DoD Awards $55M for MRAP Cougar Cat I Vehicles to General Dynamics
Contract Overview
Contract Amount: $55,042,001 ($55.0M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2016-09-30
End Date: 2021-08-19
Contract Duration: 1,784 days
Daily Burn Rate: $30.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF MRAP COUGAR CAT I
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $55.0 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: IGF::OT::IGF MRAP COUGAR CAT I Key points: 1. Significant award to a major defense contractor. 2. Competition method was full and open, suggesting potential for competitive pricing. 3. Contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The sector is Defense, a high-spending area with complex procurement needs.
Value Assessment
Rating: fair
The total award amount is $55 million. Without specific unit pricing or comparison data for similar armored vehicles, a precise value assessment is difficult. However, the firm fixed price contract type aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a broad range of potential bidders. This method is intended to ensure the government receives the best value.
Taxpayer Impact: Full and open competition aims to secure taxpayer value by fostering a competitive environment that drives down prices and improves quality.
Public Impact
Ensures continued availability of critical armored vehicles for military operations. Supports jobs within the defense manufacturing sector, specifically at General Dynamics. The procurement contributes to the modernization and readiness of military ground forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed per-unit cost data for benchmarking.
- Contract duration is lengthy (1784 days), potentially leading to price escalation risks if not managed.
- No indication of small business participation.
Positive Signals
- Firm Fixed Price contract type limits cost overrun risk for the government.
- Full and open competition suggests a robust market engagement.
- Awarded by the Department of Defense, indicating a critical national security need.
Sector Analysis
This award falls within the Defense sector, specifically for armored vehicle manufacturing. Spending in this area is substantial and driven by military operational requirements and technological advancements. Benchmarks are difficult without specific vehicle comparisons.
Small Business Impact
The data indicates that small business participation was not a stated factor in this award (sb: false). Further investigation would be needed to determine if any subcontracting opportunities were mandated or utilized.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, which provides contract administration and oversight. The firm fixed price nature of the contract also provides a degree of cost control.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of detailed cost breakdown.
- Long contract duration.
- No explicit small business utilization.
- Potential for price creep over the contract period.
- Limited public information on specific vehicle capabilities and pricing benchmarks.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, mi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.0 million to GENERAL DYNAMICS LAND SYSTEMS INC.. IGF::OT::IGF MRAP COUGAR CAT I
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS LAND 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 $55.0 million.
What is the period of performance?
Start: 2016-09-30. End: 2021-08-19.
What is the average per-unit cost for this specific MRAP variant compared to similar vehicles procured by other agencies or allies?
Determining the average per-unit cost requires access to detailed pricing breakdowns and comparative data for similar armored vehicles. Without this information, it's challenging to benchmark against other procurements. Future analysis should seek to obtain unit cost data and compare it against industry standards or historical government purchases of comparable equipment to assess value for money.
What are the specific performance metrics and operational requirements that justified this significant investment in the MRAP Cougar Cat I?
The MRAP Cougar Cat I is designed for survivability against IEDs and ambushes, crucial for troop protection in high-threat environments. This investment likely stems from ongoing operational needs and the vehicle's proven effectiveness in protecting personnel. Understanding the specific threat assessments and mission requirements would further clarify the justification for this procurement.
How effectively did the 'full and open competition' process ensure competitive pricing and identify the most capable offeror for this contract?
Full and open competition is designed to maximize competition and achieve best value. The effectiveness in this case hinges on the number of bids received and the final negotiated price relative to the government's estimate. A review of the bidding process and the final price compared to independent cost estimates would reveal the degree of competitive success.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: M6700416R0011
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 38500 MOUND RD, STERLING HEIGHTS, MI, 48310
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: $55,042,001
Exercised Options: $55,042,001
Current Obligation: $55,042,001
Actual Outlays: $38,795,676
Subaward Activity
Number of Subawards: 530
Total Subaward Amount: $163,272,704
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-09-30
Current End Date: 2021-08-19
Potential End Date: 2021-08-19 00:00:00
Last Modified: 2021-09-28
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