DoD's $19.15M LLTT contract awarded to TLD America Corporation shows fair value with 5 bidders

Contract Overview

Contract Amount: $19,152,399 ($19.2M)

Contractor: TLD America Corporation

Awarding Agency: Department of Defense

Start Date: 2011-05-26

End Date: 2015-11-26

Contract Duration: 1,645 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LARGE LANDBASED TOW TRACTOR (LLTT)

Place of Performance

Location: WINDSOR, HARTFORD County, CONNECTICUT, 06095

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $19.2 million to TLD AMERICA CORPORATION for work described as: LARGE LANDBASED TOW TRACTOR (LLTT) Key points: 1. The contract's value appears reasonable given the scope and duration. 2. A competitive bidding process suggests potential for price discovery. 3. The firm fixed-price structure shifts risk to the contractor. 4. Performance context is limited without specific delivery metrics. 5. This contract falls within the 'Other Aircraft Parts' manufacturing sector.

Value Assessment

Rating: good

The total contract value of $19.15 million for Large Landbased Tow Tractors appears to be within a reasonable range for specialized military equipment. Benchmarking against similar contracts is challenging without more specific details on the tractors' capabilities and intended use. However, the presence of multiple bidders (5) suggests that the pricing was likely competitive and reflected market conditions at the time of award. The firm fixed-price nature of the contract further supports a good value assessment, as it caps the government's financial exposure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The participation of five bidders suggests a healthy level of competition for this specialized equipment. A competitive environment generally leads to better price discovery and can incentivize contractors to offer more favorable terms and pricing to secure the award.

Taxpayer Impact: The full and open competition likely resulted in a more cost-effective outcome for taxpayers by driving down prices through bidding.

Public Impact

The Department of Defense benefits from the acquisition of essential ground support equipment. Large land-based tow tractors are delivered to support aircraft operations. The geographic impact is likely concentrated at naval air stations where the equipment is deployed. Workforce implications include the operation and maintenance of these specialized vehicles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to fully assess contractor performance.
The duration of the contract (over 4 years) could lead to potential obsolescence if technology advances rapidly.

Positive Signals

Firm fixed-price contract structure limits cost overrun risk for the government.
Full and open competition indicates a robust bidding process.
Award to TLD America Corporation, a known entity in ground support equipment, suggests a degree of reliability.

Sector Analysis

This contract falls within the broader aerospace and defense manufacturing sector, specifically related to ground support equipment. The market for specialized tow tractors is likely concentrated among a few key manufacturers capable of meeting stringent military specifications. While specific market size data for LLTTs is not readily available, the defense industry's demand for such equipment is consistent, driven by the need to maintain and operate complex aircraft fleets.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the specialized nature of large land-based tow tractors, it is plausible that the primary manufacturers are larger entities. Subcontracting opportunities for small businesses might exist in component manufacturing or specialized services, but this is not explicitly detailed in the award information.

Oversight & Accountability

The contract was awarded under a firm fixed-price structure, which inherently provides a degree of cost control. Oversight would typically involve contract administration by the Department of the Navy to ensure timely delivery and adherence to specifications. Transparency is facilitated by the public nature of contract awards, though detailed performance reports are not always publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Ground Support Equipment Procurement
Department of Defense Vehicle Acquisition
Naval Aviation Support Contracts

Risk Flags

Contract Duration
Limited Performance Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.2 million to TLD AMERICA CORPORATION. LARGE LANDBASED TOW TRACTOR (LLTT)

Who is the contractor on this award?

The obligated recipient is TLD AMERICA CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $19.2 million.

What is the period of performance?

Start: 2011-05-26. End: 2015-11-26.

What specific capabilities and technical specifications define the 'LARGE LANDBASED TOW TRACTOR (LLTT)'?

The provided data does not detail the specific technical capabilities or performance specifications of the LARGE LANDBASED TOW TRACTOR (LLTT). These tractors are typically designed for heavy-duty towing and maneuvering of large aircraft on airfields. Key specifications would likely include towing capacity (in pounds or tons), engine power, turning radius, braking systems, operator cabin features (ergonomics, visibility), and environmental operating conditions (temperature ranges, terrain). Without access to the contract's statement of work or technical exhibits, a precise understanding of the LLTT's unique requirements remains elusive. However, given the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code, it implies a specialized, non-standard vehicle tailored for aviation logistics.

