DoD's JLTV EMD Phase Contract Awarded to AM General for $64.5M Under Full and Open Competition
Contract Overview
Contract Amount: $64,534,229 ($64.5M)
Contractor: AM General LLC
Awarding Agency: Department of Defense
Start Date: 2012-08-22
End Date: 2014-11-21
Contract Duration: 821 days
Daily Burn Rate: $78.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JOINT LIGHT TACTICAL VEHICLE (JLTV) - ENGINEERING MANUFACTURING AND DEVELOPMENT (EMD) PHASE.
Place of Performance
Location: SOUTH BEND, ST JOSEPH County, INDIANA, 46617
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $64.5 million to AM GENERAL LLC for work described as: JOINT LIGHT TACTICAL VEHICLE (JLTV) - ENGINEERING MANUFACTURING AND DEVELOPMENT (EMD) PHASE. Key points: 1. The Joint Light Tactical Vehicle (JLTV) EMD phase was awarded to AM General LLC for $64.5 million. 2. The contract was awarded under a full and open competition, indicating a competitive bidding process. 3. The award was a definitive contract with a firm fixed price, suggesting clear cost expectations. 4. The project spanned 821 days, from August 2012 to November 2014. 5. The vehicle falls under the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector.
Value Assessment
Rating: good
The firm fixed price contract for the JLTV EMD phase suggests a well-defined scope and pricing. Benchmarking against similar large-scale vehicle development contracts would provide further insight into the value, but the competitive award is a positive indicator.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, allowing multiple bidders to submit proposals. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is expected to have resulted in a fair price, maximizing taxpayer value for the development phase of this critical military asset.
Public Impact
Modernization of tactical vehicle fleets for enhanced soldier protection and mobility. Potential for follow-on production contracts, impacting future defense spending. Development of advanced armor and survivability features for military personnel. Impact on the defense industrial base and related manufacturing jobs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific cost breakdown for EMD phase.
- Potential for cost overruns in subsequent production phases.
- Dependence on a single contractor for initial development.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract structure.
- Clear contract duration and defined scope for EMD.
Sector Analysis
The JLTV falls within the broader defense manufacturing sector, specifically military armored vehicles. Spending in this sector is driven by modernization needs, geopolitical factors, and technological advancements. Benchmarks would typically involve R&D and production costs for similar vehicle programs.
Small Business Impact
The data indicates the prime contractor is AM General LLC, a large business. There is no explicit information on small business participation in this specific EMD phase contract, which is common for large-scale development efforts.
Oversight & Accountability
The award was made by the Department of the Army, a component of the Department of Defense. Oversight would typically involve program management offices, contract specialists, and potentially congressional committees, especially given the strategic importance of the JLTV program.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for scope creep in future phases.
- Dependence on sole-source or limited competition for subsequent production.
- Technological obsolescence risk in long-term deployment.
- Sustainment and maintenance costs over the vehicle's lifecycle.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, in, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $64.5 million to AM GENERAL LLC. JOINT LIGHT TACTICAL VEHICLE (JLTV) - ENGINEERING MANUFACTURING AND DEVELOPMENT (EMD) PHASE.
Who is the contractor on this award?
The obligated recipient is AM GENERAL LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $64.5 million.
What is the period of performance?
Start: 2012-08-22. End: 2014-11-21.
What was the specific technical performance achieved during the EMD phase relative to the requirements?
The provided data focuses on the contract award details and financial aspects of the JLTV EMD phase. Specific technical performance metrics, test results, and the degree to which engineering and manufacturing development requirements were met are not detailed here. Further analysis would require access to program milestone reports and technical evaluations conducted by the Department of the Army.
How did the final EMD costs compare to the initial cost estimates or projections?
The data presents the awarded amount of $64.5 million for the JLTV EMD phase. It does not include initial cost estimates or projections, nor does it detail the final incurred costs. A comparison would necessitate accessing budget documents and financial execution reports for the contract period to assess cost performance and identify any variances.
What is the projected long-term cost and sustainment strategy for the JLTV program beyond the EMD phase?
This data pertains solely to the Engineering, Manufacturing, and Development (EMD) phase of the JLTV program. Information regarding the long-term cost projections, sustainment strategies, total lifecycle costs, and future production phases is outside the scope of this dataset. Such details would typically be found in program acquisition documents and future budget requests.
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
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Macandrews & Forbes Holdings Inc. (UEI: 878304849)
Address: 105 N NILES AVE, SOUTH BEND, IN, 46617
Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $70,434,522
Exercised Options: $69,803,573
Current Obligation: $64,534,229
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-08-22
Current End Date: 2014-11-21
Potential End Date: 2014-11-21 12:11:00
Last Modified: 2018-05-24
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