DoD Spends $383.6M on Mine Protection Kits, Awarded Sole Source to GM GDLS Defense Group
Contract Overview
Contract Amount: $383,618,613 ($383.6M)
Contractor: GM Gdls Defense Group, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2008-07-16
End Date: 2013-12-31
Contract Duration: 1,994 days
Daily Burn Rate: $192.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MINE PROTECTION KIT
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310, UNITED STATES OF AMERICA
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $383.6 million to GM GDLS DEFENSE GROUP, L.L.C. for work described as: MINE PROTECTION KIT Key points: 1. Significant investment in specialized military equipment. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (5 years) suggests a sustained need. 4. Focus on armored vehicle components highlights a critical defense capability.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, combined with a sole-source award, makes a direct pricing assessment difficult without further data on cost drivers and profit margins. Benchmarking against similar sole-source awards for specialized military hardware is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process. The rationale for not competing is not provided.
Taxpayer Impact: The lack of competition for a contract of this magnitude suggests potential for overspending, impacting taxpayer funds negatively.
Public Impact
Enhances soldier survivability in armored vehicles. Supports ongoing military operations and readiness. Contributes to the defense industrial base, though with limited small business participation. Represents a significant allocation of defense budget towards protective systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Limited small business involvement
Positive Signals
- Addresses critical soldier protection needs
- Long-term contract provides stability
Sector Analysis
This contract falls within the Defense sector, specifically focusing on armored vehicle components. Spending in this sub-sector is driven by operational needs, technological advancements, and geopolitical factors. Benchmarks are highly specific to the type of equipment and threat environment.
Small Business Impact
The data indicates no reported small business participation in this contract. This suggests that the prime contractor, GM GDLS Defense Group, is likely a large entity, and subcontracting opportunities for small businesses may have been limited or not tracked.
Oversight & Accountability
Oversight for this contract would typically reside within the Department of the Army's contracting and program management offices. The cost-plus fixed fee structure necessitates robust oversight to ensure costs are reasonable and the fixed fee is earned.
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 competition.
- Cost-plus contract type can lead to higher costs.
- Lack of transparency in justification for sole-sourcing.
- Potential for cost overruns without strong oversight.
- Limited small business participation.
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 $383.6 million to GM GDLS DEFENSE GROUP, L.L.C.. MINE PROTECTION KIT
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 $383.6 million.
What is the period of performance?
Start: 2008-07-16. End: 2013-12-31.
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 is crucial for understanding the procurement process. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this justification, it's difficult to assess if the government received the best possible value and if taxpayer funds were used efficiently.
How does the per-unit cost of these mine protection kits compare to similar systems acquired through competitive processes, if available?
Comparing the per-unit cost is essential for evaluating value for money. Given this was a sole-source, cost-plus fixed fee contract, direct comparison is difficult. However, an internal analysis by the DoD or an independent review would be needed to benchmark against comparable systems, considering factors like threat level, vehicle integration, and technological sophistication.
What measures were in place to ensure cost control and prevent overruns under the Cost Plus Fixed Fee (CPFF) structure for this contract?
CPFF contracts require stringent oversight to manage costs. Measures likely included detailed audits of contractor expenses, regular reviews of progress against milestones, and clear definitions of allowable costs. The fixed fee component provides some incentive for the contractor to manage costs efficiently, but the government must actively monitor expenditures to ensure reasonableness.
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: COST PLUS FIXED FEE (U)
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: $383,618,613
Exercised Options: $383,618,613
Current Obligation: $383,618,613
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV07DM112
IDV Type: IDC
Timeline
Start Date: 2008-07-16
Current End Date: 2013-12-31
Potential End Date: 2013-12-31 00:00:00
Last Modified: 2015-09-22
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