Army awards multi-year contract for Abrams tank upgrades to General Dynamics Land Systems
Contract Overview
Contract Amount: $488,611,677 ($488.6M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2017-12-22
End Date: 2023-03-31
Sector: Defense
Official Description: THREE-YEAR REQUIREMENTS CONTRACT, FOR THE UPGRADE OF UP TO 786 M1A1 CONFIGURED ABRAMS VEHICLES. THE DOMESTIC VEHICLES WILL BE UPGRADED TO NEWLY CONFIGURED ABRAMS M1A2 SYSTEM ENHANCEMENT PACKAGE VERSION 3 (SEPV3). THE CONTRACTOR WILL BE INSTALLING AND INTEGRATING SEPV3 TECHNOLOGIES (HARDWARE AND SOFTWARE), AS WELL AS RECLAIMED/REFURBISHED ABRAMS LEGACY COMPONENTS, RESULTING IN THE NEWLY CONFIGURED ABRAMS VEHICLES. IN ADDITION, M1A1 VEHICLES WILL BE UPGRADED TO M1A2S (KINGDOM OF SAUDI ARABIA (KSA)), AND M1A2-K (KUWAIT) VEHICLES.
Plain-Language Summary
Department of Defense obligated $488.6 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: THREE-YEAR REQUIREMENTS CONTRACT, FOR THE UPGRADE OF UP TO 786 M1A1 CONFIGURED ABRAMS VEHICLES. THE DOMESTIC VEHICLES WILL BE UPGRADED TO NEWLY CONFIGURED ABRAMS M1A2 SYSTEM ENHANCEMENT PACKAGE VERSION 3 (SEPV3). THE CONTRACTOR WILL BE INSTALLING AND INTEGRATING SEPV3 TECHNOLOG… Key points: 1. Contract covers upgrades for up to 786 M1A1 Abrams vehicles to the M1A2 SEPv3 configuration. 2. Includes installation and integration of new technologies, plus refurbished legacy components. 3. Scope also extends to upgrades for vehicles destined for Saudi Arabia and Kuwait. 4. Significant investment in modernizing armored vehicle fleet capabilities.
Value Assessment
Rating: good
The contract value is substantial, reflecting the complexity and scale of upgrading a large number of heavy armored vehicles. The multi-year nature suggests a sustained need and commitment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The award method is not specified, but given the specialized nature of tank upgrades, it could involve competitive bidding or sole-source considerations.
Taxpayer Impact: Taxpayer funds are allocated for enhancing the combat readiness and technological superiority of the Abrams fleet.
Public Impact
Modernized tanks improve national defense capabilities. Upgrades ensure continued technological advantage for ground forces. Supports the long-term operational readiness of key military assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns on complex integration projects.
- Long-term sustainment costs for upgraded vehicles.
- Ensuring timely delivery and performance of upgrades.
Positive Signals
- Enhances survivability and lethality of Abrams tanks.
- Extends the service life of existing platforms.
- Supports domestic defense industrial base.
Sector Analysis
This contract falls within the defense industrial sector, specifically focusing on armored vehicle modernization. It involves advanced engineering, manufacturing, and integration of complex systems.
Small Business Impact
No specific information is provided regarding small business participation or set-asides for this contract. The prime contractor is a large defense manufacturer.
Oversight & Accountability
Oversight will likely involve program management by the Department of the Army, with potential for audits and reviews to ensure contract compliance and cost control.
Related Government Programs
- M1A1 Abrams Upgrade
- M1A2 SEPv3 Configuration
- Armored Vehicle Modernization
Risk Flags
- Scope Creep
- Technical Integration Challenges
- Supply Chain Disruptions
Tags
defense, army, abrams, tank, upgrade, general-dynamics, m1a2-sepv3, requirements-contract, armored-vehicle
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $488.6 million to GENERAL DYNAMICS LAND SYSTEMS INC.. THREE-YEAR REQUIREMENTS CONTRACT, FOR THE UPGRADE OF UP TO 786 M1A1 CONFIGURED ABRAMS VEHICLES. THE DOMESTIC VEHICLES WILL BE UPGRADED TO NEWLY CONFIGURED ABRAMS M1A2 SYSTEM ENHANCEMENT PACKAGE VERSION 3 (SEPV3). THE CONTRACTOR WILL BE INSTALLING AND INTEGRATING SEPV3 TECHNOLOGIES (HARDWARE AND SOFTWARE), AS WELL AS RECLAIMED/REFURBISHED ABRAMS LEGACY COMPONENTS, RESULTING IN THE NEWLY CONFIGURED ABRAMS VEHICLES. IN ADDITION, M1A1 VEHICLES WILL BE UPGRADED TO M1A2S (KINGDOM OF SAUDI
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS LAND SYSTEMS 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 $488.6 million.
What is the period of performance?
Start: 2017-12-22. End: 2023-03-31.
Analysis insight 1
The upgrade to SEPv3 represents a significant technological leap, incorporating advanced electronics, fire control, and situational awareness systems.
Analysis insight 2
The inclusion of upgrades for international partners demonstrates interoperability and strengthens allied military capabilities.
Analysis insight 3
This contract signifies a commitment to maintaining the Abrams as a premier main battle tank for decades to come.