Army Awards $95M Abrams Transmission Contract to Allison Transmission Inc. for CY26 Delivery

Contract Overview

Contract Amount: $95,147,897 ($95.1M)

Contractor: Allison Transmission Inc

Awarding Agency: Department of Defense

Start Date: 2025-09-18

End Date: 2026-12-31

Contract Duration: 469 days

Daily Burn Rate: $202.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CY26 (DELIVERY ORDER YEAR 3) FOR ABRAMS TRANSMISSION LTC

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46222

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $95.1 million to ALLISON TRANSMISSION INC for work described as: CY26 (DELIVERY ORDER YEAR 3) FOR ABRAMS TRANSMISSION LTC Key points: 1. Significant contract value for specialized defense equipment. 2. Sole-source award to Allison Transmission Inc. raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on mechanical power transmission equipment within the defense sector.

Value Assessment

Rating: questionable

The contract value of $95.15M for a single delivery order appears substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to similar specialized transmission contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Allison Transmission Inc. This limits price discovery and potentially leads to less favorable pricing for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential Abrams transmission components.

Public Impact

Ensures continued operational readiness for Abrams tanks. Supports a key defense contractor, potentially impacting supply chain stability. Highlights reliance on specific manufacturers for critical military hardware.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Sole-source award

Positive Signals

Ensures critical equipment availability
Supports established supplier relationship

Sector Analysis

This contract falls within the defense manufacturing sector, specifically for mechanical power transmission equipment. Spending benchmarks for such specialized military components are often high due to unique specifications and limited suppliers.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the capability to bid on this specialized component.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. Accountability for the justification of the non-competitive award is crucial.

Related Government Programs

Mechanical Power Transmission Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Lack of transparency in price justification.
Reliance on a single supplier for critical components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $95.1 million to ALLISON TRANSMISSION INC. CY26 (DELIVERY ORDER YEAR 3) FOR ABRAMS TRANSMISSION LTC

Who is the contractor on this award?

The obligated recipient is ALLISON TRANSMISSION 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 $95.1 million.

What is the period of performance?

Start: 2025-09-18. End: 2026-12-31.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can meet the requirements. Without the specific justification documentation, it's impossible to definitively assess the validity of the sole-source decision and its impact on value for money.

How does the unit cost compare to previous or similar contracts for Abrams transmissions?

Benchmarking the unit cost is challenging without access to historical data or comparable contracts. The reported 'br' value of $2,028,740 might represent a benchmark or previous award, but its context is unclear. A thorough analysis would require comparing this figure against actual costs for similar components to determine if the current pricing is reasonable.

What is the long-term strategy for ensuring competitive sourcing of Abrams transmission components?

The long-term strategy should focus on fostering competition by encouraging new entrants or developing alternative suppliers. This could involve market research, technology insertion programs, or breaking down the requirement into smaller, more accessible contracts. Proactive planning is essential to avoid recurring sole-source awards and ensure cost-effectiveness.

Industry Classification

NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Mechanical Power Transmission Equipment Manufacturing

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Allison Transmission Holdings, Inc.

Address: 1 ALLISON WAY, INDIANAPOLIS, IN, 46222

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: $96,983,061

Exercised Options: $95,147,897

Current Obligation: $95,147,897

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV23D0056

IDV Type: IDC

Timeline