DoD awards $1.36B for Mobile Protected Firepower vehicles to General Dynamics Land Systems Inc

Contract Overview

Contract Amount: $1,359,959,160 ($1.4B)

Contractor: General Dynamics Land Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2018-12-17

End Date: 2026-10-17

Contract Duration: 2,861 days

Daily Burn Rate: $475.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MOBILE PROTECTED FIREPOWER ENGINEERING MANUFACTURING AND DEVELOPMENT / MIDDLE TIER ACQUISITION

Place of Performance

Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $1.36 billion to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: MOBILE PROTECTED FIREPOWER ENGINEERING MANUFACTURING AND DEVELOPMENT / MIDDLE TIER ACQUISITION Key points: 1. Contract awarded via full and open competition, indicating broad market engagement. 2. Significant investment in armored vehicle modernization, aligning with defense readiness goals. 3. Long-term contract duration suggests a sustained need for these capabilities. 4. Fixed-price contract type aims to control costs and provide predictability. 5. Potential for follow-on work and sustainment, impacting long-term program costs. 6. Focus on engineering, manufacturing, and development highlights innovation in defense technology.

Value Assessment

Rating: good

The contract value of $1.36 billion for the Mobile Protected Firepower (MPF) program appears substantial, reflecting the complexity and scale of developing and manufacturing advanced armored vehicles. Benchmarking against similar large-scale defense manufacturing contracts is challenging due to the unique nature of the MPF program. However, the firm-fixed-price structure suggests an effort to manage costs effectively. The total obligated amount and the base value will be key indicators of the actual expenditure against the ceiling.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit proposals. The presence of multiple bidders (indicated by 'no': 3) suggests a competitive environment for this significant defense contract. A competitive process is generally expected to yield better pricing and innovative solutions for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that should drive down costs and ensure the government receives the best value for its investment in advanced military hardware.

Public Impact

The U.S. Army will receive advanced Mobile Protected Firepower vehicles, enhancing infantry brigade combat team capabilities. The program supports the modernization of ground combat vehicle fleets. The contract is expected to create and sustain jobs in the defense manufacturing sector, particularly in Michigan. This investment contributes to national defense readiness and technological superiority.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if development or manufacturing challenges arise, despite fixed-price structure.
Long-term sustainment and upgrade costs beyond the initial engineering and manufacturing phase are not detailed.
Dependence on a single prime contractor for a critical defense system introduces supply chain risks.

Positive Signals

Awarded through full and open competition, maximizing potential for value and innovation.
Firm-fixed-price contract type provides cost certainty for the government.
Focus on engineering and development suggests a commitment to cutting-edge technology.
Long-term contract duration allows for program stability and efficient production planning.

Sector Analysis

The defense manufacturing sector is characterized by high R&D investment, complex supply chains, and significant government procurement. This contract for the Mobile Protected Firepower (MPF) program falls within the armored vehicle manufacturing sub-sector. The total contract value of $1.36 billion is substantial, reflecting the high cost of developing and producing advanced military hardware. Comparable spending benchmarks would include other major platform development programs within the Department of Defense, such as new aircraft or naval vessel programs, though direct comparisons are difficult due to program specifics.

Small Business Impact

While the contract data indicates the prime contractor is General Dynamics Land Systems Inc. and does not explicitly mention small business set-asides (ss: false, sb: false), large defense contracts often include subcontracting requirements. It is probable that General Dynamics will engage small businesses for specialized components or services, contributing to the small business ecosystem within the defense industrial base. Further analysis of subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and program management offices. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver within the agreed-upon cost. Transparency is typically maintained through contract awards databases and program reporting. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Other Armored Vehicle Programs
Department of the Army Major Weapon Systems
Defense Manufacturing Modernization Initiatives
Middle Tier Acquisition Programs

Risk Flags

Potential for schedule delays due to complex engineering and manufacturing.
Risk of cost growth if unforeseen technical challenges arise.
Dependence on a single contractor for critical defense capability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $1.36 billion to GENERAL DYNAMICS LAND SYSTEMS INC.. MOBILE PROTECTED FIREPOWER ENGINEERING MANUFACTURING AND DEVELOPMENT / MIDDLE TIER ACQUISITION

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 $1.36 billion.

What is the period of performance?

Start: 2018-12-17. End: 2026-10-17.

What is the track record of General Dynamics Land Systems Inc. in delivering complex armored vehicle programs on time and within budget?

