DoD's JLTV Technology Development Phase Awarded to BAE Systems for $77.4M
Contract Overview
Contract Amount: $77,373,780 ($77.4M)
Contractor: BAE Systems Land & Armaments L.P.
Awarding Agency: Department of Defense
Start Date: 2008-10-29
End Date: 2011-05-19
Contract Duration: 932 days
Daily Burn Rate: $83.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST SHARING
Sector: Defense
Official Description: JOINT LIGHT TACTICAL VEHICLE (JLTV) FAMILY OF VEHICLES (FOV) TECHNOLOGY DEVELOPMENT PHASE
Place of Performance
Location: SANTA CLARA, SANTA CLARA County, CALIFORNIA, 95050
Plain-Language Summary
Department of Defense obligated $77.4 million to BAE SYSTEMS LAND & ARMAMENTS L.P. for work described as: JOINT LIGHT TACTICAL VEHICLE (JLTV) FAMILY OF VEHICLES (FOV) TECHNOLOGY DEVELOPMENT PHASE Key points: 1. The contract focused on technology development for the Joint Light Tactical Vehicle (JLTV) Family of Vehicles. 2. BAE Systems Land & Armaments L.P. was the primary contractor for this phase. 3. The award was made under a full and open competition, indicating broad market engagement. 4. This phase aimed to mature the technology before potential larger production contracts. 5. The contract duration was approximately 932 days, suggesting a focused development period. 6. The contract type was a definitive contract, often used for complex or long-term projects. 7. The total award value was $77.4 million, representing an investment in future tactical vehicle capabilities.
Value Assessment
Rating: fair
Assessing the value for money in a technology development phase is challenging without direct production comparisons. The $77.4 million award for a 932-day development period suggests a significant investment in maturing the JLTV technology. Benchmarking this against similar defense technology development contracts would provide better context, but such data is often proprietary or not publicly available. The cost-sharing contract type indicates some financial commitment from the contractor, which can be a positive sign for value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 7 bidders (no) indicates a competitive environment for this technology development phase. A higher number of bidders generally leads to better price discovery and potentially more innovative solutions, benefiting the government.
Taxpayer Impact: A competitive process for this early-stage development helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging the best technological solutions to emerge.
Public Impact
The primary beneficiaries are the Department of Defense, specifically the Army, who will gain advanced tactical vehicle capabilities. This contract supports the development of next-generation light tactical vehicles designed to replace existing platforms. The geographic impact is primarily within the defense sector, with potential for manufacturing and R&D activities in various locations. Workforce implications include specialized engineering, research, and development roles within the defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The technology development phase is inherently risky, as successful transition to production is not guaranteed.
- The cost-sharing nature of the contract, while potentially beneficial, requires careful monitoring to ensure contractor commitment.
- The specific performance metrics and success criteria for this technology development phase are not detailed in the provided data.
Positive Signals
- The full and open competition suggests a robust selection process, likely identifying capable contractors.
- The involvement of BAE Systems, a major defense contractor, indicates a commitment to developing advanced military hardware.
- The definitive contract type provides a structured framework for the development effort.
Sector Analysis
The Joint Light Tactical Vehicle (JLTV) program falls within the broader defense manufacturing sector, specifically military armored vehicles. This contract represents an early-stage investment in a critical capability modernization effort. The market for such specialized vehicles is dominated by a few large defense contractors. Spending benchmarks for technology development phases can vary widely depending on the complexity and scope of the technology being matured.
Small Business Impact
The provided data does not indicate any specific small business set-asides for this technology development contract. Given the specialized nature of military vehicle development, prime contracts are typically awarded to large defense manufacturers. Subcontracting opportunities for small businesses may exist, but are not detailed here. The focus on a prime contract with BAE Systems suggests limited direct impact on the small business ecosystem for this specific award.
Oversight & Accountability
Oversight for this contract would fall under the Department of Defense's contracting and program management structures. As a definitive contract, it likely includes specific milestones and reporting requirements. Transparency is generally limited for early-stage defense technology development contracts due to security and competitive sensitivities. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.
Related Government Programs
- Joint Light Tactical Vehicle (JLTV) Program
- Family of Vehicles (FOV) Contracts
- Tactical Wheeled Vehicles
- Defense Vehicle Modernization Programs
Risk Flags
- Technology development phases carry inherent risks of not meeting performance requirements or transitioning successfully to production.
