DoD awards $178M contract for electronic units, with General Dynamics Land Systems Inc. as the prime

Contract Overview

Contract Amount: $17,841,001 ($17.8M)

Contractor: General Dynamics Land Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2023-05-15

End Date: 2026-09-14

Contract Duration: 1,218 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NOUN: ELECTRONIC UNIT,FIR NSN: 1220-01-689-0031 P/N: 57K7363 50

Place of Performance

Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $17.8 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: NOUN: ELECTRONIC UNIT,FIR NSN: 1220-01-689-0031 P/N: 57K7363 50 Key points: 1. Contract value of $178.4 million for electronic units. 2. General Dynamics Land Systems Inc. is the prime contractor. 3. The contract is for military armored vehicle components. 4. Awarded by the Defense Logistics Agency. 5. Contract duration spans over 1200 days. 6. Firm Fixed Price contract type indicates price certainty.

Value Assessment

Rating: good

The contract value of $178.4 million for electronic units appears to be within a reasonable range for specialized military components, though direct comparisons are difficult without specific technical details. The firm fixed price structure suggests that the government has secured a defined cost for the deliverables, which is a positive indicator for value. Benchmarking against similar NSN (National Stock Number) items would provide a clearer picture of cost-effectiveness, but the scale of this award suggests significant quantities or high-value components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The Defense Logistics Agency's use of full and open competition suggests a commitment to leveraging the broadest possible market for its needs.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value through a competitive bidding process, potentially driving down costs and improving the quality of goods and services.

Public Impact

The primary beneficiaries are the U.S. military forces requiring these electronic units for armored vehicles. The contract supports the maintenance and readiness of military armored vehicles. The geographic impact is primarily within Michigan, where the contractor is located. This contract likely supports jobs within the defense manufacturing sector, particularly at General Dynamics Land Systems Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise, despite the firm fixed price.
Dependence on a single prime contractor for critical electronic components.
Supply chain risks associated with specialized electronic parts.

Positive Signals

Firm fixed price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process.
Long contract duration allows for sustained supply and potential volume discounts.
Award to a well-established defense contractor with a track record.

Sector Analysis

This contract falls within the broader defense manufacturing sector, specifically focusing on components for military armored vehicles. The market for such specialized electronic units is driven by defense spending and modernization efforts. Comparable spending benchmarks would typically be found within other large-scale defense procurement contracts for vehicle systems or electronic warfare components. The industry is characterized by high technical requirements and stringent quality control.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, General Dynamics Land Systems Inc., as a large prime contractor, may engage small businesses as subcontractors for various components or services, contributing to the broader small business ecosystem within the defense supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Defense and the Defense Logistics Agency, likely involving contract officers, quality assurance specialists, and potentially program managers. Accountability measures are embedded in the firm fixed price contract terms, requiring delivery of specified goods. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Armored Vehicle Manufacturing
Defense Electronics Procurement
Tank and Combat Vehicle Components
Defense Logistics Agency Contracts

Risk Flags

Potential supply chain vulnerabilities for specialized electronic components.
Long contract duration may introduce risks related to technology obsolescence.
Dependence on a single prime contractor for a critical component.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.8 million to GENERAL DYNAMICS LAND SYSTEMS INC.. NOUN: ELECTRONIC UNIT,FIR NSN: 1220-01-689-0031 P/N: 57K7363 50

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 $17.8 million.

What is the period of performance?

Start: 2023-05-15. End: 2026-09-14.

What is the specific function and technical complexity of the 'electronic unit' being procured under NSN 1220-01-689-0031?

The National Stock Number (NSN) 1220-01-689-0031 identifies an 'ELECTRONIC UNIT, FIR'. While the specific 'FIR' designation is not immediately clear without further context, NSNs in the 1220 series generally pertain to electronic equipment and components. Given the context of a contract with General Dynamics Land Systems for military armored vehicles, this electronic unit is likely a critical component for vehicle systems such as communication, navigation, fire control, or power management. Its technical complexity would depend on its role, potentially involving advanced signal processing, power regulation, or integration with other vehicle subsystems. Without access to the detailed technical specifications or the contractor's product data sheet, a precise understanding of its function and complexity remains limited to inference based on its application.

How does the awarded price of $178.4 million compare to historical spending on similar electronic units or components for military vehicles?

Directly comparing the $178.4 million award to historical spending on similar electronic units is challenging without specific data on the quantity of units procured, their individual unit costs, and the exact technical specifications. However, the magnitude of the award suggests either a very large quantity of units or a high per-unit cost due to advanced technology or specialized manufacturing requirements. Historical spending on major defense platforms often involves significant investments in electronic systems. To provide a meaningful comparison, one would need to analyze past contracts for the same NSN, or for components with comparable functionality and complexity, across different military vehicle programs. Benchmarking against industry averages for similar electronic components in defense applications would also be informative.

What are the key performance indicators (KPIs) and quality assurance measures stipulated in this contract to ensure the reliability of the electronic units?

While the specific KPIs and quality assurance measures are not detailed in the provided summary, firm fixed price contracts for defense systems typically include stringent requirements. These often involve adherence to military standards (e.g., MIL-STD), rigorous testing protocols (e.g., environmental testing, functional testing, burn-in testing), and defined acceptance criteria. The Defense Logistics Agency (DLA) is known for its robust quality assurance processes. Performance indicators would likely focus on defect rates, on-time delivery, and compliance with technical specifications. The contractor, General Dynamics Land Systems Inc., would be responsible for implementing a comprehensive quality management system to meet these contractual obligations and ensure the reliability of the delivered electronic units for critical military applications.

What is General Dynamics Land Systems Inc.'s track record with the Defense Logistics Agency and in supplying electronic components for military vehicles?

General Dynamics Land Systems Inc. (GDLS) is a major defense contractor with a long-standing relationship with the Department of Defense, including the Defense Logistics Agency (DLA). GDLS is renowned for its production of armored vehicles, such as the Abrams main battle tank and the Stryker family of vehicles. Their track record in supplying components for these platforms is extensive. While their primary focus is vehicle manufacturing, they are deeply involved in the integration of complex electronic systems within these platforms. GDLS has a history of managing large, complex defense contracts, often involving sophisticated electronic and mechanical components. Their experience suggests a capability to deliver on contracts of this nature, though specific performance data for electronic unit supply to DLA would require deeper contract history analysis.

Are there any identified risks associated with the supply chain for these specific electronic units, given their potential specialization?

Yes, there are inherent risks associated with the supply chain for specialized electronic units, particularly those used in defense applications. These risks can include reliance on a limited number of suppliers for critical raw materials or sub-components, potential obsolescence of older technologies, geopolitical factors affecting global supply chains, and the long lead times often associated with specialized manufacturing. For this specific contract, the NSN and the prime contractor's involvement suggest a degree of specialization. The firm fixed price nature of the contract might incentivize the contractor to manage these risks proactively, but disruptions could still lead to delays or increased costs if not adequately mitigated. The Defense Logistics Agency likely has processes in place to assess and manage such supply chain risks for critical components.

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: $17,841,001

Exercised Options: $17,841,001

Current Obligation: $17,841,001

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $3,633,770

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