DoD's $57M Armored Vehicle Contract Awarded to General Dynamics, Full and Open Competition
Contract Overview
Contract Amount: $56,987,562 ($57.0M)
Contractor: General Dynamics Land Systems - Canada Corporation
Awarding Agency: Department of Defense
Start Date: 2007-01-26
End Date: 2009-04-13
Contract Duration: 808 days
Daily Burn Rate: $70.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TESTING CATEGORY II
Place of Performance
Location: LANSING, INGHAM County, MICHIGAN, 48901
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $57.0 million to GENERAL DYNAMICS LAND SYSTEMS - CANADA CORPORATION for work described as: TESTING CATEGORY II Key points: 1. Significant contract value of $56.98M for armored vehicle manufacturing. 2. Awarded under full and open competition, suggesting market availability. 3. Potential risk associated with specialized military hardware production. 4. Sector: Defense manufacturing, a critical area for national security.
Value Assessment
Rating: good
The contract value of $56.98M appears reasonable for specialized military hardware. Benchmarking against similar large-scale defense manufacturing contracts would provide further context on its competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive bidding process likely resulted in a fair price, maximizing taxpayer value for this defense procurement.
Public Impact
Ensures continued availability of critical military armored vehicles. Supports jobs within the defense manufacturing sector. Contributes to national defense capabilities and readiness.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Potential for cost overruns in specialized defense manufacturing.
- Dependence on a single contractor for critical components.
Positive Signals
- Awarded through full and open competition.
- Clear contract duration and defined deliverables.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on armored vehicles. Spending in this area is driven by national security needs and technological advancements in military hardware.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Larger defense contracts often go to prime contractors who may then subcontract to smaller businesses.
Oversight & Accountability
The contract was awarded by the Department of the Navy, a component of the Department of Defense. Oversight would typically involve program management offices ensuring adherence to contract terms and quality standards.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Specialized nature of defense manufacturing can lead to higher costs.
- Potential for schedule delays in complex production.
- Reliance on specific technological capabilities.
- Geopolitical factors can influence demand and production.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, mi, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.0 million to GENERAL DYNAMICS LAND SYSTEMS - CANADA CORPORATION. TESTING CATEGORY II
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS LAND SYSTEMS - CANADA CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $57.0 million.
What is the period of performance?
Start: 2007-01-26. End: 2009-04-13.
What is the specific type of armored vehicle or tank component being procured, and how does its cost compare to similar systems?
The specific item is categorized under 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' (NAICS 336992). Without more granular data on the exact system, a precise cost comparison is difficult. However, the total award of $56.98M for 10 units suggests a significant per-unit cost, typical for advanced military hardware.
What are the key performance metrics and potential risks associated with the successful delivery of these armored vehicles?
Key performance metrics would likely include adherence to technical specifications, durability, operational readiness, and timely delivery. Potential risks involve manufacturing defects, supply chain disruptions for specialized components, and the evolving threat landscape requiring potential design modifications, all of which could impact cost and schedule.
How effectively did the full and open competition process ensure value for money compared to other potential contracting methods?
Full and open competition is generally considered the most effective method for ensuring value for money as it maximizes the pool of potential bidders, fostering price reductions and innovation. The fact that this method was used suggests a belief by the contracting agency that sufficient market capacity existed to support competitive bidding for these armored vehicles.
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: SEALED BID
Solicitation ID: M6785407R5007
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 1991 OXFORD ST E BLDG 15, LONDON
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $56,987,562
Exercised Options: $56,987,562
Current Obligation: $56,987,562
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785407D5028
IDV Type: IDC
Timeline
Start Date: 2007-01-26
Current End Date: 2009-04-13
Potential End Date: 2009-04-13 00:00:00
Last Modified: 2012-02-02
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