DoD Awards $8.3M Contract to General Dynamics for PM-SBCT Test Support

Contract Overview

Contract Amount: $8,316,352 ($8.3M)

Contractor: General Dynamics Land Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2024-04-11

End Date: 2026-12-31

Contract Duration: 994 days

Daily Burn Rate: $8.4K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CONTRACTOR TEST SUPPORT FOR PM-SBCT

Place of Performance

Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $8.3 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: CONTRACTOR TEST SUPPORT FOR PM-SBCT Key points: 1. Contract awarded to a large, established defense contractor. 2. Significant contract value for engineering services. 3. Potential for cost overruns given Cost Plus Fixed Fee structure. 4. Limited competition raises questions about price discovery.

Value Assessment

Rating: fair

The contract is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.

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 a higher price than if multiple vendors had competed.

Taxpayer Impact: The lack of competition could lead to taxpayers paying more than necessary for these engineering services.

Public Impact

Taxpayers may be paying a premium due to the sole-source nature of the award. The contract supports the Army's Program Manager for Stryker Brigade Combat Teams, impacting military readiness. General Dynamics, a major defense contractor, will receive significant funding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of transparency in pricing

Positive Signals

Supports critical Army program
Awarded to experienced contractor

Sector Analysis

This contract falls under Engineering Services, a sector often characterized by specialized expertise and significant government spending. Benchmarks vary widely based on project scope and complexity.

Small Business Impact

The contract was awarded to General Dynamics Land Systems Inc., a large business. There is no indication that small businesses were involved as subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and effective service delivery. The Army should monitor costs diligently.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency on pricing
Contract type (CPFF) can incentivize higher costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.3 million to GENERAL DYNAMICS LAND SYSTEMS INC.. CONTRACTOR TEST SUPPORT FOR PM-SBCT

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 $8.3 million.

What is the period of performance?

Start: 2024-04-11. End: 2026-12-31.

What is the justification for the sole-source award, and were any attempts made to explore competitive options?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of adequate competition. Without further details, it's unclear why this contract was not competed. Agencies are generally required to justify sole-source awards, and these justifications are often publicly available, allowing for scrutiny of the decision-making process and ensuring taxpayer funds are used responsibly.

How will the Cost Plus Fixed Fee structure be managed to prevent cost overruns and ensure value for money?

Managing a Cost Plus Fixed Fee (CPFF) contract requires robust oversight. The government must establish clear performance metrics, conduct regular audits of contractor costs, and ensure the fixed fee remains appropriate for the effort. Effective negotiation and continuous monitoring are crucial to control costs and achieve the desired outcomes without excessive spending.

What specific test support activities are included, and how do they contribute to the overall effectiveness of the PM-SBCT program?

The contract details 'Contractor Test Support for PM-SBCT.' This likely encompasses a range of activities such as planning, executing, and analyzing tests for Stryker Brigade Combat Team systems. The effectiveness of this support is critical for validating system performance, identifying potential issues, and ensuring the warfighting capabilities of the SBCT meet operational requirements before deployment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $8,316,352

Exercised Options: $8,316,352

Current Obligation: $8,316,352

Actual Outlays: $946,457

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV24D0012

IDV Type: IDC

Timeline