DoD's $24.6M contract for FSRS and mechanics services awarded to General Dynamics Land Systems Inc

Contract Overview

Contract Amount: $24,647,170 ($24.6M)

Contractor: General Dynamics Land Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2023-03-01

End Date: 2024-02-29

Contract Duration: 365 days

Daily Burn Rate: $67.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 2023 CLS TASK ORDER FOR FSRS AND MECHANICS

Place of Performance

Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $24.6 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: 2023 CLS TASK ORDER FOR FSRS AND MECHANICS Key points: 1. Value for money assessed through comparison with similar contracts and market rates. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators are monitored through contract performance and contractor track record. 4. Performance context is framed by the duration and type of contract. 5. Sector positioning within the defense industry's maintenance and repair services. 6. The contract type (Cost Plus Fixed Fee) requires careful oversight of costs.

Value Assessment

Rating: good

The contract's value of $24.6 million for a one-year period appears reasonable for specialized automotive repair and maintenance services for the Department of the Army. Benchmarking against similar contracts for fleet maintenance and repair within the Department of Defense suggests that pricing is within expected ranges, especially considering the complexity of military vehicle systems. The Cost Plus Fixed Fee structure necessitates diligent oversight to ensure costs remain controlled and that the fixed fee is commensurate with the effort required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of robust competition is generally favorable for price discovery and can lead to more cost-effective solutions for the government. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive environment was sought.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices, preventing potential overcharges that could arise from less competitive or sole-source arrangements.

Public Impact

The primary beneficiaries are the units within the Department of the Army relying on functional and well-maintained vehicles for their operations. Services delivered include general automotive repair and maintenance, crucial for the readiness of military equipment. The geographic impact is primarily within Michigan, where the contract is managed and services are likely performed. Workforce implications include employment opportunities for skilled mechanics and automotive technicians employed by General Dynamics Land Systems Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs if not properly managed, as the government bears the direct cost of performance.
The specific nature of 'FSRS and mechanics' requires detailed understanding of military vehicle systems, potential for specialized parts and labor costs.
Contract duration of one year may limit long-term strategic planning for maintenance efficiency.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process that can lead to better pricing.
General Dynamics Land Systems Inc. is a large, established defense contractor with significant experience in vehicle systems.
The contract is for essential maintenance and repair services, directly supporting military readiness.

Sector Analysis

The defense sector's maintenance, repair, and overhaul (MRO) market is substantial, encompassing a wide range of services for military equipment. This contract falls within the broader category of fleet readiness and sustainment, a critical component of defense spending. Comparable spending benchmarks in this area often relate to the total cost of ownership for military vehicles, including acquisition, operation, and sustainment. The market is characterized by a mix of large prime contractors and specialized subcontractors.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. While General Dynamics Land Systems Inc. is a large prime contractor, there may be opportunities for small businesses to act as subcontractors for specialized parts or services, though this is not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on the subcontracting plan, if any.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed cost reporting and justification. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Vehicle Maintenance Contracts
Army Fleet Support Services
General Automotive Repair Contracts
Cost Plus Fixed Fee Service Contracts
Defense Logistics Agency Contracts

Risk Flags

Cost Plus Fixed Fee contract requires diligent oversight to manage costs.
Potential for specialized parts and labor costs in military vehicle repair.
Contract duration of one year may limit long-term efficiency gains.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.6 million to GENERAL DYNAMICS LAND SYSTEMS INC.. 2023 CLS TASK ORDER FOR FSRS AND MECHANICS

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 $24.6 million.

What is the period of performance?

Start: 2023-03-01. End: 2024-02-29.

What is the historical spending pattern for General Dynamics Land Systems Inc. with the Department of Defense for similar services?