How does the awarded price of $19.15 million compare to similar LLTT procurements by the DoD or other agencies?

Directly comparing the $19.15 million total contract value for the LLTTs to similar procurements is challenging without more granular data on the number of units, specific configurations, and the time period of other awards. The provided data indicates 5 bidders and a firm fixed-price contract, suggesting competitive pricing at the time of award (2011-2015). However, without knowing the quantity of tractors procured under this $19.15 million award, calculating a meaningful per-unit cost for comparison is impossible. Historical data on ground support equipment procurement by the DoD might reveal price ranges, but variations in technological sophistication, payload capacity, and operational requirements across different aircraft types and eras make direct benchmarking difficult. The duration of the contract (over 4 years) also suggests a phased delivery or production schedule, which can influence overall cost structure.

What are the primary risks associated with a firm fixed-price contract for specialized military equipment like LLTTs?

The primary risk associated with a firm fixed-price (FFP) contract for specialized military equipment like LLTTs is that the contractor may face unforeseen cost increases during production or delivery that erode their profit margin, potentially leading to quality compromises or even contract default if the cost overruns are severe. While FFP shifts cost risk to the contractor, it can also disincentivize innovation or specification upgrades during the contract period, as any changes would require formal modification and potentially renegotiation. For the government, the risk lies in potentially overpaying if the initial price was set too high due to inadequate market knowledge or competition, or if the contractor inflates the price to cover perceived risks. Additionally, if the contractor lacks the technical expertise or financial stability to meet the demanding specifications, the government risks receiving substandard equipment or facing delivery delays.

What is the track record of TLD America Corporation in supplying similar equipment to the government?

TLD America Corporation is a known manufacturer of ground support equipment (GSE), including tow tractors, for both civil and military aviation. While the specific contract data provided focuses on this single $19.15 million award, TLD's general industry presence suggests experience in producing such equipment. Assessing their specific track record with the government would require examining their broader contract history, including past performance evaluations, on-time delivery rates, and any history of disputes or contract terminations. Without access to a comprehensive federal procurement database search for TLD America Corporation's historical awards and performance data, it's difficult to provide a detailed assessment of their track record beyond their established position as a GSE provider.

How does the number of bidders (5) influence the perceived value and taxpayer benefit for this contract?

Having five bidders for the LLTT contract is a positive indicator for value and taxpayer benefit. A higher number of bidders generally signifies a more competitive marketplace, where companies vie for the contract by offering their best pricing and terms. This competition helps ensure that the government is not locked into a single supplier's pricing and that the awarded price is closer to the market equilibrium. For taxpayers, this means the funds allocated are likely being used more efficiently, as the competitive pressure tends to drive down costs compared to a sole-source or limited-competition scenario. The presence of five bidders suggests that the opportunity was accessible to multiple qualified firms, reducing the risk of artificial price inflation and enhancing the likelihood of receiving suitable equipment at a fair price.

What are the potential implications of the contract's end date (November 2015) on the current operational readiness of the DoD?

The contract's end date of November 2015 means that the delivery and support period for these LLTTs concluded several years ago. The implications for the DoD's current operational readiness depend on several factors. Firstly, it depends on whether the DoD has since procured replacement or additional LLTTs to meet ongoing needs. Secondly, it hinges on the lifespan and maintenance schedule of the tractors delivered under this contract; if they are still in service, their continued operational status relies on effective maintenance programs and the availability of spare parts. If these tractors have been retired or replaced, the readiness impact is mitigated by the successful transition to newer equipment. Without information on subsequent procurements or the current status of the delivered LLTTs, assessing the direct impact on current readiness is speculative.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT LAUNCHING, LANDING, GROUND HANDLING AND SERVICING EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6833508R0031

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AXA (UEI: 275477800)

Address: 812 BLOOMFIELD AVE, WINDSOR, CT, 06095

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,152,399

Exercised Options: $19,152,399

Current Obligation: $19,152,399

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6833509D0093

IDV Type: IDC

Timeline