DoD Awards $24.8M for Vehicle Fielding and Maintenance to General Dynamics Land Systems
Contract Overview
Contract Amount: $24,860,759 ($24.9M)
Contractor: General Dynamics Land Systems Inc.
Awarding Agency: Department of Defense
Start Date: 2025-03-01
End Date: 2026-02-28
Contract Duration: 364 days
Daily Burn Rate: $68.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NET AND FIELDING OP5 CALL UP ON CONTRACT W56HZV20D0075
Place of Performance
Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $24.9 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: NET AND FIELDING OP5 CALL UP ON CONTRACT W56HZV20D0075 Key points: 1. Contract awarded to a large, established defense contractor. 2. Focus on vehicle fielding and maintenance suggests operational readiness needs. 3. Potential for cost overruns given Cost Plus Fixed Fee contract type. 4. Geographic concentration in Michigan may limit broader economic impact.
Value Assessment
Rating: good
The contract value of $24.8M for a 364-day period appears reasonable for specialized vehicle fielding and maintenance services. Benchmarking against similar large-scale vehicle support contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is generally expected to yield fair market prices, though the Cost Plus Fixed Fee structure requires careful oversight.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense operational support.
Public Impact
Ensures operational readiness of military vehicles. Supports jobs within the defense industrial base. Contributes to the maintenance and longevity of critical assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Limited duration may require follow-on contracts.
- No small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense operational needs.
- Contractor has a strong track record in vehicle systems.
Sector Analysis
This contract falls within the Defense sector, specifically related to vehicle maintenance and logistics. Spending benchmarks for similar large-scale vehicle support contracts vary widely based on vehicle type and scope of work.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the prime contractor is a large entity. Opportunities for small businesses may exist as subcontractors, but this is not explicitly detailed.
Oversight & Accountability
The Cost Plus Fixed Fee contract type necessitates robust oversight from the Department of the Army to monitor costs and ensure value for money. Performance metrics and regular audits will be crucial.
Related Government Programs
- General Automotive Repair
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- No small business participation noted.
- Limited contract duration.
- Potential for cost overruns.
Tags
general-automotive-repair, department-of-defense, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.9 million to GENERAL DYNAMICS LAND SYSTEMS INC.. NET AND FIELDING OP5 CALL UP ON CONTRACT W56HZV20D0075
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 $24.9 million.
What is the period of performance?
Start: 2025-03-01. End: 2026-02-28.
What is the projected cost efficiency of this Cost Plus Fixed Fee contract given the specific nature of vehicle fielding and maintenance?
The Cost Plus Fixed Fee (CPFF) structure can be efficient for services with uncertain costs, like specialized vehicle fielding and maintenance, by providing incentives for the contractor to control costs while ensuring a reasonable profit. However, it requires diligent oversight to prevent cost creep and ensure the fixed fee remains appropriate for the work performed. Benchmarking against similar CPFF contracts for vehicle support is essential for a definitive assessment of cost efficiency.
What are the primary risks associated with the limited duration and potential for follow-on contracts in this vehicle support agreement?
The limited 364-day duration poses a risk of service disruption if follow-on contracts are not awarded promptly, potentially impacting military readiness. It also limits the contractor's ability to invest in long-term process improvements. Furthermore, reliance on follow-on contracts could lead to 'contract bundling' concerns or reduced competition if not managed carefully, potentially increasing costs over time.
How effectively does this contract leverage competition to ensure optimal value for taxpayer dollars in the defense vehicle support sector?
The contract's award under 'full and open competition' is a positive indicator for achieving optimal value. This process allows all qualified vendors to bid, fostering a competitive environment that typically drives down prices and improves service quality. However, the Cost Plus Fixed Fee structure requires ongoing vigilance to ensure the competitive advantage isn't eroded by uncontrolled costs.
Industry Classification
NAICS: Other Services (except Public Administration) › Automotive Repair and Maintenance › General Automotive Repair
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
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: 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: $24,860,759
Exercised Options: $24,860,759
Current Obligation: $24,860,759
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV20D0075
IDV Type: IDC
Timeline
Start Date: 2025-03-01
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 12:02:00
Last Modified: 2025-05-09
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