DOD's $25.9M Toyota Land Cruiser acquisition for Iraq FMS case P1-B-ADJ awarded to BUKKEHAVE, INC

Contract Overview

Contract Amount: $25,935,000 ($25.9M)

Contractor: Bukkehave, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-09-14

End Date: 2017-02-28

Contract Duration: 167 days

Daily Burn Rate: $155.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: D.O. 0031 FOR TOYOTA LAND CRUISER 4-DOOR PICKUPS FOR IRAQ FMS CASE #P1-B-ADJ.

Place of Performance

Location: FORT LAUDERDALE, BROWARD County, FLORIDA, 33316

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $25.9 million to BUKKEHAVE, INC. for work described as: D.O. 0031 FOR TOYOTA LAND CRUISER 4-DOOR PICKUPS FOR IRAQ FMS CASE #P1-B-ADJ. Key points: 1. The contract value of $25.9 million represents a significant investment in specialized vehicle procurement for foreign military sales. 2. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a specific justification for limiting initial bidders. 3. The contract duration of 167 days indicates a focused, short-term requirement for vehicle delivery. 4. The award to BUKKEHAVE, INC. highlights a key supplier for the Department of the Army's light truck and utility vehicle needs. 5. The fixed-price contract type aims to provide cost certainty for the government. 6. The North American Industry Classification System (NAICS) code 336112 points to the light truck and utility vehicle manufacturing sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the vehicle configuration, customization, and delivery logistics required for the Iraq FMS case. The total award amount of $25.9 million for 10 units suggests a per-unit cost of approximately $2.59 million. This figure appears high for standard light utility vehicles and may reflect specialized modifications, transportation, and support services associated with foreign military sales. Further analysis would require comparing these costs against similar FMS vehicle procurements with comparable specifications and destinations.

Cost Per Unit: Approximately $2.59 million per unit (based on total award and 10 units), which is likely high due to FMS requirements and potential customizations.

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method implies that while the competition was intended to be open, certain sources were initially excluded, possibly due to specific technical requirements, security concerns, or prior relationships related to the FMS case. The number of bidders is not explicitly stated, but the designation suggests a controlled competitive environment rather than a broad solicitation.

Taxpayer Impact: The 'exclusion of sources' aspect warrants scrutiny to ensure that taxpayer funds were used efficiently and that the exclusion did not unduly limit competitive pricing.

Public Impact

The primary beneficiaries are the Iraqi security forces, who will receive specialized Toyota Land Cruisers to enhance their operational capabilities. The services delivered include the procurement and likely delivery of 10 modified Toyota Land Cruiser 4-door pickup trucks. The geographic impact is focused on Iraq, supporting U.S. foreign military sales objectives. Workforce implications are primarily within BUKKEHAVE, INC. and its supply chain, involved in vehicle modification and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if FMS-specific modifications are more complex or expensive than anticipated.
Risk associated with delivery timelines and logistical challenges in a foreign military sales environment.
Dependence on a single contractor for a specialized procurement could limit future competitive options.

Positive Signals

Firm fixed-price contract provides cost predictability for the government.
Award to a specific contractor suggests established capability for this type of specialized vehicle procurement.
Procurement supports U.S. foreign policy objectives through military assistance.

Sector Analysis

This contract falls within the automotive manufacturing and defense logistics sectors. The market for specialized military vehicles, particularly for foreign military sales, is distinct from the broader automotive market. It requires adherence to specific government regulations, security protocols, and often involves significant customization and international shipping. Benchmarking would involve comparing this contract to other FMS vehicle procurements or specialized defense equipment contracts, rather than standard commercial vehicle sales.

Small Business Impact

There is no indication that this contract involved small business set-asides. The nature of specialized vehicle procurement for foreign military sales often involves larger, established prime contractors. Subcontracting opportunities for small businesses might exist within BUKKEHAVE, INC.'s supply chain, but this is not explicitly detailed in the provided data. The impact on the small business ecosystem is likely indirect, depending on BUKKEHAVE's sourcing practices.

