Army Awards $19.99M for Joint Light Tactical Vehicle Kits, Full Competition
Contract Overview
Contract Amount: $19,992,898 ($20.0M)
Contractor: AM General LLC
Awarding Agency: Department of Defense
Start Date: 2023-02-24
End Date: 2025-07-31
Contract Duration: 888 days
Daily Burn Rate: $22.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JOINT LIGHT TACTICAL VEHICLE (JLTV) FAMILY OF VEHICLES (FOV) REQUIREMENTS CONTRACT DO FOR PACKAGED KITS.
Place of Performance
Location: SOUTH BEND, ST JOSEPH County, INDIANA, 46617
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $20.0 million to AM GENERAL LLC for work described as: JOINT LIGHT TACTICAL VEHICLE (JLTV) FAMILY OF VEHICLES (FOV) REQUIREMENTS CONTRACT DO FOR PACKAGED KITS. Key points: 1. Significant contract for tactical vehicle kits awarded to AM General LLC. 2. Full and open competition indicates a healthy market for these components. 3. Potential risks include delivery timelines and integration with existing platforms. 4. Spending falls within the truck trailer manufacturing sector.
Value Assessment
Rating: good
The contract value of $19.99 million for packaged kits appears reasonable given the scope of the Joint Light Tactical Vehicle program. Benchmarking against similar vehicle component contracts would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust bidding process. This method generally leads to competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of this award is expected to yield fair pricing, maximizing taxpayer value for essential tactical vehicle components.
Public Impact
Ensures continued modernization of tactical vehicle fleets for the U.S. Army. Supports the operational readiness of troops by providing critical vehicle components. Potential for job creation and economic activity within the defense manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential supply chain disruptions impacting delivery timelines.
- Integration challenges with existing JLTV platforms.
- Long-term sustainment and maintenance costs not detailed.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Delivery order against a requirements contract allows flexibility.
Sector Analysis
This contract falls under the Truck Trailer Manufacturing (NAICS 336212) sector, which is crucial for defense logistics and mobility. Spending benchmarks for similar tactical vehicle procurements would offer further insight into cost-effectiveness.
Small Business Impact
While AM General LLC is the prime contractor, the extent of small business subcontracting is not specified in this award notice. Further analysis would be needed to determine the impact on small businesses.
Oversight & Accountability
The award is a delivery order against a requirements contract, suggesting ongoing oversight of the JLTV program. Accountability for timely delivery and quality of the kits will be managed by the Department of the Army.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for delivery delays.
- Integration complexity with existing vehicle systems.
- Dependence on a single prime contractor for kit provision.
- Long-term sustainment costs not yet defined.
Tags
truck-trailer-manufacturing, department-of-defense, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.0 million to AM GENERAL LLC. JOINT LIGHT TACTICAL VEHICLE (JLTV) FAMILY OF VEHICLES (FOV) REQUIREMENTS CONTRACT DO FOR PACKAGED KITS.
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 $20.0 million.
What is the period of performance?
Start: 2023-02-24. End: 2025-07-31.
What is the projected cost per JLTV kit, and how does it compare to industry benchmarks?
The provided data does not specify the number of kits or the total value per kit, making a direct per-unit cost calculation impossible. To assess value, a breakdown of kits per delivery order and comparison with similar tactical vehicle component procurements would be necessary. Without this, a precise benchmark against industry standards cannot be established.
What are the primary risks associated with the full and open competition for these JLTV kits?
While full and open competition generally fosters competitive pricing, risks can include potential delays if the lowest bidder faces production issues or if the contract requires extensive post-award negotiations. Ensuring the selected vendor has the capacity and expertise to meet the stringent military specifications for JLTV kits is paramount to mitigate performance risks.
How effective is this contract in ensuring the timely delivery of critical JLTV components?
The contract's effectiveness in ensuring timely delivery hinges on the contractor's performance and the Department of the Army's oversight. The firm fixed price and delivery order structure provide some cost certainty and flexibility. However, the 888-day duration and potential supply chain vulnerabilities are factors that could impact overall effectiveness.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer Manufacturing
Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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: $19,992,898
Exercised Options: $19,992,898
Current Obligation: $19,992,898
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV23D0008
IDV Type: IDC
Timeline
Start Date: 2023-02-24
Current End Date: 2025-07-31
Potential End Date: 2025-07-31 00:00:00
Last Modified: 2025-04-26
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