DoD Awards $13.9M for Construction Machinery to CNH Industrial America LLC Under Full and Open Competition
Contract Overview
Contract Amount: $13,957,122 ($14.0M)
Contractor: CNH Industrial America LLC
Awarding Agency: Department of Defense
Start Date: 2008-08-20
End Date: 2012-07-05
Contract Duration: 1,415 days
Daily Burn Rate: $9.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DELIVEY ORDER 0004 AWARDS VARIOUS CLINS. SEE SECTION B OF THE CONTRACT.
Place of Performance
Location: RACINE, RACINE County, WISCONSIN, 53404, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $14.0 million to CNH INDUSTRIAL AMERICA LLC for work described as: DELIVEY ORDER 0004 AWARDS VARIOUS CLINS. SEE SECTION B OF THE CONTRACT. Key points: 1. The contract, valued at $13.9 million, was awarded to CNH Industrial America LLC. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract duration is 1415 days, spanning from August 2008 to July 2012. 4. The North American Industry Classification System (NAICS) code is 333120 (Construction Machinery Manufacturing).
Value Assessment
Rating: fair
The contract is a Firm Fixed Price (FFP) type, which shifts cost risk to the contractor. Without specific CLIN details or a comparison to similar contracts, a precise value assessment is difficult, but the total award amount is provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bidders participated. This method generally promotes competitive pricing and allows the government to secure the best value.
Taxpayer Impact: The use of full and open competition is intended to ensure taxpayer funds are used efficiently by fostering a competitive environment for contract awards.
Public Impact
Procurement of construction machinery supports essential government operations and infrastructure projects. The long duration of the contract suggests a sustained need for these specific types of machinery. Awarding to a known manufacturer like CNH Industrial America LLC implies a focus on established capabilities and product lines.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific CLIN details limits granular analysis.
- No mention of specific performance metrics or quality assurance provisions.
- Limited information on the specific types of construction machinery procured.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type.
- Awarded to a reputable manufacturer.
Sector Analysis
The construction machinery manufacturing sector (NAICS 333120) is critical for infrastructure development and maintenance. Spending in this sector can fluctuate based on government infrastructure initiatives and defense needs. Benchmarks would typically involve comparing unit costs for similar machinery across different agencies or contract types.
Small Business Impact
The data indicates the award went to CNH Industrial America LLC, a large business. There is no explicit mention of small business participation or subcontracting goals within this specific award notice.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve contract management by the Army to ensure delivery and compliance with the FFP terms.
Related Government Programs
- Construction Machinery Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of detailed CLIN information.
- No specific performance metrics provided.
- Potential for price variance across different machinery types.
- Limited insight into the competitive landscape beyond 'full and open'.
Tags
construction-machinery-manufacturing, department-of-defense, wi, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.0 million to CNH INDUSTRIAL AMERICA LLC. DELIVEY ORDER 0004 AWARDS VARIOUS CLINS. SEE SECTION B OF THE CONTRACT.
Who is the contractor on this award?
The obligated recipient is CNH INDUSTRIAL AMERICA 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 $14.0 million.
What is the period of performance?
Start: 2008-08-20. End: 2012-07-05.
What specific types of construction machinery were procured under this delivery order, and how do their unit costs compare to market rates for similar equipment?
The provided data does not specify the exact types of construction machinery or individual CLINs. To assess value, a detailed breakdown of the items ordered and their associated costs would be necessary. Comparing these unit costs against industry benchmarks for comparable equipment would reveal if the government secured a competitive price or if there's potential for cost savings through negotiation or alternative sourcing.
Given the 1415-day duration, what were the primary operational needs driving such a long-term requirement for construction machinery?
A contract duration of 1415 days (nearly four years) suggests a sustained, long-term operational requirement. This could be tied to major infrastructure projects, ongoing base maintenance and construction, or a strategic equipment refresh cycle within the Department of the Army. Understanding the specific mission or project context would clarify the necessity and justify the extended commitment.
How effectively did the 'full and open competition' process ensure the best value for taxpayers, considering the $13.9 million award amount?
The 'full and open competition' method is designed to maximize value by encouraging multiple bids. While this process generally leads to competitive pricing, the ultimate effectiveness depends on the number of bidders, the quality of proposals received, and the evaluation criteria used. Without knowing the number of bids or the specific evaluation outcomes, it's presumed the process yielded the best available value at the time of award.
Industry Classification
NAICS: Manufacturing › Agriculture, Construction, and Mining Machinery Manufacturing › Construction Machinery 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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Iveco Sued - West Nutzfahrzeuge Gmbh (UEI: 490858302)
Address: 700 STATE ST, RACINE, WI, 53404
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $13,957,122
Exercised Options: $13,957,122
Current Obligation: $13,957,122
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV07D0173
IDV Type: IDC
Timeline
Start Date: 2008-08-20
Current End Date: 2012-07-05
Potential End Date: 2012-07-05 00:00:00
Last Modified: 2015-09-18
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