General Dynamics Land Systems awarded $22.1M for 180 EA ITSS KIT V3, with delivery through May 2027

Contract Overview

Contract Amount: $22,129,878 ($22.1M)

Contractor: General Dynamics Land Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2023-06-30

End Date: 2027-05-31

Contract Duration: 1,431 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 180 EA ITSS KIT V3 180 EACH TROPHY READY V3 47 EA CONTROL MOTOR

Place of Performance

Location: TALLAHASSEE, LEON County, FLORIDA, 32302

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $22.1 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: 180 EA ITSS KIT V3 180 EACH TROPHY READY V3 47 EA CONTROL MOTOR Key points: 1. Contract value appears reasonable given the specialized nature of military hardware. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Delivery order indicates this is part of a larger contract vehicle. 5. Contract duration of nearly four years allows for phased delivery and integration. 6. The award is for a specific kit, implying a component of a larger system.

Value Assessment

Rating: good

The contract value of $22.1 million for 180 ITSS KIT V3 units averages to approximately $122,944 per kit. Benchmarking this against similar specialized military equipment requires detailed market analysis, but the fixed-price nature suggests the government secured a defined cost. Without specific details on the kit's components and complexity, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance.

Cost Per Unit: Approximately $122,944 per ITSS KIT V3 unit.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and terms for the government. The use of a delivery order suggests this award was made against an existing contract vehicle, potentially with pre-established competitive procedures.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential suppliers, driving down costs through market forces and ensuring the government receives competitive pricing.

Public Impact

The primary beneficiaries are the Department of the Army, receiving critical ITSS KIT V3 components. The services delivered involve the provision of specialized military equipment kits. The geographic impact is likely concentrated where the Army units utilizing these kits are stationed, with initial delivery to Florida. Workforce implications may include manufacturing and logistics jobs associated with producing and delivering these kits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the ITSS KIT V3 functionality and performance metrics.
The number of bidders in the full and open competition is not disclosed, making it difficult to fully assess competitive intensity.
Potential for scope creep if the 'V3' designation implies significant upgrades or changes from previous versions.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm Fixed Price contract type limits the government's exposure to cost increases.
Delivery order against an existing contract vehicle may indicate streamlined procurement and established vendor relationships.

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically focusing on military vehicle components and integrated systems. The market for such specialized defense equipment is characterized by high barriers to entry, significant R&D investment, and a limited number of prime contractors capable of meeting stringent military specifications. Spending in this area is driven by modernization efforts and readiness requirements within the armed forces. Comparable spending benchmarks would typically involve other large-scale vehicle system upgrades or component procurements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). General Dynamics Land Systems is a large defense contractor. While this specific award may not directly benefit small businesses through a set-aside, large prime contractors are often required to meet subcontracting goals with small businesses on major defense contracts. The impact on the small business ecosystem would depend on the subcontracting plan associated with this delivery order.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a delivery order against a larger contract vehicle, existing oversight mechanisms are likely in place. Transparency is facilitated by the contract award notice, but detailed program performance and financial oversight would be managed internally by the agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Armored Vehicle Manufacturing
Defense Logistics and Support Services
Army Vehicle Modernization Programs
Integrated Systems Procurement

Risk Flags

Potential for unstated technical risks due to limited public information on 'ITSS KIT V3'.
Lack of transparency regarding the number of bidders in the competitive process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.1 million to GENERAL DYNAMICS LAND SYSTEMS INC.. 180 EA ITSS KIT V3 180 EACH TROPHY READY V3 47 EA CONTROL MOTOR

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 $22.1 million.

What is the period of performance?

Start: 2023-06-30. End: 2027-05-31.

What specific capabilities does the ITSS KIT V3 provide, and how does it enhance the performance of the military vehicles it is integrated into?

The provided data does not specify the exact capabilities of the 'ITSS KIT V3'. However, 'ITSS' could potentially stand for Integrated Tactical Systems or a similar designation, suggesting it provides integrated electronic, communication, or mission systems. The 'V3' indicates it is likely the third iteration or version of this kit. Enhancements would typically relate to improved situational awareness, communication interoperability, command and control functions, or sensor integration for the armored vehicles. Without further technical documentation or a detailed statement of work, the precise functional improvements remain speculative.

How does the per-unit cost of $122,944 for the ITSS KIT V3 compare to similar integrated systems or upgrade kits in the defense market?

Benchmarking the per-unit cost of $122,944 for the ITSS KIT V3 requires access to proprietary market data and detailed specifications of comparable systems. Integrated kits for military vehicles can vary significantly in price based on complexity, technology, and the platform they are designed for. Systems involving advanced electronics, communication suites, or specialized sensors often command higher prices. Given that this is a 'full and open competition' award, it suggests the price was deemed competitive within the market. However, without specific comparable contract awards or detailed technical breakdowns, a definitive comparison to market rates is not possible from the provided data alone.

What is the track record of General Dynamics Land Systems in delivering complex integrated kits for military vehicles, particularly related to the 'V3' iteration?

General Dynamics Land Systems (GDLS) is a major defense contractor with extensive experience in designing, manufacturing, and integrating complex systems for military vehicles, including tanks and armored personnel carriers. They have a long history of producing platforms like the Abrams tank and Stryker vehicle. While the specific 'ITSS KIT V3' is not detailed, GDLS's track record suggests a strong capability in delivering such integrated solutions. Their performance on previous contracts, including the development and fielding of various vehicle upgrades and mission packages, would be a key indicator of their ability to successfully deliver this specific kit. Government performance databases and past performance reviews would offer more granular insights.

What are the potential risks associated with the firm fixed-price contract type for this delivery order, and how are they mitigated?

The primary risk with a Firm Fixed Price (FFP) contract is that the contractor bears the risk of cost overruns. For the government, the main risk is that the contractor might cut corners on quality or performance to maintain profitability if costs escalate unexpectedly. Mitigation strategies employed by the government include thorough pre-award technical evaluations, clear and detailed specifications in the contract, robust quality assurance surveillance plans (QASP), and performance monitoring throughout the contract period. The government also relies on the contractor's reputation and past performance to ensure commitment to quality delivery.

How does this $22.1 million award fit into the broader context of Department of the Army spending on vehicle modernization and integrated systems?

This $22.1 million award represents a specific investment within the Department of the Army's larger budget for vehicle modernization and systems integration. The Army consistently allocates significant funds towards upgrading its fleet, enhancing survivability, improving C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) capabilities, and ensuring interoperability. Awards like this, for specific kits like the ITSS KIT V3, contribute to these overarching modernization goals by providing essential technological upgrades to existing platforms. The total annual spending on vehicle modernization can run into billions of dollars, making this award a component of a much larger strategic effort.

What is the significance of the delivery order (aw: DELIVERY ORDER) mechanism for this contract, and how does it differ from a standalone contract?

A delivery order is an order placed against an existing contract, typically a indefinite-delivery, indefinite-quantity (IDIQ) contract or a basic ordering agreement (BOA). In this case, the 'DELIVERY ORDER' indicates that the $22.1 million award is for a specific quantity of goods (180 EA ITSS KIT V3) to be delivered under a pre-existing contract vehicle. This mechanism allows for flexibility and streamlined procurement, as the contract terms, conditions, and pricing have already been negotiated and established. It differs from a standalone contract, which would be a completely new, independent agreement initiated from scratch.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $22,129,878

Exercised Options: $22,129,878

Current Obligation: $22,129,878

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $570,921

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV22D0074

IDV Type: IDC

Timeline