Army awards $13M for JLTV support, with Am General LLC securing the contract

Contract Overview

Contract Amount: $13,022,088 ($13.0M)

Contractor: AM General LLC

Awarding Agency: Department of Defense

Start Date: 2024-11-05

End Date: 2026-01-31

Contract Duration: 452 days

Daily Burn Rate: $28.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: JLTV ARMY REGIONAL FSR SUPPORT FOR CONUS AND OCONUS LOCATIONS. SEE WD 0008-018 AND WD 0008-019.

Place of Performance

Location: SOUTH BEND, ST JOSEPH County, INDIANA, 46617

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $13.0 million to AM GENERAL LLC for work described as: JLTV ARMY REGIONAL FSR SUPPORT FOR CONUS AND OCONUS LOCATIONS. SEE WD 0008-018 AND WD 0008-019. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Delivery order for support services indicates ongoing operational needs for JLTV fleet. 3. Contract duration of 452 days points to a medium-term support requirement. 4. The contract is for Field Service Representative (FSR) support, crucial for vehicle readiness. 5. Focus on CONUS and OCONUS locations highlights the global operational scope of the JLTV program.

Value Assessment

Rating: good

The contract value of approximately $13 million for 452 days of support appears reasonable given the specialized nature of Field Service Representative (FSR) roles for complex military vehicles like the JLTV. Benchmarking against similar support contracts for high-value military equipment suggests that pricing for technical expertise and global deployment is typically in this range. Without specific per-unit cost data for FSR hours or travel, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were solicited and allowed to bid. The specific number of bidders is not provided, but the designation suggests a robust competition. This approach is generally expected to yield competitive pricing and ensure the government receives the best value by leveraging market forces.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the most advantageous price point, reducing the risk of overpayment for essential support.

Public Impact

The U.S. Army benefits from enhanced readiness and operational capability of its Joint Light Tactical Vehicles (JLTVs). Services delivered include field support, maintenance, and technical assistance for JLTVs. Geographic impact covers both Continental United States (CONUS) and Outside Continental United States (OCONUS) locations, supporting deployed forces. Workforce implications include the deployment of skilled technical personnel to support military operations globally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical issues arise requiring extensive on-site support.
Dependence on a single contractor for critical field support could pose risks if performance issues emerge.
Logistical challenges in deploying and supporting personnel in remote OCONUS locations.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
Contract specifies support for both CONUS and OCONUS, demonstrating a comprehensive approach to fleet readiness.
The contractor, AM General LLC, has a known history with the JLTV program, suggesting relevant expertise.

Sector Analysis

The defense sector, particularly within tactical vehicle manufacturing and support, is characterized by high-value, specialized contracts. The JLTV program represents a significant investment in modernizing light tactical vehicle fleets. Spending in this area is driven by military modernization efforts, operational readiness requirements, and the need for advanced technological support. Comparable spending benchmarks would involve other major platform support contracts, such as those for Abrams tanks or Bradley Fighting Vehicles, which also require extensive field service and maintenance.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions, as indicated by 'sb': false. The prime contractor, AM General LLC, is a large business. While there is no direct set-aside, the prime contractor may engage small businesses for subcontracting opportunities related to logistics, specialized parts, or support services, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and program management offices. Accountability measures are embedded within the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

JLTV Program
Tactical Vehicle Support Contracts
Department of Defense Field Service Contracts
Military Vehicle Maintenance and Repair

Risk Flags

Potential for performance issues impacting vehicle readiness.
Logistical complexities for OCONUS support personnel.
Dependence on contractor expertise for critical maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.0 million to AM GENERAL LLC. JLTV ARMY REGIONAL FSR SUPPORT FOR CONUS AND OCONUS LOCATIONS. SEE WD 0008-018 AND WD 0008-019.

Who is the contractor on this award?

The obligated recipient is AM GENERAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $13.0 million.

What is the period of performance?

Start: 2024-11-05. End: 2026-01-31.

What is AM General LLC's track record with the JLTV program and similar military vehicle support contracts?

AM General LLC is the manufacturer of the JLTV and has a long-standing relationship with the U.S. military, including extensive experience with the Humvee program prior to the JLTV. Their track record with the JLTV program includes production, fielding, and ongoing support. They have been awarded numerous contracts for JLTV production, upgrades, and field service representative (FSR) support. This specific contract for regional FSR support builds upon that established relationship and technical expertise. Their history suggests a deep understanding of the vehicle's systems and the operational environments in which it is deployed, which is critical for effective FSR services.

How does the $13 million award compare to historical spending on JLTV Field Service Representative support?

Historical spending on JLTV FSR support can vary significantly based on the scope, duration, and geographic coverage of individual contracts. This $13 million award covers a period of approximately 15 months (November 2024 to January 2026) for regional support across CONUS and OCONUS. To provide a precise comparison, one would need to analyze prior delivery orders and contracts for FSR services for the JLTV, normalizing for duration and location. However, given the specialized nature of FSRs who provide on-site technical expertise for complex military platforms, and the global reach required, this figure appears to be within a reasonable range for such services over the specified period. It's important to note that JLTV production contracts are separate and typically involve much larger sums.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential performance deficiencies by the contractor (AM General LLC), leading to reduced JLTV readiness; unforeseen technical issues requiring more extensive support than budgeted; and logistical challenges in deploying and sustaining FSRs, particularly in OCONUS locations. Mitigation strategies typically involve robust contract oversight by the Army, clearly defined performance metrics and deliverables, and contractual remedies for non-performance. The use of a Cost Plus Fixed Fee (CPFF) contract type, while not explicitly stated for this delivery order (data shows 'pt': 'COST PLUS FIXED FEE' which is a type of cost reimbursement), suggests that costs are monitored, and the fixed fee provides incentive for efficient performance. The contractor's established relationship with the JLTV program also serves as a mitigating factor, implying familiarity and commitment.

How effective is the current JLTV FSR support model in ensuring vehicle operational readiness?

The effectiveness of the JLTV FSR support model is crucial for maintaining the operational readiness of a key component of the Army's light tactical fleet. Field Service Representatives provide essential on-site technical expertise, troubleshooting, and maintenance support, which is vital for complex modern vehicles operating in diverse and often demanding environments. Positive feedback and high operational availability rates for the JLTV would indicate the model's effectiveness. Conversely, reports of significant downtime or maintenance backlogs could suggest areas for improvement. The continuous awarding of such support contracts, including this $13 million delivery order, implies an ongoing need and perceived value in the FSR support structure for ensuring the fleet remains mission-capable.

What are the historical spending patterns for JLTV support services, and how does this award fit within that trend?

Historical spending on JLTV support services, including FSRs, has been substantial, reflecting the program's importance and the complexity of the vehicles. The U.S. Army has consistently invested in ensuring the operational readiness of its JLTV fleet through various contracts for maintenance, repair, training, and field support. This $13 million delivery order for regional FSR support represents a component of that broader, ongoing investment. It aligns with historical trends of providing dedicated technical assistance to deployed units. Analyzing total obligated amounts over several fiscal years for JLTV support would reveal the overall trend, but this specific award fits within the established pattern of procuring essential field services to maintain fleet readiness.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 105 N NILES AVE, SOUTH BEND, IN, 46617

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,044,175

Exercised Options: $13,022,088

Current Obligation: $13,022,088

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV23D0008

IDV Type: IDC

Timeline