DoD awards $2.5M for vehicle repair, with General Dynamics Land Systems Inc. as the contractor

Contract Overview

Contract Amount: $25,020,660 ($25.0M)

Contractor: General Dynamics Land Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2022-03-01

End Date: 2023-05-31

Contract Duration: 456 days

Daily Burn Rate: $54.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NET/FIELDING TASK ORDER W56HZV-20-D-0075 TO W56HZV-22-F-0118

Place of Performance

Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $25.0 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: NET/FIELDING TASK ORDER W56HZV-20-D-0075 TO W56HZV-22-F-0118 Key points: 1. Contract value represents a portion of broader vehicle maintenance spending. 2. Competition dynamics suggest a potentially competitive bidding process. 3. Performance period spans over a year, indicating ongoing service needs. 4. Sector positioning is within military vehicle sustainment, a critical defense function. 5. Risk indicators include the cost-plus-fixed-fee pricing structure, which can allow for cost overruns.

Value Assessment

Rating: fair

The contract value of $2.5 million for vehicle repair is modest in the context of large defense contracts. Benchmarking against similar contracts for general automotive repair services is challenging without more specific details on the scope of work. The cost-plus-fixed-fee (CPFF) structure, while common, warrants scrutiny to ensure efficient cost management by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. This approach generally promotes competitive pricing and allows the government to select the best value offer. The specific number of bidders is not provided, but the designation suggests a robust competition.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically drives down prices through market forces, ensuring that government funds are used more efficiently.

Public Impact

Military personnel and units relying on operational vehicles benefit from timely and effective repair services. The contract supports the maintenance of essential automotive equipment for the Department of the Army. Geographic impact is primarily within Michigan, where the contractor is located. Workforce implications include employment opportunities for skilled automotive technicians and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize higher costs if not closely monitored.
The duration of the contract (456 days) requires sustained oversight to ensure performance.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Contractor has a track record with the Department of Defense, implying familiarity with requirements.

Sector Analysis

This contract falls within the defense sector, specifically focusing on vehicle maintenance and repair. The market for defense vehicle sustainment is substantial, with numerous contractors specializing in various aspects of military equipment upkeep. This contract represents a small component of the overall spending on maintaining the Army's fleet, which includes a wide range of vehicles from light tactical to heavy armored units.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). Therefore, the primary focus is on the prime contractor. There is no explicit information on subcontracting plans for small businesses within this award, which could represent missed opportunities for the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Army. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Vehicle Maintenance Contracts
Army Fleet Support Services
General Automotive Repair Services

Risk Flags

Cost-plus-fixed-fee pricing structure requires careful monitoring to prevent cost overruns.
Scope of 'General Automotive Repair' needs clear definition to ensure comprehensive support.
Potential for limited small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.0 million to GENERAL DYNAMICS LAND SYSTEMS INC.. NET/FIELDING TASK ORDER W56HZV-20-D-0075 TO W56HZV-22-F-0118

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 $25.0 million.

What is the period of performance?

Start: 2022-03-01. End: 2023-05-31.

What is the track record of General Dynamics Land Systems Inc. with the Department of Defense, particularly in vehicle repair and maintenance?

General Dynamics Land Systems Inc. (GDLS) is a major defense contractor with a long-standing relationship with the Department of Defense, particularly the U.S. Army. They are well-known for designing, manufacturing, and supporting a wide range of armored vehicles, including the Abrams Main Battle Tank and the Stryker family of vehicles. Their involvement in vehicle repair and maintenance is extensive, often encompassing depot-level repairs, field service support, and parts provision. This specific contract for general automotive repair, valued at $2.5 million, is likely a smaller component of their overall portfolio, potentially supporting a broader range of vehicles beyond their core armored platforms. GDLS has a significant history of performing complex sustainment operations for the Army, indicating a strong capability to meet the requirements of such contracts.

How does the $2.5 million contract value compare to similar vehicle repair contracts awarded by the Department of the Army?

The $2.5 million contract value for general automotive repair is relatively modest when compared to the full spectrum of vehicle maintenance contracts awarded by the Department of the Army. The Army operates a vast and diverse fleet of vehicles, ranging from light tactical vehicles to heavy engineering equipment and armored fighting vehicles. Contracts for the sustainment of these major platforms, including depot-level overhauls or comprehensive fleet management, can easily run into tens or hundreds of millions of dollars. This $2.5 million award likely represents a specific task order for routine maintenance, repair of common automotive components, or support for a particular unit's vehicle fleet in a specific geographic area. Therefore, while significant for the scope it covers, it is not indicative of the Army's largest vehicle sustainment expenditures.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for vehicle repair?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for vehicle repair is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. This can incentivize contractors to incur higher costs, as their profit margin remains constant regardless of the total expenditure. For the government, this means that the final cost of the contract could exceed initial estimates if costs are not managed effectively. To mitigate this risk, robust oversight, detailed cost tracking, and clear definition of allowable costs are crucial. The fixed fee component does provide some incentive for efficiency, as the contractor does not earn more profit by spending more, but the risk of inflated costs remains a key concern that requires diligent management by the contracting officer and technical representatives.

What is the expected effectiveness of this contract in ensuring the operational readiness of Army vehicles?

The effectiveness of this contract in ensuring the operational readiness of Army vehicles hinges on several factors. Firstly, the scope of 'General Automotive Repair' needs to be clearly defined to ensure it covers critical maintenance needs. If it addresses routine servicing, timely repairs of common issues, and parts replacement for a significant portion of a unit's fleet, it can contribute positively to readiness. Secondly, the performance of General Dynamics Land Systems Inc. is crucial; their ability to deliver quality repairs within agreed timelines will directly impact vehicle availability. Finally, the contract's value of $2.5 million suggests it might be a component of a larger sustainment strategy. Its effectiveness will be maximized when integrated with other maintenance efforts, parts logistics, and technical support, ensuring that vehicles are not only repaired but also kept in a state of high operational readiness.

How has spending on vehicle repair and maintenance by the Department of the Army evolved over the past five years?

Spending on vehicle repair and maintenance by the Department of the Army has generally remained substantial over the past five years, reflecting the continuous need to sustain a large and aging fleet of diverse vehicles. While specific figures fluctuate annually based on operational tempo, budget allocations, and modernization programs, the overall trend indicates a consistent requirement for these services. Factors influencing spending include the deployment cycles of vehicles, the introduction of new platforms requiring specialized maintenance, and the increasing age of legacy systems necessitating more frequent repairs. The Army often utilizes a mix of organic (in-house) maintenance capabilities and contracted services, like this award to General Dynamics Land Systems Inc., to manage its sustainment needs. Budgetary pressures and strategic priorities can lead to shifts in how much is allocated to repair versus new procurement, but the fundamental need for effective vehicle maintenance remains a high priority.

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

Parent Company: Wico Limited

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: $25,020,660

Exercised Options: $25,020,660

Current Obligation: $25,020,660

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $42,844

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