DoD Awards $446M Contract for Wheeled Combat Vehicles to GM GDLS Defense Group
Contract Overview
Contract Amount: $445,938,338 ($445.9M)
Contractor: GM Gdls Defense Group, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2004-03-05
End Date: 2006-02-28
Contract Duration: 725 days
Daily Burn Rate: $615.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 17
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200408!003997!2100!W56HZV!TACOM - WARREN !DAAE0700DM051 !A!N! !N!0021 ! !20040305!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 !+000282464276!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4A!COMBAT VEHICLES !000 !* !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
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $445.9 million to GM GDLS DEFENSE GROUP, L.L.C. for work described as: 200408!003997!2100!W56HZV!TACOM - WARREN !DAAE0700DM051 !A!N! !N!0021 ! !20040305!20080930!098155158!098155158!098155158!N!GM GDLS DEFENSE GROUP LLC, JOI!38500 MOUND ROAD !STERLING HEIGH !MI!48310!76460!099!26!STERLING HEIGHTS !MACO… Key points: 1. The contract value is substantial at $445,938,338. 2. Competition was full and open, suggesting a competitive bidding process. 3. The primary risk lies in potential cost overruns or performance issues with complex military vehicles. 4. This falls under the Defense sector, specifically military vehicle manufacturing.
Value Assessment
Rating: good
The contract value of $445,938,338 for military armored vehicles appears reasonable given the nature of the equipment. Benchmarking against similar complex defense contracts is necessary for a definitive assessment.
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 price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for these specialized military vehicles.
Public Impact
Significant taxpayer investment in military hardware. Supports a major defense contractor and its supply chain. Impacts the operational readiness of military ground forces. Contributes to the technological advancement of armored vehicles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule delays in defense production.
- Reliance on a single prime contractor for critical components.
Positive Signals
- Awarded through full and open competition.
- Contract for essential military equipment.
Sector Analysis
This contract is within the Defense sector, specifically for the manufacturing of wheeled combat vehicles. Spending in this area is driven by military modernization and operational needs, with benchmarks varying widely based on vehicle type and technological sophistication.
Small Business Impact
While the prime contractor is GM GDLS Defense Group, LLC, the contract likely involves numerous subcontracts, potentially creating opportunities for small businesses within the defense supply chain.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for oversight. Accountability would be managed through contract performance monitoring, milestone reviews, 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
- Potential for cost overruns.
- Risk of schedule delays.
- Dependence on specific manufacturing capabilities.
- Long-term sustainment and maintenance costs.
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 $445.9 million to GM GDLS DEFENSE GROUP, L.L.C.. 200408!003997!2100!W56HZV!TACOM - WARREN !DAAE0700DM051 !A!N! !N!0021 ! !20040305!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 !+000282464276!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4A!COMBAT VEHICLES !000 !* !336992!E! !5!A!S! ! ! !999
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 $445.9 million.
What is the period of performance?
Start: 2004-03-05. End: 2006-02-28.
What is the projected lifespan and maintenance cost of these vehicles?
The projected lifespan and associated maintenance costs are critical factors for assessing the total cost of ownership. While the initial contract value is significant, long-term sustainment expenses can substantially increase the overall financial burden on the government. Detailed lifecycle cost analyses should be reviewed to understand the full financial commitment beyond the procurement phase.
Are there any identified performance risks associated with this specific vehicle model?
Performance risks are inherent in complex defense systems. It's crucial to understand if this particular model has a history of reliability issues, operational deficiencies, or if the technology is cutting-edge and unproven in extensive field use. Mitigation strategies and contingency plans should be in place to address any potential performance shortfalls.
How does the unit cost compare to similar international military vehicle procurements?
Comparing unit costs with international procurements can provide valuable insights into value for money. However, such comparisons must account for differences in specifications, technological capabilities, quantities ordered, and economic conditions. A direct, apples-to-apples comparison might be challenging but is essential for a comprehensive value assessment.
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, 10
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: 2004-03-05
Current End Date: 2006-02-28
Potential End Date: 2006-02-28 00:00:00
Last Modified: 2014-09-15
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