Army Awards $24.3M for Transmission Upgrades to Allison Transmission Inc
Contract Overview
Contract Amount: $24,275,808 ($24.3M)
Contractor: Allison Transmission Inc
Awarding Agency: Department of Defense
Start Date: 2016-09-23
End Date: 2017-12-31
Contract Duration: 464 days
Daily Burn Rate: $52.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AWARD OF NEW AND UPGRADED TRANSMISSIONS.
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46222
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $24.3 million to ALLISON TRANSMISSION INC for work described as: AWARD OF NEW AND UPGRADED TRANSMISSIONS. Key points: 1. Significant award to a single, established supplier. 2. Focus on vehicle transmission upgrades suggests modernization efforts. 3. Lack of competition raises questions about price discovery. 4. Potential for broader fleet modernization impacts.
Value Assessment
Rating: fair
The contract value of $24.3M for transmission upgrades is substantial. Without specific unit details or comparison data, it's difficult to assess if this pricing is competitive. The firm-fixed-price structure provides cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive environment. The justification for sole-source is not provided.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these transmission upgrades.
Public Impact
Modernization of Army vehicle fleets enhances operational readiness. Dependence on a single supplier could create future supply chain risks. Investment in transmission technology may improve fuel efficiency and durability. Potential for follow-on contracts for additional upgrades or maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- No justification for sole-source award provided.
- Potential for higher costs due to lack of competition.
Positive Signals
- Award to established supplier with likely relevant expertise.
- Firm-fixed-price contract provides cost certainty.
- Supports modernization of critical military equipment.
Sector Analysis
This award falls under Motor Vehicle Body Manufacturing, specifically related to vehicle components. Defense spending in this sector often involves specialized, high-durability equipment. Benchmarks are difficult without specific component cost data.
Small Business Impact
The awardee, Allison Transmission Inc., is a large business. There is no indication that small businesses were involved in this specific contract award, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further oversight is needed to understand the justification for not competing and to ensure fair pricing was achieved.
Related Government Programs
- Motor Vehicle Body Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- No justification for sole-source
- Limited transparency on unit cost
- Dependence on single supplier
Tags
motor-vehicle-body-manufacturing, department-of-defense, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.3 million to ALLISON TRANSMISSION INC. AWARD OF NEW AND UPGRADED TRANSMISSIONS.
Who is the contractor on this award?
The obligated recipient is ALLISON TRANSMISSION 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 $24.3 million.
What is the period of performance?
Start: 2016-09-23. End: 2017-12-31.
What is the specific technical improvement or upgrade provided by these new and upgraded transmissions, and how does it enhance military capability?
The data does not specify the exact nature of the 'new and upgraded transmissions.' However, in a military context, such upgrades typically aim to improve performance, durability, fuel efficiency, or compatibility with new vehicle platforms. Enhanced capabilities could include increased payload capacity, better off-road mobility, or reduced maintenance downtime, ultimately contributing to improved operational readiness and mission effectiveness.
What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The provided data indicates the contract was 'NOT COMPETED,' implying a sole-source award. Without further documentation, the specific justification remains unknown. Common reasons for sole-source awards include unique capabilities of a specific contractor, urgent and compelling needs, or when only one source is capable of meeting the requirement. A thorough review would be needed to validate the necessity of this approach.
How does the per-unit cost of these upgraded transmissions compare to industry benchmarks or previous similar procurements?
The data does not provide a per-unit cost or sufficient detail to establish one. The total award is $24.3 million for one delivery order. Without knowing the number of units or specific model details, a direct comparison to industry benchmarks or past procurements is not feasible. This lack of transparency makes it difficult to assess value for money.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Motor Vehicle Body Manufacturing
Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Allison Transmission Inc. (UEI: 969132880)
Address: ONE ALLISON WAY, INDIANAPOLIS, IN, 46222
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,275,808
Exercised Options: $24,275,808
Current Obligation: $24,275,808
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV08D0159
IDV Type: IDC
Timeline
Start Date: 2016-09-23
Current End Date: 2017-12-31
Potential End Date: 2017-12-31 12:12:00
Last Modified: 2018-10-24
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