DoD awards $32M for Independent Suspension Systems to General Dynamics, highlighting firm fixed-price contract
Contract Overview
Contract Amount: $32,061,776 ($32.1M)
Contractor: General Dynamics Land Systems - Canada Corporation
Awarding Agency: Department of Defense
Start Date: 2009-11-13
End Date: 2012-02-15
Contract Duration: 824 days
Daily Burn Rate: $38.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: EM INDEPENDENT SUSPENSION SYSTEM
Place of Performance
Location: LANSING, INGHAM County, MICHIGAN, 48901
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $32.1 million to GENERAL DYNAMICS LAND SYSTEMS - CANADA CORPORATION for work described as: EM INDEPENDENT SUSPENSION SYSTEM Key points: 1. Contract awarded to a single, established vendor, General Dynamics Land Systems. 2. The $32M award represents a significant investment in military vehicle components. 3. Firm Fixed Price contract type aims to control costs for the Department of Defense. 4. The contract duration spans over two years, indicating a substantial project.
Value Assessment
Rating: good
The $32 million contract value for suspension systems appears reasonable given the specialized nature of military hardware. Benchmarking against similar complex vehicle component contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair market prices for the suspension systems.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing competitive pricing.
Public Impact
Enhances military vehicle capabilities with advanced suspension systems. Supports the operational readiness of armored vehicles within the Navy's fleet. Contributes to the defense industrial base by engaging a major contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for sole-source follow-on contracts if performance is satisfactory.
- Reliance on a single supplier could pose supply chain risks.
- Contract duration may not fully align with evolving technological needs.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Awarded through full and open competition.
- Supports critical defense modernization efforts.
Sector Analysis
This contract falls within the Defense Industrial Base sector, specifically focusing on armored vehicle components. Spending in this area is driven by military modernization and readiness requirements, with significant investments often made in specialized systems like suspension.
Small Business Impact
The prime contractor, General Dynamics Land Systems, is a large business. There is no explicit mention of small business participation in this award, suggesting limited direct impact on small businesses for this specific contract.
Oversight & Accountability
The Department of the Navy managed this award under full and open competition, indicating standard procurement oversight. Further oversight would focus on contract performance and adherence to the firm fixed-price terms.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract awarded to a single, large prime contractor.
- Limited information on specific technological improvements.
- Potential for future sole-source awards.
- No explicit small business subcontracting noted.
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 $32.1 million to GENERAL DYNAMICS LAND SYSTEMS - CANADA CORPORATION. EM INDEPENDENT SUSPENSION SYSTEM
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 $32.1 million.
What is the period of performance?
Start: 2009-11-13. End: 2012-02-15.
What is the specific technological advantage offered by this independent suspension system compared to previous models?
The provided data does not detail the specific technological advancements of this independent suspension system. Further analysis would require access to technical specifications and performance data sheets associated with the contract. Understanding these details is crucial for assessing the true value and effectiveness of the procurement beyond the financial outlay.
What are the potential risks associated with relying on General Dynamics Land Systems for this critical component?
Potential risks include over-reliance on a single supplier, leading to supply chain vulnerabilities or price increases in future contracts. Performance issues or delays from General Dynamics could impact military readiness. Additionally, a lack of ongoing competitive pressure might reduce incentives for innovation or cost reduction over the long term.
How effectively does this contract contribute to the overall modernization goals of the Department of the Navy?
This contract contributes to modernization by providing advanced suspension systems, likely enhancing vehicle mobility, survivability, and operational range. The firm fixed-price structure suggests a commitment to budget control. However, the true effectiveness hinges on how well these systems integrate with and improve the performance of the intended armored vehicles in operational environments.
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: $32,061,776
Exercised Options: $32,061,776
Current Obligation: $32,061,776
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: M6785407D5028
IDV Type: IDC
Timeline
Start Date: 2009-11-13
Current End Date: 2012-02-15
Potential End Date: 2012-02-15 00:00:00
Last Modified: 2012-06-14
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