DoD Awards $744M Contract for Wheeled Combat Vehicles to GM GDLS Defense Group
Contract Overview
Contract Amount: $743,958,914 ($744.0M)
Contractor: GM Gdls Defense Group, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2006-04-07
End Date: 2010-06-30
Contract Duration: 1,545 days
Daily Burn Rate: $481.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 17
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200608!004412!2100!W56HZV!TACOM - WARREN !DAAE0700DM051 !A!N! !N!0027 ! !20060407!20080930!098155158!098155158!098155158!N!GMGDLS DEFENSE GROUP LLC !14920 23 MILE RD !SHELBY TOWNSHI !MI!48315!76460!099!26!STERLING HEIGHTS !MACOMB !MICHIGAN !+000463950497!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4A!COMBAT VEHICLES !000 !NOT DISCERNABLE !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 $744.0 million to GM GDLS DEFENSE GROUP, L.L.C. for work described as: 200608!004412!2100!W56HZV!TACOM - WARREN !DAAE0700DM051 !A!N! !N!0027 ! !20060407!20080930!098155158!098155158!098155158!N!GMGDLS DEFENSE GROUP LLC !14920 23 MILE RD !SHELBY TOWNSHI !MI!48315!76460!099!26!STERLING HEIGHTS !MACO… Key points: 1. The contract value of $743,958,914 is substantial, indicating a significant procurement. 2. GM GDLS Defense Group, L.L.C. is the sole awardee, raising questions about competition. 3. The contract is for wheeled combat vehicles, a critical defense asset. 4. The sector is Defense, specifically Army procurement, which often involves high-value, specialized contracts.
Value Assessment
Rating: questionable
The total award amount is $743,958,914. Without specific unit details or historical pricing for similar vehicles, a direct per-unit cost comparison is not feasible. However, the overall value suggests a significant investment in specialized military hardware.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bidders were considered. However, the award to a single entity, GM GDLS Defense Group, L.L.C., implies they were the most advantageous offer, potentially due to specialized capabilities or pricing.
Taxpayer Impact: The competitive process aims to secure the best value for taxpayer dollars, but the final price reflects the specialized nature and high cost of military armored vehicles.
Public Impact
This contract directly impacts national defense capabilities by procuring essential combat vehicles. Taxpayers are funding advanced military technology, contributing to the nation's security infrastructure. The award supports jobs and economic activity within the defense manufacturing sector, particularly in Michigan.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific unit cost data makes value assessment difficult.
- Sole awardee despite full and open competition warrants further scrutiny of the evaluation process.
Positive Signals
- Awarded under full and open competition.
- Procurement of critical defense assets.
Sector Analysis
This contract falls within the Defense sector, specifically for wheeled combat vehicles. Spending in this area is driven by military modernization needs and geopolitical factors. Benchmarks for such specialized vehicles are highly variable based on technology and quantity.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, GM GDLS Defense Group, L.L.C., is a large entity, and it's unclear if they will be subcontracting to small businesses.
Oversight & Accountability
The Department of Defense and Department of the Army are responsible for overseeing this contract. Accountability is maintained through contract milestones, performance reviews, and financial audits to ensure delivery and proper use of funds.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High contract value.
- Sole awardee despite full and open competition.
- Long contract duration.
- Lack of specific unit cost data.
- Nature of the product (combat vehicles) implies high complexity and cost.
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 $744.0 million to GM GDLS DEFENSE GROUP, L.L.C.. 200608!004412!2100!W56HZV!TACOM - WARREN !DAAE0700DM051 !A!N! !N!0027 ! !20060407!20080930!098155158!098155158!098155158!N!GMGDLS DEFENSE GROUP LLC !14920 23 MILE RD !SHELBY TOWNSHI !MI!48315!76460!099!26!STERLING HEIGHTS !MACOMB !MICHIGAN !+000463950497!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4A!COMBAT VEHICLES !000 !NOT DISCERNABLE !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 $744.0 million.
What is the period of performance?
Start: 2006-04-07. End: 2010-06-30.
What is the specific type and quantity of wheeled combat vehicles being procured under this contract?
The contract specifies 'TRUCKS AND TRUCK TRACTORS, WHEELED' with a Product Service Code (PSC) of 2320 and a National Stock Number (NSN) of 336992, categorized under 'COMBAT VEHICLES'. However, the exact quantity is not explicitly stated in the provided data, only the total award amount and contract duration.
How did GM GDLS Defense Group, L.L.C. demonstrate the most advantageous offer in a full and open competition scenario for these specialized combat vehicles?
While the award was under full and open competition, the data does not detail the evaluation criteria or the specific advantages GM GDLS Defense Group, L.L.C. offered. Typically, this would involve technical superiority, proven performance, delivery timelines, and competitive pricing compared to other qualified bidders.
What is the projected taxpayer impact in terms of cost per vehicle, considering the total contract value and duration?
The total award is $743,958,914 over approximately 24 months (from April 2006 to June 2010). Without knowing the exact number of vehicles, a precise per-unit cost cannot be calculated. However, the significant total value suggests a high per-unit cost, typical for advanced military hardware.
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: 2006-04-07
Current End Date: 2010-06-30
Potential End Date: 2010-06-30 00:00:00
Last Modified: 2014-09-15
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