DoD awards $21.3M for 144 SMET systems under full and open competition
Contract Overview
Contract Amount: $21,341,026 ($21.3M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2021-10-15
End Date: 2026-08-14
Contract Duration: 1,764 days
Daily Burn Rate: $12.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: FIVE-YEAR INDEFINITE DELIVERY/INDEFINITE QUANTITY (IDIQ) PRODUCTION CONTRACT FOR SMALL MULTIPURPOSE EQUIPMENT TRANSPORT (SMET) SYSTEMS). ORDER FOR 144 LOW RATE INITIAL PRODUCTION (LRIP)SMET SYSTEMS.
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $21.3 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: FIVE-YEAR INDEFINITE DELIVERY/INDEFINITE QUANTITY (IDIQ) PRODUCTION CONTRACT FOR SMALL MULTIPURPOSE EQUIPMENT TRANSPORT (SMET) SYSTEMS). ORDER FOR 144 LOW RATE INITIAL PRODUCTION (LRIP)SMET SYSTEMS. Key points: 1. Contract awarded to General Dynamics Land Systems Inc. for Small Multipurpose Equipment Transport (SMET) systems. 2. The contract is an Indefinite Delivery/Indefinite Quantity (IDIQ) with an initial order for 144 LRIP systems. 3. Spending is within the transportation equipment manufacturing sector. 4. The contract utilizes a Firm Fixed Price (FFP) type, which shifts cost risk to the contractor.
Value Assessment
Rating: good
The total value of the initial order is $21.34 million. Benchmarking against similar complex vehicle production contracts is difficult without more detailed specifications, but the per-unit cost appears reasonable for specialized military equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing for the government.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price for taxpayers, maximizing value for the $21.34 million investment.
Public Impact
Enhances Army's logistical capabilities with new transport systems. Supports modernization efforts within the Department of Defense. Potential for follow-on orders under the IDIQ contract. Contributes to the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in future orders under the IDIQ.
- Long-term sustainment costs not detailed in this initial award.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract structure.
- Supports critical military modernization.
Sector Analysis
This contract falls under the 'All Other Transportation Equipment Manufacturing' sector. Spending in this sector can vary widely based on defense needs and technological advancements. The $21.34 million award is a moderate investment for specialized military transport systems.
Small Business Impact
The contract was awarded to General Dynamics Land Systems Inc., a large business. There is no indication of small business participation in this specific award, which is common for prime contracts of this nature.
Oversight & Accountability
The Department of the Army is the procuring agency. Oversight will focus on contract performance, delivery schedules, and adherence to specifications for the SMET systems. The IDIQ structure allows for flexibility but requires diligent management of task orders.
Related Government Programs
- All Other Transportation Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost growth in future orders.
- Limited visibility into total IDIQ contract value.
- Lack of detail on specific system capabilities.
- No explicit small business participation noted.
Tags
all-other-transportation-equipment-manuf, department-of-defense, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.3 million to GENERAL DYNAMICS LAND SYSTEMS INC.. FIVE-YEAR INDEFINITE DELIVERY/INDEFINITE QUANTITY (IDIQ) PRODUCTION CONTRACT FOR SMALL MULTIPURPOSE EQUIPMENT TRANSPORT (SMET) SYSTEMS). ORDER FOR 144 LOW RATE INITIAL PRODUCTION (LRIP)SMET SYSTEMS.
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 $21.3 million.
What is the period of performance?
Start: 2021-10-15. End: 2026-08-14.
What is the projected total value of the IDIQ contract over its five-year lifespan, and how does this compare to similar multi-year equipment procurements?
The provided data only details the initial order value of $21.34 million for 144 units. The total value of the five-year IDIQ contract is not specified. Benchmarking against similar multi-year procurements would require access to data on the total ceiling value of comparable contracts and their actualized spending over their lifespans.
What are the specific technical capabilities and intended operational roles of the SMET systems, and how do these justify the investment?
The data describes the SMET systems as 'Small Multipurpose Equipment Transport' systems. Their specific technical capabilities and intended operational roles are not detailed. Justification for the $21.34 million investment would stem from their ability to enhance logistical efficiency, reduce manpower requirements, or perform tasks in environments unsuitable for larger vehicles, thereby increasing operational effectiveness.
What mechanisms are in place to ensure cost-effectiveness and prevent cost overruns throughout the life of the IDIQ contract, especially if future orders significantly exceed the initial LRIP?
The contract is Firm Fixed Price (FFP), which places cost risk on the contractor for the awarded items. However, for future orders under the IDIQ, the government must ensure competitive pricing is sought for each task order. Robust oversight of contract modifications and performance metrics will be crucial to manage costs effectively and prevent overruns.
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: $21,341,026
Exercised Options: $21,341,026
Current Obligation: $21,341,026
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $420,418
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
Start Date: 2021-10-15
Current End Date: 2026-08-14
Potential End Date: 2026-08-14 12:08:00
Last Modified: 2025-11-26
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