DoD Awards $26.7M Delivery Order to General Dynamics for Automotive Repair Services

Contract Overview

Contract Amount: $26,756,349 ($26.8M)

Contractor: General Dynamics Land Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2024-03-01

End Date: 2025-02-28

Contract Duration: 364 days

Daily Burn Rate: $73.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NET AND FIELDING CALL UP FOR OP4 ON CONTRACT W56HZV20D0075

Place of Performance

Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $26.8 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: NET AND FIELDING CALL UP FOR OP4 ON CONTRACT W56HZV20D0075 Key points: 1. The contract is for automotive repair services, a critical component of military readiness. 2. General Dynamics Land Systems Inc. is the awardee, a significant player in defense contracting. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: good

The contract value of $26.7 million for a one-year period appears reasonable for specialized automotive repair services. Benchmarking against similar contracts for vehicle maintenance and repair within the DoD would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of this award is expected to yield fair pricing, minimizing unnecessary taxpayer expenditure for essential automotive repair services.

Public Impact

Ensures operational readiness of military vehicles through timely and effective repair. Supports the defense industrial base by contracting with a major defense contractor. Provides essential services to the Department of the Army, maintaining critical assets. The Cost Plus Fixed Fee structure requires diligent oversight to control costs.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
Potential for scope creep in repair services if not clearly defined.

Positive Signals

Awarded under full and open competition, promoting price fairness.
Addresses a critical need for military vehicle maintenance.
Contract duration aligns with operational needs.

Sector Analysis

The automotive repair sector is vital for maintaining the operational readiness of military fleets. Spending in this area is benchmarked against the overall defense budget and specific vehicle maintenance requirements, with this award representing a portion of the Army's operational support costs.

Small Business Impact

This contract was awarded to a large business (General Dynamics Land Systems Inc.). There is no specific indication of small business subcontracting goals or participation in this particular delivery order, which is common for prime contracts awarded to large defense corporations.

Oversight & Accountability

The Cost Plus Fixed Fee contract type necessitates robust oversight from the Department of the Army to ensure costs are reasonable and allocable. Regular audits and performance reviews will be crucial for accountability.

Related Government Programs

General Automotive Repair
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Fixed Fee contract type can incentivize higher spending.
Lack of specific detail on repair types and performance metrics.
Potential for contractor to maximize costs to increase reimbursement.
No explicit mention of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.8 million to GENERAL DYNAMICS LAND SYSTEMS INC.. NET AND FIELDING CALL UP FOR OP4 ON CONTRACT W56HZV20D0075

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 $26.8 million.

What is the period of performance?

Start: 2024-03-01. End: 2025-02-28.

What is the projected breakdown of costs within the Cost Plus Fixed Fee structure, and how will the fixed fee be determined?

The Cost Plus Fixed Fee (CPFF) structure involves the contractor being reimbursed for allowable costs plus a predetermined fixed fee. The fixed fee represents the contractor's profit. Detailed cost breakdowns are typically negotiated and outlined in the contract. The government will need to ensure that the estimated costs are realistic and that the fixed fee is fair and reasonable, reflecting the level of effort and risk involved.

What specific types of automotive repair are covered under this contract, and are there performance metrics to ensure quality and timeliness?

The contract specifies 'General Automotive Repair' (NAICS 811111). While the data doesn't detail specific repair types, it likely encompasses maintenance, diagnostics, and repair of various Army vehicles. Performance metrics, such as response times, repair completion rates, and quality of work, are crucial for CPFF contracts and should be clearly defined in the contract's statement of work to ensure effectiveness and accountability.

How does the $26.7 million award compare to historical spending on similar automotive repair services for the Army?

Without historical spending data for comparable automotive repair contracts, a direct comparison is difficult. However, the award value of $26.7 million for a 364-day period suggests a significant scope of work. Benchmarking against previous delivery orders or contracts for fleet maintenance and repair within the Department of the Army would be necessary to assess if this represents a typical or outlier expenditure.

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: $26,756,349

Exercised Options: $26,756,349

Current Obligation: $26,756,349

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