DoD awards $14.9M for small multipurpose equipment transport production to General Dynamics Land Systems Inc

Contract Overview

Contract Amount: $14,925,003 ($14.9M)

Contractor: General Dynamics Land Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2020-07-15

End Date: 2026-08-14

Contract Duration: 2,221 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SMALL MULTIPURPOSE EQUIPMENT TRANSPORT PRODUCTION

Place of Performance

Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $14.9 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: SMALL MULTIPURPOSE EQUIPMENT TRANSPORT PRODUCTION Key points: 1. Value-for-money assessment pending detailed cost analysis and benchmarking. 2. Full and open competition suggests potential for competitive pricing. 3. Contract duration of over 6 years indicates a long-term need. 4. Performance context relies on successful delivery of specialized transport equipment. 5. Sector positioning within 'All Other Transportation Equipment Manufacturing' is niche. 6. Risk indicators include potential for production delays and cost overruns in complex manufacturing.

Value Assessment

Rating: fair

The total contract value is $14.9 million over approximately 6 years. Without specific details on the quantity and type of 'small multipurpose equipment transport' units, a precise value-for-money assessment is challenging. Benchmarking against similar specialized transport equipment contracts would be necessary to determine if the pricing is competitive. The firm fixed-price nature provides cost certainty for the government, but the initial award value needs further scrutiny against market rates for comparable custom-built equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive offers. The government likely sought the best value proposition, balancing cost, technical capability, and delivery timelines. The use of full and open competition is a positive sign for achieving a fair market price.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the equipment at the most advantageous price. This approach reduces the risk of overpayment compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Department of the Army, receiving specialized transport equipment. The services delivered involve the production and delivery of small multipurpose equipment transports. The geographic impact is primarily centered around the contractor's manufacturing facilities and the Army's operational areas. Workforce implications include employment opportunities in manufacturing and logistics at General Dynamics Land Systems Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule slippage in complex manufacturing processes.
Risk of unforeseen technical challenges impacting production timelines.
Dependency on a single large contractor for specialized equipment.

Positive Signals

Firm fixed-price contract structure limits cost escalation risk for the government.
Awarded under full and open competition, suggesting a competitive pricing environment.
Long contract duration allows for phased production and delivery, potentially optimizing resource allocation.

Sector Analysis

The contract falls within the 'All Other Transportation Equipment Manufacturing' sector, a niche within the broader industrial manufacturing landscape. This sector is characterized by specialized production, often involving custom designs and advanced materials. The market size for such highly specific equipment is typically smaller than for mass-produced vehicles. This contract represents a specific procurement need within the defense industry's broader equipment acquisition strategy.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless General Dynamics Land Systems Inc. voluntarily engages small businesses for components or services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified equipment. Transparency is generally maintained through contract award databases, though detailed production oversight is internal to the agency and contractor. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Tactical Wheeled Vehicles
Ground Support Equipment
Military Logistics Vehicles
Specialized Transport Systems

Risk Flags

Long contract duration may increase exposure to changing requirements or economic conditions.
Specialized equipment production can face unique supply chain and technical challenges.
Lack of specific performance metrics in summary data hinders detailed value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.9 million to GENERAL DYNAMICS LAND SYSTEMS INC.. SMALL MULTIPURPOSE EQUIPMENT TRANSPORT PRODUCTION

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 $14.9 million.

What is the period of performance?

Start: 2020-07-15. End: 2026-08-14.

What is the specific technical capability and intended use of the 'small multipurpose equipment transport' being procured?

The specific technical capabilities and intended use of the 'small multipurpose equipment transport' are not detailed in the provided data. However, the term suggests a vehicle designed for transporting various types of equipment, likely in a tactical or operational environment for the military. Its 'small' designation implies a size or weight class suitable for specific logistical roles, potentially including maneuverability in confined spaces or compatibility with other transport platforms. Further details would be found in the contract's Statement of Work (SOW) or technical specifications, which are not publicly available in this summary.

How does the $14.9 million award value compare to similar procurements for specialized military transport equipment?

Benchmarking the $14.9 million award value against similar procurements requires access to a broader dataset of specialized military transport equipment contracts. Without knowing the exact specifications, quantity, and performance requirements of these 'small multipurpose equipment transports,' a direct comparison is difficult. However, given the duration of over 6 years and the involvement of a major defense contractor like General Dynamics Land Systems Inc., the value appears to be within a reasonable range for custom-designed, low-volume military hardware. A detailed analysis would involve comparing unit costs, total contract values, and contract lengths for equipment with analogous roles and complexity.

What are the key performance indicators (KPIs) and delivery milestones associated with this contract?

Key performance indicators (KPIs) and delivery milestones for this contract are not explicitly detailed in the provided summary data. Typically, for a firm fixed-price production contract of this nature, KPIs would revolve around meeting technical specifications, quality standards, production rates, and on-time delivery of units. Delivery milestones would likely be phased throughout the contract period (July 2020 to August 2026), with specific quantities of transports due at predetermined intervals. These details would be outlined in the contract's Statement of Work (SOW) and delivery schedule, which are not accessible here.

What is General Dynamics Land Systems Inc.'s track record with the Department of the Army for similar equipment production?

General Dynamics Land Systems Inc. (GDLS) has a significant and long-standing track record with the Department of the Army, primarily known for its production of armored vehicles such as the Abrams main battle tank and the Stryker family of vehicles. While this contract is for 'small multipurpose equipment transport,' GDLS's extensive experience in military vehicle design, engineering, and large-scale production suggests a strong capability to fulfill such a requirement. Their history indicates a capacity for complex manufacturing and program management, though specific performance on smaller, specialized transport systems would require a deeper dive into their contract history.

What is the potential risk of cost overruns or schedule delays given the contract type and duration?

The contract is firm fixed-price (FFP), which shifts the primary risk of cost overruns to the contractor, General Dynamics Land Systems Inc. This contract type is designed to provide cost certainty for the government. However, risks of schedule delays can still exist due to factors like supply chain disruptions, unforeseen technical challenges during production, or labor issues. The contract duration of over 6 years (2221 days) provides a substantial window, which can mitigate some pressure but also increases the potential for external factors to impact the schedule over the long term. Robust program management and oversight by the Army are crucial to mitigate these risks.

How does this contract fit into the broader context of the Army's equipment modernization or sustainment efforts?

This contract for 'small multipurpose equipment transport' likely fits into the Army's ongoing efforts to modernize its logistical capabilities and ensure efficient movement of equipment in various operational environments. Such transports could be crucial for unit mobility, enabling soldiers to quickly redeploy or reposition essential gear. In the context of sustainment, it ensures the availability of necessary support equipment. The specific role would depend on the 'multipurpose' nature of the transport – whether it's for personnel, specific weapon systems, or general supplies, contributing to the overall operational readiness and flexibility of Army units.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › All Other Transportation Equipment Manufacturing

Product/Service Code: HARDWARE AND ABRASIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

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: $14,925,003

Exercised Options: $14,925,003

Current Obligation: $14,925,003

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $2,736,210

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV20D0061

IDV Type: IDC

Timeline