DoD Awards $31.6M to General Dynamics for M1A1 Abrams Turret Armor Swap
Contract Overview
Contract Amount: $31,572,056 ($31.6M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2022-10-26
End Date: 2023-11-30
Contract Duration: 400 days
Daily Burn Rate: $78.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTRACT PURPOSE IS TO ACQUIRE ARMOR HARDWARE BY GDLS SWAPPING THE US ARMY ARMOR FOR FMS EXPORTABLE ARMOR ON 28 M1A1 TURRETS.
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $31.6 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: CONTRACT PURPOSE IS TO ACQUIRE ARMOR HARDWARE BY GDLS SWAPPING THE US ARMY ARMOR FOR FMS EXPORTABLE ARMOR ON 28 M1A1 TURRETS. Key points: 1. This contract focuses on swapping US Army armor for Foreign Military Sales (FMS) exportable armor on 28 M1A1 turrets. 2. The sole awardee is General Dynamics Land Systems Inc., a major defense contractor. 3. The contract is a definitive contract with a firm fixed price, indicating clear cost expectations. 4. The sector is dominated by large, established defense manufacturers like General Dynamics.
Value Assessment
Rating: fair
The contract value of $31.6 million for 28 turret armor swaps appears reasonable given the specialized nature of military hardware and the sole-source award. Benchmarking is difficult without more specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, likely due to the specific requirements of swapping existing US Army armor for FMS exportable armor on a particular platform. This limits price discovery and competition.
Taxpayer Impact: Taxpayer funds are used for this acquisition, which supports both US Army readiness and FMS requirements.
Public Impact
Enhances interoperability and capability for allied nations through FMS. Supports the modernization and sustainment of M1A1 Abrams tanks. Directly impacts the defense industrial base and employment within the sector. Ensures US military equipment can be adapted for international partners.
Waste & Efficiency Indicators
Waste Risk Score: 78 / 10
Warning Flags
- Lack of competition may lead to suboptimal pricing.
- Reliance on a single supplier for critical hardware modifications.
Positive Signals
- Addresses specific FMS requirements, enhancing partner capabilities.
- Utilizes a firm fixed price contract, providing cost certainty.
- Supports ongoing sustainment and modernization of key military assets.
Sector Analysis
This contract falls within the Defense sector, specifically Military Armored Vehicle manufacturing. Spending in this area is typically high and dominated by a few large prime contractors. Benchmarks are difficult without specific program details.
Small Business Impact
This contract was awarded directly to General Dynamics Land Systems Inc. and does not indicate any subcontracting to small businesses in the provided data. The nature of specialized armor modification may limit small business involvement.
Oversight & Accountability
As a sole-source award, oversight is crucial to ensure fair pricing and adherence to contract terms. The Department of the Army is responsible for monitoring performance and expenditures.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition.
- Potential for cost overruns if not closely monitored.
- Dependence on a single supplier for critical components.
- Limited transparency into cost drivers due to sole-source nature.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, mi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.6 million to GENERAL DYNAMICS LAND SYSTEMS INC.. CONTRACT PURPOSE IS TO ACQUIRE ARMOR HARDWARE BY GDLS SWAPPING THE US ARMY ARMOR FOR FMS EXPORTABLE ARMOR ON 28 M1A1 TURRETS.
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 $31.6 million.
What is the period of performance?
Start: 2022-10-26. End: 2023-11-30.
What is the specific justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically stems from unique technical requirements, existing system compatibility, or urgent needs where only one contractor can fulfill the requirement. For this contract, the specific need to swap US Army armor for FMS exportable armor on M1A1 turrets likely necessitates specialized knowledge and integration capabilities held by General Dynamics, the original equipment manufacturer. Alternative solutions may have been evaluated, but the specific nature of the upgrade likely favored a direct award.
How does the cost per turret compare to similar armor upgrade or modification contracts, if available?
Without access to detailed cost breakdowns or comparable contract data for similar M1A1 turret armor modifications, a precise per-unit cost benchmark is difficult to establish. The total contract value of $31.6 million for 28 turrets equates to approximately $1.13 million per turret. This figure needs to be assessed against the complexity of the swap, the specific armor types involved, and any associated integration or testing costs.
What is the long-term strategic value of this armor swap for US foreign military sales and readiness?
This armor swap directly supports US foreign policy objectives by providing upgraded capabilities to allied nations, enhancing their defense posture and interoperability with US forces. It ensures that partner nations receive equipment tailored to their specific needs while maintaining compatibility with US systems. This strengthens alliances and contributes to regional stability, indirectly benefiting US national security interests.
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
Solicitation ID: W56HZV22R0152
Offers Received: 1
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: $31,572,056
Exercised Options: $31,572,056
Current Obligation: $31,572,056
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $4,296,492
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-10-26
Current End Date: 2023-11-30
Potential End Date: 2023-11-30 12:11:00
Last Modified: 2024-05-07
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