DoD Awards $170M Task Order to General Dynamics for Automotive Repair Services
Contract Overview
Contract Amount: $17,038,941 ($17.0M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2021-03-01
End Date: 2023-01-06
Contract Duration: 676 days
Daily Burn Rate: $25.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CLS - FSR AND MECH TASK ORDER
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $17.0 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: CLS - FSR AND MECH TASK ORDER Key points: 1. Significant contract value of $170.39 million awarded. 2. General Dynamics Land Systems Inc. is the sole awardee. 3. Contract covers automotive repair services, a critical operational need. 4. The duration of the contract is 676 days. 5. This is a delivery order under an existing contract.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The award amount is substantial, and without specific benchmarks for this type of service, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, as a delivery order under an existing contract, the initial competition for the parent contract is more relevant than for this specific order.
Taxpayer Impact: Taxpayer funds are being used for essential automotive repair services, supporting military readiness. The competitive nature of the award aims to ensure reasonable pricing, but the cost-plus-fixed-fee structure warrants close monitoring.
Public Impact
Ensures continued operational readiness of military vehicles through essential repair services. Supports a major defense contractor, contributing to the defense industrial base. Potential impact on the availability of specialized automotive repair technicians. Funds allocated for maintenance could otherwise be used for new equipment procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of specific performance metrics in provided data.
- Potential for scope creep in automotive repair tasks.
Positive Signals
- Awarded under full and open competition.
- Supports critical military operational needs.
- Long-term contract provides stability for services.
Sector Analysis
The defense sector relies heavily on contractors for specialized maintenance and repair services to ensure fleet readiness. Spending benchmarks for automotive repair can vary widely based on vehicle types and complexity, but $170 million indicates a significant scope of work.
Small Business Impact
The data indicates this contract was awarded to a large business (General Dynamics Land Systems Inc.) and does not show any specific set-asides for small businesses. Therefore, the direct impact on small businesses in this specific award appears minimal.
Oversight & Accountability
Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs remain reasonable and within scope. The Department of the Army's contracting officers will be responsible for monitoring performance and expenditures to ensure accountability.
Related Government Programs
- General Automotive Repair
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for cost overruns.
- Lack of detailed performance metrics.
- Significant contract value requires close monitoring.
Tags
general-automotive-repair, department-of-defense, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.0 million to GENERAL DYNAMICS LAND SYSTEMS INC.. CLS - FSR AND MECH TASK ORDER
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 $17.0 million.
What is the period of performance?
Start: 2021-03-01. End: 2023-01-06.
What specific types of vehicles and repair services are covered under this task order, and how do the estimated costs align with industry standards for such services?
The provided data does not specify the exact vehicle types or the detailed scope of repair services. To assess value, a breakdown of labor hours, parts costs, and overhead rates would be needed. Benchmarking against similar contracts for fleet maintenance within the DoD or comparable large-scale operations would be essential for a thorough value analysis.
What are the key performance indicators (KPIs) for this contract, and how will the Army ensure timely and effective completion of repairs to maintain operational readiness?
Key performance indicators are not detailed in the provided data. Effective oversight would involve establishing clear metrics for turnaround time, quality of repairs, and cost control. Regular performance reviews and site visits by contracting officers would be necessary to monitor progress and address any potential issues proactively.
Given the Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure the government receives the best possible value?
The fixed fee component provides some cost certainty, but the 'cost plus' aspect requires diligent oversight. The Army should implement robust auditing procedures for incurred costs, require detailed justifications for any changes in scope, and establish clear ceilings. Regular reporting and negotiation of any necessary adjustments based on performance and market conditions are critical.
Industry Classification
NAICS: Other Services (except Public Administration) › Automotive Repair and Maintenance › General Automotive Repair
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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: $17,038,941
Exercised Options: $17,038,941
Current Obligation: $17,038,941
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV20D0075
IDV Type: IDC
Timeline
Start Date: 2021-03-01
Current End Date: 2023-01-06
Potential End Date: 2023-01-06 00:00:00
Last Modified: 2025-09-12
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