DoD's $2.07B Stryker Vehicle Logistics Support Contract Awarded to GM GDLS Defense Group
Contract Overview
Contract Amount: $2,067,459,029 ($2.1B)
Contractor: GM Gdls Defense Group, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2006-12-21
End Date: 2018-11-15
Contract Duration: 4,347 days
Daily Burn Rate: $475.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THIS ACTION IS FOR A NEW FOLLOW-ON CONTRACTOR LOGISTICS SUPPORT (CLS) DELIVERY ORDER 0019. THE CONTRACTOR WILL PROVIDE CONTRACTOR LOGISTICS SUPPORT (CLS) FOR STRYKER FAMILY OF VEHICLES (FOV) IN BOTH GARRISON AND DEPLOYMENT LOCATIONS. THE PERIOD OF PERFORMANCE IS FROM MARCH 1, 2007 THROUGH FEBRUARY 29, 2008
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $2.07 billion to GM GDLS DEFENSE GROUP, L.L.C. for work described as: THIS ACTION IS FOR A NEW FOLLOW-ON CONTRACTOR LOGISTICS SUPPORT (CLS) DELIVERY ORDER 0019. THE CONTRACTOR WILL PROVIDE CONTRACTOR LOGISTICS SUPPORT (CLS) FOR STRYKER FAMILY OF VEHICLES (FOV) IN BOTH GARRISON AND DEPLOYMENT LOCATIONS. THE PERIOD OF PERFORMANCE IS FROM MARCH 1, 20… Key points: 1. Contract provides essential logistics support for Stryker vehicles in garrison and deployment settings. 2. The contract spans over a decade, indicating a long-term need for these services. 3. Awarded as a follow-on contract, suggesting continuity and established performance. 4. The significant value points to the critical nature of maintaining the Stryker fleet. 5. Focus on contractor logistics support highlights reliance on external expertise for vehicle readiness. 6. The 'not competed' status warrants scrutiny regarding potential cost efficiencies and market alternatives.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific performance metrics or comparable service contracts. The total value over its extended period suggests a substantial investment in maintaining military readiness. However, the lack of competition raises questions about whether the pricing reflects optimal value for taxpayer dollars. Further analysis would require comparing unit costs for specific logistics tasks against industry standards or previous contract performance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating it was awarded directly to GM GDLS Defense Group, L.L.C. The specific justification for this sole-source award is not provided in the data. Typically, sole-source awards occur when only one responsible source can provide the required supplies or services. This lack of competition limits the government's ability to explore alternative solutions or leverage market dynamics to achieve lower prices.
Taxpayer Impact: The absence of competition means taxpayers may not benefit from the cost savings that could arise from a competitive bidding process, potentially leading to higher overall expenditures for these logistics services.
Public Impact
The primary beneficiaries are the U.S. Army units operating Stryker vehicles, ensuring their operational readiness. Services delivered include contractor logistics support, crucial for maintaining the functionality of the Stryker family of vehicles. The geographic impact is broad, covering both garrison locations and deployment sites, supporting global military operations. Workforce implications include the employment of personnel by GM GDLS Defense Group, L.L.C. to perform these specialized logistics functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs for taxpayers.
- Sole-source award requires strong justification to ensure fair pricing.
- Long-term nature of the contract could reduce flexibility in adapting to new technologies or support models.
Positive Signals
- Follow-on nature suggests contractor has a proven track record with the Stryker system.
- Dedicated logistics support ensures high readiness rates for critical military assets.
- Consolidated support under one contractor can streamline operations and accountability.
Sector Analysis
This contract falls within the Defense Industrial Base sector, specifically focusing on military vehicle support and sustainment. The market for defense logistics and maintenance services is substantial, with numerous companies offering specialized capabilities. This contract represents a significant portion of spending related to the Stryker platform's operational readiness. Comparable spending benchmarks would involve analyzing other large-scale sustainment contracts for major weapon systems.
Small Business Impact
The provided data does not indicate any small business set-aside provisions for this contract. As a sole-source award to a large prime contractor, the direct impact on small businesses is likely limited unless GM GDLS Defense Group, L.L.C. actively engages small businesses as subcontractors. Further investigation into subcontracting plans would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures. Accountability measures would be defined within the contract terms and conditions, including performance standards and reporting requirements. Transparency may be limited due to the sole-source nature, but contract awards and basic details are generally publicly available through federal procurement databases. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.
