DoD's $44M Stryker vehicle maintenance contract awarded to General Dynamics Land Systems Inc. with no competition

Contract Overview

Contract Amount: $44,281,319 ($44.3M)

Contractor: General Dynamics Land Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2020-03-01

End Date: 2021-06-30

Contract Duration: 486 days

Daily Burn Rate: $91.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: FUND ORDERING PERIOD OP-5 OF STRYKER NEW EQUIPMENT TRAINING (NET), FIELDING, DEPROCESSING, DEPOT REPAIR CYCLE FLOAT (DRCF) VEHICLE MAINTENANCE AND PROGRAM MANAGER MANAGED VEHICLES (PMMV) MAINTENANCE EFFORTS.

Place of Performance

Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $44.3 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: FUND ORDERING PERIOD OP-5 OF STRYKER NEW EQUIPMENT TRAINING (NET), FIELDING, DEPROCESSING, DEPOT REPAIR CYCLE FLOAT (DRCF) VEHICLE MAINTENANCE AND PROGRAM MANAGER MANAGED VEHICLES (PMMV) MAINTENANCE EFFORTS. Key points: 1. The contract focuses on essential support services for Stryker vehicles, including training, fielding, and maintenance. 2. Awarded on a Cost Plus Fixed Fee basis, this suggests potential for cost overruns if not closely managed. 3. The lack of competition raises concerns about price discovery and potential overpayment. 4. The contract duration of 486 days indicates a significant, ongoing need for these specialized services. 5. The primary recipient is the Department of the Army, highlighting its reliance on these platforms. 6. The contract's value of $44.28 million underscores the significant investment in maintaining armored vehicle fleets.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bids and specific performance metrics provided. The Cost Plus Fixed Fee (CPFF) contract type, while common for complex services, can lead to higher costs if the fixed fee is not carefully negotiated or if the 'cost' component escalates unexpectedly. Without comparable contract data or detailed cost breakdowns, it's difficult to definitively assess value for money. However, the absence of competition inherently limits the government's ability to secure the best possible pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one vendor possesses the necessary specialized skills, technology, or is the sole provider of a required service or part. The lack of competition means the government did not solicit bids from multiple potential contractors, which can limit price negotiation and potentially lead to higher costs than if a competitive process had been employed.

Taxpayer Impact: Taxpayers may be paying a premium for these services due to the absence of competitive pressure to drive down costs. The government missed an opportunity to leverage market competition to secure a more favorable price.

Public Impact

The primary beneficiaries are the U.S. Army personnel who operate and rely on the Stryker vehicle fleet for their missions. Services delivered include crucial new equipment training, fielding, deprocessing, and depot repair cycle float for vehicles. The geographic impact is likely concentrated around Army installations where Stryker units are stationed and maintained. This contract supports a specialized workforce of technicians and trainers required for advanced vehicle maintenance and operation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Cost Plus Fixed Fee structure carries inherent risk of cost escalation.
Limited transparency into specific cost drivers without competitive bids.
Dependence on a single contractor for critical maintenance functions.

Positive Signals

Ensures continued operational readiness of vital Stryker vehicle fleet.
Provides specialized training essential for effective vehicle operation and maintenance.
Addresses critical maintenance needs, including depot repair cycles.

Sector Analysis

This contract falls within the broader defense logistics and support services sector, which is a significant component of the overall defense industrial base. The market for military vehicle maintenance and training is specialized, often dominated by original equipment manufacturers or large defense contractors with established relationships and expertise. Spending in this area is driven by the need to maintain the operational readiness of complex military equipment, with contracts often being long-term and awarded through various procurement methods, including sole-source where justified.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the provided data. The prime contractor, General Dynamics Land Systems Inc., is a large defense corporation. The nature of specialized vehicle maintenance and training often favors large, established companies with the necessary infrastructure and certifications, potentially limiting direct participation for smaller enterprises in this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited by the sole-source nature of the award; however, contract actions are generally reported in federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Stryker Vehicle Program
Army陆军 Vehicle Maintenance Contracts
Defense Logistics and Support Services
Military Training Services
Armored Vehicle Fleet Management

Risk Flags

Sole-source award limits price competition.
Cost Plus Fixed Fee contract type carries inherent cost escalation risk.
Lack of detailed performance metrics makes value assessment difficult.
Potential for contractor inefficiency not fully mitigated by fixed fee.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.3 million to GENERAL DYNAMICS LAND SYSTEMS INC.. FUND ORDERING PERIOD OP-5 OF STRYKER NEW EQUIPMENT TRAINING (NET), FIELDING, DEPROCESSING, DEPOT REPAIR CYCLE FLOAT (DRCF) VEHICLE MAINTENANCE AND PROGRAM MANAGER MANAGED VEHICLES (PMMV) MAINTENANCE EFFORTS.

