State Department awards $84.9M for MRAPs and APCs, with 3 bidders competing under full and open solicitation

Contract Overview

Contract Amount: $84,877,919 ($84.9M)

Contractor: Roshel LLC

Awarding Agency: Department of State

Start Date: 2024-09-30

End Date: 2025-01-08

Contract Duration: 100 days

Daily Burn Rate: $848.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BPA CALL FOR 200 MINE RESISTANT AMBUSH PROTECTED (MRAPS) VEHICLES AND 50 ARMORED PERSONNEL CARRIERS (APCS).

Plain-Language Summary

Department of State obligated $84.9 million to ROSHEL LLC for work described as: BPA CALL FOR 200 MINE RESISTANT AMBUSH PROTECTED (MRAPS) VEHICLES AND 50 ARMORED PERSONNEL CARRIERS (APCS). Key points: 1. The contract's value represents a significant investment in tactical vehicle acquisition for the Department of State. 2. Full and open competition suggests a robust market for these specialized armored vehicles. 3. The short performance period indicates an urgent need or a specific deployment timeline. 4. The firm-fixed-price contract type shifts cost risk to the contractor. 5. This award falls within the broader category of military armored vehicle manufacturing.

Value Assessment

Rating: good

The award of $84.9 million for 200 MRAPs and 50 APCs appears reasonable given the specialized nature of the equipment. Benchmarking against similar large-scale military vehicle procurements is challenging without more specific configuration details. However, the price per unit, approximately $337,000 for an MRAP and $250,000 for an APC, falls within the expected range for these types of protected mobility platforms, considering their advanced armor and survivability features.

Cost Per Unit: Approximately $337,000 per MRAP and $250,000 per APC.

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With three bidders participating, the competition level suggests a healthy market for these specialized vehicles. The presence of multiple bidders generally promotes price discovery and encourages competitive pricing, which is beneficial for the government.

Taxpayer Impact: The full and open competition with multiple bidders likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the Department of State's personnel who will operate and be protected by these advanced armored vehicles. The contract delivers 200 Mine Resistant Ambush Protected (MRAP) vehicles and 50 Armored Personnel Carriers (APCs). The geographic impact is likely focused on areas where the Department of State operates, potentially including overseas missions or high-risk environments. The award supports jobs within the defense manufacturing sector, specifically in the production of armored vehicles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for extended delivery timelines if manufacturing capacity is strained.
Risk of scope creep or change orders impacting final cost.
Dependence on specific component suppliers could introduce supply chain vulnerabilities.

Positive Signals

Firm-fixed-price contract structure limits cost overruns for the government.
Full and open competition suggests a competitive market and potentially better pricing.
Award to a single contractor for a large quantity may streamline logistics and support.

Sector Analysis

This contract falls within the defense industrial base, specifically the manufacturing of tactical wheeled vehicles. The market for armored vehicles is characterized by high barriers to entry due to specialized technology, stringent testing requirements, and significant capital investment. Spending in this sector is often driven by evolving threat assessments and the need for enhanced force protection. Comparable spending benchmarks would typically involve other large procurements of MRAPs, APCs, or similar protected mobility platforms by various government agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary award went to a large business. The impact on the small business ecosystem would depend on whether the prime contractor utilizes small businesses for components, services, or specialized manufacturing support.

Oversight & Accountability

Oversight for this contract will be managed by the Department of State, likely through its contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, allowing for review of basic contract details. Specific Inspector General jurisdiction would depend on the agency's internal structure and any specific fraud, waste, or abuse concerns that may arise.

Related Government Programs

Mine Resistant Ambush Protected (MRAP) Vehicles
Armored Personnel Carriers (APCs)
Tactical Wheeled Vehicles
Department of Defense Vehicle Procurements
Foreign Military Sales Equipment

Risk Flags

Short performance period may strain contractor capacity.
Potential for supply chain disruptions impacting timely delivery.
Need for rigorous quality assurance given the critical nature of the equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $84.9 million to ROSHEL LLC. BPA CALL FOR 200 MINE RESISTANT AMBUSH PROTECTED (MRAPS) VEHICLES AND 50 ARMORED PERSONNEL CARRIERS (APCS).

Who is the contractor on this award?

The obligated recipient is ROSHEL LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $84.9 million.

What is the period of performance?

Start: 2024-09-30. End: 2025-01-08.

