Army Awards $340M to General Dynamics for Stryker Lethality Upgrade
Contract Overview
Contract Amount: $340,172,679 ($340.2M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2016-01-15
End Date: 2018-08-31
Contract Duration: 959 days
Daily Burn Rate: $354.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: IGF::OT::IGF 30MM LETHALITY UPGRADE TO STRYKER ICV
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $340.2 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: IGF::OT::IGF 30MM LETHALITY UPGRADE TO STRYKER ICV Key points: 1. Significant investment in armored vehicle modernization. 2. Sole-source award to General Dynamics raises competition concerns. 3. Contract duration and fixed-price incentive structure warrant scrutiny. 4. Focus on enhancing combat effectiveness of Stryker fleet.
Value Assessment
Rating: questionable
The contract value of $340M for a lethality upgrade is substantial. Without competitive bidding, it's difficult to assess if this price represents fair value compared to potential alternatives or previous upgrades.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to General Dynamics Land Systems Inc. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a significant defense contract may result in taxpayers paying a premium for the Stryker lethality upgrade.
Public Impact
Enhances survivability and lethality of a key Army vehicle. Supports modernization efforts for ground combat capabilities. Impacts soldiers operating in high-threat environments. Potential for follow-on contracts and sustainment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Modernization of critical defense asset
- Potential for improved soldier safety
Sector Analysis
This contract falls within the Defense sector, specifically military vehicle manufacturing. Spending benchmarks for such upgrades can vary widely based on scope and technology.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving the best possible value and that the upgrade meets all specified requirements.
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
- Potential for cost overruns
- Limited transparency in pricing
- Dependency on a single supplier
- Scope creep risk over contract duration
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, mi, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $340.2 million to GENERAL DYNAMICS LAND SYSTEMS INC.. IGF::OT::IGF 30MM LETHALITY UPGRADE TO STRYKER ICV
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 $340.2 million.
What is the period of performance?
Start: 2016-01-15. End: 2018-08-31.
What was the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one contractor can fulfill. Without specific documentation, it's unclear if alternatives were thoroughly explored or if this decision was driven by factors like existing platform integration or specific performance requirements that General Dynamics uniquely meets.
How does the per-unit cost of this lethality upgrade compare to similar upgrades on other platforms or previous versions?
A direct per-unit cost comparison is challenging without knowing the exact scope of the upgrade and the specific components being modified. However, given the $340 million award and the typical number of Stryker variants, the cost per vehicle is likely substantial. A competitive process would have provided a clearer benchmark against market rates for similar enhancements.
What are the key performance metrics for this lethality upgrade, and how will their achievement be verified?
Key performance metrics would likely include improvements in firepower, accuracy, target acquisition range, and potentially survivability against specific threats. Verification would involve rigorous testing and evaluation by the Army, including live-fire exercises and simulated combat scenarios, to ensure the upgrade meets or exceeds the defined technical and operational requirements.
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
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
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: $340,172,679
Exercised Options: $340,172,679
Current Obligation: $340,172,679
Subaward Activity
Number of Subawards: 761
Total Subaward Amount: $1,013,040,470
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-01-15
Current End Date: 2018-08-31
Potential End Date: 2018-08-31 12:08:00
Last Modified: 2022-11-29
More Contracts from General Dynamics Land Systems Inc.
- Mobile Protected Firepower Engineering Manufacturing and Development / Middle Tier Acquisition — $1.4B (Department of Defense)
- M1 Abrams Family of Vehicles — $1.2B (Department of Defense)
- Economic Order Quantity Contract — $1.2B (Department of Defense)
- System Tewchnical Support (sts)/System Sustainment Technical Support for the Abrams Tank Program — $1.1B (Department of Defense)
- 200105!000201!1700!F9999 !marine Corps Systems Command !M6785401C0001 !A!N!*!N! !20010214!20060930!107153702!131266926!001381284!n!general Dynamics Amphibious SY!991 Annapolis WAY !woodbridge !va!22191!87312!153!51!woodbridge !prince William !virginia !+000023676102!n!n!000000000000!ac43!rdte/Tank - Automotive-Adv Tech DEV !a4a!combat Vehicles !2dbk!lvtp-7 !336992!*!*!3! ! ! !*!*!*!B!*!*!A! !D !n!r!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $1.1B (Department of Defense)
View all General Dynamics Land Systems Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)