Army Awards $6.3M for JLTV STS WD 0008-013 FSR Test Support to AM General LLC

Contract Overview

Contract Amount: $6,320,945 ($6.3M)

Contractor: AM General LLC

Awarding Agency: Department of Defense

Start Date: 2025-05-05

End Date: 2026-04-30

Contract Duration: 360 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: JLTV STS WD 0008-013 FSR TEST SUPPORT

Place of Performance

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

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $6.3 million to AM GENERAL LLC for work described as: JLTV STS WD 0008-013 FSR TEST SUPPORT Key points: 1. The contract is for test support services related to the JLTV program. 2. AM General LLC, a known defense contractor, is the awardee. 3. The contract value is $6.3 million over a 360-day period. 4. The sector is primarily defense manufacturing and support services.

Value Assessment

Rating: good

The contract is a Cost Plus Fixed Fee (CPFF) type, which allows for cost reimbursement plus a fixed fee. This type of contract is often used when costs are difficult to estimate accurately. The fixed fee provides an incentive for the contractor to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing.

Taxpayer Impact: The use of full and open competition suggests efforts to obtain fair market value for the services provided, benefiting taxpayers.

Public Impact

Ensures continued testing and evaluation of the Joint Light Tactical Vehicle (JLTV). Supports the operational readiness and development of a key military vehicle. Provides specialized technical support for the JLTV program. Contributes to the overall defense capabilities of the U.S. Army.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type can lead to cost overruns if not managed closely.
  • Reliance on a single contractor for specialized test support may pose a risk if performance issues arise.

Positive Signals

  • Awarded under full and open competition, suggesting competitive pricing.
  • Contract duration of 360 days allows for focused support.
  • Clear definition of services for test support.

Sector Analysis

This contract falls within the defense sector, specifically related to tactical vehicle manufacturing and support. Spending benchmarks in this area are highly variable, depending on program maturity and specific requirements. The value of $6.3 million is moderate for specialized test support within a major vehicle program.

Small Business Impact

The data does not indicate any specific subcontracting goals for small businesses on this particular delivery order. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors.

Oversight & Accountability

The Department of the Army is responsible for overseeing this contract. Standard oversight mechanisms for CPFF contracts, including cost monitoring and performance reviews, should be in place to ensure accountability and value for money.

Related Government Programs

  • Truck Trailer Manufacturing
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • Potential for cost overruns.
  • Reliance on a single contractor for specialized support.
  • Need for robust oversight of contractor performance and costs.

Tags

truck-trailer-manufacturing, department-of-defense, in, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.3 million to AM GENERAL LLC. JLTV STS WD 0008-013 FSR TEST SUPPORT

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 $6.3 million.

What is the period of performance?

Start: 2025-05-05. End: 2026-04-30.

What is the historical performance of AM General LLC on similar JLTV support contracts?

Historical performance data for AM General LLC on similar JLTV support contracts would be crucial for assessing reliability and potential risks. Reviewing past contract awards, performance evaluations, and any documented issues would provide insight into their capability to deliver the required test support effectively and on schedule. This information helps in validating the current award decision and anticipating potential challenges.

How does the fixed fee component of this CPFF contract compare to industry standards for similar test support services?

Assessing the fixed fee in relation to industry standards for comparable test support services is vital for ensuring fair pricing. A fee significantly above or below benchmarks could indicate potential overpayment or insufficient incentive for contractor performance. Benchmarking against similar contracts, considering the complexity and duration, helps determine if the fee aligns with market rates and reflects the contractor's expected profit and risk.

What specific metrics will be used to measure the effectiveness of the FSR test support provided under this contract?

Defining clear, measurable metrics for the effectiveness of the FSR test support is essential for accountability. These metrics should align with the program's objectives and could include factors like test completion rates, accuracy of data collection, timeliness of reporting, and identification of critical issues. Without defined metrics, it is difficult to objectively evaluate the contractor's performance and the overall value delivered.

Industry Classification

NAICS: ManufacturingMotor Vehicle Body and Trailer ManufacturingTruck Trailer Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

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: $6,320,945

Exercised Options: $6,320,945

Current Obligation: $6,320,945

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

Start Date: 2025-05-05

Current End Date: 2026-04-30

Potential End Date: 2026-04-30 12:04:00

Last Modified: 2025-12-17

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