Department of the Army awards $34.1M for Stryker Garrison Maintenance and Support to General Dynamics Land Systems Inc

Contract Overview

Contract Amount: $34,155,521 ($34.2M)

Contractor: General Dynamics Land Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2020-03-01

End Date: 2022-02-28

Contract Duration: 729 days

Daily Burn Rate: $46.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: FUND ORDERING PERIOD 5 (OP5) OF STRYKER GARRISON MAINTENANCE, DEPLOYMENT MAINTENANCE, FSR SUPPORT EFFORTS.

Place of Performance

Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $34.2 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: FUND ORDERING PERIOD 5 (OP5) OF STRYKER GARRISON MAINTENANCE, DEPLOYMENT MAINTENANCE, FSR SUPPORT EFFORTS. Key points: 1. Contract focuses on essential maintenance and deployment support for Stryker vehicles. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. Long-term contract duration suggests a need for sustained support capabilities. 4. Performance period spans two years, indicating a significant operational requirement. 5. The contract type (Cost Plus Fixed Fee) can incentivize cost overruns if not closely monitored. 6. This award represents a critical component of the Army's vehicle readiness strategy.

Value Assessment

Rating: fair

The contract value of $34.1 million over two years for maintenance and support of Stryker vehicles appears to be within a reasonable range for specialized military equipment. However, without detailed breakdowns of labor hours, parts, and overhead, a precise value-for-money assessment is challenging. Benchmarking against similar sole-source contracts for vehicle maintenance is difficult due to the unique nature of military platforms and the specific support requirements. The Cost Plus Fixed Fee structure necessitates rigorous oversight to ensure costs remain controlled and do not escalate beyond reasonable expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, General Dynamics Land Systems Inc., was considered. This approach is typically used when a specific vendor possesses unique capabilities, proprietary technology, or is the sole provider of necessary parts or services. While it ensures specialized support, it limits the opportunity for competitive bidding, which could potentially drive down costs and encourage innovation from a wider range of suppliers. The lack of competition means the government relies heavily on the awarded contractor's pricing and efficiency.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to reduce prices. This necessitates strong government negotiation and oversight to ensure fair pricing.

Public Impact

The primary beneficiaries are the U.S. Army units relying on the operational readiness of Stryker vehicles. Services delivered include maintenance, deployment support, and Field Service Representative (FSR) efforts. The geographic impact is likely concentrated around Army installations where Stryker vehicles are stationed and maintained. Workforce implications include the potential for continued employment for skilled technicians and support personnel at General Dynamics Land Systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Cost Plus Fixed Fee contract type can lead to cost escalation without strict oversight.
Lack of transparency in detailed cost breakdowns hinders independent value assessment.

Positive Signals

Ensures specialized maintenance and support for critical Stryker vehicle fleet.
Long-term contract provides stability for essential operational readiness.
General Dynamics Land Systems is the original equipment manufacturer, ensuring expertise.

Sector Analysis

The defense sector relies heavily on specialized contractors for the maintenance and sustainment of complex weapon systems. General Dynamics Land Systems is a major player in this market, particularly for armored vehicles like the Stryker. Spending on vehicle maintenance and support is a significant portion of the overall defense budget, crucial for ensuring military readiness. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of each platform and the specific service requirements, but this contract's value aligns with typical sustainment contracts for major vehicle programs.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there explicit information regarding subcontracting opportunities for small businesses. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless General Dynamics Land Systems actively engages small businesses for specific support roles or components not covered by the prime contract. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures would be tied to performance metrics outlined in the contract and the Cost Plus Fixed Fee structure, which requires detailed cost reporting and justification. Transparency is limited by the sole-source nature and the proprietary aspects of defense contracting. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Stryker Vehicle Program
Army Ground Vehicle Maintenance
Defense Logistics Agency Support Services
Tactical Wheeled Vehicle sustainment

Risk Flags

Sole-source award limits competition.
Cost Plus Fixed Fee contract type requires robust oversight.
Potential for cost escalation without strict controls.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.2 million to GENERAL DYNAMICS LAND SYSTEMS INC.. FUND ORDERING PERIOD 5 (OP5) OF STRYKER GARRISON MAINTENANCE, DEPLOYMENT MAINTENANCE, FSR SUPPORT 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 $34.2 million.

What is the period of performance?

Start: 2020-03-01. End: 2022-02-28.

