DoD Awards $47.5M for OMFV Phase 2 Concept Design to American Rheinmetall Vehicles
Contract Overview
Contract Amount: $47,468,040 ($47.5M)
Contractor: American Rheinmetall Vehicles, LLC
Awarding Agency: Department of Defense
Start Date: 2021-07-23
End Date: 2022-12-31
Contract Duration: 526 days
Daily Burn Rate: $90.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: OMFV PHASE 2 CONCEPT DESIGN EFFORT
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48312
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $47.5 million to AMERICAN RHEINMETALL VEHICLES, LLC for work described as: OMFV PHASE 2 CONCEPT DESIGN EFFORT Key points: 1. Significant investment in next-generation armored vehicle technology. 2. Competition was full and open, suggesting a robust market. 3. Potential risks include program delays and cost overruns common in defense acquisition. 4. Sector focus is on advanced military vehicle manufacturing.
Value Assessment
Rating: good
The contract value of $47.5M for a concept design phase appears reasonable given the complexity of developing advanced military vehicles. Benchmarking against similar, albeit less complex, defense design contracts suggests this is within an expected range.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple capable vendors had the opportunity to bid. This method generally promotes competitive pricing and encourages innovation.
Taxpayer Impact: Taxpayer funds are being used for critical defense modernization, aiming for a technologically superior armored vehicle fleet.
Public Impact
Enhances U.S. Army's armored vehicle capabilities. Supports technological advancement in defense manufacturing. Potential for job creation in the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Complexity of OMFV program.
- Long development timelines typical for defense systems.
- Potential for scope creep.
Positive Signals
- Full and open competition.
- Firm Fixed Price contract type.
- Experienced contractor.
Sector Analysis
This contract falls within the defense sector, specifically focusing on the manufacturing of advanced military armored vehicles. Spending benchmarks in this niche area are highly variable, but significant R&D investments are common for next-generation platforms.
Small Business Impact
While the prime contractor is a large entity, the program's scale may create opportunities for small businesses in the supply chain for specialized components and services.
Oversight & Accountability
The Department of the Army's oversight is crucial for managing the OMFV program's technical execution and financial expenditures to ensure accountability and achieve program objectives.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Program complexity and potential for delays.
- Technological obsolescence risk.
- Cost growth potential in later phases.
- Integration challenges with existing systems.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, mi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.5 million to AMERICAN RHEINMETALL VEHICLES, LLC. OMFV PHASE 2 CONCEPT DESIGN EFFORT
Who is the contractor on this award?
The obligated recipient is AMERICAN RHEINMETALL VEHICLES, 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 $47.5 million.
What is the period of performance?
Start: 2021-07-23. End: 2022-12-31.
What is the projected total lifecycle cost of the OMFV program beyond this concept design phase?
The total lifecycle cost for the OMFV program is not detailed in this specific contract award. However, programs of this magnitude typically involve billions of dollars over several years, encompassing development, testing, production, and sustainment. Detailed cost projections are usually developed in later phases and are subject to congressional appropriations and program adjustments.
How does the awarded amount compare to the initial cost estimates for the concept design phase?
Without access to the initial cost estimates for the OMFV Phase 2 concept design, a direct comparison is not possible. However, the fact that it was awarded under full and open competition suggests the pricing was deemed competitive and reasonable by the contracting agency based on the bids received and market research.
What are the key performance metrics and milestones for this concept design effort?
Key performance metrics and milestones for this concept design effort would typically include the delivery of detailed design specifications, prototypes, and technical documentation that meet the Army's requirements for the Optionally Manned Fighting Vehicle. Specific milestones and their associated deliverables are usually outlined in the contract's statement of work.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W56HZV20R0142
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rheinmetall AG
Address: 33844 STERLING PONDS BLVD, STERLING HEIGHTS, MI, 48312
Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations
Financial Breakdown
Contract Ceiling: $47,468,040
Exercised Options: $47,468,040
Current Obligation: $47,468,040
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-07-23
Current End Date: 2022-12-31
Potential End Date: 2022-12-31 12:12:00
Last Modified: 2022-11-15
More Contracts from American Rheinmetall Vehicles, LLC
- Phase 3 and 4 Development With 7 Prototype Deliverables of the Optionally Manned Fighting Vehicle — $696.4M (Department of Defense)
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