DoD Awards $27.5M to General Dynamics for Stryker Contractor Test Support

Contract Overview

Contract Amount: $27,531,719 ($27.5M)

Contractor: General Dynamics Land Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2019-02-14

End Date: 2024-12-31

Contract Duration: 2,147 days

Daily Burn Rate: $12.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: STRYKER CONTRACTOR TEST SUPPORT

Place of Performance

Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $27.5 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: STRYKER CONTRACTOR TEST SUPPORT Key points: 1. Contract awarded to General Dynamics Land Systems Inc. for engineering services. 2. Significant contract value of $27.5 million over its duration. 3. The contract is for contractor test support related to Stryker vehicles. 4. The sector is primarily Defense, with a focus on engineering services.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition may result in a higher overall cost to the taxpayer for these essential engineering services.

Public Impact

Supports the sustainment and development of critical Stryker vehicle platforms. Ensures continued operational readiness through specialized contractor support. Impacts the defense industrial base and specialized engineering workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
Long contract duration

Positive Signals

Supports critical defense systems
Long-term engagement provides stability

Sector Analysis

This contract falls within the Defense sector, specifically engineering services supporting military vehicle platforms. Spending benchmarks for similar specialized contractor test support can vary widely based on system complexity and duration.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award, as it was awarded directly to General Dynamics Land Systems Inc.

Oversight & Accountability

Oversight of this sole-source, cost-plus contract is crucial to ensure that costs are reasonable and that the services provided meet the Department of Defense's requirements effectively.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits competition.
Cost Plus Fixed Fee contract type can incentivize higher costs.
Lack of transparency on specific services and cost breakdown.
Long contract duration may not reflect current market conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to GENERAL DYNAMICS LAND SYSTEMS INC.. STRYKER CONTRACTOR TEST SUPPORT

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 $27.5 million.

What is the period of performance?

Start: 2019-02-14. End: 2024-12-31.

What specific engineering services are included in this contract, and how do they contribute to the overall effectiveness of the Stryker platform?

The contract details are limited, but 'Contractor Test Support' suggests services related to testing, evaluation, and potentially modification or upgrade of Stryker vehicles. These services are vital for ensuring the platform's reliability, performance, and adaptability to evolving battlefield requirements, ultimately contributing to soldier safety and mission success.

Given the sole-source nature, what mechanisms are in place to mitigate the risk of inflated pricing and ensure fair value for taxpayer dollars?

While sole-source awards inherently reduce competitive pressure, the Department of Defense typically employs mechanisms like detailed cost analysis, audits, and negotiation strategies to ensure fair and reasonable pricing. The Cost Plus Fixed Fee structure requires rigorous oversight to prevent scope creep and control indirect costs.

How does this contract align with broader DoD strategies for vehicle modernization and sustainment, and what is the long-term outlook for such support?

This contract likely supports ongoing sustainment efforts for the existing Stryker fleet and potentially any modernization initiatives. The long duration suggests a recognized need for continuous support. The long-term outlook depends on the Army's future vehicle strategy, but specialized contractor support remains a key component of maintaining complex weapon systems.

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: $27,531,719

Exercised Options: $27,531,719

Current Obligation: $27,531,719

Actual Outlays: $14,327

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $879,503

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