DoD's $15.2M purchase of 114 general transport trucks from International Motors, LLC, awarded under full and open competition

Contract Overview

Contract Amount: $15,200,950 ($15.2M)

Contractor: International Motors, LLC

Awarding Agency: Department of Defense

Start Date: 2007-06-11

End Date: 2008-01-07

Contract Duration: 210 days

Daily Burn Rate: $72.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 114 EACH 6 X 6 GENERAL TRANSPORT TRUCKS

Place of Performance

Location: KNOXVILLE, KNOX County, TENNESSEE, 37919

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $15.2 million to INTERNATIONAL MOTORS, LLC for work described as: 114 EACH 6 X 6 GENERAL TRANSPORT TRUCKS Key points: 1. Value for money appears reasonable given the unit price, though a deeper dive into specific truck features and market conditions is needed for a definitive assessment. 2. The contract was awarded through full and open competition, suggesting a competitive environment that should have driven favorable pricing. 3. Risk indicators are low, with a firm fixed-price contract and a short performance period. 4. Performance context is limited to the delivery of general transport trucks, a standard military asset. 5. This contract falls within the Defense sector, specifically related to vehicle procurement. 6. The award to International Motors, LLC, represents a single supplier for this specific procurement, but the competition process itself was broad.

Value Assessment

Rating: good

The contract's total value of $15.2 million for 114 general transport trucks equates to approximately $133,333 per truck. This price point needs to be benchmarked against similar military truck procurements and commercial heavy-duty truck prices to fully assess value. Without specific details on truck capabilities (e.g., payload, off-road capacity, specialized features), a precise value-for-money judgment is difficult. However, the firm fixed-price nature of the contract suggests that the contractor assumed the risk of cost overruns, which can be a positive indicator for the government.

Cost Per Unit: Approximately $133,333 per truck. This figure should be compared to market rates for comparable heavy-duty commercial trucks and other military vehicle procurements with similar specifications.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a moderate level of competition for this procurement. While not an exceptionally high number of bidders, it demonstrates that multiple companies were interested and capable of fulfilling the requirement, which generally supports price discovery and can lead to more competitive pricing.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down prices. The fact that four companies submitted bids suggests that the government received a range of pricing options, likely resulting in a better deal for taxpayers than a sole-source award.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Department of the Army, which receives the general transport trucks for logistical support. The services delivered are the provision of 114 new general transport trucks, essential for moving personnel and equipment. The geographic impact is primarily within the operational areas of the Department of the Army, wherever these trucks are deployed. Workforce implications include potential support roles for manufacturing, maintenance, and operation of these vehicles, though the direct impact is on the contractor's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher unit costs if the 4 bids did not represent the full spectrum of capable suppliers.
Limited insight into the specific technological advancements or features included in these 'general' transport trucks.
Dependence on a single contractor (International Motors, LLC) for the delivery of this specific batch of vehicles.

Positive Signals

Awarded through full and open competition, maximizing the pool of potential bidders.
Firm Fixed Price contract structure shifts cost risk to the contractor.
Short contract duration (210 days) suggests a focused and potentially efficient delivery timeline.
The procurement addresses a clear logistical need for the Department of the Army.

Sector Analysis

This contract falls within the broader Defense industrial base, specifically concerning the manufacturing and procurement of tactical and transport vehicles. The market for military trucks is influenced by government demand, technological advancements in vehicle design, and the capabilities of a specialized set of manufacturers. Comparable spending benchmarks would involve analyzing other DoD contracts for similar types of trucks, considering factors like payload capacity, durability, and intended operating environment. The North American Industry Classification System (NAICS) code 336212 (Truck Trailer Manufacturing) is noted, though the primary product here is the truck itself, suggesting a potential mismatch or a focus on the trailer component if applicable.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless International Motors, LLC, voluntarily engages small businesses in its supply chain or subcontracting efforts. Without specific subcontracting goals or reporting, it's difficult to assess the broader implications for small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods by a certain date. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the procurement or execution phases.

