarding such a significant contract to a single supplier for critical military equipment?
Awarding to a single supplier can ensure standardization and streamlined logistics for the specific vehicle type. However, it also carries risks such as reduced long-term competition, potential price increases in future orders, and dependence on that supplier's capabilities and pricing strategies. This could limit the government's flexibility and bargaining power over time.
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: $97,052,565
Exercised Options: $97,052,565
Current Obligation: $97,052,565
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV20D0066
IDV Type: IDC
Timeline
Start Date: 2025-09-24
Current End Date: 2026-11-26
Potential End Date: 2026-11-26 12:11:00
Last Modified: 2025-09-24
More Contracts from GM Defense LLC
- GMD OEM Large SUV Armored — $53.0M (Department of State)
- 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 — $44.9M (Department of Defense)
- GMD OEM Large SUV Armored — $43.4M (Department of State)
- Large SUV Commercial Modification Services - Development of Armored SUV Prototypes for US Government USE — $38.4M (Department of State)
- THE Purpose of This Delivery Order IS to Procure 206 Infantry Squad Vehicles, Anti-Lock Braking System/Electronic Stability Control Kits, and Vehicle Storage Covers — $32.0M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)