DoD Awards $9.68M for SGT STOUT Air Defense System to General Dynamics
Contract Overview
Contract Amount: $9,677,577 ($9.7M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2024-10-31
End Date: 2026-10-31
Contract Duration: 730 days
Daily Burn Rate: $13.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SGT STOUT (FORMERLY KNOWN AS 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 $9.7 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: SGT STOUT (FORMERLY KNOWN AS MANEUVER SHORT RANGE AIR DEFENSE SYSTEM.) Key points: 1. General Dynamics Land Systems Inc. secured a $9.68M contract for the SGT STOUT system. 2. The contract is a delivery order under an existing award, indicating a follow-on need. 3. The 'NOT COMPETED' status raises questions about potential price discovery and value. 4. The sector is Defense, specifically armored vehicle manufacturing.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed closely. Without competition, it's difficult to benchmark pricing against similar systems.
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 not yield the best value for taxpayers.
Taxpayer Impact: The lack of competition could result in higher costs for taxpayers compared to a fully competed contract.
Public Impact
Military readiness is supported by the acquisition of this air defense system. Taxpayer funds are being allocated to a specific defense contractor without competitive bidding. The long-term sustainment and upgrade costs of this system are not detailed here.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
Positive Signals
- Supports military air defense capabilities
- Awarded to an established defense contractor
Sector Analysis
This contract falls within the Defense sector, specifically the manufacturing of military armored vehicles. Spending benchmarks for similar specialized defense systems can vary widely based on technology and quantity.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor is a large defense firm.
Oversight & Accountability
The 'NOT COMPETED' status suggests limited oversight in the initial award phase. Further oversight would be needed to ensure cost control and performance under the Cost Plus Fixed Fee structure.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Cost Plus Fixed Fee contract type
- Potential for cost escalation
- Limited transparency on pricing justification
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, mi, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.7 million to GENERAL DYNAMICS LAND SYSTEMS INC.. SGT STOUT (FORMERLY KNOWN AS 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 $9.7 million.
What is the period of performance?
Start: 2024-10-31. End: 2026-10-31.
What is the justification for not competing this contract, and what steps are being taken to ensure fair pricing?
The justification for not competing this contract is not provided in the data. To ensure fair pricing, the Department of Defense should conduct thorough cost analysis and potentially engage in negotiations with the contractor. Independent cost estimates and market research are crucial, even in sole-source situations, to validate the reasonableness of the proposed costs.
What are the specific risks associated with a Cost Plus Fixed Fee contract for this type of military system?
The primary risk with a Cost Plus Fixed Fee contract is that the contractor is incentivized to incur costs to increase their fixed fee profit margin, especially if the 'cost' portion is not strictly controlled. This can lead to cost overruns and reduced value for the government. Effective oversight, detailed cost tracking, and clear performance metrics are essential to mitigate these risks.
How does the SGT STOUT system contribute to the Army's overall air defense effectiveness, and is this a critical capability?
The SGT STOUT system is designed to provide maneuver short-range air defense, crucial for protecting ground forces from aerial threats. Its effectiveness is tied to its ability to detect, track, and engage enemy aircraft and missiles in dynamic battlefield environments. If this capability is deemed critical and currently lacking sufficient alternatives, the sole-source award might be strategically justified, though still requiring rigorous cost scrutiny.
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: $9,677,577
Exercised Options: $9,677,577
Current Obligation: $9,677,577
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $5,928,215
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: 2024-10-31
Current End Date: 2026-10-31
Potential End Date: 2026-10-31 12:10:00
Last Modified: 2025-12-23
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