DoD Awards $45M for Abrams Tank Upgrades to Allison Transmission Inc

Contract Overview

Contract Amount: $45,024,050 ($45.0M)

Contractor: Allison Transmission Inc

Awarding Agency: Department of Defense

Start Date: 2008-09-19

End Date: 2011-12-31

Contract Duration: 1,198 days

Daily Burn Rate: $37.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: X1100 SEP 255 UPGRADES IN SUPPORT OF THE ABRAMS TANK.

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46222

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $45.0 million to ALLISON TRANSMISSION INC for work described as: X1100 SEP 255 UPGRADES IN SUPPORT OF THE ABRAMS TANK. Key points: 1. Significant investment in Abrams tank modernization highlights ongoing defense priorities. 2. Sole-source award to Allison Transmission Inc. raises questions about competition and potential cost savings. 3. The contract spans over three years, indicating a substantial and long-term need. 4. Focus on vehicle body manufacturing suggests improvements to the tank's physical platform.

Value Assessment

Rating: fair

The contract value of $45 million for upgrades is substantial. Without specific benchmarks for Abrams tank upgrades, it's difficult to definitively assess pricing. However, the 'not competed' status suggests potential for higher costs than a competitive process might yield.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive bidding process. The justification for a sole-source award is not provided.

Taxpayer Impact: The lack of competition in this sole-source award may result in higher taxpayer costs than if the contract had been competitively bid.

Public Impact

Modernization of a key military asset, the Abrams tank, ensuring its continued operational effectiveness. Potential impact on the defense industrial base, specifically in vehicle body manufacturing. Taxpayer funds allocated for defense spending, contributing to national security objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award justification unclear

Positive Signals

Supports critical defense infrastructure
Long-term upgrade plan

Sector Analysis

This spending falls within the Defense sector, specifically related to armored vehicle manufacturing and upgrades. Defense spending benchmarks are highly variable, but significant investments in major platforms like the Abrams tank are common.

Small Business Impact

There is no indication in the provided data that small businesses were involved in this contract. The award was made to a single, likely large, entity.

Oversight & Accountability

The 'not competed' status warrants further oversight to ensure the justification for a sole-source award was valid and that the pricing is reasonable. Accountability for taxpayer funds is crucial in such cases.

Related Government Programs

Motor Vehicle Body Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency on award justification
No clear indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.0 million to ALLISON TRANSMISSION INC. X1100 SEP 255 UPGRADES IN SUPPORT OF THE ABRAMS TANK.

Who is the contractor on this award?

The obligated recipient is ALLISON TRANSMISSION INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $45.0 million.

What is the period of performance?

Start: 2008-09-19. End: 2011-12-31.

What was the specific justification for awarding this contract on a sole-source basis rather than through full and open competition?

The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this information, it's impossible to assess the validity of the sole-source decision and its impact on value for money.

How does the cost of these specific upgrades compare to similar modernization efforts on the Abrams tank or other heavy armored vehicles?

Benchmarking the cost of these specific upgrades is challenging without detailed technical specifications and a comparison to similar contracts. The $45 million award for 'X1100 SEP 255 UPGRADES' needs to be evaluated against the scope of work and the pricing of other Abrams modernization programs or comparable vehicle upgrades to determine if it represents good value.

What is the expected improvement in the Abrams tank's performance or survivability resulting from these upgrades?

The data indicates upgrades are in support of the Abrams tank, but does not specify the nature of the 'X1100 SEP 255 UPGRADES'. Understanding the technical improvements, such as enhanced armor, power systems, or digital capabilities, is crucial to assessing the effectiveness of this $45 million investment in maintaining the tank's combat readiness and relevance.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Motor Vehicle Body Manufacturing

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Allison Transmission Inc. (UEI: 969132880)

Address: ONE ALLISON WAY, INDIANAPOLIS, IN, 46222

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,024,050

Exercised Options: $45,024,050

Current Obligation: $45,024,050

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV08D0159

IDV Type: IDC

Timeline