DoD awards $15.9M for armored vehicle components, raising competition concerns

Contract Overview

Contract Amount: $15,903,357 ($15.9M)

Contractor: General Dynamics Land Systems - Force Protection Inc.

Awarding Agency: Department of Defense

Start Date: 2004-05-10

End Date: 2011-02-11

Contract Duration: 2,468 days

Daily Burn Rate: $6.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200408!005438!2100!W909MY!USA COMMUNICATIONS-ELECTRONICS !W909MY04C0034 !A!N! !N! ! !20040510!20041231!003268989!003268989!878090687!N!TECHNICAL SOLUTIONS GROUP INC !9801 HIGHWAY 78 !LADSON !SC!29456!50875!019!45!NORTH CHARLESTON !CHARLESTON !S CAROLINA!+000007681688!N!N!000000000000!2305!GROUND EFFECT VEHICLES !A4A!COMBAT VEHICLES !000 !* !336992!E! !1! ! ! ! ! !99990909!B! ! !N!A!D!U!J!1!001!N!2A!Z!N!D! ! !N!B!N!N! ! !B! !A!A!00 !A!B!Y!A! !Y! ! ! !0001! !

Place of Performance

Location: LADSON, CHARLESTON County, SOUTH CAROLINA, 29456

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $15.9 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC. for work described as: 200408!005438!2100!W909MY!USA COMMUNICATIONS-ELECTRONICS !W909MY04C0034 !A!N! !N! ! !20040510!20041231!003268989!003268989!878090687!N!TECHNICAL SOLUTIONS GROUP INC !9801 HIGHWAY 78 !LADSON !SC!29456!50875!019!45!NORTH CHARLESTON !CHAR… Key points: 1. Contract awarded to Technical Solutions Group Inc. for $15.9M. 2. Focus on components for ground effect vehicles. 3. Competition method is 'NOT COMPETED', indicating potential for limited or sole-source award. 4. Sector is Defense, specifically military armored vehicle manufacturing.

Value Assessment

Rating: questionable

The contract value of $15.9M for armored vehicle components appears high given the 'NOT COMPETED' status. Benchmarking against similar sole-source or limited-competition contracts for specialized components would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, suggesting a limited or sole-source award. This limits price discovery and may result in a higher cost to the taxpayer compared to a fully competitive process.

Taxpayer Impact: The lack of competition could lead to inflated prices, impacting taxpayer value for defense spending.

Public Impact

Taxpayers may be overpaying for critical defense components due to lack of competition. Limited transparency in the procurement process raises questions about efficiency. Potential for reduced innovation if only one vendor is consistently chosen.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Limited vendor options

Positive Signals

Award to a specific firm for specialized components
Supports defense manufacturing sector

Sector Analysis

This contract falls within the Defense sector, specifically the manufacturing of military armored vehicles and components. Spending in this area is critical for national security but requires robust oversight to ensure cost-effectiveness.

Small Business Impact

The data does not indicate if this contract involved small businesses, either as the prime contractor or subcontractors. Further investigation is needed to assess small business participation.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for limited competition was sound and that fair pricing was achieved. Accountability for procurement decisions is crucial.

Related Government Programs

Military Armored Vehicle, Tank, and Tank Component Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Potential for price gouging
Limited transparency
Risk of vendor lock-in
Questionable value for taxpayer money

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.9 million to GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC.. 200408!005438!2100!W909MY!USA COMMUNICATIONS-ELECTRONICS !W909MY04C0034 !A!N! !N! ! !20040510!20041231!003268989!003268989!878090687!N!TECHNICAL SOLUTIONS GROUP INC !9801 HIGHWAY 78 !LADSON !SC!29456!50875!019!45!NORTH CHARLESTON !CHARLESTON !S CAROLINA!+000007681688!N!N!000000000000!2305!GROUND EFFECT VEHICLES !A4A!COMBAT VEHICLES !000 !* !336992!E! !1! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS LAND SYSTEMS - FORCE PROTECTION INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $15.9 million.

What is the period of performance?

Start: 2004-05-10. End: 2011-02-11.

What was the justification for not competing this contract, and was it adequately documented?

The justification for not competing this contract is not provided in the data. Typically, justifications include reasons like urgent and compelling needs, specialized capabilities only available from a single source, or specific national security requirements. A thorough review of the contract file would be necessary to verify the adequacy and validity of the documented justification.

How does the unit cost of these armored vehicle components compare to industry benchmarks for similar items, especially considering the non-competitive award?

Without specific unit cost data and industry benchmarks for these particular armored vehicle components, a direct comparison is difficult. However, non-competitive awards often carry a premium. Analyzing historical pricing for similar components, or obtaining pricing from other potential suppliers if possible, would be essential to assess if the government paid a fair and reasonable price.

What is the long-term strategic impact of awarding such contracts without competition on the overall defense industrial base and innovation?

Consistently awarding contracts without competition can stifle innovation by reducing the incentive for vendors to develop new technologies or improve efficiency. It can also lead to a less resilient defense industrial base, overly reliant on a few suppliers. This can impact long-term readiness and potentially increase costs as competition is artificially limited.

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 COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Force Protection, Inc. (UEI: 878090687)

Address: 9801 HIGHWAY 78, LADSON, SC, 01

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline