DoD Spends $330M on MRAP Vehicles via Full and Open Competition

Contract Overview

Contract Amount: $329,716,307 ($329.7M)

Contractor: General Dynamics Land Systems - Canada Corporation

Awarding Agency: Department of Defense

Start Date: 2010-02-12

End Date: 2013-05-31

Contract Duration: 1,204 days

Daily Burn Rate: $273.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CATEGORY II MRAP VEHICLE

Place of Performance

Location: LANSING, INGHAM County, MICHIGAN, 48901

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $329.7 million to GENERAL DYNAMICS LAND SYSTEMS - CANADA CORPORATION for work described as: CATEGORY II MRAP VEHICLE Key points: 1. Significant investment in armored vehicle manufacturing. 2. General Dynamics Land Systems - Canada Corporation is the primary contractor. 3. Contract awarded under full and open competition. 4. High value contract with a 10-year duration.

Value Assessment

Rating: good

The total award amount of $329.7M for 10 units suggests a per-unit cost of approximately $33M. This is a high-value contract, and without specific benchmarks for Category II MRAP vehicles, a precise pricing assessment is difficult. However, the firm fixed-price contract type implies price certainty.

Cost Per Unit: $32,971,630.65

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: Full and open competition is designed to maximize taxpayer value by fostering a competitive environment that drives down costs and improves quality.

Public Impact

Enhances military mobility and protection for troops in high-threat environments. Supports the defense industrial base and associated jobs. Contributes to national security objectives through advanced vehicle technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if production complexities arise.
Long-term sustainment and maintenance costs not detailed.
Dependence on a single primary contractor for this specific vehicle type.

Positive Signals

Awarded through competitive bidding, suggesting favorable pricing.
Firm fixed-price contract limits cost uncertainty for the government.
High-value contract indicates significant demand and strategic importance.

Sector Analysis

This contract falls within the Defense sector, specifically military vehicle manufacturing. Spending benchmarks for armored vehicles are highly variable based on technology, protection levels, and quantity. The $330M award for 10 units is substantial, reflecting the complexity and specialized nature of MRAP vehicles.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the award went to a large corporation and the 'sb' field is false. Opportunities for small businesses may exist further down the supply chain or in related support services.

Oversight & Accountability

The contract was awarded by the Department of the Navy under the Department of Defense. Oversight would typically involve program management offices ensuring adherence to contract terms, delivery schedules, and quality standards throughout the performance period.

Related Government Programs

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

Risk Flags

High per-unit cost.
Long contract duration.
Potential for sustainment cost escalation.
Dependence on a single prime contractor.
Limited information on specific technological advancements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $329.7 million to GENERAL DYNAMICS LAND SYSTEMS - CANADA CORPORATION. CATEGORY II MRAP VEHICLE

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 $329.7 million.

What is the period of performance?

Start: 2010-02-12. End: 2013-05-31.

What is the specific threat environment or operational requirement driving the need for Category II MRAP vehicles at this price point?

The need for Category II MRAP vehicles is driven by the requirement to protect personnel from improvised explosive devices (IEDs) and other battlefield threats. The price point reflects the advanced armor, survivability features, and specialized engineering required for these protected mobility platforms, often developed for specific high-risk operational environments.

How does the per-unit cost of these MRAP vehicles compare to similar armored vehicle procurements by other allied nations or the US military in different programs?

Comparing the per-unit cost of $33M requires detailed analysis of vehicle specifications, protection levels, and procurement quantities. While high, it may be within the range for heavily armored, mine-resistant vehicles designed for extreme threats. Benchmarking against other MRAP variants or different classes of armored vehicles would provide a more nuanced understanding of its competitiveness.

What are the projected long-term sustainment and maintenance costs associated with these MRAP vehicles over their lifecycle?

Lifecycle sustainment and maintenance costs are critical but not detailed in this award data. These costs can significantly exceed the initial procurement price for complex military platforms like MRAPs, encompassing spare parts, technical support, training, and repairs. Future contracts or budget allocations would be necessary to address these ongoing expenses.

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: $329,716,307

Exercised Options: $329,716,307

Current Obligation: $329,716,307

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785407D5028

IDV Type: IDC

Timeline