DoD awards $94.6M for 33 Stryker vehicles, highlighting a significant investment in armored vehicle production

Contract Overview

Contract Amount: $94,625,068 ($94.6M)

Contractor: General Dynamics Land Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2024-03-07

End Date: 2026-05-31

Contract Duration: 815 days

Daily Burn Rate: $116.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PRODUCTION OF 33 STRYKER COMMANDER VEHICLES

Plain-Language Summary

Department of Defense obligated $94.6 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: PRODUCTION OF 33 STRYKER COMMANDER VEHICLES Key points: 1. The contract value represents a substantial commitment to modernizing armored vehicle fleets. 2. Sole-source award raises questions about potential cost efficiencies and market competition. 3. Long contract duration suggests a complex production and delivery schedule. 4. Firm fixed-price contract shifts cost risk to the contractor, potentially stabilizing final expenditure. 5. This acquisition aligns with broader defense strategies for ground force mobility and protection. 6. The specific number of vehicles indicates a targeted procurement for a particular unit or capability.

Value Assessment

Rating: fair

The average price per Stryker Commander vehicle is approximately $2.87 million. Benchmarking this against publicly available data for similar Stryker variants suggests this price is within a reasonable range, though precise comparisons are difficult without knowing the exact configuration and upgrades. The firm fixed-price nature provides cost certainty for the government, but the lack of competitive bidding limits the opportunity for aggressive price negotiation.

Cost Per Unit: Approximately $2.87 million per vehicle. This figure should be compared to historical procurement data for similar Stryker variants and any available market intelligence on armored vehicle production costs.

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source is available or when there is a compelling justification for avoiding full and open competition. The lack of competition means the government did not benefit from multiple bids, which could have driven down prices through market forces.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process. The government relied on negotiation and the contractor's proposed pricing without the leverage of alternative offers.

Public Impact

The primary beneficiaries are the U.S. Army units that will receive the 33 Stryker Commander vehicles, enhancing their combat readiness and operational capabilities. The services delivered include the production and delivery of advanced armored personnel carriers. The geographic impact is primarily within the United States, where the vehicles will be manufactured, and potentially at deployment locations globally. Workforce implications include job creation and sustainment within the defense manufacturing sector, particularly at General Dynamics Land Systems facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential savings.
Lack of competition may reduce pressure on the contractor to innovate or offer cost efficiencies.
Long contract duration (815 days) could introduce risks related to supply chain disruptions or obsolescence.

Positive Signals

Firm fixed-price contract provides budget certainty for the government.
Procurement of modern armored vehicles enhances warfighter capabilities.
Contract supports domestic defense industrial base and associated jobs.

Sector Analysis

The defense industrial base for armored vehicles is a specialized and concentrated sector. General Dynamics Land Systems is a major player in this market, particularly with its Stryker platform. This contract fits within the broader 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' industry. Spending in this area is driven by military modernization programs and geopolitical demands. Comparable spending benchmarks would involve other large-scale procurements of armored personnel carriers or similar combat vehicles by the U.S. military or allied nations.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no information provided regarding subcontracting plans specifically for small businesses. The focus is on a large prime contractor, suggesting that any small business involvement would likely be through the prime's supply chain rather than direct set-aside awards.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Army, likely through contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified vehicles. Transparency is facilitated by contract award data, though detailed production oversight and cost justification for the sole-source award may be less visible to the public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Stryker Brigade Combat Team Modernization
Armored Vehicle Procurement Programs
Ground Combat Vehicle Development
U.S. Army Vehicle Fleet Modernization

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for cost overruns without competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $94.6 million to GENERAL DYNAMICS LAND SYSTEMS INC.. PRODUCTION OF 33 STRYKER COMMANDER VEHICLES

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 $94.6 million.

What is the period of performance?

Start: 2024-03-07. End: 2026-05-31.

What is the track record of General Dynamics Land Systems with Stryker vehicle production and delivery?

General Dynamics Land Systems (GDLS) has a long and established track record with the Stryker family of vehicles, having been the primary manufacturer and integrator since its inception. They have delivered thousands of Stryker variants to the U.S. Army and international partners, demonstrating significant production capacity and program management experience. GDLS has consistently met delivery schedules and performance requirements for various Stryker configurations, including infantry carrier vehicles, command vehicles, and specialized variants. Their experience encompasses upgrades, sustainment, and the integration of new technologies into the platform. This extensive history suggests a high likelihood of successful execution for this specific contract, barring unforeseen supply chain or production challenges.

How does the per-unit cost of these Stryker Commander vehicles compare to previous procurements or similar platforms?

The per-unit cost of approximately $2.87 million for these Stryker Commander vehicles appears to be within the expected range for modern, specialized armored vehicles. Historical data for Stryker variants has shown costs fluctuating based on configuration, quantity, and economic conditions. For instance, earlier procurements might show lower per-unit costs, while more complex or upgraded versions could exceed this figure. Without specific details on the 'Commander' variant's exact capabilities and upgrades compared to other Stryker models (e.g., Infantry Carrier Vehicle, Mobile Gun System), a precise benchmark is challenging. However, considering inflation and the specialized nature of a command variant, this price point is plausible and warrants further investigation against detailed cost breakdowns if available.

What are the primary risks associated with a sole-source award for military hardware like the Stryker?

The primary risks associated with a sole-source award for military hardware are related to cost and competition. Without competitive bidding, the government loses the opportunity to leverage market forces to achieve the lowest possible price. This can lead to higher costs for taxpayers if the sole-source provider does not offer the most competitive pricing. Furthermore, a lack of competition can reduce the incentive for the contractor to innovate or improve efficiency, as there is no direct market pressure from rivals. There's also a risk that the government might overpay if the contractor's pricing is not rigorously scrutinized and negotiated. Finally, sole-source awards can sometimes raise concerns about fairness and transparency in the procurement process.

What is the expected program effectiveness and impact of acquiring 33 Stryker Commander vehicles?

The acquisition of 33 Stryker Commander vehicles is expected to significantly enhance the command and control capabilities of the receiving Army units. The Commander variant is designed to provide a mobile, protected platform for commanders to direct operations, communicate effectively, and manage battlefield information. By fielding these vehicles, the Army aims to improve situational awareness, decision-making speed, and the overall effectiveness of its maneuver forces, particularly within Stryker Brigade Combat Teams. This procurement supports the Army's objective of maintaining a versatile and modern ground force capable of responding to a wide range of threats. The impact is a tangible increase in the operational capacity and survivability of leadership elements on the battlefield.

How does this contract's value and duration compare to historical spending on Stryker vehicles?

This contract, valued at $94.6 million for 33 vehicles over 815 days, represents a significant but not unprecedented investment in Stryker vehicles. Historically, the U.S. Army has procured Stryker vehicles in much larger quantities and at varying price points, often through multi-year contracts or larger single awards that could total hundreds of millions or even billions of dollars over time. For example, major Stryker procurement programs have seen annual spending fluctuate significantly based on program phases and budget allocations. The duration of 815 days (approximately 2.2 years) is substantial for this quantity, suggesting a deliberate production schedule. Compared to the total lifecycle spending on the Stryker program, this individual award is a component of a much larger, ongoing investment in this vehicle platform.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

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: $94,625,068

Exercised Options: $94,625,068

Current Obligation: $94,625,068

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV23D0007

IDV Type: IDC

Timeline