Army awards $105.8M for 294 M997A3 HMMWV ambulances to AM General LLC
Contract Overview
Contract Amount: $105,785,388 ($105.8M)
Contractor: AM General LLC
Awarding Agency: Department of Defense
Start Date: 2020-03-27
End Date: 2022-09-30
Contract Duration: 917 days
Daily Burn Rate: $115.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER FOR 294 M997A3 HMMWV AMBULANCES
Place of Performance
Location: SOUTH BEND, ST JOSEPH County, INDIANA, 46617
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $105.8 million to AM GENERAL LLC for work described as: DELIVERY ORDER FOR 294 M997A3 HMMWV AMBULANCES Key points: 1. Significant investment in tactical vehicle fleet modernization. 2. AM General LLC is a sole-source provider for this specific vehicle. 3. Potential risk of higher costs due to lack of competition. 4. Spending falls within the broader defense manufacturing sector.
Value Assessment
Rating: fair
The contract is a delivery order for specialized military ambulances. Without competitive bids, it's difficult to assess if the $105.8 million price represents fair value compared to potential market alternatives.
Cost Per Unit: $360,000
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to AM General LLC. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding for these critical medical vehicles.
Public Impact
Enhances medical evacuation capabilities for deployed troops. Supports the operational readiness of Army units. Contributes to the sustainment of specialized military vehicle production.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- High per-unit cost for specialized vehicles.
- Long delivery duration (917 days) could indicate production constraints or demand.
Positive Signals
- Addresses critical need for medical evacuation platforms.
- Leverages existing manufacturer's expertise for specialized equipment.
Sector Analysis
This award falls under the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector. Spending in this niche area is driven by defense modernization priorities and geopolitical factors, with limited market competition.
Small Business Impact
The awardee, AM General LLC, is a large business. There is no indication of small business participation in this specific delivery order, which is common for sole-source, specialized defense contracts.
Oversight & Accountability
The Department of the Army awarded this delivery order. Oversight would focus on contract performance, delivery schedules, and adherence to the firm-fixed-price terms to ensure value for money.
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 competition.
- High per-unit cost.
- Lack of transparency in pricing justification.
- Potential for cost overruns if not managed tightly.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, in, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $105.8 million to AM GENERAL LLC. DELIVERY ORDER FOR 294 M997A3 HMMWV AMBULANCES
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 $105.8 million.
What is the period of performance?
Start: 2020-03-27. End: 2022-09-30.
What is the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically relates to unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The Army would need to document why AM General LLC was the only viable option and if any market research was conducted to explore potential competition or alternative solutions before proceeding with a non-competitive award.
How does the per-unit cost compare to similar, albeit potentially less specialized, armored vehicles?
The per-unit cost of approximately $360,000 for these specialized ambulances is high. While direct comparisons are difficult due to unique medical equipment and armor, benchmarking against other armored personnel carriers or tactical vehicles could reveal cost efficiencies or potential overpricing. Further analysis would require detailed cost breakdowns and comparisons with similar platforms.
What is the long-term strategy for maintaining and upgrading these specialized HMMWV ambulances?
The long-term strategy is crucial for ensuring the sustained operational effectiveness of these vehicles. This includes plans for maintenance, repair, spare parts procurement, and potential future upgrades or replacements. Understanding this strategy helps assess the total lifecycle cost and the government's commitment to supporting this critical asset beyond the initial delivery.
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
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: $105,785,388
Exercised Options: $105,785,388
Current Obligation: $105,785,388
Subaward Activity
Number of Subawards: 129
Total Subaward Amount: $23,619,104
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV18D0084
IDV Type: IDC
Timeline
Start Date: 2020-03-27
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 12:09:00
Last Modified: 2025-09-09
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