State Dept Awards $10.9M for Mamba MK7 Apcs to Osprea Logistics USA LLC

Contract Overview

Contract Amount: $10,965,279 ($11.0M)

Contractor: Osprea Logistics USA LLC

Awarding Agency: Department of State

Start Date: 2023-10-01

End Date: 2026-06-01

Contract Duration: 974 days

Daily Burn Rate: $11.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MAMBA MK7 APCS

Plain-Language Summary

Department of State obligated $11.0 million to OSPREA LOGISTICS USA LLC for work described as: MAMBA MK7 APCS Key points: 1. Contract awarded for specialized military armored vehicles. 2. Sole-source award raises questions about price discovery and competition. 3. Long-term contract duration (974 days) suggests significant program commitment. 4. No small business participation noted in this award.

Value Assessment

Rating: questionable

The contract value of $10.9M for 1 MAMBA MK7 APC is high. Without specific unit cost data or comparable contract benchmarks, it's difficult to definitively assess value. The lack of competition suggests potential for overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition on this $10.9M contract means taxpayers may not be receiving the best possible price for these military vehicles.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The acquisition of advanced armored vehicles impacts national defense capabilities. Long-term contract commitment requires sustained funding and oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Definitive contract provides clear terms
Firm fixed price mitigates cost overrun risk

Sector Analysis

This contract falls within the Defense sector, specifically military vehicle manufacturing. Spending in this area is critical for national security but requires rigorous oversight to ensure cost-effectiveness, especially for specialized equipment like APCs.

Small Business Impact

The contract data indicates no small business participation. This suggests that the prime contractor, OSPREA LOGISTICS USA LLC, is either a large business or that small businesses were not involved in this specific sole-source award.

Oversight & Accountability

The sole-source nature of this award warrants close oversight from the Department of State to ensure fair pricing and justification for the lack of competition. Transparency in the justification process is crucial for accountability.

Related Government Programs

Military Armored Vehicle, Tank, and Tank Component Manufacturing
Department of State Contracting
Department of State Programs

Risk Flags

Sole-source award lacks competition
Potential for overpricing
High per-unit cost
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $11.0 million to OSPREA LOGISTICS USA LLC. MAMBA MK7 APCS

Who is the contractor on this award?

The obligated recipient is OSPREA LOGISTICS USA LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $11.0 million.

What is the period of performance?

Start: 2023-10-01. End: 2026-06-01.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available sources. The Department of State should have documented these reasons and conducted a price analysis, potentially using historical data or market research, to ensure the $10.9M price was fair and reasonable despite the absence of competition.

What is the specific per-unit cost of the MAMBA MK7 APC under this contract, and how does it compare to industry benchmarks?

The contract value is $10.9M for 1 unit (NA=336992 implies 1 unit). This results in a per-unit cost of $10,965,278.59. Without access to specific defense procurement databases or classified cost information, direct comparison to industry benchmarks is challenging. However, this appears to be a very high cost for a single armored personnel carrier.

What is the expected operational effectiveness and strategic value of the MAMBA MK7 APCs acquired under this contract?

The MAMBA MK7 APC is a specialized military vehicle designed for troop transport in potentially hazardous environments. Its acquisition by the Department of State suggests a need for enhanced security or operational capabilities in specific regions or for diplomatic missions requiring robust protection. The strategic value lies in its contribution to personnel safety and mission success.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 19AQMM23R0269

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11108 QUALITY DR, CHARLOTTE, NC, 28273

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $10,965,279

Exercised Options: $10,965,279

Current Obligation: $10,965,279

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline