DoD Awards $33.8M for M1A1 Tank Upgrade Materials to General Dynamics
Contract Overview
Contract Amount: $33,786,614 ($33.8M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2009-12-07
End Date: 2013-01-03
Contract Duration: 1,123 days
Daily Burn Rate: $30.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTRACT TO PROVIDE COMMON MATERIALS FOR THE UPGRADE OF (15) M1A1 THANKS TO M1A2S.
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $33.8 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: CONTRACT TO PROVIDE COMMON MATERIALS FOR THE UPGRADE OF (15) M1A1 THANKS TO M1A2S. Key points: 1. Spending focuses on upgrading existing M1A1 tanks to the M1A2S variant. 2. Sole-source award to General Dynamics Land Systems Inc. raises competition concerns. 3. Contract duration of over three years suggests significant material needs. 4. The award falls under the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $33.8 million for common materials is difficult to assess without specific itemization. However, given the sole-source nature, it's challenging to determine if this represents a competitive price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not available for competition, indicating a sole-source award to General Dynamics Land Systems Inc. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: Taxpayer funds are being spent without competitive bidding, which may result in a less favorable price than if multiple vendors had competed.
Public Impact
Modernization of the U.S. Army's Abrams tank fleet ensures continued combat readiness. Investment in armored vehicle upgrades supports the defense industrial base. The contract's sole-source nature may limit opportunities for smaller, innovative suppliers in the long term.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- Lack of transparency in pricing
- Potential for cost overruns due to no competition
Positive Signals
- Supports critical military upgrade program
- Ensures supply chain for essential defense components
Sector Analysis
This contract falls within the Defense sector, specifically the manufacturing of armored vehicles. Spending benchmarks in this niche area are highly dependent on specific upgrade requirements and geopolitical factors.
Small Business Impact
The contract was awarded to General Dynamics Land Systems Inc. and did not indicate any subcontracting to small businesses. This suggests limited direct benefit to the small business sector from this specific award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the government received fair value. Further oversight may be needed to understand the justification for not seeking competitive bids.
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
- Lack of competition
- Potential for inflated pricing
- Limited small business participation
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, mi, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.8 million to GENERAL DYNAMICS LAND SYSTEMS INC.. CONTRACT TO PROVIDE COMMON MATERIALS FOR THE UPGRADE OF (15) M1A1 THANKS TO M1A2S.
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 $33.8 million.
What is the period of performance?
Start: 2009-12-07. End: 2013-01-03.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source award. A thorough review would require access to the contract's justification and approval (J&A) documentation. This document should detail why competition was not feasible and outline any market research conducted to ensure the sole-source award was indeed the best approach for the government.
How does the per-unit cost of these common materials compare to industry benchmarks or previous similar contracts?
Without a detailed breakdown of the 'common materials' and their quantities, a direct per-unit cost comparison is impossible. The contract's sole-source nature also hinders benchmarking against competitive pricing. To assess value, a detailed cost analysis of the materials procured, compared to market rates for similar components, would be necessary.
What is the long-term strategic impact of relying on a single supplier for critical tank upgrade components?
Sole-source reliance on General Dynamics for these components could create long-term dependency, potentially limiting future innovation and price negotiation leverage. It also poses a risk if the supplier faces production issues or significant price increases. Diversifying the supplier base, where feasible, could enhance supply chain resilience and cost-effectiveness.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56HZV09R0121
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 38500 MOUND RD, STERLING HEIGHTS, MI, 10
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,786,614
Exercised Options: $33,786,614
Current Obligation: $33,786,614
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2009-12-07
Current End Date: 2013-01-03
Potential End Date: 2013-01-03 00:00:00
Last Modified: 2013-01-25
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