Two of Macomb County’s defense industry giants are battling over a $6
billion contract to provide the U.S. Army with its largest combat
vehicle production program.
billion contract to provide the U.S. Army with its largest combat
vehicle production program.
The competitors in this unusually contentious fight over a Pentagon
bid are BAE Systems and General Dynamics Land Systems, which reside
within 2 miles of each other in Sterling Heights, inside the Macomb
County defense corridor.
bid are BAE Systems and General Dynamics Land Systems, which reside
within 2 miles of each other in Sterling Heights, inside the Macomb
County defense corridor.
 |
| General Dynamics’ Stryker vehicle |
What’s more, the experts at the Army Tank-Automotive Command, or
TACOM, located in Warren less than six miles from these feuding defense
contractors, is home to the Army Materiel Command that will decide which
company has presented a more worthy candidate to replace a fleet of
3,000 armored vehicles that date back to the Vietnam war.
General Dynamics Land Systems headquarters is located near 17 Mile
Road and Mound; BAE’s new facility was built on Van Dyke just south of
15 Mile; and the TACOM complex, also known as the Detroit Arsenal, is on
Van Dyke just south of 12 Mile.
Road and Mound; BAE’s new facility was built on Van Dyke just south of
15 Mile; and the TACOM complex, also known as the Detroit Arsenal, is on
Van Dyke just south of 12 Mile.
Top county officials, led by Executive Mark Hackel, have promoted
Macomb County as the defense capital of Michigan – perhaps of the entire
Midwest. But they had not contemplated the prospect of local
contractors waging war with each other over lucrative contracts for the
Pentagon.
It appears the county may be in a no-lose situation because a local
firm will eventually win the bid. General Dynamics worries about coming
up short and having to reduce jobs – in Michigan and elsewhere. BAE’s
Land & Armaments division is more subtle in its assessment,
predicting an increase in jobs if they’re the winner but not necessarily
cutbacks if they end up on the losing end.
firm will eventually win the bid. General Dynamics worries about coming
up short and having to reduce jobs – in Michigan and elsewhere. BAE’s
Land & Armaments division is more subtle in its assessment,
predicting an increase in jobs if they’re the winner but not necessarily
cutbacks if they end up on the losing end.
The Macomb County operations for GD and BAE, two of the largest
defense contractors in the world, consist mostly of research and
development programs – engineers and designers who create prototypes of
vehicles. As a result, the impact on local employment, regardless of the
bid process outcome, could be neutral – or nothing but positive.
defense contractors in the world, consist mostly of research and
development programs – engineers and designers who create prototypes of
vehicles. As a result, the impact on local employment, regardless of the
bid process outcome, could be neutral – or nothing but positive.
The war between the two contractors will essentially be decided on
this: Are heavily armored vehicles powered by tracks, similar to a tank, or
those that feature multiple wheels, like GD’s Stryker, better able to
assist armored divisions in combat that are led by M1A2 tanks?
Those Abrams tanks have been produced and upgraded by GD for decades.
But the combat teams that accompany those tanks on the battlefield are
led by Bradley Fighting Vehicles, which are manufactured by BAE.
 |
| BAE’s Bradley Fighting Vehicle |
For much of the past two years, BAE and GD have worked with the Army
to refine requirements for a program to build the new generation of
tank-like vehicles over a 13-year period at about $1.8 million apiece
and an overall price tag of more than $6 billion, including programming
costs.
In recent months, BAE has subtly questioned whether GD is using its
political muscle on Capitol Hill to alter the process and give the
company a second chance at the lucrative contract. GD has responded that
a bid award that would split production of the new Armored
Multi-Purpose Vehicle between the two companies would be a fully
acceptable compromise.
political muscle on Capitol Hill to alter the process and give the
company a second chance at the lucrative contract. GD has responded that
a bid award that would split production of the new Armored
Multi-Purpose Vehicle between the two companies would be a fully
acceptable compromise.
At the same time, GD has complained the bid specifications released
in November present an unfair advantage to BAE. On Feb. 14, GD filed a
protest with Army Materiel Command that asserted the requirements – the
specifications in the detailed request for bids — had been written in a
way that favors BAE.
in November present an unfair advantage to BAE. On Feb. 14, GD filed a
protest with Army Materiel Command that asserted the requirements – the
specifications in the detailed request for bids — had been written in a
way that favors BAE.
GD argues that a new vehicle based on its multi-wheeled Stryker,
which has played a major role in the Iraq and Afghanistan wars, will not
receive an objective apples-to-apples opportunity to compete for the $6
billion prize. After the Army rejected a GD protest on April 4, the
company surprised many defense industry insiders by ignoring the usual
appeal path, which would consist of registering a complaint with the
General Accountability Office, the federal government’s watchdog agency.
Instead, the contractor continues to weigh the pros and cons of
launching a legal battle in the federal court system that might
substantially delay the production process for the new Army vehicle.
Under the current schedule, bids are due May 28.
launching a legal battle in the federal court system that might
substantially delay the production process for the new Army vehicle.
Under the current schedule, bids are due May 28.
Ten members of Congress, including Rep. Candice Miller, a Harrison
Township Republican, and Rep. Gary Peters of West Bloomfield Township,
the Democratic candidate for Michigan’s open Senate seat in November,
wrote a letter to the most senior acquisition officer in the Pentagon,
asking for a split in the contract award between GD and BAE.
Township Republican, and Rep. Gary Peters of West Bloomfield Township,
the Democratic candidate for Michigan’s open Senate seat in November,
wrote a letter to the most senior acquisition officer in the Pentagon,
asking for a split in the contract award between GD and BAE.
“A mixed fleet is not about picking Bradley or Stryker, it is about
fielding the correct vehicle type, depending on the mission,” they wrote
on April 3 to Defense Undersecretary Frank Kendall.
fielding the correct vehicle type, depending on the mission,” they wrote
on April 3 to Defense Undersecretary Frank Kendall.
Critics say the wheeled Stryker cannot keep up with Army tanks and
Bradleys in rough, off-road terrain. They argue the Armored
Multi-Purpose Vehicle, or AMPV, which represents a long-term investment
in a new tactical vehicle, should be ready for anything in battle.
In a statement, BAE said: “BAE Systems remains focused on delivering a
low-cost, low-risk, highly survivable offering for AMPV that puts our
troops’ safety first. We look forward to competing on the merits of our
offering against the Army’s requirements.”
low-cost, low-risk, highly survivable offering for AMPV that puts our
troops’ safety first. We look forward to competing on the merits of our
offering against the Army’s requirements.”
The AMPV that the Army chooses and eventually puts into production
will replace the M113, a lightly armored support vehicle that serves in
several roles, including a troop transport, an armored ambulance, a
mobile command post and a mortar carrier.
will replace the M113, a lightly armored support vehicle that serves in
several roles, including a troop transport, an armored ambulance, a
mobile command post and a mortar carrier.
