Department of Defense Awards $26.8M for FMS Maxxpro Dash Vehicles to ND Defense LLC

Contract Overview

Contract Amount: $26,854,194 ($26.9M)

Contractor: ND Defense LLC

Awarding Agency: Department of Defense

Start Date: 2009-07-22

End Date: 2014-04-09

Contract Duration: 1,722 days

Daily Burn Rate: $15.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FMS MAXXPRO DASH VEHICLES

Place of Performance

Location: WARRENVILLE, DUPAGE County, ILLINOIS, 60555

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $26.9 million to ND DEFENSE LLC for work described as: FMS MAXXPRO DASH VEHICLES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. Contract duration of 1722 days indicates a long-term need for these vehicles. 4. The contract falls under the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' industrial sector. 5. Awarded by the Department of the Navy, indicating a specific military branch requirement. 6. The contractor, ND DEFENSE LLC, is the sole awardee, suggesting a unique capability or market position.

Value Assessment

Rating: questionable

Benchmarking the value for this specific contract is challenging due to its sole-source nature and the specialized equipment. Without competitive bids, it's difficult to ascertain if the $26.8 million represents optimal value for money. The firm fixed-price structure, however, provides cost certainty. Further analysis would require comparing the unit cost of these specialized vehicles to similar, albeit potentially less advanced, armored platforms if available, or to historical pricing for this specific model if such data were public.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating a sole-source procurement. This means that only one bidder, ND DEFENSE LLC, was considered capable of fulfilling the requirement. The lack of competition means the Department of Defense did not benefit from a bidding process that could drive down prices or encourage innovative solutions from multiple vendors.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the most economical price is achieved.

Public Impact

The primary beneficiaries are the U.S. Navy personnel who will utilize the FMS MAXXPRO DASH VEHICLES for operational purposes. The services delivered involve the provision of specialized armored vehicles essential for troop protection and mobility in potentially hazardous environments. The geographic impact is primarily within military operational theaters where these vehicles are deployed. Workforce implications include the manufacturing and maintenance jobs supported by ND DEFENSE LLC and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Specialized nature of the equipment may limit future interoperability or require unique sustainment strategies.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Award to a specific contractor suggests a fulfillment of a critical, potentially unique, military requirement.
Long contract duration indicates a sustained need and potential for contractor stability.

Sector Analysis

The contract falls within the defense industrial base, specifically the manufacturing of military armored vehicles. This sector is characterized by high technological barriers to entry, significant R&D investment, and a concentrated market of specialized suppliers. Spending in this area is driven by evolving military threats and the need for advanced protection and mobility solutions for personnel. Comparable spending benchmarks would typically involve other large-scale procurements of armored vehicles or related defense systems, often awarded through competitive processes.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The award to ND DEFENSE LLC, a single entity, does not explicitly detail subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contractors often engage small businesses in their supply chains.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. 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 limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Military Vehicle Procurement
Armored Personnel Carriers
Defense Logistics Agency (DLA) Contracts
Tactical Vehicle Systems
Department of Defense Major Weapon Systems

Risk Flags

Sole-source award raises concerns about price competition and value.
Lack of detailed justification for sole-source procurement.
Potential for higher costs due to absence of competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.9 million to ND DEFENSE LLC. FMS MAXXPRO DASH VEHICLES

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 Navy).

What is the total obligated amount?

The obligated amount is $26.9 million.

What is the period of performance?

Start: 2009-07-22. End: 2014-04-09.

What is the specific justification for awarding this contract on a sole-source basis to ND DEFENSE LLC?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION' (CT: 'NOT AVAILABLE FOR COMPETITION'), which is synonymous with a sole-source award. The specific justification for this sole-source determination is not detailed in the provided data snippet. Typically, sole-source justifications are based on factors such as unique technical capabilities, urgent and compelling needs where only one source can reasonably fulfill the requirement, or specific government property requirements. Without access to the official justification document (e.g., a Justification and Approval - J&A), the precise reasons remain unknown. This lack of competitive bidding raises concerns about potential cost efficiencies and the exploration of alternative solutions.

How does the total contract value of $26.8 million compare to other procurements of similar armored vehicles?

Direct comparison of the $26.8 million total contract value for FMS MAXXPRO DASH VEHICLES is difficult without specific details on the quantity of vehicles procured and their exact specifications. The MAXXPRO DASH is a specific variant of the MRAP (Mine-Resistant Ambush Protected) family, known for its survivability features. However, the value of such specialized vehicles can vary significantly based on configuration, technology, and manufacturer. Given this was a sole-source award, it's challenging to benchmark against competitive procurements. To provide a meaningful comparison, one would need to identify contracts for similar quantities of comparable MRAP variants or other advanced armored personnel carriers, ideally awarded competitively, and analyze their total values and unit costs.

What are the potential risks associated with a sole-source contract for specialized military vehicles?

Sole-source contracts for specialized military vehicles present several risks. Firstly, the absence of competition can lead to inflated prices, as the government lacks the leverage of multiple bids to secure the best value. Secondly, it may limit the government's access to potentially superior or more cost-effective alternative technologies or solutions that other manufacturers might offer. Thirdly, reliance on a single supplier can create supply chain vulnerabilities; if the sole source encounters production issues, financial instability, or goes out of business, the government's ability to procure or sustain these critical assets could be jeopardized. Finally, the lack of competitive pressure might reduce incentives for the contractor to innovate or improve efficiency over the contract's lifecycle.

What is the historical spending pattern for FMS MAXXPRO DASH VEHICLES or similar vehicles by the Department of Defense?

The provided data covers a single contract award of $26.8 million for FMS MAXXPRO DASH VEHICLES to ND DEFENSE LLC, spanning from July 22, 2009, to April 9, 2014. This represents a specific procurement instance rather than a comprehensive historical spending pattern. To understand broader historical spending, one would need to analyze multiple contract awards for this specific vehicle type, its variants, or comparable MRAP-class vehicles across different fiscal years and agencies within the Department of Defense. Such an analysis would reveal trends in demand, pricing fluctuations, and the overall investment in this category of protected mobility platforms over time.

What is the track record of ND DEFENSE LLC in fulfilling defense contracts, particularly for armored vehicles?

The provided data identifies ND DEFENSE LLC as the contractor for this $26.8 million FMS MAXXPRO DASH VEHICLES contract. However, it does not offer details about the company's broader track record, past performance evaluations, or experience with other defense contracts, especially concerning armored vehicles. To assess their track record, one would need to consult additional databases or sources that track government contract awards, performance ratings, and any history of contract disputes or successes. Understanding their history with similar procurements, their ability to meet delivery schedules, and the quality of their products would be crucial for evaluating their reliability as a sole-source provider.

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 AVAILABLE FOR COMPETITION

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,953,253

Exercised Options: $26,953,253

Current Obligation: $26,854,194

Contract Characteristics

Cost or Pricing Data: NO

Timeline