DoD's $249M Stryker R&D Contract Awarded to GM GDLS Defense Group Without Competition
Contract Overview
Contract Amount: $249,307,967 ($249.3M)
Contractor: GM Gdls Defense Group, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2008-04-11
End Date: 2018-11-15
Contract Duration: 3,870 days
Daily Burn Rate: $64.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PRE-MILESTONE A R&D ACTIVITIES FOR THE STRYKER PRODUCT IMPROVEMENT PROGRAM (SPIP)
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $249.3 million to GM GDLS DEFENSE GROUP, L.L.C. for work described as: PRE-MILESTONE A R&D ACTIVITIES FOR THE STRYKER PRODUCT IMPROVEMENT PROGRAM (SPIP) Key points: 1. Significant R&D investment in military armored vehicles. 2. Sole-source award to GM GDLS Defense Group raises competition concerns. 3. Long contract duration (2008-2018) suggests substantial program development. 4. Cost-plus-fixed-fee contract type can incentivize spending.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, coupled with a lack of competition, makes a definitive value assessment difficult without further data on cost drivers and performance metrics. Benchmarking against similar R&D efforts for armored vehicles is challenging due to the unique nature of product improvement programs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award to GM GDLS Defense Group. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive procurement process.
Taxpayer Impact: The lack of competition for a nearly $250 million contract may result in suboptimal pricing, impacting taxpayer value.
Public Impact
Enhances capabilities of the Stryker armored vehicle platform. Supports the U.S. Army's modernization efforts. Potential for technological advancements in military vehicle design.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus-fixed-fee contract
- Long contract duration
Positive Signals
- Supports critical defense program
- Potential for technological advancement
Sector Analysis
This contract falls within the Defense sector, specifically focusing on military armored vehicle manufacturing and R&D. Spending in this area is driven by national security needs and technological superiority requirements, often involving complex and lengthy development cycles.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. Sole-source procurements often limit opportunities for small business participation.
Oversight & Accountability
The long duration and sole-source nature of this contract warrant scrutiny regarding ongoing oversight to ensure cost control and effective program execution. Transparency in R&D spending is crucial for accountability.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Cost-plus-fixed-fee contracts can incentivize higher spending.
- Long contract duration increases risk of cost overruns and scope creep.
- Limited transparency on specific R&D outcomes and their value.
- No apparent 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 $249.3 million to GM GDLS DEFENSE GROUP, L.L.C.. PRE-MILESTONE A R&D ACTIVITIES FOR THE STRYKER PRODUCT IMPROVEMENT PROGRAM (SPIP)
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 $249.3 million.
What is the period of performance?
Start: 2008-04-11. End: 2018-11-15.
What specific technological advancements or improvements were achieved through this R&D contract, and how do they justify the significant investment?
The contract aimed to improve the Stryker product line. Specific advancements would likely include upgrades to lethality, survivability, mobility, or network integration. Justification hinges on whether these improvements demonstrably enhance warfighter effectiveness and provide a strategic advantage, outweighing the substantial R&D costs.
Given the sole-source award, what mechanisms were in place to ensure cost reasonableness and prevent contractor overpricing?
While sole-source awards limit competitive pressure, the government typically employs mechanisms like detailed cost analysis, negotiation, and review of contractor cost proposals. For cost-plus-fixed-fee contracts, rigorous oversight of allowable costs and the fixed fee negotiation are critical to ensuring reasonableness.
How does the performance and outcome of this R&D contract align with the Army's long-term vehicle modernization strategy and overall defense spending priorities?
The R&D activities for the Stryker program are expected to align with the Army's strategy by enhancing a key platform's capabilities. The effectiveness is measured by whether the improvements contribute to meeting evolving battlefield requirements and maintaining technological superiority, justifying its place within broader defense expenditure.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
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
Address: 38500 MOUND ROAD, STERLING HEIGHTS, MI, 48310
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $249,307,967
Exercised Options: $249,307,967
Current Obligation: $249,307,967
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV07DM112
IDV Type: IDC
Timeline
Start Date: 2008-04-11
Current End Date: 2018-11-15
Potential End Date: 2018-11-15 00:00:00
Last Modified: 2023-03-14
More Contracts from GM Gdls Defense Group, L.L.C.
- This Action IS for a NEW Follow-On Contractor Logistics Support (CLS) Delivery Order 0019. the Contractor Will Provide Contractor Logistics Support (CLS) for Stryker Family of Vehicles (FOV) in Both Garrison and Deployment Locations. the Period of Performance IS From March 1, 2007 Through February 29, 2008 — $2.1B (Department of Defense)
- MGS Material — $1.3B (Department of Defense)
- Call-Up of the 115 Vehicles — $1.1B (Department of Defense)
- 200208!002560!2100!AE07 !tacom - Warren !daae0702cb001 !A!N! !Y! !20020518!20040601!098155158!098155158!098155158!N!GM Gdls Defense Group LLC, JV !14920 Twenty-Three Mile Ro!shelby Townshi !mi!48315!76460!099!26!sterling Heights !macomb !michigan !+000020000000!n!n!000000000000!ad91!rdte/Other Defense-Basic Research !S1 !services !1djm!light Armored Vehicle (LAV) !336992!E! !1! ! ! ! ! !99990909!B! ! !n!a!d!n!v!1!001!n!2a!a!y!z! ! !N!C!N! ! ! !z!z!a!a!000!a!c!y! ! ! ! ! ! !0001! — $1.0B (Department of Defense)
- 200506!001729!2100!w56hzv!tacom - Warren !daae0700dm051 !A!N! !N!0024 ! !20041118!20080930!098155158!098155158!098155158!N!GM Gdls Defense Group LLC, JOI!38500 Mound Road !sterling Heigh !mi!48310!76460!099!26!sterling Heights !macomb !michigan !+000100761292!n!n!000000000000!j010!maint & Repair of Eq/Weapons !a4a!combat Vehicles !000 !* !336992!E! !5!A!S! ! ! !20200930!B! ! !A! !a!u!j!2!017!b! !z!n!a!a!zz!n!c!n! ! ! !a!a!a!a!000!a!c!y! ! ! ! ! ! !0001! ! — $835.1M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)