Marine Corps awards $112M contract for advanced tank development to General Dynamics
Contract Overview
Contract Amount: $1,122,308,256 ($1.1B)
Contractor: General Dynamics Land Systems, Inc
Awarding Agency: Department of Defense
Start Date: 2001-02-14
End Date: 2009-09-30
Contract Duration: 3,150 days
Daily Burn Rate: $356.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200105!000201!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785401C0001 !A!N!*!N! !20010214!20060930!107153702!131266926!001381284!N!GENERAL DYNAMICS AMPHIBIOUS SY!991 ANNAPOLIS WAY !WOODBRIDGE !VA!22191!87312!153!51!WOODBRIDGE !PRINCE WILLIAM !VIRGINIA !+000023676102!N!N!000000000000!AC43!RDTE/TANK - AUTOMOTIVE-ADV TECH DEV !A4A!COMBAT VEHICLES !2DBK!LVTP-7 !336992!*!*!3! ! ! !*!*!*!B!*!*!A! !D !N!R!1!001!N!1A!Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!
Place of Performance
Location: WOODBRIDGE, PRINCE WILLIAM County, VIRGINIA, 22191
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $1.12 billion to GENERAL DYNAMICS LAND SYSTEMS, INC for work described as: 200105!000201!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785401C0001 !A!N!*!N! !20010214!20060930!107153702!131266926!001381284!N!GENERAL DYNAMICS AMPHIBIOUS SY!991 ANNAPOLIS WAY !WOODBRIDGE !VA!22191!87312!153!51!WOODBRIDGE !PRINC… Key points: 1. Contract awarded for advanced tank technology development. 2. General Dynamics is the sole awardee. 3. Significant taxpayer investment in defense technology. 4. Focus on combat vehicle modernization.
Value Assessment
Rating: fair
The contract value is $112,230,825.60. Without comparable contracts for similar advanced tank development, a precise per-unit cost benchmark is difficult to establish. However, the scale suggests a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method may limit price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have benefited from competitive pricing, potentially increasing the overall cost of this defense acquisition.
Public Impact
Enhances military armored vehicle capabilities. Supports technological advancement in defense manufacturing. Contributes to the modernization of combat vehicle fleets. Potential for job creation in the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus award fee structure can incentivize spending.
- Long contract duration (nearly 9 years) may not reflect current needs.
Positive Signals
- Addresses critical defense modernization needs.
- Leverages established contractor expertise.
- Focus on advanced technology development.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on advanced technology development for combat vehicles. Spending in this area is driven by national security needs and technological superiority.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this sole-source award, suggesting limited direct impact on SMBs.
Oversight & Accountability
The contract is managed by the Department of Defense, with oversight likely provided by the Defense Contract Management Agency. Accountability for funds will depend on performance metrics and reporting.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Cost-plus award fee structure
- Long contract duration
- Potential for cost overruns
- Limited transparency on specific R&D outcomes
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, va, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.12 billion to GENERAL DYNAMICS LAND SYSTEMS, INC. 200105!000201!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785401C0001 !A!N!*!N! !20010214!20060930!107153702!131266926!001381284!N!GENERAL DYNAMICS AMPHIBIOUS SY!991 ANNAPOLIS WAY !WOODBRIDGE !VA!22191!87312!153!51!WOODBRIDGE !PRINCE WILLIAM !VIRGINIA !+000023676102!N!N!000000000000!AC43!RDTE/TANK - AUTOMOTIVE-ADV TECH DEV !A4A!COMBAT VEHICLES !2DBK!LVTP-7 !336992!*!*!3! ! ! !*!*!*!B!*!*!A!
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 $1.12 billion.
What is the period of performance?
Start: 2001-02-14. End: 2009-09-30.
What is the expected technological advancement from this contract?
This contract aims to advance tank and automotive technology, likely focusing on areas such as improved armor, enhanced mobility, advanced weapon systems, or integrated digital command and control. The specific advancements are tied to the 'RDTE/TANK - AUTOMOTIVE-ADV TECH DEV' classification, suggesting research and development for future combat vehicle capabilities.
What are the risks associated with a sole-source, cost-plus award fee contract for advanced technology?
Sole-source awards eliminate competitive pressure, potentially leading to inflated costs. Cost-plus award fee contracts can incentivize the contractor to incur costs to maximize profit, especially if performance metrics are not strictly defined or monitored. This combination increases the risk of inefficient spending and cost overruns for taxpayers.
How effective is this contract likely to be in delivering modern combat vehicles?
The effectiveness hinges on the contractor's ability to innovate and the government's oversight. While General Dynamics has expertise, the long duration and sole-source nature present challenges. Success will depend on clear performance objectives, rigorous testing, and adaptive management to ensure the developed technology translates into effective, modern combat vehicles.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: General Dynamics Corp
Address: 991 ANNAPOLIS WAY, WOODBRIDGE, VA, 22191
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: NO
Timeline
Start Date: 2001-02-14
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2023-08-16
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