Department of the Army 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. The contract value of $12.6 million for 76 trucks suggests a per-unit cost that warrants benchmarking against similar procurements. 2. Full and open competition was utilized, indicating a potentially robust market for these specialized vehicles. 3. The contract duration of 247 days is relatively short, suggesting a focused delivery requirement. 4. The award was made under the 'Truck Trailer Manufacturing' NAICS code, placing it within a specific industrial segment. 5. The fixed-price contract type aims to transfer cost risk to the contractor, International Motors, LLC. 6. The contract was awarded to a single entity, International Motors, LLC, highlighting their position in this specific market segment.

Value Assessment

Rating: fair

The contract awarded to International Motors, LLC for $12.6 million for 76 GTT trucks represents a significant investment. Benchmarking this against similar heavy vehicle procurements by the Department of Defense or other agencies would be crucial to assess value for money. The fixed-price nature of the contract suggests an attempt to control costs, but without comparative data on per-unit pricing for comparable vehicles, it is difficult to definitively assess if the pricing is competitive or represents a fair market value. Further analysis of the specific GTT truck model and its features would be needed for a more precise valuation.

Cost Per Unit: Approximately $165,716 per truck ($12,594,416 / 76). This figure needs to be compared against market rates for similar GTT trucks or heavy-duty military vehicles to determine if it is competitive.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors were likely solicited and had the opportunity to bid. The presence of four bidders (no=4) indicates a degree of competition, which is generally favorable for price discovery and achieving competitive pricing. However, the fact that the award went to a single contractor, International Motors, LLC, means that the ultimate price was determined by the winning bid among those who participated.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. The presence of multiple bidders suggests that taxpayer funds were likely used efficiently in this instance.

Public Impact

The primary beneficiaries of this contract are the Department of the Army, which will receive 76 GTT trucks to support its operational needs. These trucks are likely intended for logistical support, troop transport, or equipment movement within military operations. The geographic impact is likely concentrated around the deployment areas of the Army units receiving these vehicles. The contract supports jobs within the truck manufacturing sector, specifically at International Motors, LLC and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation if market conditions for truck manufacturing change significantly after the contract award.
Dependence on a single contractor for the delivery of these specific GTT trucks.
Ensuring the GTT trucks meet all specified military-grade performance and durability standards throughout their lifecycle.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Fixed-price contract type helps to manage cost certainty for the government.
The contract specifies a clear number of units (76) and delivery timeline, providing defined deliverables.

Sector Analysis

The truck trailer manufacturing sector is a critical component of the defense industrial base, providing essential mobility and logistics platforms. This contract falls under the broader transportation equipment manufacturing industry. Spending in this sector can fluctuate based on defense readiness needs, modernization programs, and operational tempo. Comparable spending benchmarks would involve analyzing other large-scale procurements of tactical vehicles or specialized trailers by military branches.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is not evident from this award alone. Further investigation into subcontracting plans by International Motors, LLC would be necessary to assess any indirect benefits to small businesses.

Oversight & Accountability

Oversight for this contract would typically 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. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Tactical Wheeled Vehicles
Military Logistics Support Equipment
Heavy Truck Procurement
Defense Transportation Contracts

Risk Flags

Potential for cost overruns if market prices for components increase significantly.
Risk of delivery delays impacting operational readiness.
Ensuring compliance with all military specifications and quality standards.

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 track record of International Motors, LLC in fulfilling government contracts, particularly for similar vehicle types?

A review of International Motors, LLC's contract history would be necessary to assess their performance on previous government awards. Key metrics to examine would include on-time delivery rates, adherence to specifications, and any history of contract disputes or terminations. Understanding their experience with military-grade vehicles, specifically GTT trucks or comparable heavy-duty platforms, is crucial. A positive track record with similar procurements would increase confidence in their ability to successfully execute this current $12.6 million contract. Conversely, a history of performance issues could indicate a higher risk for the Department of the Army.

How does the per-unit cost of these GTT trucks compare to similar vehicles procured by the Department of Defense or other federal agencies?

The per-unit cost of approximately $165,716 for these GTT trucks needs to be benchmarked against comparable procurements. This involves searching databases like FPDS for contracts awarded to other manufacturers for similar heavy-duty trucks or specialized military vehicles. Factors such as vehicle specifications (payload capacity, engine power, armor, special equipment), contract type, and the year of award must be considered for a fair comparison. If this contract's per-unit cost is significantly higher than comparable awards, it could indicate potential overpricing or a lack of sufficient competition, warranting further investigation into the specific features and market conditions for these GTT trucks.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential delays in manufacturing or delivery by International Motors, LLC, and the possibility that the delivered GTT trucks may not fully meet the stringent performance and durability requirements of the Department of the Army. Another risk is the potential for cost overruns if unforeseen issues arise during production, although the firm fixed-price nature aims to mitigate this for the government. Mitigation strategies typically involve robust contract oversight, clear performance metrics, liquidated damages clauses for late delivery, and thorough inspection and acceptance testing protocols. The Army's procurement team would have assessed these risks prior to award and established mechanisms to manage them.

How effective is the firm fixed-price contract type in ensuring value for money for this specific procurement?

The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and the risks are understood. For the procurement of 76 GTT trucks, where the product is relatively standardized, FFP shifts the risk of cost overruns to the contractor, International Motors, LLC. This incentivizes the contractor to manage costs efficiently and deliver the trucks within the agreed-upon price. The government benefits from cost certainty. However, the effectiveness hinges on the initial pricing being competitive, which requires thorough market research and a robust competition process, as was reportedly utilized here.

What is the historical spending pattern for GTT trucks or similar tactical vehicles by the Department of the Army?

Analyzing historical spending patterns for GTT trucks or similar tactical vehicles by the Department of the Army would provide context for the $12.6 million award. This involves examining past contract awards for these types of vehicles over several fiscal years. Trends in spending volume, average contract values, and the number of awarded contracts can reveal whether this procurement is part of a larger modernization effort, a routine replacement cycle, or an exceptional requirement. Understanding historical spending can also highlight fluctuations in demand and pricing, aiding in the assessment of the current contract's value and necessity.

What specific capabilities do the 76 GTT trucks provide to the Department of the Army, and how critical are they to current operations?

The specific capabilities provided by the 76 GTT (Gun Truck Tactical) trucks are crucial for understanding their importance to the Department of the Army. GTT trucks are typically designed for enhanced survivability and mobility in combat zones, often featuring uprated suspension, armor protection, and specialized weapon mounts. Their criticality relates to their role in protecting personnel and enabling mission success in high-threat environments. Whether they are used for convoy escort, forward operating base security, or other tactical support functions, their availability directly impacts operational effectiveness and troop safety. This contract likely addresses a specific operational need or a gap in the existing fleet.

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