DoD awards $77.3M for light truck and utility vehicle manufacturing, with a significant portion for production

Contract Overview

Contract Amount: $77,270,069 ($77.3M)

Contractor: General Dynamics Ordnance and Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-11-27

End Date: 2025-09-18

Contract Duration: 2,487 days

Daily Burn Rate: $31.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: VEHICLE FULL RATE PRODUCTION.

Place of Performance

Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33716

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $77.3 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC. for work described as: VEHICLE FULL RATE PRODUCTION. Key points: 1. Contract value indicates substantial investment in tactical vehicle production. 2. Full and open competition suggests a healthy market for this type of manufacturing. 3. Fixed-price contract type aims to control costs for the government. 4. Long performance period suggests a sustained need for these vehicles. 5. Contractor is a major player in defense manufacturing. 6. Geographic concentration in Florida may indicate specific production facilities.

Value Assessment

Rating: good

The contract value of $77.3 million for vehicle production appears reasonable given the scope and duration. Benchmarking against similar large-scale defense manufacturing contracts would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control, assuming the contractor's bid was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This approach generally leads to better price discovery and potentially lower costs for the government. The specific number of bidders is not provided, but the competition type suggests a robust market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down prices and ensuring the government receives the best value for its investment in vehicle manufacturing.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential light trucks and utility vehicles for operational use. The contract supports the production of vehicles critical for military logistics and troop transport. The geographic impact is concentrated in Florida, where the contractor's facilities are located, potentially supporting local employment and the regional economy. The contract supports jobs within the defense manufacturing sector, specifically in light truck and utility vehicle production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if production complexities are underestimated by the contractor.
Dependence on a single contractor for a critical defense asset could pose supply chain risks.
Long-term sustainment and maintenance costs beyond the initial production phase are not detailed.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding process, likely resulting in favorable pricing.
The contractor, General Dynamics Ordnance and Tactical Systems, Inc., has a strong track record in defense manufacturing.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on light tactical vehicles. The market for military vehicles is characterized by high barriers to entry, specialized production requirements, and significant government investment. Comparable spending benchmarks would involve analyzing other large-scale vehicle procurement contracts within the DoD.

Small Business Impact

The data indicates that small business participation was not a primary set-aside criterion for this contract (ss: false, sb: false). While the prime contractor is a large entity, there may be opportunities for small businesses to participate as subcontractors in the supply chain for components or specialized services. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver within the agreed-upon budget. Transparency is facilitated through contract award databases, though detailed production metrics may be less public.

Related Government Programs

Tactical Wheeled Vehicles
Light Duty Trucks
Military Vehicle Procurement
Defense Industrial Base

Risk Flags

Long contract duration may increase exposure to economic fluctuations or changing military requirements.
Concentration of production in a single geographic area could pose logistical or disaster-related risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $77.3 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC.. VEHICLE FULL RATE PRODUCTION.

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $77.3 million.

What is the period of performance?

Start: 2018-11-27. End: 2025-09-18.

What is the historical spending pattern for light truck and utility vehicle manufacturing by the Department of Defense over the last five years?

Analyzing historical spending on light truck and utility vehicle manufacturing by the Department of Defense over the last five years reveals a consistent demand driven by operational readiness and fleet modernization efforts. While specific figures fluctuate annually based on program needs and budget allocations, the DoD typically invests hundreds of millions to billions of dollars in this category. This includes contracts for new vehicle acquisition, upgrades, and sustainment. The $77.3 million awarded to General Dynamics for production represents a significant, but not unprecedented, single award within this broader spending landscape. Factors influencing historical spending include geopolitical events, changes in military doctrine, and the lifecycle of existing vehicle fleets. Understanding these patterns helps contextualize the current award and forecast future budgetary requirements.

How does the awarded price per vehicle compare to industry benchmarks for similar light tactical vehicles?

Determining the precise price per vehicle requires knowing the exact quantity of vehicles to be produced under this $77.3 million contract. Without the quantity, a direct comparison to industry benchmarks is challenging. However, light tactical vehicles, especially those with military-grade specifications (enhanced durability, specialized equipment, etc.), typically command higher prices than their commercial counterparts. Commercial utility vehicles might range from $30,000 to $70,000, whereas military variants can easily exceed $100,000, and sometimes reach several hundred thousand dollars depending on customization and mission role. Given the contractor's expertise and the 'VEHICLE FULL RATE PRODUCTION' designation, it's plausible the unit cost falls within the expected range for specialized military hardware, but a definitive benchmark requires the quantity data.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance on this contract?

Key performance indicators (KPIs) for a contract like this, focused on vehicle production, typically revolve around schedule adherence, quality control, and cost management. For General Dynamics, KPIs would likely include meeting production milestones (e.g., number of vehicles delivered per month/quarter), ensuring vehicles meet stringent technical specifications and quality standards (e.g., defect rates, reliability metrics), and managing production costs within the firm fixed-price budget. Performance might also be assessed on factors like responsiveness to government requests, effective supply chain management, and safety compliance. The Defense Contract Management Agency (DCMA) would likely monitor these KPIs through regular reporting, inspections, and audits to ensure the government receives the contracted vehicles on time, to specification, and within budget.

What is the potential impact of this contract on the broader defense industrial base, particularly concerning supply chain resilience?

This contract for full-rate production of light trucks and utility vehicles has a notable impact on the defense industrial base. It signifies continued demand for these essential platforms, supporting the prime contractor and potentially numerous lower-tier suppliers involved in manufacturing components such as engines, transmissions, chassis parts, and specialized electronic systems. The concentration of production in Florida may bolster regional capabilities. However, reliance on a single large contract for a critical asset also highlights potential supply chain vulnerabilities. Disruptions affecting General Dynamics or its key suppliers due to geopolitical events, natural disasters, or economic downturns could impact delivery schedules. Ensuring supply chain resilience would involve diversification of suppliers, robust inventory management, and contingency planning by both the contractor and the DoD.

Are there any known risks associated with General Dynamics Ordnance and Tactical Systems, Inc. regarding past performance on similar large-scale production contracts?

General Dynamics Ordnance and Tactical Systems, Inc. (GDOTS) is a well-established entity within the defense sector, generally possessing a strong track record. However, like any large defense contractor managing complex, multi-year production programs, potential past performance issues could arise. These might include historical instances of schedule delays, cost challenges (though less likely with fixed-price contracts unless scope changes significantly), or quality control issues on specific programs. Without access to detailed past performance evaluations (often considered sensitive government data), it's difficult to pinpoint specific risks for GDOTS on *this* particular type of contract. However, the DoD's selection process typically involves a thorough review of a contractor's performance history. The fact that they were awarded this significant production contract suggests their past performance was deemed acceptable or favorable.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Manufacturing › Light Truck and Utility Vehicle Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: H9222212R0003

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3340 SCHERER DR N STE E, SAINT PETERSBURG, FL, 33716

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $77,270,069

Exercised Options: $77,270,069

Current Obligation: $77,270,069

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9222213D0013

IDV Type: IDC

Timeline