DoD awards $46.3M for armored vehicle components under full and open competition

Contract Overview

Contract Amount: $46,308,129 ($46.3M)

Contractor: General Dynamics Land Systems - Force Protection Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-08

End Date: 2010-07-14

Contract Duration: 674 days

Daily Burn Rate: $68.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NRE - ADDITIONAL LRIP 13 ECP'S

Place of Performance

Location: LADSON, CHARLESTON County, SOUTH CAROLINA, 29456

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $46.3 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC. for work described as: NRE - ADDITIONAL LRIP 13 ECP'S Key points: 1. Significant award for military armored vehicle components. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract awarded to General Dynamics Land Systems - Force Protection Inc. 4. Sector is Defense Manufacturing, a critical area for national security.

Value Assessment

Rating: good

The award amount of $46.3M is substantial. Benchmarking against similar contracts for armored vehicle components is necessary to fully assess value, but the firm fixed price structure is a positive sign for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can lead to more competitive pricing. The price discovery mechanism is likely robust due to this competitive environment.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives the best possible value.

Public Impact

Ensures continued production and availability of critical military armored vehicle components. Supports jobs within the defense manufacturing sector. Contributes to the operational readiness of military forces.

Waste & Efficiency Indicators

Waste Risk Score: 68 / 10

Warning Flags

  • Potential for cost overruns if not closely monitored despite FFP.
  • Dependence on a single contractor for specific components.

Positive Signals

  • Full and open competition utilized.
  • Firm Fixed Price contract type.
  • Awarded to a known defense contractor.

Sector Analysis

This contract falls within the Defense Manufacturing sector, specifically Military Armored Vehicle, Tank, and Tank Component Manufacturing. Spending in this area is driven by defense needs and technological advancements, with benchmarks varying based on vehicle type and complexity.

Small Business Impact

The data indicates the primary awardee is General Dynamics Land Systems - Force Protection Inc., a large business. There is no explicit information on small business participation in this specific award, which warrants further investigation.

Oversight & Accountability

The Department of the Navy is the awarding agency, suggesting established oversight processes. However, the duration of the contract and the nature of the components require diligent monitoring to ensure performance and cost adherence.

Related Government Programs

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

Risk Flags

  • Lack of detail on specific components.
  • Potential for cost creep if initial estimates were flawed.
  • Limited insight into small business subcontracting.
  • Contract duration could lead to obsolescence issues if not managed.

Tags

military-armored-vehicle-tank-and-tank-c, department-of-defense, sc, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.3 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC.. NRE - ADDITIONAL LRIP 13 ECP'S

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 $46.3 million.

What is the period of performance?

Start: 2008-09-08. End: 2010-07-14.

What is the specific type of armored vehicle component being procured, and how does its cost compare to industry standards for similar items?

The specific component type is not detailed in the provided data. A thorough analysis would require identifying the exact part number or system. Benchmarking its cost against similar components from other defense contracts or commercial equivalents would be crucial to determine if the $46.3M award represents fair and reasonable pricing for the quantity and specifications.

What are the potential risks associated with the firm fixed price contract type for these specific armored vehicle components?

While firm fixed price (FFP) is generally favorable for cost control, risks can arise if the initial cost estimates were inaccurate or if unforeseen technical challenges emerge during production. The contractor might face reduced profit margins, potentially leading to pressure to cut corners on quality or delivery schedules if not managed proactively by the government.

How effectively does this contract contribute to the overall modernization and readiness goals of the Department of the Navy's armored vehicle fleet?

The effectiveness hinges on whether these components are critical for upgrading existing platforms or essential for new vehicle acquisitions. If they are key enablers for enhanced protection, mobility, or lethality, the contract directly supports readiness. Without knowing the specific components and their role, assessing the strategic impact remains speculative.

Industry Classification

NAICS: ManufacturingOther Transportation Equipment ManufacturingMilitary 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, 01

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $46,308,129

Exercised Options: $46,308,129

Current Obligation: $46,308,129

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785407D5031

IDV Type: IDC

Timeline

Start Date: 2008-09-08

Current End Date: 2010-07-14

Potential End Date: 2010-07-14 00:00:00

Last Modified: 2012-08-06

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