DoD Awards $277M for STRYKER SES/C4ISR to General Dynamics, Lacking Competition
Contract Overview
Contract Amount: $277,726,120 ($277.7M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2019-02-14
End Date: 2026-09-30
Contract Duration: 2,785 days
Daily Burn Rate: $99.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: STRYKER SES/C4ISR
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $277.7 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: STRYKER SES/C4ISR Key points: 1. Significant contract value of $277.7 million. 2. Sole-source award to General Dynamics raises competition concerns. 3. Potential for inflated costs due to limited price discovery. 4. Engineering services sector with a focus on C4ISR systems.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs than fixed-price contracts. Without competitive bidding, it's difficult to benchmark pricing against similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these engineering services.
Public Impact
Military readiness and technological advancement in C4ISR systems. Impact on defense contractor market dynamics and innovation. Potential for cost overruns affecting overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
Positive Signals
- Supports critical C4ISR capabilities
- Long-term contract duration
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) systems. Spending in this area is crucial for modern military operations, but often involves complex, specialized requirements.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure cost reasonableness and effective performance. Accountability for cost management and delivery timelines is critical given the contract type.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Cost-plus contract type risk
- Potential for cost overruns
- Limited transparency in pricing
- No small business participation indicated
Tags
engineering-services, department-of-defense, mi, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $277.7 million to GENERAL DYNAMICS LAND SYSTEMS INC.. STRYKER SES/C4ISR
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 $277.7 million.
What is the period of performance?
Start: 2019-02-14. End: 2026-09-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without further information, it's difficult to assess the validity of this justification and whether it truly precludes competitive bidding, which is generally preferred for ensuring best value and cost-effectiveness for taxpayers.
How will the government ensure cost control and value for money with a Cost Plus Fixed Fee contract awarded sole-source?
Ensuring cost control and value with a sole-source, cost-plus contract requires robust government oversight, detailed auditing of contractor expenses, and strict adherence to the fixed fee. The government must actively manage the scope, monitor performance metrics, and negotiate any changes rigorously to prevent cost creep and ensure the contractor is incentivized to perform efficiently.
What are the long-term implications for C4ISR system development and acquisition strategy given this sole-source award?
Sole-source awards can stifle innovation and competition in the long run by creating vendor lock-in and reducing market pressure. This approach might limit the government's access to a broader range of technological solutions and potentially higher quality systems at better prices in the future. A sustained sole-source strategy could hinder the development of a competitive landscape for critical defense technologies.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
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: $277,726,120
Exercised Options: $277,726,120
Current Obligation: $277,726,120
Actual Outlays: $6,012,850
Subaward Activity
Number of Subawards: 50
Total Subaward Amount: $9,138,827
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV19D0046
IDV Type: IDC
Timeline
Start Date: 2019-02-14
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-12-19
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