DoD Awards $20.9M for HMMWV Reset and Upgrade Program, Including Spare Parts and Support
Contract Overview
Contract Amount: $20,896,908 ($20.9M)
Contractor: AM General LLC
Awarding Agency: Department of Defense
Start Date: 2023-08-04
End Date: 2025-07-18
Contract Duration: 714 days
Daily Burn Rate: $29.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TRUE FMS FUNDING FOR FOREIGN MILITARY SALES (FMS) CASE JO-B-YCA TO FUND PHASE II REQUIREMENTS OF THE HIGH MOBILITY MULTI-PURPOSE WHEELED VEHICLE (HMMWV) RESET AND UPGRADE PROGRAM INCLUDING SPARE PARTS AND FIELD SERVICE REPRESENTATIVE (FSR) SUPPORT.
Place of Performance
Location: SOUTH BEND, ST JOSEPH County, INDIANA, 46617
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $20.9 million to AM GENERAL LLC for work described as: TRUE FMS FUNDING FOR FOREIGN MILITARY SALES (FMS) CASE JO-B-YCA TO FUND PHASE II REQUIREMENTS OF THE HIGH MOBILITY MULTI-PURPOSE WHEELED VEHICLE (HMMWV) RESET AND UPGRADE PROGRAM INCLUDING SPARE PARTS AND FIELD SERVICE REPRESENTATIVE (FSR) SUPPORT. Key points: 1. Significant funding allocated for essential military vehicle maintenance and modernization. 2. Sole source award to AM General LLC, a key player in military vehicle manufacturing. 3. Potential for cost overruns or delays given the complexity of reset and upgrade programs. 4. Spending falls within the broader 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' sector.
Value Assessment
Rating: fair
The contract value of $20.9 million for HMMWV reset and upgrade is substantial. Benchmarking against similar large-scale vehicle modernization programs is difficult without more detailed cost breakdowns, but the inclusion of spare parts and field support suggests a comprehensive approach.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to AM General LLC. While this ensures specialized expertise, it limits price discovery and competition, potentially leading to higher costs than a competitively bid contract.
Taxpayer Impact: Taxpayer funds are being used to maintain and upgrade critical military assets, ensuring operational readiness. The sole-source nature warrants scrutiny to ensure fair pricing.
Public Impact
Ensures continued operational readiness of the HMMWV fleet, a critical asset for military operations. Supports jobs and economic activity within the defense manufacturing sector. Funds are directed towards maintaining and enhancing existing military equipment rather than acquiring new platforms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing.
- Potential for scope creep in reset and upgrade programs.
- Long-term sustainment costs for HMMWVs may be significant.
Positive Signals
- Addresses critical maintenance needs for a vital military asset.
- Leverages established expertise of AM General LLC.
- Includes essential spare parts and field support for program success.
Sector Analysis
This contract falls under the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' sector. Spending in this area is driven by defense modernization needs and the sustainment of existing fleets, with significant government investment typical for such programs.
Small Business Impact
The award was made directly to AM General LLC, a large business. There is no indication of subcontracting opportunities for small businesses within this specific contract award notice.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for oversight. The contract type (firm fixed price) aims to control costs, but the sole-source nature requires diligent monitoring by the contracting officer and program managers to 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
- Sole-source award
- Potential for cost overruns
- Long-term sustainment costs
- Limited transparency on pricing justification
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.9 million to AM GENERAL LLC. TRUE FMS FUNDING FOR FOREIGN MILITARY SALES (FMS) CASE JO-B-YCA TO FUND PHASE II REQUIREMENTS OF THE HIGH MOBILITY MULTI-PURPOSE WHEELED VEHICLE (HMMWV) RESET AND UPGRADE PROGRAM INCLUDING SPARE PARTS AND FIELD SERVICE REPRESENTATIVE (FSR) SUPPORT.
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 $20.9 million.
What is the period of performance?
Start: 2023-08-04. End: 2025-07-18.
What is the historical cost performance of AM General LLC on similar HMMWV reset and upgrade programs?
Historical cost performance data for AM General LLC on similar HMMWV reset and upgrade programs is crucial for assessing the value of this $20.9 million award. Without access to past contract data, including cost overruns, schedule adherence, and the effectiveness of previous upgrades, it's difficult to definitively determine if the current pricing is competitive or represents a fair value for the taxpayer. Further analysis would require reviewing historical contract closeouts and performance metrics.
What are the specific risks associated with a sole-source award for military vehicle upgrades?
Sole-source awards for military vehicle upgrades carry inherent risks. Primarily, the lack of competition can lead to inflated prices as the contractor faces less pressure to offer the most cost-effective solution. It also reduces the incentive for innovation and efficiency. Furthermore, without competitive benchmarking, it's harder to ensure the government is receiving the best possible value and that the scope of work is appropriately defined and executed.
How effective is the HMMWV reset and upgrade program in extending the service life and enhancing the capabilities of the existing fleet?
The effectiveness of the HMMWV reset and upgrade program is critical to its justification. This program aims to extend the service life of aging vehicles and potentially enhance their capabilities to meet modern battlefield requirements. Success hinges on the thoroughness of the 'reset' process (restoring vehicles to a like-new condition) and the relevance of the 'upgrade' components. Measuring effectiveness requires tracking fleet readiness rates, failure rates post-upgrade, and operational feedback from end-users.
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: $20,896,908
Exercised Options: $20,896,908
Current Obligation: $20,896,908
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: 2023-08-04
Current End Date: 2025-07-18
Potential End Date: 2025-07-18 12:07:00
Last Modified: 2025-03-05
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