DoD Awards $41.8M Logistics Engineering Support Contract to General Dynamics Land Systems
Contract Overview
Contract Amount: $41,770,615 ($41.8M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2024-04-11
End Date: 2028-12-31
Contract Duration: 1,725 days
Daily Burn Rate: $24.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LOGISTICS ENGINEERING 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 $41.8 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: LOGISTICS ENGINEERING SUPPORT FOR PM-SBCT Key points: 1. Contract awarded to a large, established defense contractor. 2. Significant contract value for specialized engineering services. 3. Lack of competition raises potential value concerns. 4. Services are critical for the PM-SBCT program.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed closely. Without competitive bidding, it's difficult to assess if the fixed fee adequately reflects the effort required or if it represents a fair market price.
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 the government compared to a competitive environment.
Taxpayer Impact: The lack of competition means taxpayers may be paying a premium for these essential logistics engineering services.
Public Impact
Ensures continued support for the Program Manager, Stryker Brigade Combat Team (PM-SBCT). Maintains critical engineering and logistics capabilities within the Army. Potential for increased costs due to sole-source award impacts taxpayer funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Supports critical defense program
- Award to experienced contractor
Sector Analysis
This contract falls under Engineering Services within the broader defense sector. Spending in this area is crucial for maintaining military readiness and technological superiority, but often involves complex, specialized requirements that can limit competition.
Small Business Impact
The awardee is General Dynamics Land Systems Inc., a large business. There is no indication that small businesses were involved in this specific contract, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets requirements. The Army should document the justification for not competing this requirement.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Cost Plus Fixed Fee contracts can incentivize spending.
- Long contract duration increases exposure to cost growth.
- No small business participation noted.
Tags
engineering-services, department-of-defense, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.8 million to GENERAL DYNAMICS LAND SYSTEMS INC.. LOGISTICS ENGINEERING 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 $41.8 million.
What is the period of performance?
Start: 2024-04-11. End: 2028-12-31.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the need for continuity of support for a specific program where only one contractor can meet the requirements. Detailed documentation is usually required by federal acquisition regulations to support such decisions, often involving market research to confirm the lack of alternatives.
How will the government ensure cost control with a Cost Plus Fixed Fee contract awarded without competition?
Effective oversight is crucial. The government must diligently monitor all incurred costs, ensure they are reasonable and allocable to the contract, and scrutinize the fixed fee to ensure it reflects the actual effort and risk. Robust performance metrics and regular audits can help mitigate cost overruns and ensure value.
What is the long-term impact of relying on sole-source contracts for critical support services?
Long-term reliance on sole-source contracts can stifle innovation, reduce competition, and potentially lead to higher prices for taxpayers. It may also create vendor lock-in, making it difficult to switch providers or leverage new technologies. Agencies should periodically reassess the need for sole-source arrangements.
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: $41,770,615
Exercised Options: $41,770,615
Current Obligation: $41,770,615
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $70,536
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
Start Date: 2024-04-11
Current End Date: 2028-12-31
Potential End Date: 2028-12-31 12:12:00
Last Modified: 2026-01-28
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