DoD spent $88.5M on 629 trucks for Afghanistan via sole-source contract

Contract Overview

Contract Amount: $88,510,792 ($88.5M)

Contractor: ND Defense LLC

Awarding Agency: Department of Defense

Start Date: 2010-04-28

End Date: 2012-12-10

Contract Duration: 957 days

Daily Burn Rate: $92.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ACQUISITION OF 629 GENERAL TRANSPORT TRUCKS FOR COUNTRY OF AFGHANISTAN, FMS.

Place of Performance

Location: WARRENVILLE, DUPAGE County, ILLINOIS, 60555

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $88.5 million to ND DEFENSE LLC for work described as: ACQUISITION OF 629 GENERAL TRANSPORT TRUCKS FOR COUNTRY OF AFGHANISTAN, FMS. Key points: 1. Contract awarded without competition, raising questions about price discovery and potential value. 2. Significant investment in general transport trucks highlights logistical needs for international operations. 3. Sole-source award to ND DEFENSE LLC suggests limited market options or specific capabilities required. 4. Contract duration of 957 days indicates a substantial, long-term logistical support requirement. 5. The acquisition aligns with broader U.S. foreign military sales and stabilization efforts.

Value Assessment

Rating: questionable

The total contract value of $88.5 million for 629 trucks averages to approximately $140,732 per truck. Without competitive bids, it is difficult to benchmark this price against market rates or similar government procurements. The lack of competition means the government may not have secured the best possible price, raising concerns about overall value for money. Further analysis would require comparing this price to commercial off-the-shelf truck costs and similar FMS truck acquisitions.

Cost Per Unit: Approximately $140,732 per truck (based on total contract value and quantity).

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, ND DEFENSE LLC, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source contracts can be justified in specific circumstances, such as urgent needs or unique capabilities, they generally lead to less price competition and potentially higher costs for the government.

Taxpayer Impact: The absence of competition means taxpayers did not benefit from the price reductions and efficiencies that typically arise from a competitive bidding environment. This could result in a higher overall expenditure for the acquired assets.

Public Impact

The primary beneficiaries are the Afghan National Security Forces, who received the general transport trucks. The services delivered include the provision of essential transportation assets to support military and logistical operations. The geographic impact is focused on Afghanistan, supporting U.S. and allied efforts in the region. Workforce implications are indirect, relating to the logistics and maintenance of the acquired vehicles within the Afghan context.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to inflated pricing.
Sole-source award raises concerns about the thoroughness of market research.
Potential for vendor lock-in due to the nature of the award.
Limited transparency in the procurement process due to sole-source justification.

Positive Signals

Contract successfully delivered a significant quantity of essential equipment.
Award facilitated timely support for U.S. foreign military sales objectives.
ND DEFENSE LLC fulfilled the contract requirements as specified.

Sector Analysis

The acquisition of general transport trucks falls within the broader defense logistics and equipment sector. This sector is characterized by large, complex procurements often involving specialized vehicles and systems. The market size for such equipment is substantial, driven by global defense spending and foreign military sales. This contract represents a specific instance of equipping allied forces, a common practice within the defense industry to support international security cooperation.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. The sole-source nature of the award to ND DEFENSE LLC suggests that small businesses were likely not involved in the primary contract. Further investigation would be needed to determine if any subcontracting opportunities were available or utilized.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight mechanisms. Accountability measures would be tied to the contract's performance clauses and delivery schedules. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Foreign Military Sales (FMS)
Logistics and Transportation Support
Defense Equipment Procurement
Afghanistan Security Assistance

Risk Flags

Sole-source award lacks competitive pricing.
High per-unit cost warrants further investigation.
Limited public information on contractor performance.
Potential for inefficient use of taxpayer funds due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $88.5 million to ND DEFENSE LLC. ACQUISITION OF 629 GENERAL TRANSPORT TRUCKS FOR COUNTRY OF AFGHANISTAN, FMS.

Who is the contractor on this award?

The obligated recipient is ND DEFENSE 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 $88.5 million.

What is the period of performance?

Start: 2010-04-28. End: 2012-12-10.

What is the track record of ND DEFENSE LLC in fulfilling government contracts, particularly those involving international sales?

Information regarding ND DEFENSE LLC's specific track record is not detailed in the provided data. However, the award of a sole-source contract valued at $88.5 million for 629 trucks suggests a level of trust or perceived capability by the awarding agency, the Department of the Army. For a comprehensive assessment, one would need to review past performance evaluations, contract completion history, and any reported issues or successes with previous government procurements by this contractor. The nature of foreign military sales often involves specific logistical and regulatory expertise, which may have been a key factor in selecting ND DEFENSE LLC on a sole-source basis.

How does the per-unit cost of these trucks compare to similar government procurements or commercial market prices?

The average per-unit cost for these trucks is approximately $140,732 ($88.5M / 629 trucks). Without specific details on the truck models, their configurations, and the exact year of procurement, a precise comparison is challenging. However, this figure appears high for general transport trucks. Commercial heavy-duty trucks can range significantly in price, but many standard models fall below this benchmark. Government contracts, especially sole-source ones, can sometimes incur higher costs due to specialized requirements or lack of competitive pressure. A detailed analysis would require identifying the specific truck models and comparing their prices in the commercial market and through other competitive government contracts for similar vehicles.

What specific justifications were provided for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED' and lists the contract type as 'sole-source.' Specific justifications, such as urgent and compelling needs, unique capabilities of ND DEFENSE LLC, or the unavailability of other sources, are not detailed in this summary. Federal procurement regulations (like the FAR) outline conditions under which sole-source awards are permissible. Typically, an agency must document why full and open competition is not feasible or not in the government's best interest. This documentation is crucial for ensuring transparency and accountability in the procurement process.

What was the intended operational use and impact of these 629 trucks in Afghanistan?

The acquisition of 629 general transport trucks was intended to bolster the logistical capabilities of Afghan forces, likely supporting troop movement, supply chain operations, and general transportation needs within the country. The impact was aimed at enhancing the operational effectiveness and self-sufficiency of the Afghan National Security Forces, contributing to broader stabilization and security objectives in the region. These vehicles would have been critical for maintaining infrastructure, delivering aid, and facilitating military operations in a challenging environment.

What is the historical spending trend for similar general transport truck acquisitions by the Department of Defense?

The provided data only details this single $88.5 million contract. To understand historical spending trends for similar acquisitions, one would need to analyze broader Department of Defense (DoD) procurement data over several fiscal years. This would involve searching for contracts categorized under NAICS code 336212 (Truck Trailer Manufacturing) or related codes, focusing on acquisitions of general transport vehicles, particularly for international use or foreign military sales. Analyzing trends would reveal whether this contract represents a typical expenditure, an outlier, or part of a larger, ongoing procurement strategy for such assets.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

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: Navistar International Corporation (UEI: 161984646)

Address: 4201 WINFIELD RD, WARRENVILLE, IL, 90

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $88,510,792

Exercised Options: $88,510,792

Current Obligation: $88,510,792

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV08DG097

IDV Type: IDC

Timeline