DoD awards $84.2M for LTV Police Trucks and Parts under Full and Open Competition
Contract Overview
Contract Amount: $84,220,350 ($84.2M)
Contractor: Global Fleet Sales LLC
Awarding Agency: Department of Defense
Start Date: 2008-01-15
End Date: 2009-01-31
Contract Duration: 382 days
Daily Burn Rate: $220.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LTV POLICE TRUCKS AND SPARE PARTS
Place of Performance
Location: CHARLOTTESVILLE, ALBEMARLE County, VIRGINIA, 22901
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $84.2 million to GLOBAL FLEET SALES LLC for work described as: LTV POLICE TRUCKS AND SPARE PARTS Key points: 1. Significant award for specialized vehicles, indicating demand in law enforcement or security. 2. Competition method suggests a broad market search, potentially leading to competitive pricing. 3. Risk appears moderate given the fixed-price contract, but spare parts availability could be a factor. 4. Sector context points to vehicle manufacturing and government procurement.
Value Assessment
Rating: fair
The award amount of $84.2M for 9 vehicles and parts is substantial. Without specific per-unit cost data or comparison to similar specialized police truck contracts, a precise value assessment is difficult. However, the scale suggests a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method is generally expected to foster price discovery and achieve competitive pricing.
Taxpayer Impact: Taxpayer funds are being utilized for essential law enforcement or security vehicle procurement, with the expectation that competition yielded a fair market price.
Public Impact
Ensures operational readiness for law enforcement or security units requiring specialized vehicles. Supports the domestic automotive manufacturing sector, specifically body manufacturing. Potential for long-term maintenance and parts availability impacting total cost of ownership.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed per-unit cost breakdown.
- Potential for long-term sustainment costs not fully captured.
- Dependence on a single supplier for specific spare parts.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract provides cost certainty.
- Significant investment in critical equipment.
Sector Analysis
This award falls within the motor vehicle body manufacturing sector, specifically for specialized police trucks. Government spending in this area is often driven by defense, homeland security, and law enforcement needs, with benchmarks varying based on vehicle specialization and quantity.
Small Business Impact
The data indicates that small businesses were not primary awardees, as the contract was awarded to GLOBAL FLEET SALES LLC. Further analysis would be needed to determine if small businesses participated as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Standard government oversight processes for procurement and contract management would apply to ensure compliance and performance.
Related Government Programs
- Motor Vehicle Body Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High per-unit cost requires further justification.
- Potential for long-term spare parts scarcity and cost escalation.
- Limited information on specific vehicle capabilities.
- Lack of small business participation noted.
Tags
motor-vehicle-body-manufacturing, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $84.2 million to GLOBAL FLEET SALES LLC. LTV POLICE TRUCKS AND SPARE PARTS
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 $84.2 million.
What is the period of performance?
Start: 2008-01-15. End: 2009-01-31.
What is the average per-unit cost of these specialized police trucks, and how does it compare to industry benchmarks?
The total award is $84.2 million for 9 vehicles and spare parts. This averages to approximately $9.36 million per vehicle, including parts. This figure appears exceptionally high for standard police vehicles. However, if these are highly specialized, armored, or custom-built units for specific military or federal law enforcement applications, the cost might be justifiable. Benchmarking requires detailed specifications of the vehicle's capabilities and features.
What are the primary risks associated with the long-term availability and cost of spare parts for these LTV police trucks?
The primary risk lies in the potential for high costs and limited availability of specialized spare parts over the vehicles' lifespan. If the manufacturer (GLOBAL FLEET SALES LLC) or the specific LTV model has a limited production run or is not widely supported, sourcing parts could become difficult and expensive. This could lead to extended downtime for vehicles and increased maintenance budgets, impacting operational readiness.
How effectively does this procurement method ensure value for taxpayer money, considering the specialized nature of the vehicles?
The use of 'full and open competition' is a strong indicator of an effort to achieve value. It allows multiple vendors to bid, theoretically driving down prices. However, for highly specialized equipment like LTV police trucks, the market might be limited, potentially reducing the competitive pressure. The firm fixed-price contract provides cost certainty, but the true value is realized if the vehicles meet operational needs reliably and affordably over their lifecycle.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Motor Vehicle Body Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 9
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 890 RIO EAST COURT, CHARLOTTESVILL, VA
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $84,220,350
Exercised Options: $84,220,350
Current Obligation: $84,220,350
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV06DG002
IDV Type: IDC
Timeline
Start Date: 2008-01-15
Current End Date: 2009-01-31
Potential End Date: 2009-01-31 00:00:00
Last Modified: 2009-05-28
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