DoD Awards $13.3M for Military Vehicle Components to General Dynamics, High Competition Expected
Contract Overview
Contract Amount: $13,269,155 ($13.3M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2024-02-27
End Date: 2027-10-25
Contract Duration: 1,336 days
Daily Burn Rate: $9.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: EH4S0084EH DIGITAL AND ANALOG 2590-01-717-1969 EH4S0148EH CONTAINER,HMPU WITH 5895-01-627-1740 EH4S0154EH SWITCH,ELECTRONIC 5930-01-406-9318 EH4S0158EH CONTROL-POWER SUPPL 5895-01-523-6218
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $13.3 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: EH4S0084EH DIGITAL AND ANALOG 2590-01-717-1969 EH4S0148EH CONTAINER,HMPU WITH 5895-01-627-1740 EH4S0154EH SWITCH,ELECTRONIC 5930-01-406-9318 EH4S0158EH CONTROL-POWER SUPPL 5895-01-523-6218 Key points: 1. Significant award for critical military vehicle components. 2. General Dynamics Land Systems is a major defense contractor. 3. Potential for high competition in future procurements. 4. Spending aligns with defense sector needs for armored vehicles.
Value Assessment
Rating: good
The award amount of $13.3M appears reasonable for specialized military vehicle components. Benchmarking against similar complex systems procurement would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method is expected to yield competitive pricing.
Taxpayer Impact: Competitive bidding is likely to ensure taxpayer funds are used efficiently for essential defense equipment.
Public Impact
Ensures continued readiness and modernization of military armored vehicles. Supports the supply chain for critical defense manufacturing. Impacts the defense industrial base and associated workforce.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Positive Signals
- Full and open competition utilized.
- Awarded to a reputable, established defense contractor.
- Long-term contract duration supports sustained readiness.
Sector Analysis
This award falls within the Defense sector, specifically supporting the manufacturing of military armored vehicles. Spending benchmarks for this niche are highly variable based on system complexity and quantity.
Small Business Impact
While the prime contractor is a large entity, the nature of component manufacturing may involve subcontracting opportunities for small businesses within the defense supply chain.
Oversight & Accountability
The Defense Logistics Agency's oversight ensures compliance with contract terms and quality standards. The use of full and open competition suggests a commitment to accountability.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for component obsolescence over contract duration.
- Dependence on a single prime contractor for complex systems.
- Need for ongoing monitoring of supply chain resilience.
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 $13.3 million to GENERAL DYNAMICS LAND SYSTEMS INC.. EH4S0084EH DIGITAL AND ANALOG 2590-01-717-1969 EH4S0148EH CONTAINER,HMPU WITH 5895-01-627-1740 EH4S0154EH SWITCH,ELECTRONIC 5930-01-406-9318 EH4S0158EH CONTROL-POWER SUPPL 5895-01-523-6218
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 $13.3 million.
What is the period of performance?
Start: 2024-02-27. End: 2027-10-25.
What is the specific breakdown of components being procured and their criticality to current military operations?
The data lists 'DIGITAL AND ANALOG', 'CONTAINER,HMPU', and 'SWITCH,ELECTRONIC' as components. Their criticality is tied to the operational status and modernization of military armored vehicles. Further details on the specific vehicle platforms and their operational requirements would clarify the exact impact.
Are there any identified risks associated with the long-term sustainment of these components or potential obsolescence?
The contract duration extends to October 2027. Risks could include the obsolescence of digital and analog components if not managed proactively through technology refresh plans. Sustainment planning should address the availability of parts and technical support throughout the lifecycle of the armored vehicles.
How does this award compare to previous procurements for similar components in terms of cost and quantity?
Without historical data on specific component procurements, a direct cost and quantity comparison is not possible. However, the $13.3M award for a 3+ year period suggests a steady demand for these parts. Benchmarking against similar complex electronic and mechanical systems would be informative.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS
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: $13,269,155
Exercised Options: $13,269,155
Current Obligation: $13,269,155
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $1,178,707
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: 2024-02-27
Current End Date: 2027-10-25
Potential End Date: 2027-10-25 12:10:00
Last Modified: 2025-09-19
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