DoD Awards $10.8M for Maneuver Short Range Air Defense System to General Dynamics
Contract Overview
Contract Amount: $10,876,348 ($10.9M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2024-03-28
End Date: 2025-10-31
Contract Duration: 582 days
Daily Burn Rate: $18.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
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 $10.9 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 significant contract for a critical defense system. 2. The contract value of $10.8 million indicates a substantial investment in air defense capabilities. 3. Lack of competition raises questions about potential price inflation and limited market engagement. 4. The IT sector is not directly involved, but advanced technology integration is likely.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar complex defense systems is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source award. This limits price discovery and may result in a higher price than if multiple vendors had bid.
Taxpayer Impact: Taxpayer funds are being used for a sole-source award, potentially at a premium, impacting the overall value for money.
Public Impact
Enhances military's short-range air defense capabilities. Supports national security objectives by protecting ground forces. Investment in advanced military hardware.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Cost Plus Fixed Fee contract type can incentivize cost overruns.
- Lack of transparency in pricing due to non-competitive nature.
Positive Signals
- Addresses a critical defense need.
- Awarded to an established defense contractor.
- Contract duration aligns with system deployment needs.
Sector Analysis
This contract falls within the Defense sector, specifically military vehicle manufacturing. Spending benchmarks for similar complex defense systems are highly variable and depend on specific technological requirements and quantities.
Small Business Impact
The contract was awarded to General Dynamics Land Systems Inc., a large prime contractor. There is no indication of small business participation in this specific award, suggesting limited opportunities for SMBs.
Oversight & Accountability
Oversight will be crucial given the sole-source nature and cost-plus contract type to ensure cost control and adherence to specifications. The Department of the Army is the awarding agency.
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
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Limited transparency in pricing
- Lack of competitive pressure on price
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 $10.9 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 $10.9 million.
What is the period of performance?
Start: 2024-03-28. End: 2025-10-31.
What is the justification for the sole-source award, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without a competitive process, ensuring fair pricing relies heavily on robust government negotiation, independent cost analysis, and potentially historical pricing data for similar systems. The government must demonstrate that the negotiated price reflects fair and reasonable value.
What are the specific performance metrics and risk mitigation strategies for this air defense system?
Performance metrics would likely include engagement range, accuracy, reaction time, and survivability in contested environments. Risk mitigation strategies would involve rigorous testing and evaluation, redundancy in critical components, and robust training protocols for operators. The Cost Plus Fixed Fee structure necessitates close monitoring of development and production to manage cost risks effectively.
How does this system integrate with existing command and control networks and other defense assets?
Integration would involve ensuring interoperability with existing military communication systems, battle management networks, and potentially other air defense platforms. This requires adherence to specific technical standards and protocols. The effectiveness of the system is highly dependent on seamless integration to provide a cohesive defensive shield against aerial threats.
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: COST PLUS FIXED FEE (U)
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: $10,876,348
Exercised Options: $10,876,348
Current Obligation: $10,876,348
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $3,867,000
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: 2024-03-28
Current End Date: 2025-10-31
Potential End Date: 2025-10-31 12:10:00
Last Modified: 2025-09-15
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