DoD Awards $371M for Armored Vehicles to GM GDLS Defense Group, LLC
Contract Overview
Contract Amount: $371,402,560 ($371.4M)
Contractor: GM Gdls Defense Group, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2003-03-18
End Date: 2005-09-30
Contract Duration: 927 days
Daily Burn Rate: $400.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 17
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200308!003346!2100!AE07 !TACOM - WARREN !DAAE0700DM051 !A!N! !N!0019 !20030318!20080930!098155158!098155158!098155158!N!GM GDLS DEFENSE GROUP LLC, JOI!38500 MOUND ROAD !STERLING HEIGH !MI!48310!76460!099!26!STERLING HEIGHTS !MACOMB !MICHIGAN !+000156236284!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4A!COMBAT VEHICLES !1000!NOT DISCERNABLE OR CLASSIFIED !336992!E! !5!A!S! ! ! !99990909!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, UNITED STATES OF AMERICA
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $371.4 million to GM GDLS DEFENSE GROUP, L.L.C. for work described as: 200308!003346!2100!AE07 !TACOM - WARREN !DAAE0700DM051 !A!N! !N!0019 !20030318!20080930!098155158!098155158!098155158!N!GM GDLS DEFENSE GROUP LLC, JOI!38500 MOUND ROAD !STERLING HEIGH !MI!48310!76460!099!26!STERLING HEIGHTS !MACOM… Key points: 1. Contract awarded for wheeled trucks and truck tractors, specifically combat vehicles. 2. Full and open competition was utilized for this procurement. 3. The contract has a duration of 927 days. 4. The primary sector is Defense, with a specific focus on military vehicles.
Value Assessment
Rating: good
The total award amount is $371,402,560. Without specific per-unit cost data or comparison points for similar armored vehicles, a precise pricing assessment is difficult. However, the contract value suggests a significant investment in specialized military equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 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: The use of full and open competition is intended to ensure taxpayer funds are used efficiently by fostering a competitive environment for the procurement of essential military hardware.
Public Impact
Significant investment in national defense capabilities through the acquisition of combat vehicles. Supports the manufacturing sector and associated supply chains within Michigan. Ensures readiness of military forces through the provision of critical transportation and combat platforms. Potential for technological advancements in armored vehicle design and production.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdowns for per-unit pricing.
- Potential for cost overruns in long-term defense contracts.
- Dependence on a single contractor for critical defense components.
Positive Signals
- Awarded through full and open competition.
- Significant contract value indicates a substantial need.
- Contract duration allows for stable production planning.
Sector Analysis
This contract falls within the Defense sector, specifically the manufacturing of military vehicles. Spending benchmarks in this area are highly variable, depending on the type and quantity of vehicles, technological sophistication, and geopolitical factors. The awarded amount is substantial for a single contract of this nature.
Small Business Impact
The data indicates the award went to GM GDLS Defense Group, LLC, a joint venture. While the primary awardee is a large entity, the nature of defense contracting often involves a complex supply chain that can include opportunities for small businesses as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of Defense, through the TACOM Warren contracting activity, managed this award. Oversight would typically involve contract performance monitoring, quality assurance, and financial management to ensure compliance with terms and conditions and to safeguard taxpayer funds.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract awarded to a joint venture, potentially concentrating risk.
- Long contract duration (927 days) increases exposure to market and technological changes.
- Lack of detailed cost data hinders thorough value assessment.
- Sole awardee for a critical defense component could pose supply chain risks if issues arise.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, mi, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $371.4 million to GM GDLS DEFENSE GROUP, L.L.C.. 200308!003346!2100!AE07 !TACOM - WARREN !DAAE0700DM051 !A!N! !N!0019 !20030318!20080930!098155158!098155158!098155158!N!GM GDLS DEFENSE GROUP LLC, JOI!38500 MOUND ROAD !STERLING HEIGH !MI!48310!76460!099!26!STERLING HEIGHTS !MACOMB !MICHIGAN !+000156236284!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4A!COMBAT VEHICLES !1000!NOT DISCERNABLE OR CLASSIFIED !336992!E! !5!A!S! ! ! !99990909!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 $371.4 million.
What is the period of performance?
Start: 2003-03-18. End: 2005-09-30.
What is the specific type and quantity of wheeled trucks and truck tractors being procured under this contract?
The provided data identifies the Product Service Code (PSC) as 2320 for 'TRUCKS AND TRUCK TRACTORS, WHEELED' and the National Item Identification Number (NIIN) as 336992, which corresponds to 'Military Armored Vehicle, Tank, and Tank Component Manufacturing'. However, the exact quantity and specific models of combat vehicles are not detailed in this summary data. Further investigation into the contract details would be required for precise specifications.
How does the per-unit cost of these armored vehicles compare to similar procurements or industry benchmarks?
A direct per-unit cost benchmark is not available from the provided data. The total award of $371,402,560 for an unspecified quantity of military armored vehicles makes it difficult to establish a precise per-unit cost for comparison. Without access to detailed cost breakdowns or data from comparable contracts for similar armored vehicles, assessing the cost-effectiveness relative to industry standards or other government procurements is not feasible.
What is the assessed risk associated with the performance and delivery of these combat vehicles by GM GDLS Defense Group, LLC?
The data indicates the contract was awarded under 'FULL AND OPEN COMPETITION' and has a 'FIRM FIXED PRICE' type, which generally shifts performance risk to the contractor. The contractor, GM GDLS Defense Group, LLC, has experience in this domain. However, the provided summary does not detail specific performance risks, potential delays, or quality concerns that might be present in the full contract documentation or past performance reviews.
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
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAE0700DM051
IDV Type: IDC
Timeline
Start Date: 2003-03-18
Current End Date: 2005-09-30
Potential End Date: 2005-09-30 00:00:00
Last Modified: 2015-12-07
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