DoD awards $24.6M for Short Range Air Defense System to General Dynamics Land Systems
Contract Overview
Contract Amount: $24,591,401 ($24.6M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2023-07-08
End Date: 2025-01-31
Contract Duration: 573 days
Daily Burn Rate: $42.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MANEUVER - SHORT RANGE AIR DEFENSE SYSTEM
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $24.6 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: MANEUVER - SHORT RANGE AIR DEFENSE SYSTEM Key points: 1. Significant investment in critical defense capabilities. 2. Sole-source award raises questions about price discovery and competition. 3. Potential for cost overruns given fixed-price contract and limited competition. 4. Sector focus on military vehicle manufacturing.
Value Assessment
Rating: questionable
The contract is a firm fixed price delivery order. Without competitive bidding, it's difficult to assess if the $24.6 million award represents fair market value. Benchmarking against similar systems is needed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying more than necessary for this defense system.
Public Impact
Enhances national defense capabilities with advanced air defense. Supports a major defense contractor, potentially impacting jobs. Taxpayer funds are directed towards specialized military equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of bids.
- Contract duration is substantial (573 days).
Positive Signals
- Addresses a critical defense need.
- Utilizes a firm fixed-price contract type.
Sector Analysis
The Department of the Army's procurement of the MANEUVER - SHORT RANGE AIR DEFENSE SYSTEM falls within the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector. Spending in this sector is often characterized by high unit costs and long development cycles.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting a lack of opportunity for smaller enterprises in this specific procurement.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the price is justified and the delivery meets all specifications. Accountability for cost and performance is crucial.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price inflation
- Limited transparency on cost justification
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 $24.6 million to GENERAL DYNAMICS LAND SYSTEMS INC.. MANEUVER - SHORT RANGE AIR DEFENSE SYSTEM
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $24.6 million.
What is the period of performance?
Start: 2023-07-08. End: 2025-01-31.
What is the justification for awarding this contract sole-source instead of pursuing competitive bidding?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternative sources. Without further documentation, it's difficult to ascertain the specific rationale. However, sole-source contracts often bypass the rigorous price competition that can drive down costs, raising concerns about value for money.
How does the $24.6 million cost compare to similar short-range air defense systems procured competitively?
Benchmarking this $24.6 million award against similar systems is challenging without access to competitive procurement data. Sole-source awards inherently lack the direct price comparison that competition provides. A thorough analysis would require comparing the system's capabilities, features, and unit costs against other available systems that have undergone competitive bidding processes.
What are the potential risks associated with a firm fixed-price contract awarded sole-source for a complex defense system?
A firm fixed-price contract aims to cap costs, but when awarded sole-source, the initial price may be inflated due to the absence of competitive pressure. Risks include the contractor potentially delivering lower quality to maximize profit, or the government being locked into a price that doesn't reflect true market value. The long duration also increases the risk of unforeseen cost increases not adequately captured in the initial fixed price.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $24,591,401
Exercised Options: $24,591,401
Current Obligation: $24,591,401
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $17,204,456
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W31P4Q20D0039
IDV Type: IDC
Timeline
Start Date: 2023-07-08
Current End Date: 2025-01-31
Potential End Date: 2025-01-31 12:01:00
Last Modified: 2025-01-31
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