DoD awarded $33.1M for 16 dump trucks, exceeding benchmarks by 83% in 2008

Contract Overview

Contract Amount: $33,121,390 ($33.1M)

Contractor: Global Fleet Sales LLC

Awarding Agency: Department of Defense

Start Date: 2008-01-18

End Date: 2009-02-17

Contract Duration: 396 days

Daily Burn Rate: $83.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE

Sector: Defense

Official Description: 16 CUBIC METER DUMP TRUCK

Place of Performance

Location: CHARLOTTESVILLE, ALBEMARLE County, VIRGINIA, 22901, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $33.1 million to GLOBAL FLEET SALES LLC for work described as: 16 CUBIC METER DUMP TRUCK Key points: 1. The contract price was significantly higher than comparable market rates. 2. Full and open competition was utilized, but did not yield competitive pricing. 3. The contract duration was 396 days, with a fixed-price structure. 4. The contractor, Global Fleet Sales LLC, secured this award. 5. This purchase falls under the Light Truck and Utility Vehicle Manufacturing NAICS code. 6. The award was made by the Department of the Army, a component of the DoD.

Value Assessment

Rating: concerning

The awarded price of $33.1 million for 16 dump trucks represents a substantial deviation from market expectations. Benchmarking data indicates that the average price per truck was approximately $2.07 million, which is significantly higher than typical market rates for similar vehicles. This suggests a potential overpayment or a lack of effective price negotiation during the procurement process. The fixed-price contract type offers limited flexibility for cost adjustments, further highlighting the concern over the initial pricing.

Cost Per Unit: Approximately $2.07 million per truck, which is 83% above the benchmark of $8,364,040 for the total order.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. Despite this broad competition, the pricing achieved was notably high, suggesting that the competitive dynamics did not translate into cost savings for the government. The presence of four bids indicates some level of interest, but the outcome raises questions about the effectiveness of the solicitation strategy or the market conditions at the time.

Taxpayer Impact: Taxpayers bore the cost of a significantly inflated price due to the lack of competitive pressure translating into favorable pricing, despite the availability of multiple bidders.

Public Impact

The primary beneficiaries are the Department of the Army personnel who will utilize these dump trucks for logistical and operational support. The services delivered include the provision of heavy-duty vehicles essential for various military operations. The geographic impact is likely concentrated within the operational areas of the Department of the Army, potentially including domestic bases or overseas deployments. Workforce implications are minimal, as this is a procurement of goods rather than services requiring significant new labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High unit cost significantly exceeds market benchmarks.
Full and open competition did not result in competitive pricing.
Fixed-price contract limits recourse for overpayment.
Awarded in 2008, pricing may not reflect current market conditions.
Specific model details are not provided, hindering precise comparison.

Positive Signals

Contract was awarded under full and open competition.
Multiple bids were received, indicating market interest.
The vehicles are essential for military operations.
The contractor, Global Fleet Sales LLC, fulfilled the contract.

Sector Analysis

This contract falls within the "Light Truck and Utility Vehicle Manufacturing" sector, categorized under NAICS code 336112. The market for specialized government vehicles can be distinct, with fewer suppliers capable of meeting stringent military specifications. While the benchmark suggests a significant price variance, the unique requirements of defense procurement can sometimes lead to higher costs compared to commercial off-the-shelf vehicles. The total award amount of $33.1 million for 16 units places this contract in the mid-to-large size category for vehicle procurements.

Small Business Impact

There is no indication that this contract included small business set-asides, as the 'sb' field is false. Consequently, the direct impact on small businesses through subcontracting opportunities is not specified. The primary contractor, Global Fleet Sales LLC, is not identified as a small business. This procurement likely did not leverage the small business ecosystem for direct award or significant subcontracting.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Army's contracting and program management offices. Accountability measures are typically embedded in the contract terms, including delivery schedules and specifications. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Vehicle Procurement
Heavy Equipment Acquisition
Military Logistics Support
Tactical Vehicle Contracts

Risk Flags

High Unit Cost
Potential Overpayment
Limited Competition Impact on Price
Lack of Detailed Vehicle Specifications

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.1 million to GLOBAL FLEET SALES LLC. 16 CUBIC METER DUMP TRUCK

Who is the contractor on this award?

The obligated recipient is GLOBAL FLEET SALES 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 $33.1 million.

What is the period of performance?

Start: 2008-01-18. End: 2009-02-17.

What specific model of dump truck was procured, and what were its key specifications?

The provided data indicates the procurement was for '16 CUBIC METER DUMP TRUCK' but does not specify the exact make or model, nor detailed technical specifications. This lack of specificity makes a precise comparison to commercial benchmarks challenging. However, the size (16 cubic meter capacity) suggests heavy-duty trucks. Without model details, it's difficult to ascertain if unique military-grade features contributed to the higher cost or if standard commercial models were adapted.

How does the $33.1 million award compare to historical spending on similar dump trucks by the Department of Defense?

Historical spending data for identical or highly comparable dump truck procurements by the DoD is not directly available in the provided snippet. However, the benchmark figure of $8,364,040 for 16 units (implying $522,752.50 per truck) suggests that this $33.1 million award ($2,067,587.50 per truck) is substantially higher than typical spending patterns for such equipment. This significant deviation warrants further investigation into the specific circumstances of this 2008 procurement.

What factors might explain the significant price difference (83% above benchmark) for these dump trucks?

Several factors could contribute to the 83% price variance. Firstly, the procurement occurred in 2008, and market prices for heavy equipment can fluctuate significantly due to economic conditions, raw material costs (like steel), and demand. Secondly, military-specific requirements (e.g., armor, specialized chassis, emissions controls, durability standards) often increase costs compared to commercial equivalents. Thirdly, the limited number of bidders (4) in a full and open competition might indicate a niche market or specific technical requirements that restricted the supplier pool, potentially leading to less aggressive pricing.

What is the track record of Global Fleet Sales LLC in securing and fulfilling government contracts, particularly for vehicles?

The provided data only shows this single award to Global Fleet Sales LLC for dump trucks. To assess their track record, a broader search of federal procurement databases (like FPDS) would be necessary to identify other contracts awarded to this entity, their value, performance history, and any past issues or successes. Without this broader context, it's difficult to evaluate their reliability or pricing strategies across multiple contracts.

Were there any performance issues or contract modifications associated with this $33.1 million award?

The provided data does not include information on contract modifications, performance issues, or delivery delays. The contract was awarded on January 18, 2008, and was set to expire on February 17, 2009, with a duration of 396 days. To determine if there were performance issues or modifications, a review of the detailed contract file and any associated amendments would be required.

How does the fixed-price contract type influence the risk and value proposition for the government in this scenario?

A fixed-price contract, like the one used here, shifts the risk of cost overruns to the contractor. For the government, this means the price is set upfront, providing budget certainty. However, in this case, the upfront price was already significantly high. While the government is protected from potential cost increases, the high initial price means they may have overpaid from the outset. The value proposition is weakened when the fixed price is not competitive or reflective of market value, even with the risk transfer.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Manufacturing › Light Truck and Utility Vehicle Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 720 MAPLEWOOD AVE, ANDERSON, IN, 46012

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $33,121,390

Exercised Options: $33,121,390

Current Obligation: $33,121,390

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV08DG096

IDV Type: IDC

Timeline