Related Government Programs

Department of Defense Vehicle Procurement
Army Logistics Modernization Programs
Tactical Wheeled Vehicle Fleet Modernization
General Purpose Truck Procurements

Risk Flags

Potential for price inflation due to limited competition (4 bidders).
Lack of detailed specifications makes value assessment difficult.
Unknown track record of the contractor for military vehicle supply.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.2 million to INTERNATIONAL MOTORS, LLC. 114 EACH 6 X 6 GENERAL TRANSPORT TRUCKS

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL MOTORS, 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 $15.2 million.

What is the period of performance?

Start: 2007-06-11. End: 2008-01-07.

What is the specific model and technical specification of the '6 X 6 GENERAL TRANSPORT TRUCKS' procured?

The provided data does not specify the exact model or detailed technical specifications of the '6 X 6 GENERAL TRANSPORT TRUCKS'. The description 'GENERAL TRANSPORT TRUCKS' is broad and could encompass various configurations. To provide a more precise analysis, details such as payload capacity, engine type, fuel efficiency, off-road capabilities, crew capacity, and specific safety features would be necessary. The NAICS code 336212 (Truck Trailer Manufacturing) is listed, which might suggest a focus on the trailer aspect or a slight misclassification if the primary item is the truck chassis and cab. Understanding these specifications is crucial for benchmarking the unit price against market value and assessing the suitability of the trucks for their intended military roles.

How does the unit price of approximately $133,333 per truck compare to contemporary commercial heavy-duty truck market prices?

The unit price of approximately $133,333 per truck is significantly higher than typical commercial heavy-duty trucks. For instance, Class 8 trucks (heavy-duty) in the commercial sector can range from $100,000 to $150,000, but these often include advanced features and are not built to the same stringent military-grade specifications. Military trucks typically incorporate enhanced durability, off-road capabilities, specialized protection, and adherence to military standards (e.g., MIL-SPEC), which inherently increases their cost. Therefore, while seemingly high compared to commercial equivalents, the price may be justified if the trucks possess these military-specific attributes. A direct comparison would require identifying commercial trucks with similar payload, drivetrain (6x6), and ruggedness, which are rare.

What were the key evaluation criteria used in the 'Full and Open Competition' to select International Motors, LLC?

The provided data does not detail the specific evaluation criteria used for this 'Full and Open Competition' award. Typically, for a firm fixed-price contract, criteria might include price, past performance, technical approach, and adherence to delivery schedules. Given that it was a full and open competition with four bidders, the government likely sought the best overall value, balancing cost with the ability to meet the technical requirements and delivery timeline. Without the solicitation document (e.g., Request for Proposal - RFP), it's impossible to know the exact weighting of factors like price versus non-price criteria. However, the award suggests International Motors, LLC's proposal was deemed the most advantageous.

What is the track record of International Motors, LLC in supplying similar vehicles to the U.S. military or other government agencies?

The provided data does not offer specific details on the track record of International Motors, LLC. To assess their reliability and performance history, one would need to examine their past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A company's experience with military-grade vehicles, adherence to delivery schedules, and quality of products are critical factors. Without this information, it's difficult to gauge the risk associated with relying on them for this procurement. Further research into the company's history with government contracts would be necessary.

What is the historical spending pattern for general transport trucks by the Department of the Army or DoD?

The provided data only includes details for this single contract. To understand historical spending patterns for general transport trucks by the Department of the Army or DoD, a broader analysis of federal procurement databases (like FPDS or USASpending.gov) would be required. This would involve querying for similar contract types (e.g., firm fixed price), product descriptions, and NAICS codes over several fiscal years. Analyzing historical spending would reveal trends in volume, average unit prices, key suppliers, and the prevalence of different contract types (e.g., competitive vs. sole-source). This context is essential for determining if the $15.2 million award represents a typical, increased, or decreased level of investment in such assets.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer 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: Navistar International Corporation (UEI: 161984646)

Address: 1111 N NORTHSHORE DR N800, KNOXVILLE, TN, 02

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,200,950

Exercised Options: $15,200,950

Current Obligation: $15,200,950

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV05D0144

IDV Type: IDC

Timeline