Army awards $23.8M for Abrams Tank Trophy Kits, with General Dynamics as sole awardee
Contract Overview
Contract Amount: $23,866,441 ($23.9M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2022-07-07
End Date: 2026-05-31
Contract Duration: 1,424 days
Daily Burn Rate: $16.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ARMY CONTRACTING COMMAND ARMY CONTRACTING COMMAND--DETROIT ARSENAL (DTA) IS PROCURING DETROIT ARSENAL (DTA) IS PROCURING TROPHY KITS FOR THE M1A2 SEPV2 AND M1A2 SEPV3 ABRAMS FAMILY OF VEHICLES (FOV).
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $23.9 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: ARMY CONTRACTING COMMAND ARMY CONTRACTING COMMAND--DETROIT ARSENAL (DTA) IS PROCURING DETROIT ARSENAL (DTA) IS PROCURING TROPHY KITS FOR THE M1A2 SEPV2 AND M1A2 SEPV3 ABRAMS FAMILY OF VEHICLES (FOV). Key points: 1. The contract is for Trophy Active Protection Systems for Abrams tanks. 2. General Dynamics Land Systems Inc. is the sole awardee. 3. The contract has a duration of 1424 days. 4. This procurement falls under the Military Armored Vehicle manufacturing sector.
Value Assessment
Rating: fair
The contract value of $23.8M for Trophy Kits appears reasonable given the specialized nature of active protection systems for main battle tanks. Benchmarking against similar advanced defense system procurements would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under full and open competition, but General Dynamics Land Systems Inc. is the sole awardee. This suggests potential limitations in the competitive landscape for this specific system or a strategic decision to award to a known provider.
Taxpayer Impact: Taxpayer funds are being used for advanced military hardware, aiming to enhance soldier survivability and platform effectiveness.
Public Impact
Enhances survivability of M1A2 Abrams tanks on the battlefield. Supports modernization efforts within the U.S. Army. Procurement of advanced defense technology. Potential for technology transfer and domestic manufacturing capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole awardee raises questions about competitive pricing.
- Limited public data on system performance and cost-effectiveness.
- Long contract duration could lead to cost overruns if not managed.
Positive Signals
- Addresses critical soldier protection needs.
- Utilizes advanced, proven technology.
- Supports a key platform in the Army's inventory.
Sector Analysis
This contract falls within the Defense Industrial Base, specifically focusing on armored vehicle components and advanced military systems. Spending in this sector is often driven by geopolitical factors and modernization requirements.
Small Business Impact
The data indicates no specific set-aside for small businesses. Prime contractors like General Dynamics often subcontract, potentially creating opportunities for small businesses in the supply chain, but this is not explicitly detailed.
Oversight & Accountability
Oversight will be crucial to ensure the effective delivery of Trophy Kits and adherence to the firm-fixed-price contract terms. The Army Contracting Command's role is to manage this procurement and ensure value for money.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for limited competition driving up costs.
- Dependence on a single prime contractor.
- Complexity of integrating advanced technology.
- Long-term sustainment and upgrade costs.
- Effectiveness in diverse combat environments.
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 $23.9 million to GENERAL DYNAMICS LAND SYSTEMS INC.. ARMY CONTRACTING COMMAND ARMY CONTRACTING COMMAND--DETROIT ARSENAL (DTA) IS PROCURING DETROIT ARSENAL (DTA) IS PROCURING TROPHY KITS FOR THE M1A2 SEPV2 AND M1A2 SEPV3 ABRAMS FAMILY OF VEHICLES (FOV).
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 $23.9 million.
What is the period of performance?
Start: 2022-07-07. End: 2026-05-31.
What is the specific cost per Trophy Kit, and how does it compare to industry benchmarks for similar active protection systems?
The provided data does not specify the number of units or the per-unit cost. A detailed cost breakdown is needed to compare against industry benchmarks. Without this, it's difficult to assess if the $23.8M represents a fair price per system, especially considering the advanced technology involved in active protection systems.
What were the key factors that led to General Dynamics Land Systems Inc. being the sole awardee under full and open competition?
The sole awardee status under full and open competition suggests that either General Dynamics was the only bidder meeting all technical and performance requirements, or the specific nature of the Trophy system (e.g., proprietary technology, integration complexity) limited viable alternatives. Further analysis of the solicitation and bid responses would clarify the competitive dynamics.
How will the effectiveness and long-term value of these Trophy Kits be measured and validated throughout the contract period?
Effectiveness will likely be measured through rigorous testing, operational deployment feedback, and performance metrics defined in the contract. Long-term value assessment will involve analyzing the reduction in casualties and vehicle losses attributed to the Trophy system, alongside maintenance and upgrade costs over its lifecycle.
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
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: $23,866,441
Exercised Options: $23,866,441
Current Obligation: $23,866,441
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV22D0074
IDV Type: IDC
Timeline
Start Date: 2022-07-07
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 12:05:00
Last Modified: 2025-07-16
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