Related Government Programs
- Stryker Family of Vehicles Procurement
- Military Vehicle Maintenance and Repair Services
- Defense Logistics Support Contracts
- Army Ground Vehicle Sustainment Programs
Risk Flags
- Sole-source award lacks competitive pricing pressure.
- Potential for cost overruns due to lack of competition.
- Over-reliance on a single contractor for critical logistics.
Tags
defense, department-of-defense, department-of-the-army, Stryker-family-of-vehicles, contractor-logistics-support, sole-source, follow-on-contract, delivery-order, military-armored-vehicle-manufacturing, cost-plus-fixed-fee, michigan, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.07 billion to GM GDLS DEFENSE GROUP, L.L.C.. THIS ACTION IS FOR A NEW FOLLOW-ON CONTRACTOR LOGISTICS SUPPORT (CLS) DELIVERY ORDER 0019. THE CONTRACTOR WILL PROVIDE CONTRACTOR LOGISTICS SUPPORT (CLS) FOR STRYKER FAMILY OF VEHICLES (FOV) IN BOTH GARRISON AND DEPLOYMENT LOCATIONS. THE PERIOD OF PERFORMANCE IS FROM MARCH 1, 2007 THROUGH FEBRUARY 29, 2008
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 $2.07 billion.
What is the period of performance?
Start: 2006-12-21. End: 2018-11-15.
What is the specific justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. The specific justification for this determination is not detailed in the extract. Typically, sole-source awards are made when the government determines that only one responsible source can provide the required supplies or services, often due to unique capabilities, proprietary technology, or urgent needs. Without further documentation, it's impossible to ascertain the precise rationale, but it implies that a competitive process was deemed impractical or impossible for this particular delivery order.
How does the total contract value compare to similar logistics support contracts for armored vehicle fleets?
Direct comparison of the $2.07 billion total value is difficult without knowing the exact scope of services and duration of comparable contracts. However, for a decade-long sustainment effort for a major vehicle platform like the Stryker, this value appears substantial, reflecting the complexity and criticality of maintaining such assets. Larger, long-term sustainment contracts for major weapon systems can easily reach billions of dollars. To provide a precise benchmark, one would need to identify contracts with similar service requirements (e.g., depot-level maintenance, field support, parts management) for comparable vehicle platforms (e.g., Abrams tanks, Bradley Fighting Vehicles) and analyze their total obligated amounts and period of performance.
What are the key performance indicators (KPIs) used to measure the success of this contractor logistics support?
The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for Contractor Logistics Support (CLS) of military vehicles, typical KPIs often include metrics related to vehicle readiness rates (e.g., percentage of vehicles mission-capable), turnaround time for repairs and maintenance, parts availability, response times to field requests, and adherence to maintenance schedules. Effective oversight would involve tracking these KPIs to ensure the contractor is meeting the Army's requirements for operational availability and cost-effectiveness.
What is the historical spending trend for Contractor Logistics Support (CLS) for the Stryker Family of Vehicles?
The provided data represents a single delivery order (0019) with a specific value and period of performance (March 1, 2007 - February 29, 2008). To understand historical spending trends, one would need to examine all previous delivery orders and contract modifications issued under the parent contract. This would involve analyzing the total obligated amounts, task orders issued, and the evolution of spending over the entire contract lifecycle, potentially spanning many years. Without access to the complete contract history, it's impossible to determine the historical spending trend for CLS of the Stryker FOV.
What are the potential risks associated with a long-term, sole-source contract for critical military logistics?
A long-term, sole-source contract for critical military logistics presents several potential risks. Firstly, the lack of competition can lead to reduced price pressure, potentially resulting in higher costs for the government over time compared to a competitively bid contract. Secondly, it can foster complacency in the contractor, potentially leading to diminished innovation or responsiveness if there is no market pressure to improve services. Thirdly, the government may become overly reliant on a single provider, creating vulnerability if the contractor experiences financial difficulties, operational failures, or decides to exit the market. Finally, without regular competitive re-evaluation, the contract may not keep pace with technological advancements or evolving military requirements.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 38500 MOUND ROAD, STERLING HEIGHTS, MI, 48310
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $2,067,459,029
Exercised Options: $2,067,459,029
Current Obligation: $2,067,459,029
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV07DM112
IDV Type: IDC
Timeline
Start Date: 2006-12-21
Current End Date: 2018-11-15
Potential End Date: 2018-11-15 00:00:00
Last Modified: 2020-09-29
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