DoD Awards $102M for Short Range Air Defense System to General Dynamics
Contract Overview
Contract Amount: $102,063,288 ($102.1M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2023-07-31
End Date: 2026-01-31
Contract Duration: 915 days
Daily Burn Rate: $111.5K/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 $102.1 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: MANEUVER - SHORT RANGE AIR DEFENSE SYSTEM Key points: 1. General Dynamics Land Systems Inc. secured a $102M contract for the MANEUVER - SHORT RANGE AIR DEFENSE SYSTEM. 2. The contract was not competed, raising questions about potential price discovery. 3. The award is for a firm fixed price contract, providing cost certainty for the government. 4. This spending falls within the Defense sector, specifically military vehicle manufacturing.
Value Assessment
Rating: fair
The contract value of $102M for a specialized defense system appears within a reasonable range for such complex equipment. However, without a competitive bidding process, it's difficult to definitively assess if it represents the best possible value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs compared to a competitive environment. The rationale for sole-sourcing should be clearly documented.
Taxpayer Impact: The lack of competition could lead to taxpayers paying more than necessary for this defense system.
Public Impact
Enhances U.S. Army's short-range air defense capabilities. Supports military readiness and national security objectives. Potential for job creation within the defense manufacturing sector. Impacts the supply chain for specialized military vehicle components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
Positive Signals
- Firm fixed price contract
- Supports critical defense need
Sector Analysis
This contract falls under the Defense sector, specifically within the manufacturing of military vehicles and related components. Spending in this area is critical for national security but often involves high costs due to specialized technology and limited suppliers.
Small Business Impact
The prime contractor is General Dynamics Land Systems Inc., a large business. There is no indication of small business participation in this specific award, which could be an area for future consideration.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight should focus on ensuring the sole-source justification is robust and that the delivered system meets all technical specifications and performance requirements.
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 limits competition
- Potential for inflated pricing due to lack of competition
- Dependency on a single contractor
- Need for robust oversight on sole-source justification
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, mi, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $102.1 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 $102.1 million.
What is the period of performance?
Start: 2023-07-31. End: 2026-01-31.
What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Agencies must conduct market research to confirm these conditions and perform a price analysis to ensure the price is fair and reasonable, often by comparing to historical data or independent cost estimates.
What are the key performance metrics for this short-range air defense system, and how will their achievement be verified?
Key performance metrics would likely include engagement range, accuracy, reaction time, mobility, and survivability. Verification would involve rigorous testing protocols, including live-fire exercises, simulated threat engagements, and operational assessments conducted by the Army to ensure the system meets or exceeds all specified requirements.
What is the projected lifecycle cost of this system, including sustainment, maintenance, and potential upgrades?
The lifecycle cost projection would encompass initial procurement, training, spare parts, maintenance, field support, and future upgrades. This analysis is crucial for long-term budget planning and ensuring the system remains effective and affordable throughout its operational life, often requiring separate contracts for sustainment.
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: $102,063,288
Exercised Options: $102,063,288
Current Obligation: $102,063,288
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $2,071,746
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: 2023-07-31
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 12:01:00
Last Modified: 2025-11-26
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