DoD Awards $36.5M for 204 HMMWVs to AM General LLC for Iraq FMS
Contract Overview
Contract Amount: $36,473,087 ($36.5M)
Contractor: AM General LLC
Awarding Agency: Department of Defense
Start Date: 2019-08-29
End Date: 2022-02-22
Contract Duration: 908 days
Daily Burn Rate: $40.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 156 EA M1151A1B1 HMMWVS AND 48 EA M1152 HMMWVS FOR IRAQ, FMS CASE QI-B-ADF
Place of Performance
Location: SOUTH BEND, ST JOSEPH County, INDIANA, 46617
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $36.5 million to AM GENERAL LLC for work described as: 156 EA M1151A1B1 HMMWVS AND 48 EA M1152 HMMWVS FOR IRAQ, FMS CASE QI-B-ADF Key points: 1. Contract awarded to AM General LLC for 204 HMMWVs (156 M1151A1B1, 48 M1152). 2. Foreign Military Sales (FMS) case QI-B-ADF indicates sale to Iraq. 3. This is a Firm Fixed Price contract, providing cost certainty. 4. The contract was not competed, raising potential value concerns.
Value Assessment
Rating: fair
The total award is $36,473,086.84 for 204 vehicles. This averages to approximately $178,789 per vehicle. Benchmarking against similar military vehicle contracts is difficult without specific configuration details, but this price appears within a reasonable range for armored vehicles.
Cost Per Unit: $178,789
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher price than if competition were present. The justification for sole-source is not provided.
Taxpayer Impact: Taxpayer funds are used for this FMS sale, and the lack of competition may lead to a less efficient use of these funds.
Public Impact
Supports U.S. foreign military sales objectives by providing essential equipment to allies. Enhances the operational capabilities of Iraqi security forces. The vehicles are manufactured in Indiana, supporting domestic jobs. The contract duration of 908 days suggests a significant production and delivery timeline.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment due to sole-source award
- Foreign Military Sales funding mechanism
Positive Signals
- Firm Fixed Price contract type
- Supports U.S. foreign policy objectives
- Domestic manufacturing and job support
Sector Analysis
This contract falls under the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector. Spending in this sector is often driven by defense modernization efforts and foreign military sales. Benchmarks are highly dependent on vehicle type, armor, and specific configurations.
Small Business Impact
The prime contractor is AM General LLC, a large business. There is no indication of small business participation in this specific award, which is common for large, specialized defense contracts.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight would typically involve contract management, quality assurance, and ensuring delivery according to specifications. The FMS process itself involves oversight from both the U.S. and the recipient nation.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for higher costs compared to a competitive process.
- Lack of transparency regarding the sole-source justification.
- Dependence on a single contractor for specialized vehicles.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.5 million to AM GENERAL LLC. 156 EA M1151A1B1 HMMWVS AND 48 EA M1152 HMMWVS FOR IRAQ, FMS CASE QI-B-ADF
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 $36.5 million.
What is the period of performance?
Start: 2019-08-29. End: 2022-02-22.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award is crucial for understanding the value proposition. Without competition, it's difficult to ascertain if the government secured the best possible price and terms. Further investigation into the specific reasons cited by the Department of the Army for not competing this requirement would be necessary to assess potential value loss.
How does the per-unit cost compare to similar HMMWV variants procured through competitive means?
Comparing the per-unit cost of $178,789 requires access to data on recent competitive procurements of M1151A1B1 and M1152 variants. Factors like specific armor packages, integrated systems, and delivery timelines significantly influence pricing. A detailed analysis would involve identifying comparable contracts and adjusting for these variables to determine if the sole-source price is reasonable.
What is the long-term strategic value of providing these HMMWVs to Iraq?
The long-term strategic value hinges on Iraq's ability to effectively utilize and maintain these vehicles in its security operations, contributing to regional stability and counter-terrorism efforts. The success of this transfer also depends on the ongoing U.S.-Iraq security relationship and the recipient nation's capacity to integrate this equipment into their forces.
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: KPS Capital Partners, LP
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: $36,473,087
Exercised Options: $36,473,087
Current Obligation: $36,473,087
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV17D0071
IDV Type: IDC
Timeline
Start Date: 2019-08-29
Current End Date: 2022-02-22
Potential End Date: 2022-02-22 00:00:00
Last Modified: 2025-04-24
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