DoD Awards $38M for Switchboards and Displays to General Dynamics, Full and Open Competition
Contract Overview
Contract Amount: $38,021,637 ($38.0M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2022-09-20
End Date: 2027-04-30
Contract Duration: 1,683 days
Daily Burn Rate: $22.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CLIN 0365, NOUN: SWITCHBOARD, FIRE CO, NSN: 1290-01-577-5948, P/N: 57K6464, QTY: 36 EACH CLIN 0366, NOUN: DISPLAY,OPTOELECTRO, NSN: 5980-01-620-7296, P/N: 57K6571, QTY: 101 EACH
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $38.0 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: CLIN 0365, NOUN: SWITCHBOARD, FIRE CO, NSN: 1290-01-577-5948, P/N: 57K6464, QTY: 36 EACH CLIN 0366, NOUN: DISPLAY,OPTOELECTRO, NSN: 5980-01-620-7296, P/N: 57K6571, QTY: 101 EACH Key points: 1. Significant award for critical military hardware components. 2. General Dynamics Land Systems Inc. is the primary contractor. 3. Competition was full and open, suggesting potential for competitive pricing. 4. The sector is Defense Logistics Agency, supporting armored vehicle manufacturing.
Value Assessment
Rating: good
The total award of $38,021,636.72 for switchboards and optoelectronic displays appears reasonable given the quantities and specialized nature of the components. Benchmarking against similar military-grade electronic components would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Full and open competition is expected to yield a fair price for taxpayers, as market forces drive down costs.
Public Impact
Ensures continued supply of essential components for military vehicles. Supports the operational readiness of armored vehicle fleets. Contributes to the defense industrial base and associated jobs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation over the contract duration.
- Dependence on a single large prime contractor for critical components.
Positive Signals
- Awarded under full and open competition.
- Long-term contract provides supply chain stability.
- Components are for essential military hardware.
Sector Analysis
This award falls within the Defense sector, specifically supporting the manufacturing of military armored vehicles and components. Spending in this area is driven by national security needs and modernization efforts.
Small Business Impact
While the prime contractor is a large entity, the contract's full and open competition nature may allow for subcontracts to small businesses for specialized parts or services, though this is not explicitly detailed.
Oversight & Accountability
The Department of Defense, through the Defense Logistics Agency, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure compliance and performance.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Long contract duration (over 4 years).
- High total award value.
- Components are specialized military hardware.
- Sole prime contractor listed for the award.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.0 million to GENERAL DYNAMICS LAND SYSTEMS INC.. CLIN 0365, NOUN: SWITCHBOARD, FIRE CO, NSN: 1290-01-577-5948, P/N: 57K6464, QTY: 36 EACH CLIN 0366, NOUN: DISPLAY,OPTOELECTRO, NSN: 5980-01-620-7296, P/N: 57K6571, QTY: 101 EACH
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 Logistics Agency).
What is the total obligated amount?
The obligated amount is $38.0 million.
What is the period of performance?
Start: 2022-09-20. End: 2027-04-30.
What is the unit cost breakdown for the switchboards and displays?
The provided data does not include a detailed unit cost breakdown. The total award is $38,021,636.72 for 36 switchboards and 101 displays. Calculating the average unit cost would require dividing the total by the quantities, but this would not reflect the individual pricing of each component type or potential volume discounts.
What are the specific risks associated with the long-term nature of this contract?
The primary risks of a long-term contract (ending 2027) include potential price escalation due to market fluctuations in raw materials or labor, technological obsolescence of the components over time, and the risk of contractor performance issues impacting delivery schedules or quality. Mitigation strategies may include price adjustment clauses and robust quality assurance.
How does this spending align with broader defense modernization goals?
This spending directly supports the maintenance and modernization of existing armored vehicle fleets, which are critical for national defense. Ensuring the availability of components like switchboards and displays is fundamental to operational readiness and the ability to field advanced combat systems.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $38,021,637
Exercised Options: $38,021,637
Current Obligation: $38,021,637
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $3,199,277
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE7LX21D0110
IDV Type: IDC
Timeline
Start Date: 2022-09-20
Current End Date: 2027-04-30
Potential End Date: 2027-04-30 12:04:00
Last Modified: 2025-09-19
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