DoD Awards $28.6M for Short Range Air Defense System to General Dynamics
Contract Overview
Contract Amount: $28,609,358 ($28.6M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2023-07-31
End Date: 2027-11-30
Contract Duration: 1,583 days
Daily Burn Rate: $18.1K/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 $28.6 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: MANEUVER - SHORT RANGE AIR DEFENSE SYSTEM Key points: 1. Contract awarded to a single, large defense contractor. 2. Focus on military armored vehicle manufacturing sector. 3. Potential for cost overruns due to firm fixed price contract. 4. Limited competition may impact overall value for taxpayer.
Value Assessment
Rating: fair
The contract value of $28.6 million for a short-range air defense system appears moderate. Benchmarking against similar complex military hardware contracts is difficult without more specific system details, but the firm fixed price suggests an attempt to control costs.
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 potentially leads to higher costs for the government compared to a competitive bidding process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this defense system.
Public Impact
Enhances military defense capabilities with advanced air defense technology. Supports the defense industrial base and associated jobs. Procurement of specialized military equipment impacts national security posture.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Firm fixed price contract can lead to cost overruns if scope changes.
- Lack of small business participation noted.
Positive Signals
- Addresses a critical military need for air defense.
- Contract awarded to an established defense contractor with relevant experience.
Sector Analysis
The contract falls within the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector. Spending in this area is driven by national defense priorities and technological advancements in combat systems.
Small Business Impact
There is no indication of small business participation in this contract. The award to a large, established defense contractor suggests that subcontracting opportunities for small businesses may be limited.
Oversight & Accountability
The Department of the Army is the awarding agency. Oversight will focus on contract performance, delivery schedules, and adherence to the firm fixed price terms to ensure accountability.
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 cost overruns
- Limited small business involvement
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 $28.6 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 $28.6 million.
What is the period of performance?
Start: 2023-07-31. End: 2027-11-30.
What is the specific capability gap this short-range air defense system is intended to fill, and how does it compare to existing or alternative solutions?
The specific capability gap addressed by this short-range air defense system is not detailed in the provided data. However, such systems typically aim to provide mobile, immediate protection against low-altitude threats like drones, helicopters, and low-flying aircraft. A comparative analysis against existing systems would require knowledge of the system's technological specifications, range, effectiveness against various targets, and integration capabilities with broader defense networks.
Given the sole-source nature of the award, what mechanisms are in place to ensure the government is not overpaying for the system?
While the sole-source award limits traditional price competition, the government likely relies on pre-negotiated pricing agreements, historical cost data for similar systems, and potentially independent cost estimates. The firm fixed price contract itself aims to cap the government's liability, shifting cost overrun risk to the contractor. However, robust technical evaluation and negotiation are crucial to validate the proposed price against market realities and contractor's demonstrated costs.
What is the expected operational impact and effectiveness of this system once fielded by the Department of the Army?
The expected operational impact is enhanced battlefield survivability and force protection through dedicated defense against immediate aerial threats. Its effectiveness will depend on factors like target acquisition speed, engagement accuracy, mobility, and integration with other command and control systems. Successful fielding should improve the Army's ability to operate in contested airspace, reducing vulnerability to enemy air and drone attacks.
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: $28,609,358
Exercised Options: $28,609,358
Current Obligation: $28,609,358
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: 2027-11-30
Potential End Date: 2027-11-30 12:11:00
Last Modified: 2025-09-29
More Contracts from General Dynamics Land Systems Inc.
- Mobile Protected Firepower Engineering Manufacturing and Development / Middle Tier Acquisition — $1.4B (Department of Defense)
- M1 Abrams Family of Vehicles — $1.2B (Department of Defense)
- Economic Order Quantity Contract — $1.2B (Department of Defense)
- System Tewchnical Support (sts)/System Sustainment Technical Support for the Abrams Tank Program — $1.1B (Department of Defense)
- 200105!000201!1700!F9999 !marine Corps Systems Command !M6785401C0001 !A!N!*!N! !20010214!20060930!107153702!131266926!001381284!n!general Dynamics Amphibious SY!991 Annapolis WAY !woodbridge !va!22191!87312!153!51!woodbridge !prince William !virginia !+000023676102!n!n!000000000000!ac43!rdte/Tank - Automotive-Adv Tech DEV !a4a!combat Vehicles !2dbk!lvtp-7 !336992!*!*!3! ! ! !*!*!*!B!*!*!A! !D !n!r!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $1.1B (Department of Defense)
View all General Dynamics Land Systems Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)