DoD's $15M Next Generation Truck Tech Demonstrator contract awarded to Hodges Transportation, Inc

Contract Overview

Contract Amount: $15,048,889 ($15.0M)

Contractor: Hodges Transportation, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-12-04

End Date: 2026-05-06

Contract Duration: 884 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NEXT GENERATION MEDIUM TACTICAL TRUCK TECHNOLOGY DEMONSTRATOR

Place of Performance

Location: SILVER SPRINGS, LYON County, NEVADA, 89429

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $15.0 million to HODGES TRANSPORTATION, INC. for work described as: NEXT GENERATION MEDIUM TACTICAL TRUCK TECHNOLOGY DEMONSTRATOR Key points: 1. Contract focuses on research and development for advanced tactical truck technology. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration of 884 days indicates a significant development timeline. 4. Research and Development in Physical, Engineering, and Life Sciences is a key sector for innovation. 5. The cost-plus-fixed-fee structure incentivizes contractor efficiency while managing risk. 6. This contract supports the modernization of military logistics and transportation capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this specific technology demonstrator contract is challenging due to its R&D nature and unique focus. The $15 million award over approximately two years suggests a substantial investment in exploring new technological avenues for tactical vehicles. Without comparable demonstrator contracts for similar advanced systems, a direct price comparison is difficult. However, the fixed fee component implies a negotiated profit margin, which can be assessed against industry standards for R&D services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, potentially leading to better pricing and innovative solutions. The number of bidders is not specified, but the open competition suggests multiple entities likely vied for this opportunity, allowing the government to select the most advantageous offer.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings and ensures that the government receives the best value by leveraging a wide range of industry capabilities.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Department of the Navy, through the advancement of tactical vehicle technology. The contract will deliver a technology demonstrator for the next generation of medium tactical trucks. The geographic impact is primarily within Nevada, where the contractor is located, but the technology developed will have national defense implications. Workforce implications may include specialized engineering, research, and technical roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The cost-plus-fixed-fee contract type can lead to cost overruns if not closely managed.
The R&D nature of the contract carries inherent risks of technological feasibility and performance outcomes.
The specific performance metrics and success criteria for the demonstrator are not detailed, posing a potential risk to objective evaluation.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contract supports critical modernization efforts for military logistics.
The fixed fee component provides some cost certainty for the government.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The defense industry heavily invests in R&D to maintain technological superiority. The market for advanced military vehicle technology is specialized, with a few key players capable of undertaking such complex development projects. Comparable spending benchmarks would typically be found within other advanced technology demonstration programs for military platforms.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration for this award (ss: false, sb: false). While Hodges Transportation, Inc. may engage small businesses as subcontractors, the primary award was not directed towards small business set-asides. This means the direct impact on the small business ecosystem for this specific contract is likely limited unless subcontracting opportunities arise.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy contracting officers and program managers. Accountability measures will be tied to the achievement of milestones outlined in the Cost Plus Fixed Fee agreement and the successful delivery of the technology demonstrator. Transparency is generally maintained through contract award databases and reporting requirements, though specific technical details of the R&D may be sensitive.

Related Government Programs

Tactical Vehicle Modernization Programs
Advanced Materials Research for Defense
Military Logistics and Sustainment Initiatives
Department of Defense Research and Development Funding

Risk Flags

Potential for cost overruns due to CPFF structure in R&D.
Uncertainty of technological success in R&D.
Lack of specific performance metrics in award data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.0 million to HODGES TRANSPORTATION, INC.. NEXT GENERATION MEDIUM TACTICAL TRUCK TECHNOLOGY DEMONSTRATOR

Who is the contractor on this award?

The obligated recipient is HODGES TRANSPORTATION, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $15.0 million.

What is the period of performance?

Start: 2023-12-04. End: 2026-05-06.

What is the track record of Hodges Transportation, Inc. in performing similar R&D contracts for the Department of Defense?

Information regarding Hodges Transportation, Inc.'s specific track record on similar R&D contracts for the Department of Defense is not detailed in the provided data. To assess their capabilities, a review of their past performance on government contracts, particularly those involving technology demonstration and development in the physical and engineering sciences, would be necessary. This would typically involve examining contract awards, performance evaluations (e.g., CPARS), and any history of contract disputes or successes. Without this specific data, it's difficult to definitively gauge their experience in this specialized R&D area.

How does the $15 million award compare to other technology demonstrator contracts in the defense sector?

The $15 million award for this Next Generation Medium Tactical Truck Technology Demonstrator is a significant investment, but its comparability to other defense technology demonstrator contracts depends heavily on the scope and complexity of those other programs. Demonstrator contracts can range from a few million dollars for component-level testing to tens or hundreds of millions for full system prototypes. Given the focus on 'next generation' technology for a medium tactical truck, $15 million suggests a substantial effort in exploring innovative solutions, potentially involving advanced propulsion, materials, or autonomous capabilities. A precise benchmark would require comparing it to similar R&D efforts for ground vehicle modernization.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D project?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for an R&D project like this involve potential cost overruns and the contractor's incentive to control costs. While the fixed fee provides a defined profit margin, the government bears the risk of actual costs exceeding estimates. If the R&D proves more complex or expensive than initially anticipated, the total contract cost could escalate significantly. The contractor's incentive is to complete the work within the estimated cost to maximize their profit, but unforeseen technical challenges can strain this balance. Robust oversight and clear milestone definitions are crucial to mitigate these risks.

What are the expected outcomes or performance metrics for the 'Next Generation Medium Tactical Truck Technology Demonstrator'?

The provided data does not specify the expected outcomes or detailed performance metrics for the 'Next Generation Medium Tactical Truck Technology Demonstrator.' Typically, such contracts would include technical performance requirements, such as improvements in fuel efficiency, payload capacity, survivability, mobility over various terrains, or integration of new technologies like advanced driver assistance systems or alternative powertrains. The success of the demonstrator would be evaluated against these predefined metrics. Without access to the contract's statement of work or technical exhibits, a precise understanding of the desired outcomes remains unclear.

How has spending on R&D for tactical vehicle technology evolved within the Department of Defense over the past five years?

Analyzing the evolution of spending on R&D for tactical vehicle technology within the Department of Defense over the past five years requires access to historical budget data and specific program allocations. Generally, the DoD consistently invests in modernizing its vehicle fleet to maintain operational readiness and incorporate technological advancements. Trends often reflect shifts towards greater emphasis on fuel efficiency, alternative power sources, enhanced protection, network integration, and potentially autonomous capabilities. Specific figures would necessitate a deep dive into DoD budget justifications and procurement reports for relevant fiscal years.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: N0001423SB001

Offers Received: 999

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 605 FORT CHURCHILL RD, SILVER SPRINGS, NV, 89429

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,048,889

Exercised Options: $15,048,889

Current Obligation: $15,048,889

Actual Outlays: $637,324

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline