Army awards $390M for 103 Stryker vehicles, including ICVs, RVs, FSVs, and ESVs
Contract Overview
Contract Amount: $389,622,826 ($389.6M)
Contractor: GM Gdls Defense Group, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2010-02-08
End Date: 2012-08-30
Contract Duration: 934 days
Daily Burn Rate: $417.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TO ACQUIRE 103 STRYKER VEHICLES (ICV QTY 76; RV QTY 17; FSV QTY 5; ESV QTY 5).
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $389.6 million to GM GDLS DEFENSE GROUP, L.L.C. for work described as: TO ACQUIRE 103 STRYKER VEHICLES (ICV QTY 76; RV QTY 17; FSV QTY 5; ESV QTY 5). Key points: 1. Significant investment in armored vehicle fleet modernization. 2. Sole-source award to GM GDLS Defense Group, raising competition concerns. 3. High per-unit cost for specialized Stryker variants. 4. Focus on tactical mobility and force protection capabilities.
Value Assessment
Rating: questionable
The total award of $389.6M for 103 Stryker vehicles appears high, especially considering the benchmark of $4.17M per vehicle. The pricing needs closer examination against similar, competitively procured armored vehicle contracts.
Cost Per Unit: $4,171,550
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to GM GDLS Defense Group. The lack of competition likely resulted in higher prices and limited opportunities for other manufacturers to offer solutions.
Taxpayer Impact: The absence of competition may have led to taxpayers paying a premium for these specialized military vehicles.
Public Impact
Enhances Army's ground combat capabilities with advanced Stryker platforms. Supports troop mobility and survivability in various operational environments. Potential for long-term sustainment and upgrade contracts for the awarded vendor. Impacts the defense industrial base, particularly in armored vehicle manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery.
- High per-unit cost requires justification.
- Lack of competition may stifle innovation.
- Potential for cost overruns in future orders.
Positive Signals
- Acquisition of critical, modern armored vehicles.
- Addresses specific operational requirements for troop transport and support.
- Supports a key defense contractor.
Sector Analysis
The defense sector, particularly armored vehicle manufacturing, is characterized by high R&D costs and long production cycles. Spending benchmarks for similar vehicles can vary widely based on customization and technology.
Small Business Impact
This contract was awarded directly to a large prime contractor, GM GDLS Defense Group. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure fair pricing and justification. Future contract actions should prioritize competitive sourcing where feasible.
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
- High per-unit cost
- Lack of competition
- Potential for cost growth
- Limited small business participation
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 $389.6 million to GM GDLS DEFENSE GROUP, L.L.C.. TO ACQUIRE 103 STRYKER VEHICLES (ICV QTY 76; RV QTY 17; FSV QTY 5; ESV QTY 5).
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 $389.6 million.
What is the period of performance?
Start: 2010-02-08. End: 2012-08-30.
What specific factors justified the sole-source award for these Stryker vehicles, and were alternatives thoroughly explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. Without detailed documentation, it's difficult to assess if alternatives were explored. However, the lack of competition raises concerns about potential price inflation and missed opportunities for better value.
How does the per-unit cost of these Stryker vehicles compare to similar armored personnel carriers acquired through competitive processes?
The benchmark per-unit cost of $4.17 million is significantly higher than many standard armored personnel carriers procured competitively. While Stryker variants offer advanced features, this high cost necessitates a detailed comparison with other platforms to ensure the Army is receiving optimal value for its investment and that the price reflects true technological advantages.
What is the long-term sustainment and upgrade strategy for these vehicles, and will it also be sole-sourced?
The long-term sustainment and upgrade strategy is crucial for the lifecycle cost-effectiveness of these vehicles. If future sustainment and upgrade contracts are also awarded sole-source to GM GDLS Defense Group, it could lock the government into potentially higher costs over the vehicle's lifespan. Competitive strategies for sustainment should be explored to manage long-term expenses.
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: $389,622,826
Exercised Options: $389,622,826
Current Obligation: $389,622,826
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: 2010-02-08
Current End Date: 2012-08-30
Potential End Date: 2012-08-30 12:08:00
Last Modified: 2015-12-04
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