DoD's $722M MRAP contract to General Dynamics awarded via full and open competition

Contract Overview

Contract Amount: $722,188,298 ($722.2M)

Contractor: General Dynamics Land Systems - Canada Corporation

Awarding Agency: Department of Defense

Start Date: 2008-07-17

End Date: 2020-12-19

Contract Duration: 4,538 days

Daily Burn Rate: $159.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CATEGORY II MRAP VARIANT-OCONUS

Place of Performance

Location: LANSING, INGHAM County, MICHIGAN, 48901

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $722.2 million to GENERAL DYNAMICS LAND SYSTEMS - CANADA CORPORATION for work described as: CATEGORY II MRAP VARIANT-OCONUS Key points: 1. Contract awarded to a single, established defense contractor. 2. Significant investment in armored vehicle manufacturing. 3. Long contract duration suggests sustained operational need. 4. Fixed-price contract type aims to control costs. 5. Contract falls under the broader category of military vehicle manufacturing. 6. Awarded by the Department of the Navy, indicating naval land-based needs.

Value Assessment

Rating: fair

The total contract value of $722 million over its lifespan is substantial. Benchmarking against similar large-scale military vehicle procurements is challenging without more specific data on the exact variant and scope of work. The firm fixed-price structure provides cost certainty, but the overall value-for-money depends heavily on the performance and longevity of the MRAP variants delivered and the operational context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. The presence of 10 bids suggests a reasonably competitive environment for this type of specialized military equipment. This level of competition is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that should drive down costs compared to a sole-source award. The multiple bids indicate that the government explored various options to secure the best value.

Public Impact

Provides critical armored protection for military personnel in high-threat environments. Supports ongoing military operations, particularly in OCONUS (Outside Continental United States) theaters. Sustains jobs within the defense manufacturing sector, specifically in armored vehicle production. Enhances the survivability and operational effectiveness of ground forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term sustainment costs for specialized vehicles can be high.
Dependence on a single contractor for a critical defense asset poses supply chain risks.
Potential for scope creep or change orders on large, multi-year contracts.

Positive Signals

Firm fixed-price contract helps manage cost overruns.
Full and open competition suggests a robust market assessment.
Award to a known entity with experience in this domain reduces technical risk.

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically focusing on the manufacturing of armored vehicles. The market for such specialized equipment is dominated by a few large defense contractors. Spending in this area is driven by evolving military requirements for personnel protection and operational mobility in complex environments. Comparable spending benchmarks would involve other large vehicle procurement programs within the DoD.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The prime contractor, General Dynamics Land Systems, is a large corporation, suggesting that any small business involvement would likely be through the supply chain rather than direct subcontracting mandates within this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting command and potentially the Department of Defense's Inspector General. The firm fixed-price nature provides some cost control, but performance monitoring, quality assurance, and delivery schedules would be key areas of oversight to ensure value and mission capability.

Related Government Programs

Mine-Resistant Ambush Protected (MRAP) Vehicles
Tactical Wheeled Vehicles
Department of Defense Vehicle Procurement
Ground Combat Systems

Risk Flags

Potential for high sustainment costs
Long-term reliance on specific vehicle platforms
Geopolitical instability driving demand for armored vehicles

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $722.2 million to GENERAL DYNAMICS LAND SYSTEMS - CANADA CORPORATION. CATEGORY II MRAP VARIANT-OCONUS

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 $722.2 million.

What is the period of performance?

Start: 2008-07-17. End: 2020-12-19.

What is the specific variant of the MRAP being procured under this contract, and what are its key performance characteristics?

The contract data specifies 'CATEGORY II MRAP VARIANT-OCONUS'. Category II MRAPs are typically larger, heavier vehicles designed for transporting larger crews and more equipment, often with enhanced protection against underbody blasts and mine threats. These variants are crucial for operations in OCONUS theaters where personnel survivability is paramount. Key performance characteristics would include armor protection levels, off-road mobility, payload capacity, and potentially specialized mission equipment integration, though these specifics are not detailed in the provided data.

How does the per-unit cost of these MRAP variants compare to similar vehicles procured by other military branches or allied nations?

Direct per-unit cost comparison is difficult without knowing the exact configuration and quantity per delivery order within this $722 million contract. However, MRAP vehicles, particularly Category II variants, are complex and expensive due to their specialized armor and survivability features. Historically, MRAP programs have seen significant investment. Benchmarking against similar armored personnel carriers or other MRAP variants procured by the Army or international partners would require access to detailed procurement data for comparable systems, considering factors like technological advancements, production volume, and specific mission requirements at the time of purchase.

What is the track record of General Dynamics Land Systems in delivering MRAP vehicles and similar armored platforms on time and within budget?

General Dynamics Land Systems (GDLS) has a long and extensive track record in manufacturing armored vehicles, including MRAP variants and other combat platforms like the Abrams tank. They have been a key player in fulfilling large-scale military vehicle contracts for the U.S. Department of Defense and international allies. While specific performance metrics for this particular contract (336992) are not detailed, GDLS is generally considered a capable and experienced manufacturer. However, like many large defense programs, there can be challenges related to production schedules, cost adjustments, and evolving requirements over the life of a contract.

What are the primary operational risks associated with the use of these MRAP variants in OCONUS environments, and how does this contract address them?

The primary operational risks associated with MRAP variants in OCONUS environments often relate to their size, weight, maintenance requirements, and suitability for certain terrains. While designed for survivability, their bulk can limit maneuverability in confined spaces or difficult terrain. This contract, awarded under firm fixed-price terms, aims to manage cost risks. However, it addresses operational risks primarily through the delivery of the specified vehicle capabilities. Mitigation of risks related to maintenance, logistics, and operational employment falls largely under the purview of the end-user commands, supported by sustainment contracts and training programs.

How has spending on MRAP vehicles evolved over the years, and does this contract represent a continuation, increase, or decrease in that trend?

Spending on MRAP vehicles saw a significant surge in the mid-to-late 2000s and early 2010s driven by the urgent operational needs in Iraq and Afghanistan. Following the peak demand, procurement generally decreased as the focus shifted to other vehicle programs and troop drawdowns. This $722 million contract, awarded in 2008 and ending in 2020, spans a period that includes the height of MRAP deployment. Its value suggests a substantial, ongoing commitment to MRAP acquisition and sustainment during that era, rather than a sharp increase or decrease from a baseline, but rather a significant component of the overall MRAP investment during its active service life.

What is the significance of the 'MI' (Michigan) state code associated with this contract, and what does it imply about the contractor's operations?

The 'MI' state code likely indicates that the primary place of performance or the location of the contractor's facility associated with this contract is in Michigan. General Dynamics Land Systems has significant operations and manufacturing facilities in Michigan, particularly related to armored vehicle production. This suggests that a substantial portion of the work, including manufacturing, assembly, and potentially research and development, occurred within the state, contributing to the local and state economy through employment and related economic activity.

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: M6785407R5000

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: $722,188,298

Exercised Options: $722,188,298

Current Obligation: $722,188,298

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785407D5028

IDV Type: IDC

Timeline