DoD Awards $31.6M for 145 Army SMET Systems Under Full and Open Competition
Contract Overview
Contract Amount: $31,586,923 ($31.6M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2024-02-02
End Date: 2026-09-30
Contract Duration: 971 days
Daily Burn Rate: $32.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FIVE-YEAR INDEFINITE DELIVERY/INDEFINITE QUANTITY (IDIQ) PRODUCTION CONTRACT FOR SMALL MULTIPURPOSE EQUIPMENT TRANSPORT (SMET) SYSTEMS. THIS DELIVERY ORDER IS FOR 145 SYSTEMS.
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: FIVE-YEAR INDEFINITE DELIVERY/INDEFINITE QUANTITY (IDIQ) PRODUCTION CONTRACT FOR SMALL MULTIPURPOSE EQUIPMENT TRANSPORT (SMET) SYSTEMS. THIS DELIVERY ORDER IS FOR 145 SYSTEMS. Key points: 1. Contract awarded to General Dynamics Land Systems Inc. for Small Multipurpose Equipment Transport (SMET) systems. 2. This is a delivery order against a five-year IDIQ contract. 3. The contract value is $31.6 million for 145 systems. 4. The procurement method was full and open competition, suggesting a competitive price discovery process. 5. The sector is primarily Defense, specifically transportation equipment manufacturing.
Value Assessment
Rating: good
The contract value of $31.6 million for 145 systems results in a per-unit price of approximately $217,840. This pricing needs to be benchmarked against similar military transport systems to assess value.
Cost Per Unit: $217,840
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This competitive environment is expected to drive fair pricing and value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary defense equipment.
Public Impact
Enhances Army's logistical capabilities with new transport systems. Supports modernization efforts within the Department of Defense. Potential for follow-on orders under the IDIQ contract. Impacts the defense manufacturing sector and supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if follow-on orders exceed initial estimates.
- Long-term sustainment and maintenance costs are not detailed in this award.
- Dependence on a single contractor for IDIQ production.
Positive Signals
- Awarded under full and open competition.
- Addresses a specific military equipment need.
- Clear delivery timeline specified.
Sector Analysis
This contract falls within the Defense sector, specifically the manufacturing of transportation equipment. Spending benchmarks for similar military vehicle production contracts would be relevant for a deeper value assessment.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the primary awardee is a large corporation. There is no specific information on small business subcontracting participation in this award notice.
Oversight & Accountability
The IDIQ structure allows for phased delivery and payment, subject to oversight for each delivery order. The Department of Defense's contracting oversight mechanisms should ensure compliance and performance.
Related Government Programs
- All Other Transportation Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for scope creep in future delivery orders.
- Reliance on a single large prime contractor.
- Lack of detailed performance metrics in award notice.
- Unspecified total IDIQ contract ceiling.
Tags
all-other-transportation-equipment-manuf, department-of-defense, mi, delivery-order, 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.. FIVE-YEAR INDEFINITE DELIVERY/INDEFINITE QUANTITY (IDIQ) PRODUCTION CONTRACT FOR SMALL MULTIPURPOSE EQUIPMENT TRANSPORT (SMET) SYSTEMS. THIS DELIVERY ORDER IS FOR 145 SYSTEMS.
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: 2024-02-02. End: 2026-09-30.
What is the total potential value of the five-year IDIQ contract, and how does this delivery order compare to the overall ceiling?
The provided data only details the value of this specific delivery order ($31.6 million) and the duration of the IDIQ contract (five years). The total ceiling value of the IDIQ contract is not specified. Without this information, it's difficult to assess the scale of the overall program or how this initial order fits within the broader acquisition strategy.
What are the key performance metrics and acceptance criteria for the SMET systems to ensure effectiveness and mitigate performance risks?
The data does not specify the key performance metrics or acceptance criteria for the SMET systems. Effective oversight would require clearly defined technical specifications, testing protocols, and quality assurance measures to ensure the delivered systems meet the Army's operational requirements and mitigate risks associated with equipment failure or underperformance.
How does the per-unit cost of the SMET systems compare to alternative solutions or previous generation equipment in terms of lifecycle cost and operational efficiency?
The per-unit cost is approximately $217,840. A comprehensive value assessment requires comparing this figure against similar military transport systems, considering factors like payload capacity, mobility, fuel efficiency, and projected maintenance costs. Benchmarking against alternative solutions or previous equipment is crucial to determine if the SMET systems offer a cost-effective and operationally superior capability.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › All Other Transportation Equipment Manufacturing
Product/Service Code: HARDWARE AND ABRASIVES
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: $31,586,923
Exercised Options: $31,586,923
Current Obligation: $31,586,923
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $780,970
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV20D0061
IDV Type: IDC
Timeline
Start Date: 2024-02-02
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 12:09:00
Last Modified: 2025-11-26
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