DoD Awards $835M for Armored Vehicle Maintenance, Awarded to GM GDLS Defense Group

Contract Overview

Contract Amount: $835,073,212 ($835.1M)

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

Awarding Agency: Department of Defense

Start Date: 2004-11-18

End Date: 2010-06-30

Contract Duration: 2,050 days

Daily Burn Rate: $407.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200506!001729!2100!W56HZV!TACOM - WARREN !DAAE0700DM051 !A!N! !N!0024 ! !20041118!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 !+000100761292!N!N!000000000000!J010!MAINT & REPAIR OF EQ/WEAPONS !A4A!COMBAT VEHICLES !000 !* !336992!E! !5!A!S! ! ! !20200930!B! ! !A! !A!U!J!2!017!B! !Z!N!A!A!ZZ!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 $835.1 million to GM GDLS DEFENSE GROUP, L.L.C. for work described as: 200506!001729!2100!W56HZV!TACOM - WARREN !DAAE0700DM051 !A!N! !N!0024 ! !20041118!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, valued at $835,073,212, is for maintenance and repair of equipment and weapons, specifically combat vehicles. 2. Awarded to GM GDLS Defense Group, L.L.C., this contract represents a significant expenditure within the defense sector. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The duration of the contract is substantial, spanning from November 2004 to June 2010, indicating a long-term need for these services.

Value Assessment

Rating: fair

The total award amount is $835,073,212. Without specific per-unit cost data or a detailed breakdown of services, a precise pricing assessment against similar contracts is difficult. However, the scale of the award suggests significant investment in armored vehicle sustainment.

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 possible range of bidders and can lead to more competitive pricing. The price discovery mechanism relies on the competitive bids submitted by qualified contractors.

Taxpayer Impact: The significant award amount indicates a substantial allocation of taxpayer funds towards maintaining critical defense assets. The competitive nature of the award aims to ensure value for money.

Public Impact

Ensures the operational readiness of combat vehicles, crucial for national defense. Supports jobs within the defense manufacturing and maintenance sector. The long-term nature of the contract provides stability for the contractor and ensures sustained support for military equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential cost overruns if not managed effectively.
Reliance on a single contractor for maintenance could pose supply chain risks.
Lack of detailed cost breakdown makes it hard to assess true value for money.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Supports critical defense capabilities.
Contractor has a history with defense equipment maintenance.

Sector Analysis

This contract falls within the Defense sector, specifically related to the maintenance and repair of combat vehicles. Spending benchmarks in this area are highly variable, depending on the type of equipment, age, and operational tempo. Large-scale sustainment contracts like this are common for major defense platforms.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. The primary awardee is GM GDLS Defense Group, L.L.C., which is likely a large business. Further analysis would be needed to determine small business participation.

Oversight & Accountability

Oversight is likely conducted by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet contractual requirements and deliver quality products and services. The contract's long duration necessitates ongoing monitoring.

Related Government Programs

Military Armored Vehicle, Tank, and Tank Component Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Long-term contract duration
Potential for cost overruns
Single source for critical maintenance
Lack of detailed cost transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $835.1 million to GM GDLS DEFENSE GROUP, L.L.C.. 200506!001729!2100!W56HZV!TACOM - WARREN !DAAE0700DM051 !A!N! !N!0024 ! !20041118!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 !+000100761292!N!N!000000000000!J010!MAINT & REPAIR OF EQ/WEAPONS !A4A!COMBAT VEHICLES !000 !* !336992!E! !5!A!S! ! ! !202

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $835.1 million.

What is the period of performance?

Start: 2004-11-18. End: 2010-06-30.

What is the specific breakdown of maintenance tasks and associated costs within this $835 million contract?

The provided data does not include a detailed breakdown of specific maintenance tasks or their associated costs. The contract covers 'MAINT & REPAIR OF EQ/WEAPONS' for 'COMBAT VEHICLES'. A comprehensive understanding of value for money would require access to the contract's statement of work, CLIN structure, and detailed cost elements.

What are the key performance indicators (KPIs) used to measure the effectiveness of GM GDLS Defense Group's maintenance services under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Effective oversight would typically involve metrics related to vehicle readiness rates, turnaround times for repairs, quality of work, and adherence to maintenance schedules. These KPIs are crucial for assessing contractor performance and ensuring mission capability.

How does the per-unit cost of maintaining these armored vehicles compare to similar contracts or industry benchmarks?

Without specific per-unit cost data or a detailed breakdown of the services rendered, a direct comparison to industry benchmarks is not feasible. The total award of $835 million over approximately six years for maintaining combat vehicles suggests a significant but potentially justifiable investment, depending on the complexity and number of vehicles serviced.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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

Financial Breakdown

Contract Ceiling: $835,322,843

Exercised Options: $835,073,212

Current Obligation: $835,073,212

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAE0700DM051

IDV Type: IDC

Timeline