DoD Awards $9.56M Contract to General Dynamics for Military Armored Vehicles, Not Competed
Contract Overview
Contract Amount: $9,555,865 ($9.6M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2024-08-13
End Date: 2028-08-23
Contract Duration: 1,471 days
Daily Burn Rate: $6.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: AWARDING CONTRACT TO GDLS AND FUNDING CLIN 1001
Place of Performance
Location: TALLAHASSEE, LEON County, FLORIDA, 32302
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $9.6 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: AWARDING CONTRACT TO GDLS AND FUNDING CLIN 1001 Key points: 1. Contract awarded to a single, established provider in the armored vehicle sector. 2. Significant funding allocated for military armored vehicle production and components. 3. Lack of competition raises questions about potential price discovery and value. 4. The contract falls within the Defense sector, specifically armored vehicle manufacturing.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed tightly. Without competitive bids, it's difficult to assess if the fixed fee represents fair value for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this significant award means taxpayers may not be receiving the best possible price for these military armored vehicles.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Potential for increased defense spending without guaranteed best value. Impact on the broader defense industrial base and potential for other manufacturers to compete.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
Positive Signals
- Supports established defense contractor
- Ensures production of critical military assets
Sector Analysis
This contract is within the Defense sector, specifically focusing on the manufacturing of military armored vehicles and their components. Spending in this area is critical for national security but requires careful oversight to ensure cost-effectiveness.
Small Business Impact
The contract was awarded to General Dynamics Land Systems Inc., a large corporation. There is no indication that small businesses were involved in this specific award, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Department of Defense to ensure costs are reasonable and performance meets expectations. Accountability for the fixed fee and overall project success is crucial.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited price transparency
- No small business participation noted
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, fl, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.6 million to GENERAL DYNAMICS LAND SYSTEMS INC.. AWARDING CONTRACT TO GDLS AND FUNDING CLIN 1001
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 $9.6 million.
What is the period of performance?
Start: 2024-08-13. End: 2028-08-23.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. However, without competitive bidding, ensuring fair pricing relies heavily on robust government cost analysis and negotiation. The Department of Defense should provide detailed documentation justifying the sole-source decision and evidence of rigorous price negotiation to assure taxpayers of value.
What are the potential risks associated with a cost-plus fixed fee contract in a sole-source scenario for military armored vehicles?
The primary risk is cost escalation, as the contractor is reimbursed for allowable costs plus a fixed fee. In a sole-source situation, the government has less leverage to control costs. This can lead to the contractor having less incentive to control expenses, potentially resulting in higher overall expenditure for the taxpayer than if the contract were competed or structured differently.
How does this contract contribute to the overall effectiveness and readiness of the military's armored vehicle fleet?
This contract directly funds the production and components for military armored vehicles, which are essential for ground force operations and national defense. By securing production with an established manufacturer, it aims to ensure the availability and potentially the modernization of critical assets, thereby contributing to military readiness and operational effectiveness.
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
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W912CH24R0003
Offers Received: 1
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: $9,564,384
Exercised Options: $9,555,865
Current Obligation: $9,555,865
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $314,192
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-08-13
Current End Date: 2028-08-23
Potential End Date: 2029-08-12 12:08:00
Last Modified: 2025-12-15
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