DoD Awards $717M for Armored Vehicle Manufacturing to GM GDLS Defense Group
Contract Overview
Contract Amount: $716,919,885 ($716.9M)
Contractor: GM Gdls Defense Group, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2000-11-16
End Date: 2018-11-15
Contract Duration: 6,573 days
Daily Burn Rate: $109.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 17
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200110!000408!2100!AE07 !TACOM - WARREN !DAAE0700DM051 !A!N!*!N!0001 !20001116!20060630!098155158!098155158!098155158!N!GM GDLS DEFENSE GROUP LLC, JOI!14920 TWENTY-THREE MILE RO!SHELBY TOWNSHI !MI!48315!76460!099!26!STERLING HEIGHTS !MACOMB !MICHIGAN !+000061744912!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4A!COMBAT VEHICLES !1000!NOT DISCERNABLE OR CLASSIFIED !336992!*!*!5!A!S! !*!*!*!B!*!*!A! !A !Y!R!2!017!B! !A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $716.9 million to GM GDLS DEFENSE GROUP, L.L.C. for work described as: 200110!000408!2100!AE07 !TACOM - WARREN !DAAE0700DM051 !A!N!*!N!0001 !20001116!20060630!098155158!098155158!098155158!N!GM GDLS DEFENSE GROUP LLC, JOI!14920 TWENTY-THREE MILE RO!SHELBY TOWNSHI !MI!48315!76460!099!26!STERLING HEIGHTS !MACOM… Key points: 1. Significant contract value of $717 million awarded. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration of over 18 years indicates a long-term commitment. 4. The sector is Defense, specifically military armored vehicles.
Value Assessment
Rating: good
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed effectively. However, the award fee structure incentivizes performance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was used, which typically leads to better price discovery and potentially lower costs for the government. The specific details of the bidding process are not provided.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it aims to secure the best value through a competitive process.
Public Impact
Ensures continued production of critical military armored vehicles. Supports jobs within the defense manufacturing sector. Long-term contract provides stability for the contractor and supply chain. Potential for technological advancements in armored vehicle design and capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to cost overruns if not closely monitored.
- Cost Plus Award Fee contracts require diligent oversight to ensure fair pricing.
Positive Signals
- Full and open competition suggests a robust market and potential for good value.
- Contract supports a critical defense capability.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the manufacturing of wheeled trucks and combat vehicles. Spending benchmarks in this area are highly variable based on vehicle type and technological sophistication.
Small Business Impact
There is no explicit indication of small business participation in this contract award. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The contract was awarded by the Department of the Army. Oversight would involve monitoring performance, costs, and adherence to contract terms throughout the 18-year period.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration increases risk of cost escalation.
- Cost Plus Award Fee structure requires robust oversight.
- Potential for technological obsolescence over the contract's 18-year term.
- Dependence on a single contractor for critical defense assets.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, mi, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $716.9 million to GM GDLS DEFENSE GROUP, L.L.C.. 200110!000408!2100!AE07 !TACOM - WARREN !DAAE0700DM051 !A!N!*!N!0001 !20001116!20060630!098155158!098155158!098155158!N!GM GDLS DEFENSE GROUP LLC, JOI!14920 TWENTY-THREE MILE RO!SHELBY TOWNSHI !MI!48315!76460!099!26!STERLING HEIGHTS !MACOMB !MICHIGAN !+000061744912!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4A!COMBAT VEHICLES !1000!NOT DISCERNABLE OR CLASSIFIED !336992!*!*!5!A!S! !*!*!*!B!*!*!A!
Who is the contractor on this award?
The obligated recipient is GM GDLS DEFENSE GROUP, L.L.C..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $716.9 million.
What is the period of performance?
Start: 2000-11-16. End: 2018-11-15.
What specific armored vehicle models are covered under this contract, and how do their capabilities compare to current threats?
The contract specifies 'TRUCKS AND TRUCK TRACTORS, WHEELED' and 'COMBAT VEHICLES'. Without more detail, it's difficult to ascertain the exact models. However, the long duration suggests these are likely core platforms. Comparative analysis against current threats would require access to classified threat assessments and detailed vehicle specifications, which are beyond the scope of this data.
What is the historical cost performance of GM GDLS Defense Group on similar contracts, and what are the key performance indicators for the award fee?
Historical cost performance data for GM GDLS Defense Group on similar contracts is not provided. The key performance indicators for the award fee are also not detailed in this dataset. Understanding these would be crucial for assessing the true value and efficiency of this Cost Plus Award Fee contract and ensuring taxpayer funds are used effectively.
How does the per-unit cost of these armored vehicles compare to industry benchmarks for similar platforms, considering the contract's duration and complexity?
A direct per-unit cost benchmark is not available without knowing the specific vehicle models and their configurations. The contract's long duration and 'Cost Plus Award Fee' structure make direct comparison challenging. Industry benchmarks for complex, specialized military vehicles can vary widely. A detailed cost analysis comparing the negotiated rates against independent cost estimates and market research would be necessary for a definitive benchmark.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 17
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 38500 MOUND RD, STERLING HEIGHTS, MI, 48310
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $672,880
Exercised Options: $672,880
Current Obligation: $716,919,885
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAE0700DM051
IDV Type: IDC
Timeline
Start Date: 2000-11-16
Current End Date: 2018-11-15
Potential End Date: 2018-11-15 00:00:00
Last Modified: 2018-09-25
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