What is the historical spending pattern for Stryker Garrison Maintenance and Deployment Support by the Department of the Army?

Historical spending data for Stryker Garrison Maintenance and Deployment Support is not directly available in the provided snippet. However, the current contract, valued at approximately $34.1 million over two years (2020-2022), suggests a consistent need for these services. To understand historical patterns, one would need to examine previous contracts awarded for similar support to the Stryker fleet, potentially including earlier Ordering Periods (OP1-OP4) mentioned in the data. Analyzing the duration, value, and nature of these prior contracts would reveal trends in Army spending on Stryker sustainment, including whether it has been consistently awarded to General Dynamics Land Systems and if the scope of services has evolved over time. This would also help in identifying any significant increases or decreases in spending that might indicate changes in operational tempo, fleet size, or maintenance requirements.

How does the pricing structure (Cost Plus Fixed Fee) for this contract compare to industry benchmarks for similar defense maintenance services?

The Cost Plus Fixed Fee (CPFF) pricing structure is common in defense contracting, particularly for services where the scope of work can be difficult to define precisely upfront or is expected to evolve. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Benchmarking CPFF contracts is complex because the 'cost' component can vary significantly based on labor rates, material costs, and overhead. Industry benchmarks often focus on the 'fixed fee' as a percentage of the estimated cost, or on the total contract value relative to the services provided. For defense maintenance, typical fixed fees can range from 5% to 15% of the estimated cost. Without a detailed breakdown of General Dynamics Land Systems' estimated costs and the final fixed fee for this $34.1 million contract, a direct comparison is challenging. However, the government's oversight is crucial to ensure that the 'costs' incurred are reasonable and allowable, and that the fixed fee provides adequate profit without being excessive, especially given the sole-source nature of this award.

What are the specific performance metrics and Key Performance Indicators (KPIs) used to evaluate General Dynamics Land Systems' performance under this contract?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, for maintenance and support contracts of this nature, KPIs would focus on aspects such as vehicle readiness rates, turnaround time for repairs, quality of maintenance performed (e.g., defect rates post-service), responsiveness of Field Service Representatives (FSRs), and adherence to delivery schedules for parts and services. The contract document itself would detail these requirements, often including Service Level Agreements (SLAs). The government's quality assurance personnel would monitor these metrics throughout the contract period. Failure to meet established KPIs could result in penalties, reduced fee payments, or even contract termination, depending on the severity and contractual terms.

What is the potential impact of this sole-source award on the competitive landscape for Stryker vehicle sustainment services?

A sole-source award, by definition, removes immediate competition for the specific services and period covered. For this $34.1 million contract with General Dynamics Land Systems Inc. (GDLS), it means that other companies capable of providing Stryker maintenance and support were not given an opportunity to bid. This can have several impacts on the competitive landscape: 1) It reinforces GDLS's dominant position as the primary sustainment provider for the Stryker platform, potentially creating a barrier to entry for competitors. 2) It may discourage other firms from investing in the specialized knowledge, tooling, and personnel required for Stryker sustainment if they perceive future opportunities will also be sole-sourced. 3) Conversely, it could incentivize competitors to focus on developing capabilities for other vehicle platforms or offering alternative services (e.g., component repair, training) where competition might be more open. Over the long term, if such sole-source awards become the norm for critical platforms, it could lead to reduced innovation and potentially higher costs due to the lack of competitive pressure.

Are there any identified risks associated with General Dynamics Land Systems Inc.'s track record in fulfilling similar defense maintenance contracts?

General Dynamics Land Systems Inc. (GDLS) is a major defense contractor with extensive experience in producing and supporting armored vehicles, including the Stryker. While specific performance issues or risks related to this particular contract are not detailed in the provided data, GDLS, like any large contractor, has likely encountered challenges in past contracts. These could range from schedule delays and cost overruns on complex programs to performance issues related to specific systems or support functions. Government contract databases (like the Federal Procurement Data System - FPDS) and Inspector General reports can provide insights into past performance evaluations, contract disputes, or corrective actions. For this sole-source contract, the government's assessment of GDLS's past performance would have been a critical factor in the decision to award without competition, suggesting that, at the time of award, their track record was deemed satisfactory or superior for these specific needs. However, ongoing monitoring throughout the contract's duration remains essential.

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: $34,155,521

Exercised Options: $34,155,521

Current Obligation: $34,155,521

Actual Outlays: $1,942,521

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $2,195,878

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