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 $44.3 million.

What is the period of performance?

Start: 2020-03-01. End: 2021-06-30.

What is the track record of General Dynamics Land Systems Inc. in fulfilling similar defense maintenance contracts?

General Dynamics Land Systems Inc. (GDLS) has a long and extensive history of providing vehicles, support, and maintenance services to the U.S. military, particularly for armored platforms like the Stryker. They are the original equipment manufacturer for the Stryker family of vehicles. GDLS has held numerous contracts for Stryker production, upgrades, and sustainment, including training and maintenance. While their track record is generally strong in terms of delivering complex systems, like any large defense contractor, they have faced scrutiny over contract costs, performance issues, and delivery timelines on various programs. Specific performance on this particular contract (ordering period OP-5) would require a deeper dive into Army performance evaluations and contract close-out data, which is not publicly detailed here.

How does the $44.28 million value compare to similar Stryker maintenance contracts?

Direct comparison of this $44.28 million contract value is difficult without knowing the exact scope, duration, and specific services covered by other Stryker maintenance contracts. The value is influenced by factors such as the number of vehicles supported, the complexity of the maintenance required (e.g., depot-level vs. field-level), the inclusion of training, and the specific contract type (Cost Plus Fixed Fee in this case). Given that GDLS is the OEM and this contract covers a significant period (486 days) and multiple service aspects (NET, fielding, deprocessing, DRCF, PMMV maintenance), the $44.28 million figure appears substantial but not necessarily out of line for comprehensive sustainment support of a major vehicle platform. However, the lack of competition prevents a definitive value-for-money assessment against market alternatives.

What are the primary risks associated with a sole-source Cost Plus Fixed Fee contract for vehicle maintenance?

The primary risks associated with a sole-source Cost Plus Fixed Fee (CPFF) contract for vehicle maintenance are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher prices than could be achieved through bidding. The government relies heavily on the contractor's proposed costs and the contracting officer's negotiation skills. Secondly, the CPFF structure, while providing flexibility for evolving requirements, carries the risk of cost escalation. The contractor is reimbursed for allowable costs plus a negotiated fixed fee. If costs increase due to unforeseen issues, inefficiencies, or scope creep, the total contract cost to the government rises. Effective oversight, robust cost accounting standards, and clear definition of allowable costs are crucial to mitigate these risks.

How effective is the training and maintenance provided under this contract likely to be for the Stryker fleet's operational readiness?

The effectiveness of the training and maintenance provided under this contract is crucial for the Stryker fleet's operational readiness. As General Dynamics Land Systems is the original equipment manufacturer (OEM) and a specialist in Stryker vehicles, the training (NET - New Equipment Training) is likely to be highly specialized and tailored to the platform's intricacies. Similarly, their expertise in fielding, deprocessing, and depot repair cycle float (DRCF) suggests a high level of technical proficiency. The contract's duration and the breadth of services indicate a commitment to sustainment. However, true effectiveness hinges on the contractor's execution, the government's oversight, the availability of parts, and the integration of these services with the Army's overall maintenance and readiness strategy.

What are the historical spending patterns for Stryker vehicle maintenance and support by the Department of the Army?

Historical spending patterns for Stryker vehicle maintenance and support by the Department of the Army have been substantial, reflecting the significant investment in this versatile armored platform. The Army operates thousands of Stryker vehicles across various configurations. Annual spending on sustainment, including maintenance, repair, spare parts, training, and upgrades, typically runs into hundreds of millions, if not billions, of dollars over the lifecycle of the fleet. This spending is often distributed across numerous contracts, including those for depot-level maintenance, field support, component repair, and contractor logistics support, awarded both competitively and non-competitively to various prime contractors and specialized service providers, including the OEM, GDLS.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING 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: $44,281,319

Exercised Options: $44,281,319

Current Obligation: $44,281,319

Actual Outlays: $2,536,717

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $325,083

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV16D0025

IDV Type: IDC

Timeline