DoD awards $69M task order to General Dynamics for Stryker vehicle technical support

Contract Overview

Contract Amount: $69,073,784 ($69.1M)

Contractor: General Dynamics Land Systems Inc.

Awarding Agency: Department of Defense

Start Date: 2024-04-11

End Date: 2027-12-31

Contract Duration: 1,359 days

Daily Burn Rate: $50.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SES/C5ISR/CM TASK ORDER UNDER THE SYSTEMS TECHNICAL SUPPORT (STS) SERVICES CONTRACT FOR THE STRYKER FAMILY OF VEHICLES (PM STRYKER).

Place of Performance

Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $69.1 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: SES/C5ISR/CM TASK ORDER UNDER THE SYSTEMS TECHNICAL SUPPORT (STS) SERVICES CONTRACT FOR THE STRYKER FAMILY OF VEHICLES (PM STRYKER). Key points: 1. Contract focuses on engineering services for the Stryker family of vehicles. 2. Awarded as a delivery order under an existing contract. 3. Long performance period extending through late 2027. 4. Contract type is Cost Plus Fixed Fee, which can carry cost overrun risks. 5. No small business set-aside indicated for this specific task order. 6. Geographic focus on Michigan, where General Dynamics has a significant presence.

Value Assessment

Rating: fair

The contract's value of $69 million over approximately 3.5 years suggests a substantial but not exceptionally high annual spend. Benchmarking against similar engineering support contracts for major weapon systems is difficult without more specific service details. The Cost Plus Fixed Fee (CPFF) structure means costs are reimbursed plus a fixed fee, which can incentivize contractors to manage costs but also carries the risk of cost overruns if not closely monitored. The provided data does not include a per-unit cost or a direct comparison to market rates for these specialized engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This task order was awarded under the "Systems Technical Support (STS) Services Contract" and was not competed. The data indicates it was 'NOT COMPETED' and awarded as a 'DELIVERY ORDER'. This suggests it was likely awarded to the incumbent contractor under a pre-existing framework agreement, potentially due to specialized knowledge or a need for continuity. The lack of open competition means there was no opportunity for other vendors to bid, which can limit price discovery and potentially lead to higher costs.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive bidding. This sole-source award bypasses the opportunity for market forces to drive down costs.

Public Impact

The U.S. Army's Program Executive Office Ground Combat Systems benefits from continued technical support for its Stryker fleet. Ensures the operational readiness and sustainment of a critical armored vehicle platform. Services are primarily delivered in Michigan, supporting local engineering and technical jobs. Maintains the effectiveness of the Stryker vehicle, a key component of Army ground forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Cost Plus Fixed Fee contracts require diligent oversight to prevent cost overruns.
Performance metrics and quality assurance details are not provided, making assessment difficult.

Positive Signals

Awarded to a known entity with experience in Stryker vehicle systems.
Task order falls under an existing contract, suggesting a streamlined process for continuity.
Long performance period allows for sustained support and planning.

Sector Analysis

This contract falls within the Defense Engineering Services sector, a critical component of the broader aerospace and defense industry. The market for military vehicle support is dominated by large prime contractors who often hold broad support service contracts. General Dynamics Land Systems is a major player in this space, particularly with its extensive work on the Stryker platform. Spending benchmarks for similar technical support on major weapon systems can vary widely based on complexity, quantity, and duration, but $69 million for over three years of specialized engineering is within a typical range for such programs.

Small Business Impact

This specific task order does not indicate any small business set-aside provisions (ss: false, sb: false). While the prime contractor, General Dynamics Land Systems, is a large business, there is no information provided on subcontracting plans to small businesses. Without explicit set-asides or reporting on subcontracting, the direct impact on the small business ecosystem for this particular award is unclear, though large prime contractors often utilize small businesses for specialized support.

Oversight & Accountability

Oversight for this task order would likely fall under the Department of the Army's contracting and program management offices, potentially with involvement from the Defense Contract Management Agency (DCMA). As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing would be expected to ensure costs are reasonable and allocable. Transparency is limited by the sole-source nature of the award; however, contract modifications and performance reports would typically be subject to internal review and potentially Inspector General audits if specific concerns arise.

