DoD Awards $548M for MRAP Vehicles, Awarded to General Dynamics and Force Protection

Contract Overview

Contract Amount: $548,206,931 ($548.2M)

Contractor: General Dynamics Land Systems - Force Protection Inc.

Awarding Agency: Department of Defense

Start Date: 2007-10-29

End Date: 2010-08-04

Contract Duration: 1,010 days

Daily Burn Rate: $542.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CATEGORY I MRAP AND CATAGORY II MRAP - CAT I USMC QTY 475 - CAT I NAVY QTY 78 - CAT II USMC QTY 6 - CAT II ARMY QTY 200 - CAT II USAF QTY 41

Place of Performance

Location: LADSON, CHARLESTON County, SOUTH CAROLINA, 29456, UNITED STATES OF AMERICA

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $548.2 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC. for work described as: CATEGORY I MRAP AND CATAGORY II MRAP - CAT I USMC QTY 475 - CAT I NAVY QTY 78 - CAT II USMC QTY 6 - CAT II ARMY QTY 200 - CAT II USAF QTY 41 Key points: 1. Significant investment in armored vehicle production for multiple branches. 2. Competition involved major defense contractors, potentially driving price efficiency. 3. Risk associated with large-scale production and delivery timelines. 4. Sector is critical for military operations and national security.

Value Assessment

Rating: good

The total award of $548M for 729 MRAP vehicles appears reasonable given the complexity and specialized nature of the equipment. Benchmarking against similar large-scale vehicle procurements suggests this falls within expected cost ranges.

Cost Per Unit: $753,370

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, allowing multiple qualified vendors to bid. This competitive process is expected to have fostered price discovery and ensured a fair market price for the MRAP vehicles.

Taxpayer Impact: Taxpayer funds are being used to equip military personnel with essential protective vehicles, enhancing safety and operational capabilities.

Public Impact

Enhances troop safety in combat zones by providing mine-resistant, ambush-protected vehicles. Supports the operational readiness of the USMC, Navy, Army, and Air Force. Contributes to the defense industrial base and associated jobs. Procurement addresses urgent needs for survivable ground transportation.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Potential for cost overruns on large, complex manufacturing contracts.
Delivery schedule adherence is critical for operational deployment.
Dependence on specific suppliers for specialized components.

Positive Signals

Awarded through full and open competition, indicating market responsiveness.
Firm Fixed Price contract provides cost certainty for the government.
Multiple branches of service benefiting from the procurement.

Sector Analysis

This procurement falls within the Defense sector, specifically Military Armored Vehicle manufacturing. Spending benchmarks for similar large-scale vehicle contracts indicate that this award is substantial but within the typical range for such critical defense assets.

Small Business Impact

While the primary contractors are large defense firms, the manufacturing process for such specialized vehicles often involves a complex supply chain. It is possible that small businesses play a role as subcontractors for specific components or services, though this contract does not directly list small business set-asides.

Oversight & Accountability

The Department of Defense manages these large procurements, with oversight typically involving program managers, contracting officers, and potentially congressional committees. Accountability is maintained through contract terms, performance metrics, and financial reporting requirements.

Related Government Programs

Military Armored Vehicle, Tank, and Tank Component Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Large contract value increases financial risk.
Production timelines can be challenging for complex military hardware.
Dependence on a limited number of large prime contractors.
Potential for scope creep or change orders impacting final cost.
Geopolitical factors could influence demand and production needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $548.2 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC.. CATEGORY I MRAP AND CATAGORY II MRAP - CAT I USMC QTY 475 - CAT I NAVY QTY 78 - CAT II USMC QTY 6 - CAT II ARMY QTY 200 - CAT II USAF QTY 41

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $548.2 million.

What is the period of performance?

Start: 2007-10-29. End: 2010-08-04.

What is the long-term sustainment cost for these MRAP vehicles?

The initial award focuses on procurement, not long-term sustainment. Future costs will depend on maintenance schedules, spare parts, and operational tempo. Analyzing sustainment contracts separately is crucial for a complete lifecycle cost assessment. Without specific sustainment data, estimating these future expenses is speculative but likely significant given the complexity of military hardware.

How effectively did the full and open competition drive down prices compared to a sole-source scenario?

Full and open competition generally leads to lower prices by encouraging multiple bidders to offer their best terms. While specific comparative data against a sole-source bid isn't provided, the presence of multiple bidders like General Dynamics and Force Protection suggests a competitive environment that likely resulted in a more favorable price for the government than if only one company had been considered.

What are the key performance indicators (KPIs) used to measure the effectiveness of these MRAP vehicles in theater?

Effectiveness KPIs for MRAP vehicles typically include survivability rates (reduction in casualties from IEDs and ambushes), operational availability (percentage of vehicles ready for deployment), mobility performance in various terrains, and maintainability. The Department of Defense tracks these metrics through field reports, maintenance logs, and operational assessments to ensure the vehicles meet their intended protective and tactical roles.

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: NEGOTIATED PROPOSAL/QUOTE

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: 9801 HIGHWAY 78 # 3, LADSON, SC, 29456

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $549,797,297

Exercised Options: $549,797,297

Current Obligation: $548,206,931

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785407D5031

IDV Type: IDC

Timeline