DoD Spent $16M on Skid Steer Loaders via Full and Open Competition
Contract Overview
Contract Amount: $15,968,701 ($16.0M)
Contractor: CNH Industrial America LLC
Awarding Agency: Department of Defense
Start Date: 2008-08-20
End Date: 2013-09-30
Contract Duration: 1,867 days
Daily Burn Rate: $8.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SKID STEER LOADERS
Place of Performance
Location: RACINE, RACINE County, WISCONSIN, 53404
Plain-Language Summary
Department of Defense obligated $16.0 million to CNH INDUSTRIAL AMERICA LLC for work described as: SKID STEER LOADERS Key points: 1. Significant investment of $15.97M in construction machinery. 2. Competition was robust, indicating potential for good pricing. 3. No specific small business participation noted, a potential area for review. 4. Sector context points to ongoing needs in construction and maintenance.
Value Assessment
Rating: good
The total award of $15.97M for skid steer loaders appears reasonable given the duration and quantity. Benchmarking against similar contracts would provide a more precise assessment of value.
Cost Per Unit: $8553
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that likely drove price discovery. The use of delivery orders indicates flexibility in meeting evolving needs.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better value for government procurements.
Public Impact
Ensures operational readiness for construction and maintenance tasks within the Army. Supports infrastructure projects and logistical operations. Availability of specialized equipment for military installations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of explicit small business participation.
- Long contract duration (1867 days) may introduce price volatility risks.
Positive Signals
- Awarded under full and open competition.
- Clear per-unit cost benchmark available.
- Favorable firm fixed price contract type.
Sector Analysis
The Department of Defense frequently procures construction machinery like skid steer loaders for base operations, maintenance, and infrastructure development. Spending in this category is benchmarked against similar federal and commercial acquisitions.
Small Business Impact
The data indicates that small businesses were not explicitly involved in this particular award. Further analysis would be needed to determine if subcontracting opportunities were available or if set-aside goals were met.
Oversight & Accountability
The contract was awarded via delivery orders under a larger contract, suggesting a structured procurement process. Oversight would focus on the management of these orders and adherence to contract terms.
Related Government Programs
- Construction Machinery Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for price escalation over the long contract duration.
- Lack of explicit small business participation.
- Need for detailed quantity information for precise value analysis.
- Reliance on delivery orders requires careful management.
Tags
construction-machinery-manufacturing, department-of-defense, wi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.0 million to CNH INDUSTRIAL AMERICA LLC. SKID STEER LOADERS
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 $16.0 million.
What is the period of performance?
Start: 2008-08-20. End: 2013-09-30.
What was the specific quantity of skid steer loaders procured under this contract?
The provided data indicates 4 delivery orders were issued against this contract. While the total award amount is $15.97M and the per-unit cost is benchmarked at $8553, the exact number of individual skid steer loaders purchased across these orders is not explicitly stated. This information would be crucial for a precise value assessment.
Were there any performance issues or contract modifications during the 1867-day period?
The data does not detail specific performance issues or contract modifications. A review of the contract file and any associated modifications would be necessary to assess performance history and understand any changes to the original terms, scope, or price. This is important for evaluating long-term contract effectiveness and risk.
How does the $8553 per-unit cost compare to market rates for similar equipment during the contract period?
The $8553 per-unit cost serves as a benchmark. A comprehensive comparison would involve analyzing market prices for comparable skid steer loader models from 2008 to 2013, considering factors like features, warranty, and supplier. This would confirm if the government achieved competitive pricing relative to prevailing market conditions.
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: $15,968,701
Exercised Options: $15,968,701
Current Obligation: $15,968,701
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV07D0173
IDV Type: IDC
Timeline
Start Date: 2008-08-20
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2017-12-06
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