General Dynamics Land Systems Inc. (GDLS) has a long-standing and extensive history of contracting with the Department of Defense (DoD), primarily focused on armored vehicle development, production, and sustainment. While this specific contract is for general automotive repair and mechanics, GDLS's core business involves complex military vehicle platforms. Historical spending with GDLS by the DoD runs into billions of dollars annually, covering a wide array of services from research and development to full-scale production and lifecycle support. Analyzing their broader contract portfolio reveals a significant capacity for managing large, complex defense contracts. For services directly comparable to general automotive repair, their spending might be less prominent than their work on specialized combat vehicles, but their overall relationship with the DoD suggests a deep understanding of government procurement processes and performance expectations.

How does the Cost Plus Fixed Fee (CPFF) structure for this contract compare to other contract types used for similar maintenance services?

The Cost Plus Fixed Fee (CPFF) contract type used here is common for services where the scope of work can be well-defined, but the exact costs are difficult to estimate upfront, such as complex maintenance or repair. In a CPFF contract, the government reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. This contrasts with Fixed Price contracts, where the contractor agrees to a total price regardless of actual costs, offering more cost certainty to the government but potentially higher risk for the contractor. Cost-Reimbursement contracts (like Cost Plus Incentive Fee or Cost Plus Award Fee) also exist, offering different incentive structures. For routine fleet maintenance, Fixed Price contracts might be preferred for predictability. However, for specialized military vehicle systems requiring extensive diagnostics and repair, CPFF can be appropriate, provided robust oversight is in place to manage costs effectively and ensure the fixed fee remains reasonable for the effort involved.

What are the key performance indicators (KPIs) typically monitored for a contract of this nature?

For a contract involving general automotive repair and mechanics for military vehicles, key performance indicators (KPIs) would likely focus on ensuring operational readiness and cost efficiency. Common KPIs include vehicle downtime (average time a vehicle is out of service for repair), repair turnaround time (average time to complete a repair), first-time fix rate (percentage of repairs completed correctly on the first attempt), parts availability and accuracy, and adherence to maintenance schedules. Cost-related KPIs would involve tracking actual costs against the estimated costs, managing the fixed fee effectively, and ensuring compliance with budgetary constraints. Customer satisfaction, often measured through feedback from the units utilizing the repaired vehicles, would also be a critical indicator of performance. Adherence to safety standards and quality control measures would be paramount throughout the repair process.

What is the potential impact of this contract on the overall readiness of the Army's vehicle fleet in Michigan?

This contract, valued at approximately $24.6 million over one year, directly supports the operational readiness of the Army's vehicle fleet within Michigan by ensuring timely and effective maintenance and repair services. By outsourcing these functions to General Dynamics Land Systems Inc., the Army can leverage specialized expertise and potentially reduce internal maintenance backlogs. Prompt repairs and regular servicing, as facilitated by this contract, are crucial for minimizing vehicle downtime and ensuring that vehicles are available when and where needed for training, deployment, and other operational missions. The effectiveness of this contract in bolstering readiness will depend on the contractor's ability to meet performance standards, maintain high-quality repairs, and manage turnaround times efficiently, thereby contributing to the overall serviceability and reliability of the Army's assets in the region.

Are there any specific risks associated with General Dynamics Land Systems Inc. as a contractor for this type of service?

General Dynamics Land Systems Inc. (GDLS) is a major defense contractor with extensive experience, which generally mitigates many risks associated with contractor performance. However, potential risks can still exist. For a contract focused on general automotive repair, a key risk might be ensuring that the contractor's processes and personnel are adequately equipped to handle the specific types of vehicles and potential wear-and-tear unique to military applications, which can differ significantly from civilian automotive repair. Another consideration is the potential for cost overruns under the Cost Plus Fixed Fee structure if not managed with rigorous oversight, although GDLS's experience may lend itself to better cost estimation and control. Furthermore, while GDLS is a large entity, the availability of specialized technicians and parts for specific military systems could pose a logistical challenge that might impact turnaround times or repair quality if not proactively managed.

Industry Classification

NAICS: Other Services (except Public Administration) › Automotive Repair and Maintenance › General Automotive Repair

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

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: $24,647,170

Exercised Options: $24,647,170

Current Obligation: $24,647,170

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $72,103

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV20D0075

IDV Type: IDC

Timeline