Army Awards $98.4M for Stinger Vehicle Universal Launchers (svuls) to General Dynamics Land Systems Inc

Contract Overview

Contract Amount: $98,388,280 ($98.4M)

Contractor: General Dynamics Land Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2024-08-21

End Date: 2029-08-31

Contract Duration: 1,836 days

Daily Burn Rate: $53.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: STINGER VEHICLE UNIVERSAL LAUNCHERS (SVULS) MANEUVER-SHORT RANGE AIR DEFENSE INCREMENT 1

Place of Performance

Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $98.4 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: STINGER VEHICLE UNIVERSAL LAUNCHERS (SVULS) MANEUVER-SHORT RANGE AIR DEFENSE INCREMENT 1 Key points: 1. Contract awarded for maneuver-short range air defense systems, indicating a focus on tactical air defense capabilities. 2. The firm fixed-price contract type suggests a defined scope and cost, with risk primarily on the contractor. 3. A long performance period of over 5 years implies a sustained need for these systems. 4. The contract is for Increment 1, suggesting potential for future increments and follow-on work. 5. The specific product code is not provided, making direct benchmarking difficult. 6. The award is a delivery order under a larger contract vehicle, not a new standalone procurement.

Value Assessment

Rating: fair

The total contract value is $98.4 million over approximately five years. Without specific unit details or comparison points for the STINGER VEHICLE UNIVERSAL LAUNCHERS (SVULS), a precise value-for-money assessment is challenging. However, the firm fixed-price nature of the contract shifts cost risk to the contractor. Benchmarking against similar advanced air defense systems would be necessary for a more definitive assessment of pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is often used when a specific system is required, or when there is only one capable source. The lack of competition means that price discovery through market forces was limited, and the government did not benefit from potential cost savings that could arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is less pressure on the contractor to offer the most competitive pricing.

Public Impact

The U.S. Army benefits from the acquisition of critical short-range air defense capabilities. The contract supports the delivery of STINGER VEHICLE UNIVERSAL LAUNCHERS (SVULS) for maneuver units. The geographic impact is primarily within the United States, supporting Army readiness and training. The contract likely supports a specialized manufacturing and technical workforce within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Long contract duration may tie government resources to a specific technology for an extended period.
Lack of detailed performance metrics in the provided data makes assessing effectiveness challenging.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
Award supports critical maneuver-short range air defense capabilities for the Army.
Contract is for Increment 1, suggesting a structured approach to capability development.

Sector Analysis

The defense sector for armored vehicles and air defense systems is highly specialized and consolidated. Companies like General Dynamics Land Systems Inc. are major players with established production lines and expertise. This contract fits within the broader market for tactical vehicle modernization and air defense solutions, where significant R&D and manufacturing capabilities are required. Spending in this area is driven by evolving threat landscapes and the need for advanced, integrated defense systems.

Small Business Impact

The provided data does not indicate any small business set-asides or subcontracting plans for this specific award. Given the nature of the prime contractor and the specialized equipment, it is possible that subcontracting opportunities may exist for specific components or services, but this is not explicitly detailed. Further analysis of the contract's subcontracting goals would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The firm fixed-price nature provides some cost control, but ongoing oversight would focus on delivery schedules, quality assurance, and adherence to technical specifications. Transparency is generally maintained through contract award databases, though detailed operational performance data may be considered sensitive.

Related Government Programs

Stinger Missile Systems
Air Defense Systems
Tactical Vehicles
Army Aviation Support
Missile Launchers

Risk Flags

Sole-source award
Long performance period
Lack of detailed technical specifications

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $98.4 million to GENERAL DYNAMICS LAND SYSTEMS INC.. STINGER VEHICLE UNIVERSAL LAUNCHERS (SVULS) MANEUVER-SHORT RANGE AIR DEFENSE INCREMENT 1

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 $98.4 million.

What is the period of performance?

Start: 2024-08-21. End: 2029-08-31.

What is the specific technical capability and intended operational use of the STINGER VEHICLE UNIVERSAL LAUNCHERS (SVULS) Increment 1?

