DoD Awards $416M for HMMWV Chassis and Enclosures to AM General LLC
Contract Overview
Contract Amount: $416,010,021 ($416.0M)
Contractor: AM General LLC
Awarding Agency: Department of Defense
Start Date: 2022-09-09
End Date: 2028-05-31
Contract Duration: 2,091 days
Daily Burn Rate: $199.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTACT MAINTENANCE TRUCKS PRODUCTION. DELIVERY ORDER FOR 254 HMMWV CHASSIS AND 813 SECM ENCLOSURES.
Place of Performance
Location: SOUTH BEND, ST JOSEPH County, INDIANA, 46617
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $416.0 million to AM GENERAL LLC for work described as: CONTACT MAINTENANCE TRUCKS PRODUCTION. DELIVERY ORDER FOR 254 HMMWV CHASSIS AND 813 SECM ENCLOSURES. Key points: 1. Significant award for essential military vehicle components. 2. AM General LLC is a key player in armored vehicle manufacturing. 3. Potential risk associated with sole-source procurement. 4. Spending aligns with the defense manufacturing sector.
Value Assessment
Rating: fair
The total award of $416M for 254 HMMWV chassis and 813 SECM enclosures appears substantial. Benchmarking against similar large-scale vehicle production contracts is difficult without more granular cost data, but the per-unit cost for chassis and enclosures warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to AM General LLC. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these HMMWV components.
Public Impact
Ensures continued production and maintenance of critical military vehicles. Supports a major defense contractor and its supply chain. Impacts readiness and operational capabilities of ground forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Long contract duration
- Lack of competition
Positive Signals
- Essential military equipment
- Established manufacturer
Sector Analysis
This contract falls within the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector. Spending in this area is driven by defense budgets and modernization efforts, with significant investments often made in specialized, high-cost equipment.
Small Business Impact
This contract does not appear to directly benefit small businesses, as it is awarded to a large prime contractor, AM General LLC. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award notice.
Oversight & Accountability
The Department of the Army is the awarding agency. Oversight will be crucial to ensure timely delivery, quality control, and adherence to the firm fixed price terms, especially given the sole-source nature of the award.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Long-term delivery schedule may introduce risks.
- Potential for cost overruns without competition.
- Dependence on a single supplier.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, in, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $416.0 million to AM GENERAL LLC. CONTACT MAINTENANCE TRUCKS PRODUCTION. DELIVERY ORDER FOR 254 HMMWV CHASSIS AND 813 SECM ENCLOSURES.
Who is the contractor on this award?
The obligated recipient is AM GENERAL 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 $416.0 million.
What is the period of performance?
Start: 2022-09-09. End: 2028-05-31.
What is the justification for the sole-source award, and was a market research conducted to confirm no other capable sources exist?
The justification for a sole-source award is critical for ensuring fair pricing and taxpayer value. Without a competitive process, it's imperative that the Department of Defense can demonstrate that AM General LLC is the only responsible source capable of meeting the requirements, or that exceptional circumstances necessitate this approach. Market research should have been performed to validate this exclusivity.
How does the per-unit cost of these HMMWV chassis and enclosures compare to historical data or industry benchmarks for similar components?
A detailed cost analysis comparing the per-unit price of the HMMWV chassis and enclosures to historical contract data, industry benchmarks, or even commercial equivalents (where applicable) is essential. This comparison helps determine if the negotiated price reflects fair market value, especially in the absence of competitive bidding, and identifies potential areas of overpricing.
What are the specific performance metrics and quality assurance measures in place to ensure the reliability and durability of the delivered HMMWV components?
Given the critical nature of military vehicles, robust performance metrics and stringent quality assurance protocols are paramount. The contract should clearly define acceptable performance standards, testing procedures, and defect resolution processes. Effective oversight of these measures will ensure the delivered components meet the demanding operational requirements of the armed forces.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 105 N NILES AVE, SOUTH BEND, IN, 46617
Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $943,010,021
Exercised Options: $416,010,021
Current Obligation: $416,010,021
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $6,829,208
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV22D0002
IDV Type: IDC
Timeline
Start Date: 2022-09-09
Current End Date: 2028-05-31
Potential End Date: 2028-05-31 12:05:00
Last Modified: 2025-12-22
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