Department of Defense awards $87.8M for police trucks, with Global Fleet Sales LLC as the primary contractor

Contract Overview

Contract Amount: $87,768,164 ($87.8M)

Contractor: Global Fleet Sales LLC

Awarding Agency: Department of Defense

Start Date: 2010-11-30

End Date: 2012-05-13

Contract Duration: 530 days

Daily Burn Rate: $165.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: POLICE TRUCKS

Place of Performance

Location: SOUTHFIELD, OAKLAND County, MICHIGAN, 48034

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $87.8 million to GLOBAL FLEET SALES LLC for work described as: POLICE TRUCKS Key points: 1. The contract value represents a significant investment in specialized vehicle procurement for the military. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance period. 4. Performance context is provided by comparing this award to similar vehicle procurements. 5. The sector positioning highlights the role of light truck manufacturing in defense logistics.

Value Assessment

Rating: fair

The total award of $87.8 million for police trucks appears substantial. Benchmarking against similar large-scale vehicle procurements is necessary to determine value for money. The contract type, Firm Fixed Price, generally offers cost certainty but can limit flexibility. Without specific per-unit cost data or comparison to market rates for similar specialized vehicles, a definitive value assessment is challenging. The provided benchmark of $165,600 per unit suggests a potentially high cost, warranting further investigation into the specific features and capabilities of these police trucks.

Cost Per Unit: $165,600 per unit (benchmark provided)

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 presence of 6 bidders suggests a reasonably competitive environment for this specialized vehicle requirement. A higher number of bidders typically leads to more competitive pricing and better value for the government. The fact that it was competed broadly is a positive sign for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for public funds.

Public Impact

Law enforcement agencies within the Department of Defense are the primary beneficiaries, receiving specialized vehicles for their operations. The services delivered include the manufacturing and supply of police trucks, crucial for security and operational readiness. The geographic impact is likely national, supporting military installations across the United States. Workforce implications include jobs in the light truck manufacturing sector, supporting skilled labor in vehicle production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed price does not adequately account for all specialized features.
Risk of delivery delays given the specialized nature of the vehicles and potential supply chain issues.
Ensuring the vehicles meet all specific operational requirements and performance standards.
Long-term maintenance and support costs for specialized police trucks may be higher than standard vehicles.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
The contractor, Global Fleet Sales LLC, is established in vehicle sales and distribution.
The contract duration and delivery schedule appear manageable for specialized production.

Sector Analysis

The defense sector relies heavily on specialized vehicle procurement to maintain operational readiness. This contract falls within the light truck and utility vehicle manufacturing industry, a segment that supports various government and commercial needs. The market for defense vehicles is characterized by stringent requirements, long procurement cycles, and significant investment. Comparable spending benchmarks in this sector often involve large fleet orders for tactical or specialized support vehicles, where costs can vary widely based on customization and technology.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The award to Global Fleet Sales LLC, a company likely of significant size given the contract value, suggests that small business participation may be limited unless they are direct suppliers or subcontractors to the prime. Further analysis would be needed to determine if any small business subcontracting plans were part of the award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Army. Accountability measures are embedded in the contract terms, including delivery schedules and performance specifications. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

Tactical Vehicle Procurement
Specialized Fleet Management
Light Utility Vehicle Contracts
Department of Defense Vehicle Acquisition
Law Enforcement Vehicle Supply

Risk Flags

High per-unit cost benchmark
Potential for specialized vehicle production delays
Contract type risk for contractor cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $87.8 million to GLOBAL FLEET SALES LLC. POLICE TRUCKS

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 $87.8 million.

What is the period of performance?

Start: 2010-11-30. End: 2012-05-13.

What is the track record of Global Fleet Sales LLC in fulfilling large government vehicle contracts?

Global Fleet Sales LLC has a history of supplying vehicles to various government entities, including law enforcement and military branches. Their experience often involves providing a range of vehicle types, from standard patrol cars to more specialized units. Analyzing their past performance on similar-sized contracts, particularly those involving custom modifications or specific operational requirements, is crucial. Past performance reviews, on-time delivery rates, and adherence to specifications on previous awards would provide insight into their capability to execute this current $87.8 million contract successfully. Information on any past disputes or contract terminations would also be relevant for a comprehensive assessment of their reliability.

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

The benchmarked per-unit cost of $165,600 for these police trucks is notably high when compared to standard commercial police vehicles, which can range from $40,000 to $70,000 depending on specifications. Even specialized law enforcement vehicles typically fall within a lower range unless equipped with extensive, unique modifications. This higher cost suggests that these trucks likely incorporate significant specialized features, such as enhanced armor, advanced communication systems, specific tactical equipment, or unique chassis modifications tailored for military police or special operations. A detailed breakdown of the vehicle's specifications and the justification for these advanced features would be necessary to fully assess whether the per-unit cost represents fair market value within the context of defense procurement.

What are the primary risks associated with a Firm Fixed Price contract for specialized vehicles?

A Firm Fixed Price (FFP) contract, while offering cost certainty to the buyer, carries inherent risks, especially for specialized and potentially complex procurements like these police trucks. The primary risk for the government is that the contractor may cut corners on quality or performance to maintain profitability if unforeseen cost increases arise during production. Conversely, the contractor bears the risk of cost overruns if their initial pricing was too low or if material/labor costs escalate unexpectedly. For specialized vehicles, the risk of scope creep or the need for design modifications during production can also strain an FFP agreement, potentially leading to change orders or disputes. Ensuring the initial technical specifications are comprehensive and accurate is paramount to mitigating these risks.

What is the expected effectiveness of these police trucks in supporting Department of Defense operations?

The effectiveness of these police trucks hinges on their specific design and intended use within the Department of Defense (DoD). If they are intended for general law enforcement duties on military bases, their effectiveness will be measured by reliability, durability, and suitability for patrol and response. If they are designed for more specialized roles, such as tactical support, convoy escort, or specialized unit deployment, their effectiveness will depend on features like enhanced mobility, protective capabilities, integrated communication systems, and payload capacity. The contract's success will be measured by whether these vehicles enhance the operational capabilities and security posture of the units they are assigned to, ultimately contributing to the DoD's overall mission readiness.

How does this $87.8 million award compare to historical spending on similar vehicle procurements by the DoD?

An $87.8 million award for police trucks represents a significant, but not unprecedented, expenditure for the Department of Defense. The DoD procures a vast array of vehicles annually, ranging from standard Humvees and trucks to highly specialized armored personnel carriers and aircraft. To contextualize this specific award, it would be beneficial to compare it against historical spending on similar categories, such as light tactical vehicles, specialized law enforcement vehicles, or utility vehicles procured over the past 5-10 years. Analyzing the number of units procured in this award versus historical awards of similar value can also provide insight. If this award is for a larger quantity or more advanced specifications than previous procurements of similar dollar value, it might indicate an increase in demand or a shift towards more sophisticated vehicle technology.

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, 48034

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $87,768,164

Exercised Options: $87,768,164

Current Obligation: $87,768,164

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV10DG008

IDV Type: IDC

Timeline