DoD awards $100M+ for Light Armored Vehicles to GM GDLS Defense Group, raising competition concerns
Contract Overview
Contract Amount: $1,004,190,582 ($1.0B)
Contractor: GM Gdls Defense Group, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2002-05-18
End Date: 2009-02-28
Contract Duration: 2,478 days
Daily Burn Rate: $405.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: 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!
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $1.00 billion to GM GDLS DEFENSE GROUP, L.L.C. for work described as: 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 !MACOM… Key points: 1. Contract awarded to GM GDLS Defense Group for Light Armored Vehicles. 2. Significant value of over $100 million for defense sector. 3. Contracting method was 'NOT COMPETED', raising potential competition issues. 4. Sector is Defense, specifically military vehicle manufacturing.
Value Assessment
Rating: questionable
The contract value is over $100 million, with a base value of $40.5 million and an estimated value of $100.4 million. Without competitive bidding, it's difficult to assess if this pricing is optimal compared to similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED' and awarded as a 'DEFINITIVE CONTRACT'. This limited competition likely impacted price discovery and may have resulted in a higher cost to the government.
Taxpayer Impact: The lack of competition for a contract of this magnitude raises concerns about the efficient use of taxpayer funds.
Public Impact
Taxpayers may be overpaying due to lack of competitive bidding. Potential for reduced innovation in military vehicle manufacturing. Impacts the readiness and capability of military forces reliant on these vehicles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency in pricing
Positive Signals
- Awarded to a known defense contractor
- Addresses a critical military need
Sector Analysis
This contract falls within the Defense sector, specifically the manufacturing of military armored vehicles. Spending benchmarks in this area can vary widely based on vehicle type and technological complexity.
Small Business Impact
The contract was awarded to GM GDLS Defense Group LLC, JV, which is not identified as a small business. There is no indication of small business subcontracting in the provided data.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential oversight gaps. Further review is needed to understand the justification for not seeking competitive bids and to ensure 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 competitive bidding
- Potential for inflated costs
- Limited transparency in pricing justification
- Risk of reduced innovation
- Questionable value for taxpayer money
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, mi, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.00 billion to GM GDLS DEFENSE GROUP, L.L.C.. 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
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 $1.00 billion.
What is the period of performance?
Start: 2002-05-18. End: 2009-02-28.
What was the specific justification for not competing this contract, and were alternative sources considered?
The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require accessing the contract's justification and approval (J&A) documentation to understand the specific reasons, such as sole-source necessity or urgent requirements, and to verify if any market research was conducted to explore other potential sources.
How does the awarded price compare to industry benchmarks for similar Light Armored Vehicles, considering the lack of competition?
Without competitive bids, a direct comparison is challenging. However, the contract's 'COST PLUS INCENTIVE FEE' structure and the significant difference between base and estimated value suggest potential for cost growth. Benchmarking would require analyzing historical data for comparable vehicles and assessing the contractor's cost efficiency.
What are the long-term implications of awarding such a large contract without competition on the overall defense industrial base for armored vehicles?
Awarding large contracts without competition can stifle innovation and reduce the number of capable suppliers in the long run. It may discourage new entrants and entrench existing players, potentially leading to higher prices and less technological advancement for future military vehicle programs.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 38500 MOUND RD, STERLING HEIGHTS, MI, 48310
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2002-05-18
Current End Date: 2009-02-28
Potential End Date: 2009-02-28 00:00:00
Last Modified: 2021-07-29
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