DoD Awards $432M for Wheeled Combat Vehicles to GM GDLS Defense Group

Contract Overview

Contract Amount: $432,377,593 ($432.4M)

Contractor: GM Gdls Defense Group, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2002-03-23

End Date: 2005-09-30

Contract Duration: 1,287 days

Daily Burn Rate: $336.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200212!001527!2100!AE07 !TACOM - WARREN !DAAE0700DM051 !A!N! !N!0010 !20020323!20080930!098155158!098155158!098155158!N!GM GDLS DEFENSE GROUP LLC, JV !14920 TWENTY-THREE MILE RO!SHELBY TOWNSHI !MI!48315!76460!099!26!STERLING HEIGHTS !MACOMB !MICHIGAN !+000381246156!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4A!COMBAT VEHICLES !1000!NOT DISCERNABLE OR CLASSIFIED !336992!E! !5!A!S! ! ! !20080930!B! ! !A! !A!U!J!2!017!B! !A!N!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! ! ! ! !0001!

Place of Performance

Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $432.4 million to GM GDLS DEFENSE GROUP, L.L.C. for work described as: 200212!001527!2100!AE07 !TACOM - WARREN !DAAE0700DM051 !A!N! !N!0010 !20020323!20080930!098155158!098155158!098155158!N!GM GDLS DEFENSE GROUP LLC, JV !14920 TWENTY-THREE MILE RO!SHELBY TOWNSHI !MI!48315!76460!099!26!STERLING HEIGHTS !MACOM… Key points: 1. The contract is for wheeled combat vehicles, a critical component of military logistics and operations. 2. GM GDLS Defense Group LLC, JV is the sole awardee, indicating a potentially limited competitive landscape. 3. The contract value of $432,377,593 represents a significant investment in defense procurement. 4. The sector is primarily Defense, with a specific focus on vehicle manufacturing and support.

Value Assessment

Rating: fair

The contract value is substantial, but without specific unit pricing or comparison data, a precise value assessment is difficult. The firm fixed price suggests cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bids were considered. However, the award to a single entity implies that GM GDLS Defense Group, JV was the most advantageous offer.

Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by fostering a competitive bidding environment.

Public Impact

Ensures the continued supply of essential combat vehicles for military operations. Supports jobs within the defense manufacturing sector, particularly in Michigan. Contributes to the modernization and readiness of the armed forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited future competition if the incumbent contractor maintains a strong position.
Reliance on a single contractor for critical vehicle components.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract provides cost predictability.
Significant investment in national defense capabilities.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on the manufacturing and procurement of wheeled combat vehicles. Spending benchmarks in this area are highly variable based on vehicle type and quantity, but this award represents a substantial procurement.

Small Business Impact

The data does not indicate any specific subcontracting goals for small businesses on this particular award. Further investigation into the prime contractor's subcontracting plan would be necessary to assess small business participation.

Oversight & Accountability

The contract was awarded by the Department of the Army, part of the Department of Defense. Standard oversight mechanisms for defense contracts would apply, including performance monitoring and financial audits.

Related Government Programs

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

Risk Flags

Sole awardee may limit future competition.
Contract duration is substantial, requiring ongoing monitoring.
Specific vehicle capabilities and technological advancements are not detailed.
Potential for cost overruns if not managed effectively, despite fixed price.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $432.4 million to GM GDLS DEFENSE GROUP, L.L.C.. 200212!001527!2100!AE07 !TACOM - WARREN !DAAE0700DM051 !A!N! !N!0010 !20020323!20080930!098155158!098155158!098155158!N!GM GDLS DEFENSE GROUP LLC, JV !14920 TWENTY-THREE MILE RO!SHELBY TOWNSHI !MI!48315!76460!099!26!STERLING HEIGHTS !MACOMB !MICHIGAN !+000381246156!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4A!COMBAT VEHICLES !1000!NOT DISCERNABLE OR CLASSIFIED !336992!E! !5!A!S! ! ! !20080930!B

Who is the contractor on this award?

The obligated recipient is GM GDLS DEFENSE GROUP, L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $432.4 million.

What is the period of performance?

Start: 2002-03-23. End: 2005-09-30.

What specific types of wheeled combat vehicles are being procured under this contract, and how do they align with current military requirements?

The contract specifies 'TRUCKS AND TRUCK TRACTORS, WHEELED' and 'COMBAT VEHICLES'. While the exact models are not detailed, these likely refer to logistics support vehicles and potentially armored personnel carriers or similar platforms essential for troop and equipment transport in combat zones. Their alignment with military needs would depend on the Army's current force structure and operational doctrine.

Given the award to a single entity, what mechanisms are in place to ensure continued innovation and competitive pricing in future procurements for these vehicles?

Although this award went to one contractor, the initial 'full and open competition' suggests a competitive process. Future procurements could involve re-competition, encouraging new bidders. The government may also leverage market research and performance data from this contract to set more competitive requirements and pricing targets for subsequent awards, potentially fostering innovation through performance-based specifications.

What is the long-term strategic value of this contract in terms of fleet readiness and technological advancement for the Army's wheeled vehicle capabilities?

This contract ensures the continued availability of critical wheeled combat vehicles, directly impacting the Army's operational readiness and logistical capabilities. The firm fixed price structure incentivizes the contractor to deliver efficiently. The long-term strategic value also hinges on whether the contract fosters technological advancements through innovation or simply maintains existing capabilities, which would require further analysis of the contract's technical specifications and performance metrics.

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

Offers Received: 17

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 38500 MOUND RD, STERLING HEIGHTS, MI, 48310

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAE0700DM051

IDV Type: IDC

Timeline