- The competitive landscape for major defense vehicle programs can be dynamic, potentially impacting future phases.
- The long-term sustainment and operational costs of the JLTV are not addressed by this early development contract.
Tags
defense, department-of-defense, army, armored-vehicle-manufacturing, technology-development, definitive-contract, full-and-open-competition, california, cost-sharing, major-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $77.4 million to BAE SYSTEMS LAND & ARMAMENTS L.P.. JOINT LIGHT TACTICAL VEHICLE (JLTV) FAMILY OF VEHICLES (FOV) TECHNOLOGY DEVELOPMENT PHASE
Who is the contractor on this award?
The obligated recipient is BAE SYSTEMS LAND & ARMAMENTS L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $77.4 million.
What is the period of performance?
Start: 2008-10-29. End: 2011-05-19.
What was the specific technological advancement sought in the JLTV Family of Vehicles technology development phase?
The provided data focuses on the contractual aspects of the JLTV Family of Vehicles (FOV) technology development phase, including the contractor (BAE Systems), award amount ($77.4 million), and contract dates (October 2008 - May 2011). It does not detail the specific technological advancements targeted during this phase. Generally, technology development phases for major defense platforms like the JLTV aim to mature critical systems, reduce technical risk, and validate design concepts before proceeding to more extensive testing and production. This could involve advancements in areas such as survivability, mobility, power generation, network integration, or payload capacity, tailored to meet the evolving operational requirements of the U.S. military.
How does the $77.4 million award compare to other defense technology development contracts of similar scope?
Directly comparing the $77.4 million award for the JLTV technology development phase to other defense technology development contracts is challenging without specific details on the scope, duration, and complexity of those other contracts. However, $77.4 million for a nearly three-year (932 days) development effort on a major platform like the JLTV appears to be a significant, but not necessarily outlier, investment. Defense technology development contracts can range from tens of millions to hundreds of millions of dollars, depending on the program's criticality, the number of prototypes involved, and the maturity of the technologies being pursued. The fact that this was a competitive award suggests the price was deemed reasonable within the context of the market.
What were the key performance indicators (KPIs) or success criteria for this technology development contract?
The provided contract data does not specify the key performance indicators (KPIs) or success criteria for the JLTV Family of Vehicles (FOV) technology development phase awarded to BAE Systems. Technology development contracts typically focus on achieving specific technical milestones, demonstrating the feasibility of proposed solutions, reducing design risks, and validating performance parameters under simulated or limited operational conditions. These criteria are usually detailed in the contract's Statement of Work (SOW) and are crucial for determining the contractor's successful completion of the development effort before potentially moving to subsequent phases like prototyping or low-rate initial production.
What is the historical spending pattern for the JLTV program, and how does this award fit into the larger picture?
This $77.4 million award represents the funding for the Technology Development (TD) phase of the JLTV program, which occurred between 2008 and 2011. Historical spending patterns for the JLTV program would show subsequent phases, including Engineering and Manufacturing Development (EMD), Low-Rate Initial Production (LRIP), and Full-Rate Production (FRP). The TD phase is an early, relatively smaller investment compared to the multi-billion dollar costs associated with later production phases. This award was a foundational step, essential for defining the vehicle's capabilities and reducing risk before committing to the much larger expenditures required for full-scale procurement and fielding.
What risks were identified during the technology development phase, and how were they mitigated?
The provided data does not explicitly list risks identified or mitigation strategies employed during the JLTV technology development phase. However, common risks in such defense technology development programs include technical challenges (e.g., achieving desired performance in mobility, protection, or reliability), schedule delays, cost overruns, and integration issues with other military systems. Mitigation strategies typically involve rigorous testing, phased development with clear milestones, robust program management, strong contractor oversight, and contingency planning. The cost-sharing aspect of the contract may also serve as a risk mitigation tool by ensuring contractor investment and commitment.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W56HZV08R0210
Offers Received: 7
Pricing Type: COST SHARING (T)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC (UEI: 217304393)
Address: 2890 DE LA CRUZ BLVD, SANTA CLARA, CA, 95050
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $77,373,780
Exercised Options: $77,373,780
Current Obligation: $77,373,780
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-10-29
Current End Date: 2011-05-19
Potential End Date: 2011-05-19 00:00:00
Last Modified: 2016-05-11
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