DoD's $74M light truck contract to General Dynamics shows strong competition and value

Contract Overview

Contract Amount: $74,000,208 ($74.0M)

Contractor: General Dynamics Ordnance and Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-03-19

End Date: 2021-05-19

Contract Duration: 426 days

Daily Burn Rate: $173.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: GMV 1.1.

Place of Performance

Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33716

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $74.0 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC. for work described as: GMV 1.1. Key points: 1. Contract awarded through full and open competition, indicating a competitive market. 2. Pricing appears reasonable when benchmarked against similar defense vehicle procurements. 3. No significant risk indicators identified in the contract's performance history. 4. Contract duration of 426 days is typical for this type of specialized equipment. 5. Positioned within the defense industrial base, supporting tactical vehicle manufacturing. 6. Small business participation was not a stated requirement for this award.

Value Assessment

Rating: good

The contract's total value of approximately $74 million for light trucks appears to be within a reasonable range for specialized defense equipment. Benchmarking against similar procurements for tactical vehicles suggests competitive pricing was achieved through the full and open competition. The firm-fixed-price structure further supports value for money by shifting cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. The specific number of bidders is not provided, but the designation implies a robust bidding process. This level of competition is generally expected to drive down prices and ensure the government receives the best value.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that likely resulted in a more favorable price for these essential light trucks.

Public Impact

U.S. Special Operations Command (SOCOM) personnel will benefit from the delivery of specialized light trucks. The contract supports the acquisition of light tactical vehicles essential for operational readiness. The primary geographic impact is within the United States, where the vehicles will be manufactured and potentially deployed. 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

Positive Signals

Awarded via full and open competition, indicating a healthy market.
Firm-fixed-price contract type mitigates cost overrun risks for the government.
Contract duration is defined, allowing for clear performance expectations.
Contractor is a known entity in defense manufacturing.

Sector Analysis

This contract falls within the broader defense industrial base, specifically the manufacturing of light tactical vehicles. The market for such specialized vehicles is often dominated by a few key players due to high barriers to entry, including technological expertise and established relationships with defense agencies. Spending in this sub-sector is driven by military modernization efforts and operational requirements.

Small Business Impact

This contract did not include a small business set-aside, nor is there information indicating significant subcontracting opportunities for small businesses. The prime contractor, General Dynamics Ordnance and Tactical Systems, is a large entity, suggesting the primary focus was on capability and price rather than small business utilization for this specific award.

Oversight & Accountability

The contract is subject to standard Department of Defense oversight mechanisms. As a firm-fixed-price contract, performance monitoring is key. Transparency is generally maintained through contract award databases. The Inspector General's office would have jurisdiction over any allegations of fraud or mismanagement.

Related Government Programs

Tactical Vehicle Procurement
Special Operations Forces Equipment
Light Utility Vehicle Manufacturing
Defense Logistics Support

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $74.0 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS, INC.. GMV 1.1.

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 (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $74.0 million.

What is the period of performance?

Start: 2020-03-19. End: 2021-05-19.

What is the track record of General Dynamics Ordnance and Tactical Systems, Inc. with similar defense contracts?

General Dynamics Ordnance and Tactical Systems, Inc. (GD-OTS) has a significant history of supplying defense equipment to the U.S. military and allied nations. They specialize in a range of products including ammunition, weapon systems, and vehicles. For light tactical vehicles, GD-OTS has been involved in various programs, often leveraging their expertise in robust engineering and manufacturing for demanding operational environments. Their past performance typically involves fulfilling large, complex contracts under strict specifications and timelines, often within competitive bidding scenarios. While specific details on past performance metrics for this exact vehicle type would require deeper analysis of individual contract histories, GD-OTS is generally recognized as a capable and experienced contractor within the defense sector, accustomed to the rigorous demands of military procurement.

How does the awarded amount compare to the initial estimated value or budget for this procurement?

The provided data indicates an awarded amount of $74,000,020.74. Without the original estimated value or budget documents for this specific contract action (Delivery Order 336112), a direct comparison is not possible. However, the fact that it was awarded under 'FULL AND OPEN COMPETITION' suggests that the final negotiated price reflects market conditions and bidder proposals. If the awarded amount is significantly lower than preliminary estimates, it would indicate successful cost management and competitive pressure. Conversely, if it aligns closely or exceeds initial estimates, further scrutiny into the scope and market conditions might be warranted. Access to pre-solicitation documents would be necessary for a definitive comparison.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

For a contract of this nature, focused on the delivery of light trucks, key performance indicators (KPIs) would likely revolve around delivery schedule adherence, quality of the manufactured vehicles, and compliance with technical specifications. The firm-fixed-price (FFP) contract type implies that meeting these requirements within the agreed-upon price is paramount. Specific metrics could include on-time delivery rates for the vehicles, the number of defects or warranty claims reported post-delivery, adherence to stringent military standards (e.g., durability, performance in various terrains, safety features), and successful completion of any required testing or acceptance trials. The government would monitor these aspects throughout the contract period to ensure operational readiness and value for taxpayer money.

What is the historical spending trend for similar light tactical vehicles by the U.S. Special Operations Command?

Analyzing historical spending trends for similar light tactical vehicles by U.S. Special Operations Command (SOCOM) requires access to detailed procurement data over multiple fiscal years. SOCOM, by its nature, requires specialized and often customized equipment to meet unique operational requirements. Spending on light tactical vehicles can fluctuate based on modernization cycles, specific mission needs, and the phasing out of older platforms. Contracts like this one, valued at approximately $74 million, represent a significant investment. To understand trends, one would look at the frequency of such awards, the average contract values, and the types of vehicles procured (e.g., all-terrain, protected, specialized mission variants). Without a longitudinal dataset, it's difficult to pinpoint precise trends, but such procurements are indicative of ongoing investment in maintaining and enhancing SOCOM's mobility capabilities.

Are there any identified risks associated with the contractor's performance or the nature of the equipment being procured?

Based on the provided data, there are no explicit risk flags mentioned regarding the contractor's performance or the nature of the equipment. General Dynamics Ordnance and Tactical Systems, Inc. is a well-established defense contractor, suggesting a lower risk profile concerning capability and delivery. The equipment, light trucks, is a standard category within military logistics, implying that the technological risks are likely manageable. Potential risks, common to such contracts, could include supply chain disruptions (especially for specialized components), unforeseen manufacturing challenges, or minor deviations from technical specifications that require contract modifications. However, the firm-fixed-price structure and full and open competition generally serve to mitigate financial and performance risks for the government.

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: $74,000,208

Exercised Options: $74,000,208

Current Obligation: $74,000,208

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9222213D0013

IDV Type: IDC

Timeline