DoD's $299M Stryker Vehicle Contract Awarded via Full and Open Competition
Contract Overview
Contract Amount: $298,938,782 ($298.9M)
Contractor: GM Gdls Defense Group, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2007-06-26
End Date: 2010-06-30
Contract Duration: 1,100 days
Daily Burn Rate: $271.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 17
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: STRYKER VEHICLE
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $298.9 million to GM GDLS DEFENSE GROUP, L.L.C. for work described as: STRYKER VEHICLE Key points: 1. Significant investment in armored vehicle manufacturing. 2. Competition was robust, indicating potential for competitive pricing. 3. Risk is moderate, given the specialized nature of military hardware. 4. Defense sector spending is substantial and ongoing.
Value Assessment
Rating: good
The contract value of $298.9M for Stryker vehicles appears reasonable given the quantity and specialized nature. Benchmarking against similar military vehicle procurements would provide a more precise assessment.
Cost Per Unit: $27,176,300
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: Full and open competition aims to maximize taxpayer value by ensuring the best possible prices are obtained through a wide range of potential bidders.
Public Impact
Enhances military mobility and protection capabilities. Supports domestic manufacturing and jobs in the defense industry. Contributes to national security readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in specialized defense manufacturing.
- Long-term sustainment and upgrade costs not detailed.
- Dependence on a single prime contractor for delivery.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract limits cost uncertainty.
- Significant investment in critical defense assets.
Sector Analysis
This contract falls within the Defense sector, specifically military vehicle manufacturing. Spending in this area is driven by national security needs and technological advancements in armored warfare.
Small Business Impact
The data indicates the prime contractor is GM GDLS Defense Group, L.L.C. There is no explicit information on small business participation in this specific award, which warrants further investigation.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial to ensure delivery, quality, and adherence to contract terms.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost growth in specialized defense contracts.
- Limited visibility into small business subcontracting.
- Long-term sustainment costs are not quantified.
- Technological obsolescence risk over the vehicle's lifespan.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, mi, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $298.9 million to GM GDLS DEFENSE GROUP, L.L.C.. STRYKER VEHICLE
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 $298.9 million.
What is the period of performance?
Start: 2007-06-26. End: 2010-06-30.
What is the projected lifecycle cost of the Stryker vehicles, including sustainment and upgrades?
The provided data focuses on the initial procurement cost of $298.9 million. Lifecycle costs, encompassing maintenance, spare parts, upgrades, and potential retrofits, are not detailed. Estimating these long-term expenses is crucial for a comprehensive understanding of the total taxpayer investment and requires separate analysis beyond the initial award.
How does the per-unit cost compare to similar armored vehicle programs?
The per-unit cost is benchmarked at approximately $27.18 million. Direct comparison requires detailed specifications of comparable vehicles, including armor levels, armament, mobility features, and technological sophistication. While this figure is substantial, it may be competitive within the niche market of advanced, multi-role armored personnel carriers.
What measures are in place to ensure the long-term effectiveness and technological relevance of the Stryker fleet?
The contract's end date is 2010, suggesting initial delivery is complete. Long-term effectiveness relies on ongoing sustainment, modernization programs, and potential upgrades to counter evolving threats. The Department of Defense likely has separate strategies and future funding plans to maintain the fleet's relevance and operational capability beyond the initial acquisition phase.
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
Financial Breakdown
Contract Ceiling: $298,938,782
Exercised Options: $298,938,782
Current Obligation: $298,938,782
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAE0700DM051
IDV Type: IDC
Timeline
Start Date: 2007-06-26
Current End Date: 2010-06-30
Potential End Date: 2010-06-30 00:00:00
Last Modified: 2019-01-04
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