DoD awards $32M for 206 Infantry Squad Vehicles, enhancing Army mobility with a focus on safety features
Contract Overview
Contract Amount: $32,028,027 ($32.0M)
Contractor: GM Defense LLC
Awarding Agency: Department of Defense
Start Date: 2025-09-30
End Date: 2027-03-31
Contract Duration: 547 days
Daily Burn Rate: $58.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 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.
Place of Performance
Location: DETROIT, WAYNE County, MICHIGAN, 48243
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $32.0 million to GM DEFENSE LLC for work described as: 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. Key points: 1. The contract focuses on equipping infantry squads with advanced mobility and safety systems. 2. Procurement includes anti-lock braking and electronic stability control kits, indicating a priority on operational safety. 3. The award to GM Defense LLC suggests a reliance on established defense manufacturing capabilities. 4. The firm-fixed-price contract type aims to provide cost certainty for the government. 5. The duration of the delivery order spans over 1.5 years, allowing for phased delivery and integration. 6. This acquisition supports the Army's modernization efforts for ground vehicle platforms.
Value Assessment
Rating: good
The total award of $32.03 million for 206 Infantry Squad Vehicles, including ABS/ESC kits, translates to approximately $155,475 per vehicle. This figure appears reasonable when considering the specialized nature of military vehicles and the inclusion of advanced safety systems. Benchmarking against similar specialized military vehicle procurements would provide further context, but the price point does not immediately raise significant value concerns.
Cost Per Unit: Approximately $155,475 per vehicle (including kits).
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific designation suggests that while the initial solicitation may have been open, certain sources were excluded, potentially due to specific technical requirements or prior relationships. The exact number of bidders and the rationale for exclusions are not detailed, making a full assessment of competition dynamics challenging. However, the 'full and open' aspect implies an attempt to solicit from a broad base.
Taxpayer Impact: The limited competition aspect, even with an initial 'full and open' phase, could potentially lead to less aggressive pricing than a truly open competition with multiple active bidders. Taxpayers benefit from the inclusion of safety features, but the pricing efficiency is somewhat constrained by the competitive landscape.
Public Impact
Infantry squads within the Department of the Army will benefit from enhanced mobility and safety. The delivery of 206 Infantry Squad Vehicles will improve tactical capabilities for ground operations. The procurement supports the modernization of the Army's light tactical vehicle fleet. This contract contributes to the readiness and effectiveness of combat units. The vehicles are manufactured in Michigan, supporting the domestic defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'exclusion of sources' in the competition type warrants further investigation to ensure fair market access.
- Lack of detailed bidding information makes it difficult to fully assess price competitiveness.
Positive Signals
- Inclusion of advanced safety features (ABS/ESC) demonstrates a commitment to crew protection.
- Firm-fixed-price contract type provides budget predictability.
- Award to a known defense contractor like GM Defense LLC suggests reliability in production.
Sector Analysis
The defense sector, specifically ground vehicle manufacturing, is characterized by high technological requirements and long procurement cycles. This contract for Infantry Squad Vehicles falls within the light truck and utility vehicle manufacturing sub-sector (NAICS 336112). The market is dominated by a few large defense contractors capable of meeting stringent military specifications. Spending in this area is driven by modernization needs and the replacement of aging vehicle fleets, with significant government investment allocated to maintaining technological superiority.
Small Business Impact
This contract does not appear to have a specific small business set-aside. The prime contractor, GM Defense LLC, is a large entity. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The impact on the small business ecosystem is likely indirect, potentially through lower-tier suppliers if GM Defense engages them, but direct set-aside benefits are absent.
Oversight & Accountability
Oversight for this delivery order will be managed by the Department of the Army, likely through contracting officers and program managers responsible for ground vehicle acquisition. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified vehicles and kits. Transparency is facilitated through contract award databases, though detailed performance metrics and oversight reports are not publicly available in this summary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Family of Medium Tactical Vehicles (FMTV)
- Joint Light Tactical Vehicle (JLTV)
- Armored Multi-Purpose Vehicle (AMPV)
Risk Flags
- Potential for reduced competition due to source exclusion.
- Lack of detailed public information on the number of bidders and evaluation criteria.
