Department of Defense awards $12.6M contract for 76 GTT trucks to International Motors, LLC

Contract Overview

Contract Amount: $12,594,416 ($12.6M)

Contractor: International Motors, LLC

Awarding Agency: Department of Defense

Start Date: 2007-09-05

End Date: 2008-05-09

Contract Duration: 247 days

Daily Burn Rate: $51.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 76 EACH - GTT TRUCKS

Place of Performance

Location: KNOXVILLE, KNOX County, TENNESSEE, 37919

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $12.6 million to INTERNATIONAL MOTORS, LLC for work described as: 76 EACH - GTT TRUCKS Key points: 1. Contract value appears reasonable given the quantity and type of specialized vehicles. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of 247 days indicates a focused delivery timeline. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The procurement aligns with military logistics and operational readiness needs. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: good

The contract value of approximately $12.6 million for 76 GTT trucks, averaging around $165,700 per unit, seems within a reasonable range for specialized military vehicles. Benchmarking against similar heavy-duty truck procurements, especially those with specific military modifications, would provide a more precise value assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: Approximately $165,700 per GTT truck.

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 4 bidders suggests a healthy level of competition for this specialized vehicle requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best possible price and value for the required GTT trucks.

Public Impact

The primary beneficiaries are the Department of the Army, receiving essential GTT trucks for logistical support. These trucks are critical for transporting personnel and equipment, enhancing operational readiness. The contract supports the Army's mission in Tennessee, where the contractor is located. The procurement indirectly supports jobs within the truck manufacturing and defense supply chain sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for long-term maintenance and spare parts costs not fully detailed in award.
Dependence on a single contractor for delivery within a specific timeframe.
Need to ensure compliance with all military specifications and quality standards.

Positive Signals

Firm fixed-price contract mitigates cost overrun risk for the government.
Full and open competition suggests a robust market response.
Clear delivery timeline (247 days) provides schedule certainty.
Contract awarded to a known entity (International Motors, LLC) potentially indicating prior performance.

Sector Analysis

The procurement of GTT trucks falls within the broader defense manufacturing and transportation equipment sector. This sector is characterized by specialized engineering, stringent quality requirements, and often long production cycles. The market size for such specialized military vehicles is significant, driven by global defense spending. This contract represents a specific acquisition within the larger ecosystem of military logistics and vehicle sustainment.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the award data. This means the primary contract was competed broadly, and opportunities for small businesses would likely arise through subcontracting directly with the prime contractor, International Motors, LLC, if they choose to engage them.

Oversight & Accountability

The Department of the Army, as the awarding agency, is responsible for oversight. The firm fixed-price contract type inherently places performance and delivery accountability on the contractor. Transparency is provided through contract award databases, though detailed performance monitoring and inspection details are typically internal to the agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Truck Procurement
Tactical Vehicle Acquisition
Defense Logistics Support Equipment
Heavy Equipment Manufacturing Contracts

Risk Flags

Contract Awarded Near End of Fiscal Year
Firm Fixed Price Contract
Full and Open Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.6 million to INTERNATIONAL MOTORS, LLC. 76 EACH - GTT 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 $12.6 million.

What is the period of performance?

Start: 2007-09-05. End: 2008-05-09.

What is the specific military designation and intended use of the GTT trucks procured under this contract?

The provided data indicates 'GTT TRUCKS' with the National Stock Number (NSN) 336212, which corresponds to 'Truck Trailer Manufacturing'. While 'GTT' is not a standard military acronym for a truck type, it likely refers to a specific model or configuration of heavy-duty trucks or trailers designed for military logistics. These vehicles are typically used for transporting personnel, equipment, and supplies in various operational environments, supporting troop movements, supply chain operations, and battlefield mobility. The specific 'GTT' designation would need further clarification from the Department of the Army's technical specifications for this contract to determine its precise role and capabilities within the military fleet.

How does the per-unit cost of these GTT trucks compare to similar military vehicle procurements?

The per-unit cost for these 76 GTT trucks is approximately $165,700 ($12,594,416 / 76). Comparing this to similar military vehicle procurements requires access to data on comparable vehicles, such as medium tactical trucks, heavy expanded mobility tactical trucks (HEMTTs), or specialized trailers. Generally, military-specific vehicles with enhanced durability, mobility, and potential armor or communication systems command higher prices than their commercial counterparts. Without specific NSNs or contract numbers for comparable vehicles procured around the same time (2007-2008), a precise benchmark is difficult. However, this price point appears plausible for specialized, heavy-duty military transport equipment.

What are the key performance indicators (KPIs) used by the Department of the Army to assess the success of this contract?

While the award data does not explicitly list Key Performance Indicators (KPIs), standard government contract KPIs typically include on-time delivery, adherence to technical specifications and quality standards, and compliance with contractual terms. For this firm fixed-price contract, meeting the delivery deadline of May 9, 2008, and ensuring the 76 GTT trucks met all specified military requirements would be paramount. Post-delivery, the reliability and performance of the trucks in operational use would also serve as implicit performance indicators. The Department of the Army would likely have internal quality assurance and acceptance procedures to verify these aspects before final payment.

What is the track record of International Motors, LLC in fulfilling government contracts, particularly for heavy vehicles?

International Motors, LLC, based on this award data, has experience fulfilling government contracts for heavy vehicles. The award itself, dated September 5, 2007, with an end date of May 9, 2008, indicates a completed contract cycle. To fully assess their track record, one would need to examine their broader contract history with federal agencies, looking at the number of awards, contract values, types of vehicles supplied, performance ratings (if available), and any instances of contract disputes or terminations. A deeper dive into contract databases like FPDS or SAM.gov would provide a more comprehensive view of their past performance and reliability as a government supplier.

Are there any known risks associated with the specific model or type of GTT trucks procured, or the manufacturing process?

The provided data does not specify any inherent risks associated with the 'GTT TRUCKS' model itself, nor the manufacturing process beyond general supply chain or production timelines. Risks for such procurements typically revolve around ensuring the vehicles meet stringent military specifications for durability, mobility, and operational readiness in potentially harsh environments. Potential risks could include unforeseen technical challenges during production, delays in component sourcing, or issues with quality control that might impact the vehicles' performance or lifespan. The firm fixed-price nature of the contract helps mitigate financial risk for the government, but performance risks remain with the contractor.

How has the Department of Defense's spending on similar truck procurements evolved since this contract was awarded in 2007?

Since this $12.6 million contract was awarded in 2007, the Department of Defense's spending on tactical and logistical vehicles has likely fluctuated based on global security needs, operational tempo, and budget allocations. Post-2007, significant military operations may have increased demand for robust transport vehicles. Technological advancements in vehicle design, fuel efficiency, and integrated systems could also influence procurement costs and specifications. Analyzing subsequent DoD spending reports and contract awards for similar vehicle categories (e.g., HEMTTs, FMTVs, MRAPs) would reveal trends in volume, average unit costs, and the types of vehicles prioritized over the years.

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: $12,594,416

Exercised Options: $12,594,416

Current Obligation: $12,594,416

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV05D0144

IDV Type: IDC

Timeline