Related Government Programs

Stryker Family of Vehicles
Systems Technical Support (STS) Services Contract
Department of the Army - Program Executive Office Ground Combat Systems
Engineering Services Contracts
Defense Logistics Agency Support Contracts

Risk Flags

Sole-source award bypasses competition.
Cost Plus Fixed Fee contract requires diligent oversight.
Lack of public detail on performance metrics.
Potential for cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.1 million to GENERAL DYNAMICS LAND SYSTEMS INC.. SES/C5ISR/CM TASK ORDER UNDER THE SYSTEMS TECHNICAL SUPPORT (STS) SERVICES CONTRACT FOR THE STRYKER FAMILY OF VEHICLES (PM STRYKER).

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 $69.1 million.

What is the period of performance?

Start: 2024-04-11. End: 2027-12-31.

What is General Dynamics Land Systems' track record with the Stryker program and similar technical support contracts?

General Dynamics Land Systems (GDLS) is the prime contractor and manufacturer for the Stryker family of vehicles, possessing extensive institutional knowledge and a long-standing relationship with the U.S. Army for this platform. Their track record includes production, upgrades, and sustainment support for Stryker variants. They have historically held numerous contracts for technical support, logistics, and engineering services related to the Stryker, often awarded through competitive or sole-source mechanisms depending on the specific requirement and contract vehicle. This specific task order leverages their established expertise and incumbency, suggesting a continuation of services they have previously provided or are uniquely positioned to deliver.

How does the $69 million value compare to other technical support contracts for major ground combat systems?

The $69 million value for approximately 3.5 years of engineering and technical support for the Stryker family of vehicles is substantial but not extraordinary within the context of major ground combat systems. Annual spending averages around $20 million. For comparison, similar long-term sustainment and technical support contracts for platforms like the Abrams tank or Bradley Fighting Vehicle can range from tens to hundreds of millions of dollars annually, depending on the scope, number of vehicles supported, and level of modernization efforts. This task order appears to represent a focused scope of specialized engineering services rather than comprehensive fleet-wide sustainment, making direct value comparisons challenging without more granular detail on the services provided.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is paid a fixed fee, the "cost plus" portion means the government reimburses the contractor's allowable costs. If the contractor's actual costs exceed initial estimates, the government bears that burden. This structure can incentivize contractors to control costs to some extent, as their profit (the fixed fee) remains constant regardless of cost fluctuations. However, it requires robust government oversight to ensure costs are reasonable, allocable, and allowable. For complex engineering services, unforeseen technical challenges can easily drive up costs, making diligent monitoring and negotiation crucial for the government.

How effective is a sole-source award in ensuring the government receives value for money on technical support services?

Sole-source awards are generally less effective in ensuring value for money compared to competitively awarded contracts. By definition, they eliminate competition, which is the primary mechanism for driving down prices and fostering innovation. While sole-source awards are sometimes necessary due to unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement, they place a greater burden on the government to perform thorough price analysis and cost realism assessments. Without competitive pressure, there is a reduced incentive for the contractor to offer the lowest possible price, potentially leading to higher expenditures for the taxpayer.

What are the historical spending patterns for Stryker family of vehicles technical support?

Historical spending on technical support for the Stryker family of vehicles has been significant, reflecting the platform's importance and widespread deployment. Data aggregated over multiple years shows consistent contract awards for sustainment, engineering services, upgrades, and spare parts. While specific figures fluctuate annually based on program priorities and operational tempo, total obligations for Stryker-related support services often reach hundreds of millions of dollars across various contracts and task orders. This $69 million task order represents a portion of that ongoing investment, consistent with the need for continuous technical expertise to maintain and enhance the fleet's capabilities.

What are the implications of the contract's duration (ending Dec 2027) for long-term program planning?

The contract's duration, extending through December 31, 2027, provides a stable and predictable period for the U.S. Army to receive essential technical support for the Stryker family of vehicles. This long-term outlook allows program managers to effectively plan budgets, resource allocation, and future sustainment strategies without immediate concerns about contract expiration. It also enables General Dynamics Land Systems to commit resources and personnel effectively. However, it also means that potential opportunities for re-competition or exploring alternative support models are deferred until closer to the end date, which could impact long-term cost-saving initiatives if not managed proactively.

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: $69,073,784

Exercised Options: $69,073,784

Current Obligation: $69,073,784

Actual Outlays: $12,255,844

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $2,168,481

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