DoD awards $72M for LTV vehicles, highlighting motor vehicle manufacturing sector needs

Contract Overview

Contract Amount: $71,996,997 ($72.0M)

Contractor: Global Fleet Sales LLC

Awarding Agency: Department of Defense

Start Date: 2008-01-15

End Date: 2008-11-30

Contract Duration: 320 days

Daily Burn Rate: $225.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 4DR CARGO TRANSPORT LTV, 2DR CARGO TRANSPORT LTV, MOBILE MAINTENANCE LTV

Place of Performance

Location: CHARLOTTESVILLE, ALBEMARLE County, VIRGINIA, 22901

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $72.0 million to GLOBAL FLEET SALES LLC for work described as: 4DR CARGO TRANSPORT LTV, 2DR CARGO TRANSPORT LTV, MOBILE MAINTENANCE LTV Key points: 1. The contract value of $72M is significant for the motor vehicle body manufacturing sector. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 320 days indicates a focused, short-term requirement. 4. The award was made to GLOBAL FLEET SALES LLC, a key player in fleet sales.

Value Assessment

Rating: fair

The award amount of $72,000,000 for LTV vehicles appears to be a substantial investment. Benchmarking against similar contracts for specialized vehicles would be necessary to fully assess its value.

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 generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The use of full and open competition aims to maximize taxpayer value by fostering a competitive environment among potential suppliers.

Public Impact

Ensures the Department of Defense has necessary cargo transport capabilities. Supports the motor vehicle manufacturing industry, specifically body manufacturing. The award reflects ongoing government investment in specialized vehicle procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data makes value assessment difficult.
Contract duration is relatively short, potentially leading to follow-on needs.
Small business participation is not indicated.

Positive Signals

Full and open competition utilized.
Clear requirement for specialized vehicles.
Award made to a known entity in fleet sales.

Sector Analysis

The motor vehicle body manufacturing sector (NAICS 336211) is crucial for producing specialized vehicles like the LTVs. This contract represents a significant expenditure within this sector, supporting production and related supply chains.

Small Business Impact

The provided data does not indicate any specific provisions or participation by small businesses in this contract. Further analysis would be needed to determine if small businesses were involved or could have been involved.

Oversight & Accountability

The contract was awarded under full and open competition, suggesting a standard procurement process. Oversight would focus on contract performance, delivery timelines, and adherence to specifications.

Related Government Programs

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

Risk Flags

Lack of per-unit cost data.
Short contract duration.
No indication of small business participation.
Potential for follow-on needs not addressed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.0 million to GLOBAL FLEET SALES LLC. 4DR CARGO TRANSPORT LTV, 2DR CARGO TRANSPORT LTV, MOBILE MAINTENANCE LTV

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 $72.0 million.

What is the period of performance?

Start: 2008-01-15. End: 2008-11-30.

What is the average cost per LTV vehicle awarded under this contract, and how does it compare to industry benchmarks?

The provided data does not include the number of vehicles or the per-unit cost, making direct comparison impossible. To assess value, the total award amount ($71,996,997) would need to be divided by the quantity of vehicles procured. Benchmarking would then require comparing this per-unit cost against similar specialized vehicle procurements by government agencies or commercial entities.

What are the specific risks associated with the short contract duration (320 days) for these specialized vehicles?

A short contract duration like 320 days for specialized vehicles could pose risks such as potential production bottlenecks if the manufacturer faces unforeseen delays. It might also necessitate expedited shipping or assembly, increasing costs. Furthermore, it could lead to a gap in supply if follow-on contracts are not secured promptly, impacting operational readiness.

How effectively does this contract meet the Department of the Army's long-term mobility and cargo transport needs?

This contract addresses immediate needs for 4DR and 2DR Cargo Transport LTVs and Mobile Maintenance LTVs. However, the short duration suggests it may be a short-term solution or part of a larger, multi-award strategy. Its long-term effectiveness depends on the overall fleet modernization plan and whether subsequent contracts will ensure sustained capability.

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: $71,996,997

Exercised Options: $71,996,997

Current Obligation: $71,996,997

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV06DG002

IDV Type: IDC

Timeline