DoD Awards $227M for Double V Hull DO 300 Engineering and Long Lead Materials
Contract Overview
Contract Amount: $227,033,707 ($227.0M)
Contractor: GM Gdls Defense Group, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2010-04-07
End Date: 2018-11-15
Contract Duration: 3,144 days
Daily Burn Rate: $72.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: DOUBLE V HULL DO 300- NONRECURRING ENGINEERING AND LONG LEAD MATERIALS
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $227.0 million to GM GDLS DEFENSE GROUP, L.L.C. for work described as: DOUBLE V HULL DO 300- NONRECURRING ENGINEERING AND LONG LEAD MATERIALS Key points: 1. Significant investment in specialized military vehicle components. 2. Sole-source award indicates limited competition for this specific requirement. 3. Long duration suggests complex engineering and production needs. 4. Cost-plus-fixed-fee contract type may lead to cost overruns if not managed closely.
Value Assessment
Rating: fair
The contract is a cost-plus-fixed-fee type, which can be less price-efficient than fixed-price contracts. Without detailed cost breakdowns and benchmarks for similar non-recurring engineering efforts, assessing the value is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source or limited competition scenario. This limits price discovery and potentially increases costs for the government.
Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a fully competed contract.
Public Impact
Enhances survivability of military vehicles. Supports the production of critical defense equipment. Impacts the defense industrial base and associated supply chains.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus-fixed-fee contract type
- Long contract duration
Positive Signals
- Addresses critical defense need
- Supports specialized manufacturing
Sector Analysis
This contract falls within the Defense sector, specifically military vehicle manufacturing. Spending in this area is driven by national security needs and technological advancements in armored vehicles.
Small Business Impact
The data does not indicate any specific provisions or awards to small businesses for this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract type and sole-source nature warrant close oversight to ensure cost control and adherence to specifications. Regular reviews of contractor performance and costs are essential.
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 and price discovery.
- Cost-plus-fixed-fee contract type carries inherent cost overrun risk.
- Long contract duration increases exposure to changing requirements or economic conditions.
- Lack of small business participation noted in the provided data.
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 $227.0 million to GM GDLS DEFENSE GROUP, L.L.C.. DOUBLE V HULL DO 300- NONRECURRING ENGINEERING AND LONG LEAD MATERIALS
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 $227.0 million.
What is the period of performance?
Start: 2010-04-07. End: 2018-11-15.
What was the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The Department of Defense would have documented the specific rationale, potentially related to existing platform integration or specialized engineering expertise held by GM GDLS Defense Group, L.L.C. Alternative solutions are usually assessed during the pre-award phase to confirm the necessity of a sole-source approach.
How will the cost-plus-fixed-fee structure be managed to mitigate potential cost overruns?
Managing a cost-plus-fixed-fee contract requires robust government oversight. This includes detailed cost tracking, regular audits, and performance reviews to ensure the contractor operates efficiently. Establishing clear milestones, performance metrics, and incentive structures can help control costs. The fixed fee provides the contractor with an incentive to control costs, but the government bears the risk of actual costs exceeding estimates.
What is the long-term strategic value of this non-recurring engineering investment for the Army's vehicle fleet?
The long-term strategic value lies in enhancing the survivability and operational effectiveness of the Army's armored vehicle fleet. Non-recurring engineering (NRE) investments often lead to improved designs, new capabilities, or upgrades that extend the service life of existing platforms or form the basis for future vehicle development. This specific investment in the Double V Hull design aims to provide enhanced protection against IEDs and other threats.
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
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: $227,033,707
Exercised Options: $227,033,707
Current Obligation: $227,033,707
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: 2010-04-07
Current End Date: 2018-11-15
Potential End Date: 2018-11-15 12:11:00
Last Modified: 2018-09-20
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