DoD Awards $30.9M for Allison Transmissions, Undisclosed Competition

Contract Overview

Contract Amount: $30,899,996 ($30.9M)

Contractor: Allison Transmission, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-04-29

End Date: 2012-09-30

Contract Duration: 1,250 days

Daily Burn Rate: $24.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PURCHASE 57 X-1100-3B SEP111/IRAN TRANSMISSIONS AND 30 X-1100-3B SEP111/IRAN TRANSMISSIONS.

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46222

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $30.9 million to ALLISON TRANSMISSION, INC. for work described as: PURCHASE 57 X-1100-3B SEP111/IRAN TRANSMISSIONS AND 30 X-1100-3B SEP111/IRAN TRANSMISSIONS. Key points: 1. Significant award for specialized transmission components. 2. Sole source procurement raises questions about price discovery. 3. Long-term contract duration suggests ongoing need. 4. Focus on motor vehicle body manufacturing sector.

Value Assessment

Rating: questionable

The award amount of $30.9 million for 87 transmission units appears high without competitive benchmarking. The per-unit cost of approximately $355,172 is a significant expenditure.

Cost Per Unit: $355,172

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This lack of competition limits the government's ability to secure the best possible price and may lead to higher costs.

Taxpayer Impact: The absence of competition likely results in higher taxpayer costs due to the lack of price pressure.

Public Impact

Impacts military vehicle readiness and maintenance. Supports a specific segment of the automotive manufacturing industry. Potential for increased costs to taxpayers due to non-competitive award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High per-unit cost
Long contract duration

Positive Signals

Supports critical defense needs
Clear delivery timeline

Sector Analysis

This award falls within the Motor Vehicle Body Manufacturing sector, specifically for specialized transmission components. Benchmarking against similar defense vehicle component contracts would be necessary for a full assessment.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award, as the prime contractor is Allison Transmission, Inc., a large entity.

Oversight & Accountability

The non-competed nature of this award warrants further oversight to ensure the price paid was fair and reasonable, and to explore future competitive opportunities.

Related Government Programs

Motor Vehicle Body Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source procurement
High per-unit cost
Lack of transparency in pricing
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.9 million to ALLISON TRANSMISSION, INC.. PURCHASE 57 X-1100-3B SEP111/IRAN TRANSMISSIONS AND 30 X-1100-3B SEP111/IRAN TRANSMISSIONS.

Who is the contractor on this award?

The obligated recipient is ALLISON TRANSMISSION, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $30.9 million.

What is the period of performance?

Start: 2009-04-29. End: 2012-09-30.

What is the justification for the sole-source award of these transmission components?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's difficult to ascertain the precise reason, but it suggests a lack of readily available alternatives or a critical dependency on Allison Transmission's specific product.

How does the per-unit cost compare to industry benchmarks for similar heavy-duty transmissions?

The per-unit cost of approximately $355,172 is exceptionally high. Standard heavy-duty truck transmissions typically range from $10,000 to $30,000. This significant difference suggests the X-1100-3B SEP111/IRAN transmissions are highly specialized military components with unique performance requirements, or that the pricing is inflated due to the lack of competition.

What is the long-term strategic value of securing these specific transmission components?

The long-term strategic value lies in maintaining the operational readiness of military vehicles equipped with these transmissions. Ensuring a steady supply prevents degradation of combat effectiveness and supports ongoing maintenance and repair operations. However, the sole-source nature raises concerns about the sustainability and cost-efficiency of this long-term strategy.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Motor Vehicle Body Manufacturing

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Allison Transmission Inc (UEI: 804407463)

Address: 4700 W 10TH ST, INDIANAPOLIS, IN, 46222

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

Financial Breakdown

Contract Ceiling: $30,899,996

Exercised Options: $30,899,996

Current Obligation: $30,899,996

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV08D0159

IDV Type: IDC

Timeline