DoD Awards $673.5M for 352 Stryker Vehicles, Lacking Competition
Contract Overview
Contract Amount: $673,543,706 ($673.5M)
Contractor: GM Gdls Defense Group, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2009-09-30
End Date: 2016-03-24
Contract Duration: 2,367 days
Daily Burn Rate: $284.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 352 STRYKER VEHICLES
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $673.5 million to GM GDLS DEFENSE GROUP, L.L.C. for work described as: 352 STRYKER VEHICLES Key points: 1. Significant investment in armored vehicles, with 352 Stryker units procured. 2. Sole-source award to GM GDLS Defense Group, raising competition concerns. 3. Contract duration spans nearly 7 years, indicating a long-term need. 4. High total value suggests substantial taxpayer expenditure for this acquisition.
Value Assessment
Rating: questionable
The total award of $673.5M for 352 Stryker vehicles results in a per-unit cost of approximately $1.86M. Benchmarking against similar military vehicle contracts is difficult without specific configuration details, but this price point warrants scrutiny given the lack of competitive bidding.
Cost Per Unit: $1,859,500
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to GM GDLS Defense Group. The absence of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may have paid a premium for these 352 Stryker vehicles, as there was no market pressure to drive down costs.
Public Impact
Enhances military ground vehicle capabilities with advanced Stryker platforms. Supports the Department of the Army's strategic mobility and protection requirements. Potential for long-term sustainment and upgrade contracts associated with these vehicles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High per-unit cost
- Long contract duration
Positive Signals
- Acquisition of critical military hardware
- Award to established defense contractor
Sector Analysis
The acquisition falls within the Defense Industrial Base sector, specifically military armored vehicle manufacturing. Spending benchmarks for such specialized equipment are highly variable based on technology and quantity, but large sole-source awards often signal potential cost inefficiencies.
Small Business Impact
The data provided does not indicate any subcontracting opportunities for small businesses on this contract. The prime contractor, GM GDLS Defense Group, is a large entity, and the sole-source nature of the award further reduces the likelihood of mandated small business participation.
Oversight & Accountability
The sole-source nature of this award suggests limited competitive oversight during the procurement phase. Subsequent oversight would focus on contract performance, delivery schedules, and adherence to the firm fixed price, but the initial lack of competition is a key accountability concern.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- High per-unit cost requires justification.
- Long contract duration may indicate potential for cost overruns or scope creep.
- Lack of small business participation noted.
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 $673.5 million to GM GDLS DEFENSE GROUP, L.L.C.. 352 STRYKER VEHICLES
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 $673.5 million.
What is the period of performance?
Start: 2009-09-30. End: 2016-03-24.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or the unavailability of other sources. Without specific documentation, it's unclear why competitive strategies were bypassed. Further investigation into the contract's justification and any market research conducted would be necessary to understand the rationale and assess if alternatives were truly unavailable or if competition was simply not pursued.
How does the per-unit cost of these Stryker vehicles compare to similar acquisitions, particularly those that were competitively bid?
The per-unit cost of approximately $1.86M for these Stryker vehicles is a significant figure. A direct comparison to competitively bid contracts is challenging without knowing the exact configuration, upgrades, and support packages included. However, a lack of competition often inflates prices. Benchmarking against publicly available data for similar, competitively procured armored vehicles would be crucial to determine if this price represents fair value or a potential overpayment.
What is the long-term strategic value and operational effectiveness of these 352 Stryker vehicles for the Department of the Army?
Stryker vehicles are known for their versatility, providing protected mobility across various mission profiles. The acquisition of 352 units suggests a substantial commitment to enhancing the Army's capabilities in maneuver warfare, reconnaissance, and troop transport. Their effectiveness is tied to doctrine, training, and integration with other assets. The long-term value depends on their continued relevance in evolving threat environments and the sustainment strategy employed.
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: FIRM FIXED PRICE (J)
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: $673,543,706
Exercised Options: $673,543,706
Current Obligation: $673,543,706
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: 2009-09-30
Current End Date: 2016-03-24
Potential End Date: 2016-03-24 00:00:00
Last Modified: 2016-08-16
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