DoD's $59M MAXXPRO DASH Contract Awarded to ND DEFENSE LLC Lacks Competition

Contract Overview

Contract Amount: $58,980,342 ($59.0M)

Contractor: ND Defense LLC

Awarding Agency: Department of Defense

Start Date: 2010-05-05

End Date: 2013-03-15

Contract Duration: 1,045 days

Daily Burn Rate: $56.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MAXXPRO DASH

Place of Performance

Location: WARRENVILLE, DUPAGE County, ILLINOIS, 60555

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $59.0 million to ND DEFENSE LLC for work described as: MAXXPRO DASH Key points: 1. Significant spending on armored vehicles highlights defense procurement needs. 2. The sole-source nature of this contract raises concerns about price discovery. 3. Lack of competition may lead to inflated costs for taxpayers. 4. The firm fixed-price contract type offers some cost certainty.

Value Assessment

Rating: questionable

The contract value of $58.98 million for MAXXPRO DASH armored vehicles appears high given the lack of competitive bidding. Without market comparisons or multiple offers, it's difficult to ascertain if this price represents fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially allows the contractor to set terms without market pressure, which is a common concern with non-competitive procurements.

Taxpayer Impact: The absence of competition likely results in higher costs for taxpayers compared to a scenario where multiple vendors vied for the contract.

Public Impact

Taxpayers may be overpaying for essential military equipment due to a lack of competitive bidding. The Department of Defense's reliance on sole-source contracts can stifle innovation and reduce overall market efficiency. This contract's structure raises questions about the effectiveness of procurement processes in ensuring the best value for public funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Firm fixed price contract type

Sector Analysis

The defense sector, particularly military vehicle manufacturing, involves substantial government spending. Benchmarks for similar armored vehicle contracts are difficult to establish without competitive data, but large sole-source awards warrant scrutiny.

Small Business Impact

There is no indication that small businesses were involved in this specific contract, either as prime contractors or subcontractors. The sole-source nature limits opportunities for small business participation.

Oversight & Accountability

The lack of competition suggests potential weaknesses in oversight regarding the justification for a sole-source award. Further review is needed to ensure the process adhered to regulations and achieved best value.

Related Government Programs

Military Armored Vehicle, Tank, and Tank Component Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award lacks transparency.
Potential for inflated pricing.
Limited opportunity for innovation.
No clear small business participation.
Questionable value for taxpayer money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.0 million to ND DEFENSE LLC. MAXXPRO DASH

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 $59.0 million.

What is the period of performance?

Start: 2010-05-05. End: 2013-03-15.

What was the justification for awarding this contract on a sole-source basis instead of competing it?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified by factors such as unique capabilities, urgent needs, or the unavailability of other sources. A thorough review would require access to the contract file and associated documentation to understand the specific rationale.

What is the estimated cost savings if this contract had been competed?

Without competitive bids, it is impossible to provide an accurate estimate of cost savings. However, historical data and procurement best practices suggest that competitive bidding can often lead to savings of 10-30% or more compared to sole-source awards, depending on the market and the specific goods or services.

How does the performance of MAXXPRO DASH vehicles compare to similar armored vehicles procured competitively?

The provided data does not include performance metrics for the MAXXPRO DASH vehicles or comparative data against competitively procured alternatives. Assessing effectiveness would require analyzing operational reports, maintenance records, and user feedback, alongside a comparison with vehicles acquired through competitive processes.

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

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, 60555

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: $58,980,342

Exercised Options: $58,980,342

Current Obligation: $58,980,342

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline