State Department awards $5.5M contract for armored personnel carriers, with 5 bidders competing

Contract Overview

Contract Amount: $5,498,210 ($5.5M)

Contractor: Osprea Logistics USA LLC

Awarding Agency: Department of State

Start Date: 2024-09-30

End Date: 2026-01-31

Contract Duration: 488 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NEPAL ARMORED PERSONNEL CARRIERS (APC)

Plain-Language Summary

Department of State obligated $5.5 million to OSPREA LOGISTICS USA LLC for work described as: NEPAL ARMORED PERSONNEL CARRIERS (APC) Key points: 1. The contract value represents a significant investment in specialized military equipment. 2. Competition dynamics suggest a potentially healthy market for these defense assets. 3. The firm fixed-price contract type aims to control costs and provide budget certainty. 4. The duration of the contract extends over a considerable period, indicating a long-term need. 5. The specific nature of the equipment points to critical operational requirements for the agency.

Value Assessment

Rating: good

The contract value of $5.5 million for armored personnel carriers appears reasonable given the specialized nature of the equipment. Benchmarking against similar contracts for military vehicles is challenging without more specific technical details, but the number of bidders (5) suggests a competitive environment that likely contributed to a fair price. The firm fixed-price structure further supports value for money by shifting cost overrun risks to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were solicited and allowed to bid. The participation of five bidders suggests a robust competitive landscape for this type of defense equipment. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The competitive bidding process for these armored personnel carriers is beneficial for taxpayers, as it helps ensure that the government is not overpaying for essential defense assets and receives the best possible value.

Public Impact

The primary beneficiaries are likely military or security personnel requiring protected mobility. The services delivered include the provision of specialized armored personnel carriers. The geographic impact is likely concentrated where the State Department operates or deploys security forces. Workforce implications may include manufacturing, logistics, and maintenance roles within the defense industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for long lead times on specialized military hardware.
Dependence on a single contractor for delivery could pose supply chain risks.
Ensuring compliance with international arms transfer regulations may be complex.

Positive Signals

Firm fixed-price contract limits cost escalation risks for the government.
Multiple bidders indicate a healthy market and potential for future competition.
The contract duration allows for phased delivery and integration.

Sector Analysis

The defense manufacturing sector is characterized by high barriers to entry, specialized technology, and significant government procurement. This contract falls within the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' sub-sector. Spending in this area is driven by national security needs and geopolitical factors. Comparable spending benchmarks would typically involve other large-scale procurements of tactical vehicles or armored platforms by various government agencies.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. Given the specialized nature of armored personnel carriers, it is possible that large defense contractors are the primary awardees. Further analysis would be needed to determine if small businesses have opportunities to participate in the supply chain or as subcontractors for this contract.

Oversight & Accountability

The contract is subject to standard government oversight mechanisms, including contract administration by the Department of State. Transparency is generally maintained through federal procurement databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Tactical Wheeled Vehicles
Armored Vehicle Procurement
Department of Defense Contracts
Foreign Military Sales Equipment

Risk Flags

Potential for long lead times
Specialized equipment requires specific maintenance and training
Geopolitical factors could impact delivery or deployment

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $5.5 million to OSPREA LOGISTICS USA LLC. NEPAL ARMORED PERSONNEL CARRIERS (APC)

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 $5.5 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-01-31.

What is the specific model or type of armored personnel carrier being procured, and what are its key technical specifications?

The provided data does not specify the exact model or technical specifications of the Armored Personnel Carriers (APCs). The North American Industry Classification System (NAICS) code '336992' covers 'Military Armored Vehicle, Tank, and Tank Component Manufacturing,' which is broad. Understanding the specific capabilities, such as troop capacity, armor protection levels, armament, and mobility features, is crucial for a comprehensive assessment of the contract's value and suitability for the State Department's mission requirements. Without this detail, it's difficult to benchmark against other similar procurements or assess if the chosen platform aligns with evolving operational needs.

How does the per-unit cost of these APCs compare to similar vehicles procured by other agencies or allies?

A direct per-unit cost comparison is not feasible with the current data. The total contract value is $5,498,210.22, and with 5 bidders, it implies a potential per-unit cost, but the number of units is not specified. Furthermore, the specific capabilities and configurations of APCs vary significantly, impacting their price. To conduct a meaningful comparison, one would need to identify the exact model, its specifications, and then find data on the procurement costs of comparable vehicles by other entities, considering factors like quantity discounts, contract type, and delivery timelines. The 'full and open competition' suggests a market-driven price, but without unit numbers and detailed specs, benchmarking remains speculative.

What is the track record of OSPREA LOGISTICS USA LLC in delivering similar defense equipment contracts to the U.S. government?

Information on OSPREA LOGISTICS USA LLC's specific track record with U.S. government defense contracts, particularly for armored personnel carriers, is not detailed in the provided data. A thorough assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes in fulfilling similar requirements. Federal procurement databases and contractor performance systems (like the Contractor Performance Assessment Reporting System - CPARS) would be the primary sources for this information. Understanding their experience, delivery timeliness, quality of products, and adherence to budget on previous contracts is essential for evaluating the risk associated with this current award.

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 and delivery of specialized military hardware, which often have long lead times. There's also a risk related to the technological obsolescence of the APCs over their service life, especially if the threat landscape evolves rapidly. Supply chain disruptions for critical components could impact timely delivery. Mitigation strategies likely involve robust contract management by the State Department, including performance milestones, clear delivery schedules, and potentially penalties for delays. The firm fixed-price nature shifts some financial risk to the contractor. Furthermore, ensuring the APCs meet evolving security requirements and interoperability standards is a continuous challenge.

How does this spending align with the State Department's overall budget for security and diplomatic support operations?

This $5.5 million contract for armored personnel carriers represents a specific allocation towards enhancing security capabilities, likely for personnel protection in high-risk environments or for diplomatic missions. To assess alignment, it would be necessary to compare this expenditure against the State Department's total budget for its Bureau of Diplomatic Security or other relevant operational units. Understanding the proportion this contract represents of the overall security budget provides context on its strategic importance and resource allocation priorities. Without access to the State Department's detailed budget breakdowns for security equipment, a precise alignment assessment is difficult.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 19AQMM24R0200

Offers Received: 5

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 and U.S.-Incorporated Business, Manufacturer of Goods, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $5,498,210

Exercised Options: $5,498,210

Current Obligation: $5,498,210

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline