DoD awards $65.9M for SERGEANT STOUT SYSTEM, a sole-source contract to General Dynamics Land Systems Inc

Contract Overview

Contract Amount: $65,884,363 ($65.9M)

Contractor: General Dynamics Land Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2025-02-14

End Date: 2026-02-28

Contract Duration: 379 days

Daily Burn Rate: $173.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SERGEANT STOUT SYSTEM

Place of Performance

Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $65.9 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: SERGEANT STOUT SYSTEM Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. The contract duration of 379 days suggests a focused, short-term need. 3. Firm Fixed Price contract type aims to control costs for the government. 4. The award is a delivery order under an existing contract, indicating a continuation of services or supplies. 5. No small business set-aside was utilized for this procurement. 6. The contract is for Military Armored Vehicle, Tank, and Tank Component Manufacturing, a specialized sector.

Value Assessment

Rating: questionable

Benchmarking the value of this specific delivery order is challenging without knowing the underlying contract's terms and historical pricing. However, the sole-source nature raises concerns about whether the government achieved the best possible price. Comparing it to similar armored vehicle component contracts would be necessary for a more definitive value assessment. The firm fixed price is a positive indicator for cost control, but the lack of competition could inflate the unit costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, General Dynamics Land Systems Inc., was solicited. This approach bypasses the competitive bidding process, which typically leads to better price discovery and potentially lower costs for the government. The justification for a sole-source award would need to be thoroughly reviewed to understand why full and open competition was not feasible.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government may not benefit from the price reductions typically achieved through competitive bidding.

Public Impact

The primary beneficiary is the Department of the Army, receiving critical components for military operations. The services delivered are related to the manufacturing and supply of armored vehicle components. The geographic impact is primarily tied to the contractor's facilities in Michigan. Workforce implications are likely within the specialized manufacturing sector for defense equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher prices than a competed contract.
Sole-source awards can limit innovation by not engaging a broader range of potential suppliers.
Dependence on a single supplier can create supply chain risks.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Awarding a delivery order suggests an existing relationship and potentially streamlined execution.
The contract is for a critical defense capability, ensuring operational readiness.

Sector Analysis

The contract falls within the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector, a highly specialized and consolidated industry. This sector is characterized by high barriers to entry due to complex engineering requirements, significant capital investment, and stringent regulatory oversight. General Dynamics Land Systems Inc. is a major player in this market. Spending in this area is driven by defense modernization efforts and the need to maintain and upgrade existing fleets.

Small Business Impact

This contract does not appear to include a small business set-aside. Given the specialized nature of armored vehicle manufacturing and the sole-source award to a large prime contractor, the direct impact on small businesses is likely minimal unless they are subcontractors to General Dynamics. There is no explicit indication of subcontracting plans for small businesses within the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed price structure, which obligates the contractor to deliver specified goods within the agreed price. Transparency is limited due to the sole-source nature of the award; however, contract award data is publicly available. The Inspector General for the Department of Defense may have jurisdiction for audits and investigations.

Related Government Programs

Military Armored Vehicle Manufacturing
Tank Component Supply
Defense Procurement
General Dynamics Contracts

Risk Flags

Sole-source award
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.9 million to GENERAL DYNAMICS LAND SYSTEMS INC.. SERGEANT STOUT 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 $65.9 million.

What is the period of performance?

Start: 2025-02-14. End: 2026-02-28.

What is the historical spending pattern for the SERGEANT STOUT SYSTEM program or similar components with General Dynamics Land Systems Inc.?

Without specific program identifiers beyond the name 'SERGEANT STOUT SYSTEM', it is difficult to ascertain precise historical spending. However, General Dynamics Land Systems Inc. is a long-standing prime contractor for the U.S. Army, particularly known for its Abrams main battle tanks and Stryker family of vehicles. Historical spending with GDLS for armored vehicle components would likely be in the hundreds of millions, if not billions, of dollars over decades. This specific $65.9 million delivery order represents a portion of that ongoing relationship, likely for sustainment, upgrades, or specific component production. A deeper dive into the contract's parent contract number and associated historical awards would be necessary to quantify past expenditures accurately.

How does the $65.9 million award compare to other recent contracts for armored vehicle components?

The $65.9 million award for the SERGEANT STOUT SYSTEM is a significant sum for a single delivery order, reflecting the high cost and specialized nature of military armored vehicle components. Comparable contracts in this sector often range from tens to hundreds of millions of dollars, depending on the scope (e.g., full vehicle production vs. component manufacturing), quantity, and technological complexity. For instance, contracts for engine overhauls, advanced armor systems, or new turret development can easily reach these figures. The sole-source nature of this award means direct price comparisons to competitively bid contracts are less meaningful, but the amount itself is within the expected range for major defense manufacturing procurements.

What are the specific risks associated with a sole-source award for critical military hardware components?

The primary risk of a sole-source award for critical military hardware components is the potential for inflated pricing due to the absence of competitive pressure. Without competing bids, the government may pay more than necessary. Another risk is reduced innovation, as other capable companies are not incentivized to propose alternative solutions or cost-saving methods. Furthermore, sole-source awards can foster vendor lock-in, making it difficult and costly to switch suppliers in the future. There's also a risk that the government's specific requirements might not be met with the best available technology if alternative vendors are not considered. Finally, it can raise perceptions of unfairness or lack of due diligence in procurement processes.

What is the track record of General Dynamics Land Systems Inc. in delivering armored vehicle components to the Department of Defense?

General Dynamics Land Systems Inc. (GDLS) has an extensive and well-established track record as a prime contractor for the U.S. Department of Defense, particularly in the realm of armored vehicles. They are the manufacturer of the Abrams Main Battle Tank and a key producer of the Stryker family of vehicles. GDLS has consistently delivered complex armored platforms and their associated components for decades, supporting numerous military operations and modernization programs. While specific performance metrics for individual contracts are often proprietary, their sustained role as a primary supplier indicates a generally reliable, albeit high-cost, capability in meeting the DoD's demanding requirements for these critical systems.

What are the potential performance implications of this contract's duration (379 days)?

A contract duration of 379 days, approximately one year, suggests that this delivery order is intended for a specific, relatively short-term requirement. This could involve the production of a defined batch of components, a specific upgrade phase, or a limited-duration support service. It implies that the need is not for a long-term, continuous supply chain or a multi-year development program. The short duration might also indicate that the underlying requirement is well-defined and the production or delivery process is expected to be completed within this timeframe. For the government, it offers flexibility to reassess needs or re-compete requirements after this period, rather than being locked into a long-term commitment.

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: $65,884,363

Exercised Options: $65,884,363

Current Obligation: $65,884,363

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $47,667,976

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