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 facilitated through contract databases like FPDS, though detailed justifications for 'exclusion of sources' might require further inquiry. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Foreign Military Sales (FMS) Program
Department of Defense Vehicle Procurement
Light Truck and Utility Vehicle Manufacturing
Specialized Military Equipment

Risk Flags

Potential for high per-unit cost requires justification.
Limited competition ('exclusion of sources') needs clear rationale.
FMS context introduces logistical and security risks.
Contract duration is relatively short, implying a focused need.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.9 million to BUKKEHAVE, INC.. D.O. 0031 FOR TOYOTA LAND CRUISER 4-DOOR PICKUPS FOR IRAQ FMS CASE #P1-B-ADJ.

Who is the contractor on this award?

The obligated recipient is BUKKEHAVE, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $25.9 million.

What is the period of performance?

Start: 2016-09-14. End: 2017-02-28.

What specific modifications or customizations were required for the Toyota Land Cruisers to meet the needs of the Iraq FMS case?

The provided data does not detail the specific modifications or customizations required for the Toyota Land Cruisers. However, for Foreign Military Sales (FMS) cases, vehicles often undergo significant enhancements. These can include armored plating for crew protection, specialized communication and navigation systems, upgraded suspension for rugged terrain, specific weapon mounts, and compliance with unique operational requirements of the recipient nation's security forces. The high per-unit cost suggests that such modifications were indeed substantial, differentiating these vehicles from standard commercial models and necessitating specialized integration efforts by BUKKEHAVE, INC.

How does the per-unit cost of approximately $2.59 million compare to similar FMS vehicle procurements?

The per-unit cost of approximately $2.59 million for these Toyota Land Cruisers is exceptionally high when compared to typical commercial light utility vehicles. However, within the context of FMS procurements for heavily modified or armored vehicles, such costs can be justifiable. Similar FMS contracts for armored personnel carriers, specialized reconnaissance vehicles, or heavily equipped support trucks can range from hundreds of thousands to several million dollars per unit, depending on the level of protection, technology integration, and mission-specific equipment. Without direct comparison data for similarly configured vehicles destined for Iraq or comparable operational environments, it remains difficult to definitively benchmark this specific contract's value.

What were the specific reasons for excluding certain sources during the competition phase?

The contract's designation of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was ultimately open, an initial selection or limitation of potential bidders occurred. Specific reasons for such exclusions often relate to unique technical requirements that only a limited number of contractors can meet, urgent operational needs where existing relationships or pre-qualified vendors are essential, or national security considerations. For FMS cases, prior experience with the specific recipient nation's requirements, established logistical chains, or specialized security clearances might also play a role. A formal Justification for Other than Full and Open Competition (JOFOC) or similar documentation would typically outline these specific reasons.

What is the track record of BUKKEHAVE, INC. in fulfilling defense contracts, particularly FMS requirements?

Information regarding BUKKEHAVE, INC.'s specific track record, especially concerning defense contracts and FMS requirements, is not detailed in the provided data snippet. To assess their capability and reliability, a review of their past performance on similar government contracts, including delivery timeliness, quality of goods, and adherence to budget, would be necessary. Examining contract awards databases and performance reviews (if publicly available) would provide insight into their experience with complex international logistics, vehicle modifications, and compliance with stringent FMS program regulations.

What are the potential risks associated with the delivery and operational deployment of these vehicles in Iraq?

The primary risks associated with delivering and deploying these specialized vehicles in Iraq include logistical challenges, security threats during transit and operation, maintenance and sustainment issues, and potential for misuse or diversion. Ensuring secure transportation routes, providing adequate training for Iraqi forces on operation and maintenance, and establishing a reliable supply chain for spare parts and technical support are critical. Furthermore, the evolving security landscape in Iraq necessitates robust planning to mitigate risks to personnel and equipment throughout the deployment lifecycle.

How does this contract align with broader U.S. foreign policy objectives in the Middle East?

This contract aligns with broader U.S. foreign policy objectives by supporting the security and stability of partner nations through military assistance. Providing capable equipment like modified Toyota Land Cruisers to Iraqi security forces can enhance their ability to combat terrorism, maintain internal security, and protect borders. Such FMS cases demonstrate U.S. commitment to its allies, strengthen interoperability, and contribute to regional security architectures, thereby advancing U.S. interests in a stable and secure Middle East.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Manufacturing › Light Truck and Utility Vehicle Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bukkehave International A/S (UEI: 305168989)

Address: 1850 ELLER DR STE 402, FORT LAUDERDALE, FL, 33316

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,935,000

Exercised Options: $25,935,000

Current Obligation: $25,935,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV14D0134

IDV Type: IDC

Timeline