DoD Awards $243.5M for Stryker Reactive Armor Tiles, Sole-Source Contract
Contract Overview
Contract Amount: $243,526,783 ($243.5M)
Contractor: GM Gdls Defense Group, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2009-03-06
End Date: 2015-09-30
Contract Duration: 2,399 days
Daily Burn Rate: $101.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ADDITION OF STRYKER REACTIVE ARMOR TILE SCOPE OF WORK
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $243.5 million to GM GDLS DEFENSE GROUP, L.L.C. for work described as: ADDITION OF STRYKER REACTIVE ARMOR TILE SCOPE OF WORK Key points: 1. Significant investment in armored vehicle upgrades for the Army. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (2009-2015) suggests a substantial, ongoing need. 4. Focus on a specific component (reactive armor) indicates specialized military requirements.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Without comparable contracts, it's difficult to definitively assess if the $243.5 million price tag represents good value.
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 potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may have paid a premium for the Stryker reactive armor tiles.
Public Impact
Enhances survivability of Stryker vehicles, directly impacting soldier safety. Supports the Army's modernization efforts for armored personnel carriers. Contributes to the defense industrial base, particularly in armored vehicle components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Addresses critical military need
- Supports soldier survivability
Sector Analysis
This contract falls within the Defense Industrial Base sector, specifically focusing on armored vehicle manufacturing and components. Spending in this area is driven by military modernization and operational readiness requirements.
Small Business Impact
The data does not indicate any specific involvement of small businesses in this contract. Further investigation would be needed to determine if small businesses were subcontracted.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and prevent potential cost overruns. Robust oversight is crucial for cost-plus fixed-fee contracts.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns due to contract type
- Limited transparency on pricing justification
- Long-term commitment without clear performance metrics
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 $243.5 million to GM GDLS DEFENSE GROUP, L.L.C.. ADDITION OF STRYKER REACTIVE ARMOR TILE SCOPE OF WORK
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 $243.5 million.
What is the period of performance?
Start: 2009-03-06. End: 2015-09-30.
What was the justification for awarding this contract on a sole-source basis, and were there any attempts to foster competition?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without specific documentation, it's unclear if alternative sources were considered or if specific circumstances necessitated bypassing the competitive bidding process. This lack of transparency can obscure potential cost savings.
How does the per-unit cost of these reactive armor tiles compare to similar systems or previous procurements, considering the contract's duration?
Benchmarking the per-unit cost is challenging without access to detailed pricing breakdowns and comparable contract data. The extended duration (2009-2015) and cost-plus fixed-fee structure suggest that costs may have fluctuated. A thorough analysis would require comparing the final negotiated rates against industry standards and other military procurements of similar components.
What is the long-term strategic value and effectiveness of these specific reactive armor tiles in current and future combat scenarios?
Reactive armor tiles are designed to counter specific threats, primarily shaped charges from anti-tank guided missiles. Their effectiveness is context-dependent, varying with the type of threat and the specific design of the armor. While valuable for enhancing Stryker survivability against certain threats, their long-term strategic value depends on evolving threat landscapes and the development of countermeasures.
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 (UEI: 001381284)
Address: 38500 MOUND ROAD, STERLING HEIGHTS, MI, 48310
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $243,526,783
Exercised Options: $243,526,783
Current Obligation: $243,526,783
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: 2009-03-06
Current End Date: 2015-09-30
Potential End Date: 2015-09-30 12:09:00
Last Modified: 2019-05-13
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