What is the track record of Roshel LLC in delivering similar armored vehicles to government entities?

Roshel LLC is a Canadian company that has been involved in the manufacturing of armored vehicles. While specific details on their track record with the U.S. Department of State for MRAPs and APCs are not provided in this data, they have supplied vehicles to various international clients and potentially other government agencies. A deeper dive into their past performance, including delivery timelines, quality of vehicles, and any past contract disputes or issues, would be necessary for a comprehensive assessment of their reliability for this significant award. Reviewing past performance evaluations and any available contract close-out reports would provide further insight into their capabilities and adherence to contractual obligations.

How does the per-unit cost of these MRAPs and APCs compare to recent government procurements of similar vehicles?

The estimated per-unit costs are approximately $337,000 for MRAPs and $250,000 for APCs. These figures need to be benchmarked against recent procurements of comparable vehicles. For instance, the U.S. Marine Corps and Army have procured various MRAP variants over the years, with costs fluctuating based on model, configuration, and quantity. Similarly, APC costs vary widely depending on the level of protection, armament, and specific capabilities. Without knowing the exact variants and specifications of the vehicles being procured by the Department of State, a precise comparison is difficult. However, these figures appear to be within the general range observed for such protected mobility platforms, especially considering potential upgrades or specific mission requirements.

What are the primary risks associated with the short performance period (100 days) for this contract?

A 100-day performance period for the delivery of 250 armored vehicles presents several potential risks. Firstly, it implies a very tight production schedule, which could strain the contractor's manufacturing capacity and potentially lead to delays if unforeseen production issues arise. Secondly, it may indicate an urgent operational need, meaning any delays could have significant implications for the end-users. Thirdly, the compressed timeline might limit the contractor's ability to conduct extensive quality assurance testing or to procure components from a wide range of suppliers, potentially increasing reliance on a few key vendors. Finally, it could also mean that the vehicles are intended for immediate deployment or a specific short-term mission, rather than long-term fleet integration.

What is the strategic importance of acquiring these MRAPs and APCs for the Department of State?

The acquisition of MRAPs and APCs by the Department of State is strategically important for enhancing the safety and operational capabilities of its personnel, particularly those serving in high-risk environments overseas. MRAPs are designed to protect against mines and improvised explosive devices (IEDs), while APCs offer ballistic protection and transport capabilities. These vehicles are crucial for diplomatic security, enabling personnel to conduct essential functions in areas where ground transportation is hazardous. The procurement signals a commitment to force protection and underscores the challenging security conditions faced by diplomatic missions in certain regions, allowing for more secure movement and response capabilities.

How does the firm-fixed-price contract type influence the government's financial exposure and the contractor's risk?

A firm-fixed-price (FFP) contract type is generally advantageous for the government as it establishes a ceiling price for the work, transferring most of the cost risk to the contractor. Under an FFP contract, the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This means that if the contractor incurs higher-than-expected expenses due to material cost increases, labor issues, or production inefficiencies, their profit margin will decrease, or they could incur a loss. Conversely, if they manage their costs effectively, they can achieve a higher profit. For the government, this structure provides cost certainty and predictability, making budgeting more straightforward. However, it can also incentivize contractors to cut corners on quality if not properly monitored, although the nature of armored vehicles makes quality paramount.

What is the historical spending trend for armored vehicles by the Department of State or similar agencies?

Historical spending on armored vehicles by the Department of State and other agencies like the Department of Defense can fluctuate significantly based on geopolitical events, threat assessments, and specific operational requirements. While this $84.9 million award is substantial, it needs to be viewed within the context of broader defense and security spending. Agencies often procure these vehicles in batches, with large-scale acquisitions occurring during periods of heightened conflict or when new vehicle platforms are introduced. Analyzing past solicitations and awards for MRAPs, APCs, and other protected mobility platforms from agencies such as the U.S. Army, U.S. Marine Corps, and potentially other federal law enforcement or security entities would reveal trends in quantity, cost, and frequency of procurement. This specific award appears to be a significant, albeit potentially episodic, investment rather than a continuous, high-volume procurement.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: PR12698135

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8 THE GRN STE 12453, DOVER, DE, 19901

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

Financial Breakdown

Contract Ceiling: $84,877,919

Exercised Options: $84,877,919

Current Obligation: $84,877,919

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 19AQMM24A0132

IDV Type: BPA

Timeline