The STINGER VEHICLE UNIVERSAL LAUNCHERS (SVULS) Increment 1 refers to a system designed to provide maneuver units of the U.S. Army with short-range air defense (SHORAD) capabilities. The 'universal launcher' aspect suggests a platform capable of deploying various munitions, likely including the Stinger missile, but potentially others. Increment 1 indicates this is the initial phase of capability deployment, focusing on core functionalities. The primary operational use is to defend ground forces against low-altitude aerial threats such as helicopters, drones, and potentially low-flying fixed-wing aircraft in a mobile, battlefield environment. This system is crucial for maintaining air superiority at the tactical level and protecting friendly forces from immediate air threats.

How does the $98.4 million contract value compare to historical spending on similar SHORAD systems?

Comparing the $98.4 million contract value for SVULS Increment 1 to historical spending on similar SHORAD systems requires detailed data on specific system procurements, quantities, and contract types over time. However, the figure represents a significant investment in tactical air defense. Historically, SHORAD systems, especially those integrated onto vehicle platforms, can range from tens of millions to hundreds of millions of dollars depending on the complexity, number of units, and technological advancements. Given this is Increment 1 and a sole-source award to General Dynamics Land Systems Inc., it's plausible that the value reflects initial production setup, integration, and a defined quantity of launchers and potentially associated support. Without direct comparisons of identical systems or quantities, it's difficult to definitively state if this is high or low, but it aligns with substantial defense procurement for critical capabilities.

What are the primary risks associated with a sole-source award for defense equipment like the SVULS?

The primary risks associated with a sole-source award for defense equipment like the SVULS are related to cost and innovation. Without competition, the government may pay a higher price than if multiple vendors had bid, as the contractor faces less pressure to optimize costs. There's also a risk of complacency, where the sole provider might have less incentive to innovate or improve the product over time compared to a competitive market. Furthermore, reliance on a single source can create supply chain vulnerabilities if that contractor experiences production issues or financial instability. The government also loses the potential benefit of diverse technological approaches that competition might foster.

What is General Dynamics Land Systems Inc.'s track record with similar vehicle-mounted weapon systems?

General Dynamics Land Systems Inc. (GDLS) has a long and extensive track record in developing and producing a wide range of armored vehicles and weapon systems for the U.S. military and international partners. They are well-known for the Abrams main battle tank, Stryker family of vehicles, and various other armored personnel carriers and combat vehicles. Their expertise includes integrating complex weapon systems, such as cannons, machine guns, and missile launchers, onto mobile platforms. GDLS has experience in delivering large-scale, complex defense programs, often involving firm-fixed-price contracts. Their history suggests a strong capability in manufacturing, systems integration, and program management for vehicle-based defense solutions, making them a logical choice for programs like the SVULS.

What are the potential implications of this contract for future SHORAD modernization efforts by the Army?

This contract for STINGER VEHICLE UNIVERSAL LAUNCHERS (SVULS) Increment 1 has significant implications for future SHORAD modernization. By awarding this contract, the Army is signaling its commitment to enhancing its short-range air defense capabilities, particularly for maneuver forces. The 'Increment 1' designation strongly suggests that this is the foundational phase, implying that subsequent increments (Increment 2, 3, etc.) are planned, which could involve upgrades, expanded capabilities, or integration with other systems. The success and lessons learned from Increment 1 will directly inform the requirements and direction of future SHORAD modernization efforts, potentially shaping the technology, platforms, and operational concepts for years to come. It also establishes a baseline for potential future sole-source or competed follow-on procurements.

How does the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' NAICS code influence the understanding of this contract?

The NAICS code '336992 - Military Armored Vehicle, Tank, and Tank Component Manufacturing' provides crucial context for this contract. It indicates that the primary focus of the procurement is on the manufacturing of specialized military ground vehicles, including tanks and their components. For the STINGER VEHICLE UNIVERSAL LAUNCHERS (SVULS), this NAICS code suggests that the contract likely involves the integration of the SVULS system onto an armored vehicle platform, or the manufacturing of the vehicle platform itself which will house the SVULS. This implies a complex manufacturing process that goes beyond just the missile launcher, encompassing the vehicle's chassis, armor, mobility systems, and potentially power and communication integration required for the air defense function. It positions the contract within a segment of the defense industrial base focused on heavy ground combat systems.

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: $98,388,280

Exercised Options: $98,388,280

Current Obligation: $98,388,280

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $90,449,000

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