Tags
defense, department-of-defense, department-of-the-army, infantry-squad-vehicle, light-truck-and-utility-vehicle-manufacturing, firm-fixed-price, delivery-order, limited-competition, gm-defense-llc, michigan, vehicle-procurement, safety-features
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.0 million to GM DEFENSE LLC. 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.
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 $32.0 million.
What is the period of performance?
Start: 2025-09-30. End: 2027-03-31.
What is the track record of GM Defense LLC in delivering similar military vehicles on time and within budget?
GM Defense LLC, as a subsidiary of General Motors, leverages extensive automotive manufacturing experience. While specific performance data for recent military contracts is not detailed here, the company has a history of producing vehicles for military applications. Assessing their track record would require examining past delivery orders and contracts for similar platforms, looking at on-time delivery rates, cost overruns, and quality compliance. Their established presence in the automotive industry suggests a capacity for large-scale production, but military-specific contract execution requires specialized quality control and adherence to defense standards. Further analysis would involve reviewing contract performance reports and any documented issues or successes in prior military procurements.
How does the per-unit cost of these Infantry Squad Vehicles compare to other similar light tactical vehicle procurements by the DoD?
The per-unit cost of approximately $155,475 for these Infantry Squad Vehicles, including ABS/ESC kits, needs to be benchmarked against comparable military vehicle programs. For instance, the Joint Light Tactical Vehicle (JLTV) program has seen per-unit costs ranging significantly, often exceeding $200,000 depending on the variant and configuration. Older programs or less specialized utility vehicles might have lower costs. The inclusion of specific safety kits (ABS/ESC) adds to the unit price. A direct comparison would require identifying vehicles with similar payload, protection levels, and intended roles. Without specific comparable data points readily available, this cost appears within a plausible range for a modern, specialized military light vehicle, but a detailed comparative analysis against specific peer programs is recommended for a definitive value assessment.
What are the primary risks associated with the 'Full and Open Competition After Exclusion of Sources' contracting method for this procurement?
The primary risk associated with 'Full and Open Competition After Exclusion of Sources' is the potential for reduced competition and, consequently, less favorable pricing for the government. While the initial phase aims for broad solicitation, the subsequent exclusion of sources can limit the number of viable bidders. This limitation might arise from highly specific technical requirements that only a few contractors can meet, or it could be due to prior decisions or relationships that restrict the pool. The risk is that the government may not achieve the most competitive price possible if the excluded sources could have offered a better value proposition. Transparency regarding the reasons for exclusion is crucial to mitigate this risk and ensure the integrity of the procurement process.
What is the expected impact of these new Infantry Squad Vehicles on the operational effectiveness of Army infantry units?
The introduction of these 206 Infantry Squad Vehicles is expected to significantly enhance the operational effectiveness of Army infantry units. These vehicles are designed to provide protected mobility, allowing infantry squads to reach tactical positions more safely and rapidly than by dismounted movement. The inclusion of Anti-lock Braking System (ABS) and Electronic Stability Control (ESC) kits directly addresses safety and maneuverability concerns, particularly in challenging terrain or adverse weather conditions. This improved mobility and safety translate to increased survivability, reduced fatigue for soldiers, and the ability to deploy combat power more effectively upon arrival. Ultimately, these vehicles contribute to the overall readiness and lethality of infantry formations.
How does this $32 million award fit into the broader historical spending patterns for light tactical vehicles within the Department of Defense?
This $32 million award for Infantry Squad Vehicles represents a specific investment within the larger context of DoD spending on light tactical vehicles. The DoD consistently allocates substantial funds towards modernizing its ground vehicle fleet, which includes platforms like the JLTV, FMTVs, and various specialized vehicles. Annual spending on such procurements can range from hundreds of millions to billions of dollars across all services. This particular award is a moderate-sized investment focused on a specific capability enhancement for infantry squads. It aligns with ongoing trends of replacing older vehicle types and incorporating advanced technologies for protection, mobility, and situational awareness. Analyzing historical spending would reveal cyclical patterns of major platform acquisitions and ongoing sustainment costs.
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: $32,028,027
Exercised Options: $32,028,027
Current Obligation: $32,028,027
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV20D0066
IDV Type: IDC
Timeline
Start Date: 2025-09-30
Current End Date: 2027-03-31
Potential End Date: 2027-03-31 12:03:00
Last Modified: 2025-11-20
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