General Dynamics Land Systems Inc. (GDLS) has a long and extensive history in developing and manufacturing armored vehicles for the U.S. military and international partners. They are the prime contractor for the Abrams Main Battle Tank and the Stryker family of vehicles, both of which have seen extensive production and upgrades over decades. While GDLS has a strong track record in delivering these platforms, like many large defense programs, the Abrams and Stryker programs have experienced periods of schedule adjustments and cost fluctuations throughout their lifecycles. The MPF program, being a Middle Tier Acquisition (MTA) effort, is designed for faster prototyping and fielding, which may imply a different execution approach compared to traditional acquisition programs. GDLS's experience with these existing platforms provides a solid foundation, but the specific challenges and successes of the MPF program will be unique.

How does the per-unit cost of the Mobile Protected Firepower (MPF) vehicle compare to other similar light/medium armored vehicles in the U.S. or allied inventories?

Determining a precise per-unit cost for the MPF at this engineering and manufacturing development phase is difficult, as the total contract value ($1.36 billion) covers development, testing, and initial production, not just the cost of a finished vehicle. Furthermore, the contract is a ceiling value, and the actual expenditure per unit will depend on the final quantities procured and the efficiency of production. However, based on the scale of the program and the advanced capabilities required (e.g., a 105mm cannon, advanced protection systems, and mobility), it is anticipated that the per-unit cost will be significant, likely in the millions of dollars per vehicle. Comparisons to vehicles like the U.S. Army's Stryker variants or international equivalents (e.g., Germany's Puma IFV, South Korea's K21 IFV) would need to account for differences in armament, protection levels, weight, and technological sophistication. The MPF is intended to provide direct fire support, a role that typically involves more robust armament and protection, contributing to a higher cost.

What are the primary risks associated with the engineering and manufacturing development phase of this contract?

The primary risks associated with the engineering and manufacturing development (EMD) phase of the MPF contract include technological maturity and integration challenges, as the program aims to field advanced capabilities relatively quickly. Ensuring the reliability and performance of new systems, particularly the armament and protection suites, under operational conditions is a key risk. Manufacturing risks involve scaling up production efficiently and maintaining quality control for complex components. Schedule risks are also present, as development timelines can be impacted by unforeseen technical hurdles or testing failures. Furthermore, cost risks exist, where development complexities could lead to cost growth, even within a fixed-price contract, if scope changes or significant unforeseen issues arise. Supply chain disruptions for critical components could also pose a risk to timely delivery.

How does this contract align with the U.S. Army's broader modernization strategy and the 'Future Vertical Lift' initiative?

This contract for the Mobile Protected Firepower (MPF) vehicle directly aligns with the U.S. Army's broader modernization strategy, which emphasizes equipping infantry brigade combat teams (IBCTs) with capabilities to defeat near-peer adversaries. The MPF is designed to provide essential direct fire support to IBCTs, enabling them to engage and destroy enemy armored threats, thereby enhancing their survivability and effectiveness on the modern battlefield. While the MPF is a ground vehicle program, it complements other modernization efforts, including the Future Vertical Lift (FVL) initiative, by ensuring that the Army possesses a balanced mix of air and ground maneuver capabilities. The MPF's mobility and firepower are intended to provide a mobile, protected platform that can keep pace with other modernized formations, including those incorporating new aircraft and other advanced systems. The program supports the Army's goal of achieving information dominance and multi-domain operations.

What is the historical spending trend for armored vehicle acquisition and development within the Department of Defense over the last decade?

Historical spending on armored vehicle acquisition and development within the Department of Defense (DoD) over the last decade has fluctuated, influenced by ongoing conflicts, strategic priorities, and budget cycles. Following the major deployments in Iraq and Afghanistan, there was a period of reduced emphasis on large-scale ground vehicle modernization. However, as the strategic focus shifted towards preparing for potential conflicts with near-peer adversaries, investment in upgrading and developing new armored platforms has seen a resurgence. Programs like the Abrams tank upgrades, the Bradley Fighting Vehicle recapitalization, and the development of new platforms such as the Optionally Manned Fighting Vehicle (OMFV) and the Mobile Protected Firepower (MPF) vehicle reflect this renewed focus. While specific dollar amounts vary annually, the overall trend indicates a sustained, and in some areas increasing, commitment to maintaining and advancing the Army's armored capabilities to meet evolving threats.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W56HZV18R0001

Offers Received: 3

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: $1,609,571,189

Exercised Options: $1,359,959,160

Current Obligation: $1,359,959,160

Subaward Activity

Number of Subawards: 472

Total Subaward Amount: $299,637,179

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline