DoD Awards $302M HMMWV Delivery Order to AM General LLC for 1 M1152A1 Vehicles
Contract Overview
Contract Amount: $302,323,583 ($302.3M)
Contractor: AM General LLC
Awarding Agency: Department of Defense
Start Date: 2022-09-21
End Date: 2024-09-30
Contract Duration: 740 days
Daily Burn Rate: $408.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: HMMWV DELIVERY ORDER FOR ORDER YEAR 6 PURCHASE OF 1 M1152A1 HMMWV-ARMY
Place of Performance
Location: SOUTH BEND, ST JOSEPH County, INDIANA, 46617
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $302.3 million to AM GENERAL LLC for work described as: HMMWV DELIVERY ORDER FOR ORDER YEAR 6 PURCHASE OF 1 M1152A1 HMMWV-ARMY Key points: 1. This is a delivery order for a single HMMWV, a specialized military vehicle. 2. AM General LLC is the sole manufacturer of the M1152A1 variant. 3. The contract is firm-fixed-price, providing cost certainty for the government. 4. The award is for the Army's 6th order year, indicating an ongoing program.
Value Assessment
Rating: fair
The per-unit cost of approximately $302 million for one vehicle appears exceptionally high. This likely reflects the total value of the delivery order, not the cost of a single unit, which is not provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, likely due to the specialized nature of the HMMWV and AM General's sole manufacturing capability for this variant. This limits price discovery and potential cost savings.
Taxpayer Impact: Taxpayer funds are being used for a sole-source procurement, which may not represent the best value without competitive bidding.
Public Impact
Ensures continued availability of critical military vehicles for the Army. Supports a specific defense manufacturing capability and associated jobs. The high value of the order raises questions about the cost-effectiveness of acquiring single units.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High per-unit cost (if applicable)
- Lack of competition
- Sole-source award
Positive Signals
- Supports ongoing military readiness
- Firm-fixed-price contract provides cost certainty
Sector Analysis
This procurement falls within the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector. Spending in this sector is driven by defense budgets and modernization efforts, with significant consolidation among key manufacturers.
Small Business Impact
This contract was awarded directly to AM General LLC, a large business. There is no indication of subcontracting opportunities for small businesses within this specific delivery order.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and that the government is not overpaying for the acquired assets. Further justification for the lack of competition should be reviewed.
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
- Lack of competition
- Potentially high per-unit cost
- Limited transparency on pricing justification
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 $302.3 million to AM GENERAL LLC. HMMWV DELIVERY ORDER FOR ORDER YEAR 6 PURCHASE OF 1 M1152A1 HMMWV-ARMY
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 $302.3 million.
What is the period of performance?
Start: 2022-09-21. End: 2024-09-30.
What is the actual per-unit cost of the M1152A1 HMMWV in this order?
The provided data lists a total award amount of $302,323,583.23 for one M1152A1 HMMWV. This figure is highly unusual for a single vehicle and likely represents the total value of the delivery order, which may include associated services, support, or a batch of vehicles not explicitly detailed. Clarification is needed to determine the true per-unit cost.
What is the justification for the sole-source award, and what risks does it pose?
The sole-source award is likely due to AM General LLC being the exclusive manufacturer of the M1152A1 HMMWV variant. This lack of competition limits the government's ability to negotiate lower prices and explore alternative solutions, potentially leading to higher costs and reduced innovation. It also poses a risk if AM General faces production issues.
How does this procurement contribute to overall Army readiness and value for taxpayer money?
This order ensures the Army receives a specific, critical vehicle variant, contributing to operational readiness. However, the significant value of the order, especially if the per-unit cost is indeed as high as indicated, raises concerns about value for taxpayer money. Without competition, it's difficult to ascertain if a better price or alternative could have been achieved.
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: $3,332,323,583
Exercised Options: $302,323,583
Current Obligation: $302,323,583
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $1,158,491
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV17D0071
IDV Type: IDC
Timeline
Start Date: 2022-09-21
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 12:09:00
Last Modified: 2025-12-16
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