DoD awards $29.2M for cargo and police trucks, highlighting light truck manufacturing needs

Contract Overview

Contract Amount: $29,237,982 ($29.2M)

Contractor: Global Fleet Sales LLC

Awarding Agency: Department of Defense

Start Date: 2010-09-27

End Date: 2011-12-31

Contract Duration: 460 days

Daily Burn Rate: $63.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DELIVERY ORDER PLACED AGAINST 1 YEAR IDIQ FOR CARGO TRANSPORT VEHICLES, POLICE TRUCKS AND SPARE PARTS.

Place of Performance

Location: SOUTHFIELD, OAKLAND County, MICHIGAN, 48034

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $29.2 million to GLOBAL FLEET SALES LLC for work described as: DELIVERY ORDER PLACED AGAINST 1 YEAR IDIQ FOR CARGO TRANSPORT VEHICLES, POLICE TRUCKS AND SPARE PARTS. Key points: 1. Contract value represents a significant investment in specialized vehicle acquisition. 2. Full and open competition suggests a robust market for these types of vehicles. 3. Delivery order placed against an existing IDIQ indicates a need for rapid deployment. 4. The contract duration of 460 days points to a substantial, multi-phase delivery schedule. 5. Focus on light trucks and utility vehicles aligns with tactical and operational support requirements. 6. The fixed-price contract structure aims to control costs and provide budget certainty.

Value Assessment

Rating: good

The contract value of $29.2 million for specialized vehicles appears reasonable given the scope. Benchmarking against similar large-scale vehicle procurements for military or law enforcement applications would provide a clearer picture of value for money. The fixed-price nature of the contract suggests an effort to manage costs effectively, but without detailed cost breakdowns or comparisons to market rates for specific truck models and configurations, a precise value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The presence of 6 bidders suggests a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and ensures that the government can select from a range of qualified suppliers, potentially leading to better pricing and terms.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down prices through market forces and increases the likelihood of obtaining the best value for their investment.

Public Impact

The Department of the Army benefits from the acquisition of essential cargo and police vehicles. Services delivered include the provision of light trucks and utility vehicles, crucial for logistical and operational support. The geographic impact is likely widespread, supporting military operations domestically and potentially abroad. Workforce implications may include support roles for vehicle maintenance and operation within the Army.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for long lead times on specialized vehicle components impacting delivery schedules.
Risk of price fluctuations in the automotive market affecting the fixed-price contract.
Ensuring compliance with specific military-grade specifications for durability and performance.

Positive Signals

Award against an IDIQ streamlines the procurement process for urgent needs.
Fixed-price contract provides cost certainty for the Department of Defense.
Multiple bidders indicate a competitive market, likely resulting in favorable pricing.

Sector Analysis

This contract falls within the Light Truck and Utility Vehicle Manufacturing sector (NAICS 336112). This industry is characterized by the production of vehicles designed for off-road use, cargo hauling, and specialized applications. The Department of Defense is a significant customer for this sector, often requiring vehicles with enhanced durability, specific configurations, and compliance with stringent military standards. Spending in this area is driven by operational readiness and logistical support needs.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside consideration (ss: false, sb: false). While the prime contractor is Global Fleet Sales LLC, the extent of small business subcontracting is not detailed here. Larger vehicle procurements often involve complex supply chains where small businesses may supply components or specialized services, but this contract's structure doesn't explicitly prioritize small business engagement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified vehicles. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction may be involved if any fraud, waste, or abuse is suspected.

Related Government Programs

Tactical Wheeled Vehicles
Logistics Support Vehicles
Military Truck Procurement
Law Enforcement Vehicle Contracts
Specialty Vehicle Manufacturing

Risk Flags

Potential for delivery delays
Price volatility in automotive sector
Ensuring adherence to military specifications

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.2 million to GLOBAL FLEET SALES LLC. DELIVERY ORDER PLACED AGAINST 1 YEAR IDIQ FOR CARGO TRANSPORT VEHICLES, POLICE TRUCKS AND SPARE PARTS.

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 $29.2 million.

What is the period of performance?

Start: 2010-09-27. End: 2011-12-31.

What is the track record of Global Fleet Sales LLC in fulfilling government contracts, particularly for vehicle supply?

Global Fleet Sales LLC has a history of supplying vehicles to government entities. Analyzing their past performance on similar contracts, including delivery timeliness, adherence to specifications, and customer satisfaction ratings, is crucial. A review of their contract history would reveal if they have successfully managed large-scale procurements of this nature and if there have been any significant performance issues or disputes. Their experience with military-grade specifications and compliance requirements would also be a key factor in assessing their capability for this specific contract.

How does the per-unit cost of these trucks compare to commercial equivalents or other government contracts?

Without specific model details and configurations, a precise per-unit cost comparison is difficult. However, the total award of $29.2 million for 6 delivery orders suggests an average value per order of approximately $4.87 million. Given these are specialized cargo and police trucks, likely with military-grade enhancements, they would command a premium over standard commercial models. Benchmarking against other government contracts for similar vehicles, adjusted for specifications and quantities, would be necessary to determine if this represents a fair market price and good value for the taxpayer.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential delays in manufacturing and delivery due to supply chain disruptions or production issues, especially for specialized components. Price volatility in the automotive market could also pose a risk, although the fixed-price contract aims to mitigate this for the government. Ensuring the vehicles meet stringent military specifications for durability and performance is another critical risk area. Mitigation strategies likely involve robust contract management, clear performance metrics, regular progress reviews with the contractor, and potentially penalties for non-compliance or delays.

How effective is the full and open competition in ensuring the best value for the Army in acquiring these vehicles?

Full and open competition is generally considered the most effective method for ensuring best value, as it maximizes the pool of potential bidders and fosters a competitive environment that drives down prices and encourages innovation. The fact that 6 bidders participated suggests a healthy market response. This process allows the Army to compare proposals based on price, technical capabilities, and past performance, leading to the selection of the most advantageous offer. The effectiveness is further enhanced if the solicitation clearly defines requirements and evaluation criteria.

What is the historical spending pattern for similar vehicle procurements by the Department of Defense?

Historical spending on similar vehicle procurements by the DoD can vary significantly based on the type of vehicle, quantity, specific requirements, and prevailing market conditions. The DoD consistently procures a wide range of wheeled vehicles, from light tactical trucks to heavy transport. Analyzing past spending on cargo and police trucks, particularly those acquired under full and open competition and fixed-price contracts, would provide context for the $29.2 million award. Trends in average unit costs, contract durations, and the number of bidders over time would offer insights into the efficiency and cost-effectiveness of current procurement strategies.

What are the implications of the 460-day duration for the delivery of these vehicles?

A duration of 460 days (approximately 15 months) for the delivery of 6 orders against an IDIQ suggests a phased delivery schedule rather than an immediate need for all vehicles at once. This timeframe allows for the manufacturing of specialized vehicles, which can involve complex production processes and sourcing of specific components. It also provides flexibility for the Army to call off vehicles as needed, aligning with operational planning and budget cycles. However, it also necessitates careful monitoring to ensure the contractor meets milestones and avoids undue delays.

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: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 24725 W 12 MILE RD STE 114, SOUTHFIELD, MI, 12

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,237,982

Exercised Options: $29,237,982

Current Obligation: $29,237,982

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV10DG008

IDV Type: IDC

Timeline