DoD Awards $34.4M for Stryker Vehicle Spare Parts to General Dynamics Land Systems
Contract Overview
Contract Amount: $34,392,690 ($34.4M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2020-09-03
End Date: 2022-06-23
Contract Duration: 658 days
Daily Burn Rate: $52.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THE PURPOSE OF THIS UNILATERAL AWARD OF DELIVERY ORDER W56HZV-20-F-0411 IS TO FUND THE WHOLESALE SUPPLY STRYKER DOUBLE V HULL [DVH] A1 PIPELINE DELTA SPARE PARTS IN SUPPORT OF 143 STRYKER DVH A1 VEHICLES.
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $34.4 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: THE PURPOSE OF THIS UNILATERAL AWARD OF DELIVERY ORDER W56HZV-20-F-0411 IS TO FUND THE WHOLESALE SUPPLY STRYKER DOUBLE V HULL [DVH] A1 PIPELINE DELTA SPARE PARTS IN SUPPORT OF 143 STRYKER DVH A1 VEHICLES. Key points: 1. This award funds critical spare parts for 143 Stryker Double V Hull (DVH) A1 vehicles. 2. The contract is a Cost Plus Fixed Fee type, indicating potential for cost overruns. 3. General Dynamics Land Systems is the sole awardee, raising questions about competition. 4. The sector is Military Armored Vehicle Manufacturing, a specialized and high-cost area.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price contracts, especially without strong oversight. The total award amount of $34.4 million for spare parts needs benchmarking against similar procurements for armored vehicle components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This delivery order was not competed, suggesting a sole-source award. Lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for these essential spare parts.
Public Impact
Ensures operational readiness of 143 Stryker DVH A1 vehicles. Supports the U.S. Army's armored vehicle fleet maintenance. Funds specialized manufacturing for military hardware.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
Positive Signals
- Supports critical military equipment
- Ensures vehicle readiness
Sector Analysis
This procurement falls within the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector. Spending in this sector is typically high due to the specialized nature and advanced technology involved in military hardware production.
Small Business Impact
The data indicates this award was made directly to General Dynamics Land Systems Inc. and does not mention any subcontracting opportunities for small businesses. Further investigation would be needed to determine if small businesses were involved.
Oversight & Accountability
The contract is a delivery order under a larger agreement. Oversight would focus on monitoring the costs incurred under the Cost Plus Fixed Fee structure and ensuring efficient delivery of parts.
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 lacks competition.
- Cost Plus Fixed Fee contract type poses cost control risks.
- No indication of small business participation.
- Potential for cost overruns due to contract type.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.4 million to GENERAL DYNAMICS LAND SYSTEMS INC.. THE PURPOSE OF THIS UNILATERAL AWARD OF DELIVERY ORDER W56HZV-20-F-0411 IS TO FUND THE WHOLESALE SUPPLY STRYKER DOUBLE V HULL [DVH] A1 PIPELINE DELTA SPARE PARTS IN SUPPORT OF 143 STRYKER DVH A1 VEHICLES.
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 $34.4 million.
What is the period of performance?
Start: 2020-09-03. End: 2022-06-23.
What is the justification for a sole-source award for these specific spare parts, and were alternative sources considered?
The justification for a sole-source award is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. For spare parts, this could be due to proprietary designs, unique manufacturing capabilities, or existing platform integration. Without further documentation, it's unclear if alternative sources were thoroughly explored or if this is a case of single-source necessity.
How does the Cost Plus Fixed Fee structure impact the government's ability to control costs for these spare parts?
The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recover all allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost can fluctuate based on actual expenses. This structure can incentivize contractors to incur costs to increase their profit margin if oversight is weak. Effective government oversight is crucial to scrutinize costs and ensure they are reasonable and allocable to the contract.
What is the projected total cost of ownership for the Stryker DVH A1 vehicles, considering the ongoing need for spare parts?
The provided data only details a single delivery order for spare parts totaling $34.4 million. It does not offer insight into the overall cost of ownership for the Stryker DVH A1 vehicles. A comprehensive total cost of ownership analysis would require data on acquisition costs, sustainment, maintenance, upgrades, fuel, personnel, and the lifecycle of the entire fleet, not just this specific parts procurement.
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: 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: $34,392,690
Exercised Options: $34,392,690
Current Obligation: $34,392,690
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $717,121
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV19D0054
IDV Type: IDC
Timeline
Start Date: 2020-09-03
Current End Date: 2022-06-23
Potential End Date: 2022-06-23 12:06:00
Last Modified: 2025-03-05
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