DoD Awards $27M for Stryker Service Sustainment to General Dynamics, Highlighting Automotive Repair Needs

Contract Overview

Contract Amount: $27,042,027 ($27.0M)

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: $74.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: STRYKER SERVICE SUSTAINMENT - ORDERING PERIOD 5 CLS CALL UP

Place of Performance

Location: STERLING HEIGHTS, MACOMB County, MICHIGAN, 48310

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $27.0 million to GENERAL DYNAMICS LAND SYSTEMS INC. for work described as: STRYKER SERVICE SUSTAINMENT - ORDERING PERIOD 5 CLS CALL UP Key points: 1. The contract focuses on sustainment services for Stryker vehicles, a critical component of Army readiness. 2. General Dynamics Land Systems Inc. is the awardee, suggesting a strong incumbent position. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 4. The automotive repair sector is essential for maintaining military vehicle fleets.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type introduces risk for cost overruns. Benchmarking against similar sustainment contracts is difficult without detailed cost breakdowns, but the award amount of $27M for a 364-day period suggests a significant investment in vehicle maintenance.

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. However, the specific award mechanism (Delivery Order) suggests it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which could limit the scope of competition for this specific order.

Taxpayer Impact: Taxpayer funds are being used for essential military vehicle maintenance, ensuring operational readiness. The competitive award aims to secure fair pricing, but the contract type warrants oversight to control costs.

Public Impact

Ensures continued operational readiness of Stryker vehicles for the U.S. Army. Supports jobs in the automotive repair and defense sustainment sectors. Funds allocated for critical military equipment maintenance contribute to national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
Potential for cost overruns due to the nature of sustainment services.
Limited visibility into specific cost drivers without detailed reporting.

Positive Signals

Awarded under full and open competition.
Addresses critical sustainment needs for a key military platform.
Contract duration ensures consistent support for a full year.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on vehicle maintenance and sustainment. Spending benchmarks for similar vehicle sustainment contracts can vary widely based on vehicle type, age, and required services, but $27M for a year of support for a major platform like the Stryker is substantial.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. General Dynamics Land Systems Inc. is a large defense contractor, suggesting that the primary award is unlikely to directly benefit small businesses unless they are part of the supply chain.

Oversight & Accountability

The Cost Plus Fixed Fee structure necessitates robust oversight from the Department of the Army to monitor costs, ensure performance standards are met, and prevent potential overspending. Regular audits and performance reviews will be crucial for accountability.

Related Government Programs

General Automotive Repair
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 large contractor.
Limited insight into subcontractor participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.0 million to GENERAL DYNAMICS LAND SYSTEMS INC.. STRYKER SERVICE SUSTAINMENT - ORDERING PERIOD 5 CLS CALL UP

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 $27.0 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 compared to other contract types for similar sustainment services?

Cost Plus Fixed Fee contracts can be less cost-efficient if not tightly managed, as they allow the contractor to recoup costs plus a fixed fee, potentially incentivizing higher spending. Benchmarking against fixed-price or other incentive-based contracts for similar sustainment services would reveal if this structure is optimal for achieving value for money, especially considering potential cost overruns.

What are the specific risks associated with the sustainment of Stryker vehicles that necessitate this contract, and how are they being mitigated?

Risks likely include component wear and tear, obsolescence of parts, and the need for specialized technical expertise. Mitigation strategies would involve detailed performance work statements, strict quality control measures, regular maintenance schedules, and potentially incorporating performance incentives within the contract to ensure reliability and reduce downtime.

How effectively does this contract ensure the long-term readiness and operational availability of the Stryker fleet beyond the current ordering period?

This contract ensures sustainment for one year, directly impacting current readiness. Its effectiveness for long-term availability depends on the Army's broader sustainment strategy, including future contract awards, parts availability, and technology upgrades. This specific award is a crucial piece but not the sole determinant of long-term fleet readiness.

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: $27,042,027

Exercised Options: $27,042,027

Current Obligation: $27,042,027

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