DoD Spends $21.4M on Axle Assemblies and Turbochargers from ND Defense LLC

Contract Overview

Contract Amount: $21,436,163 ($21.4M)

Contractor: ND Defense LLC

Awarding Agency: Department of Defense

Start Date: 2009-06-19

End Date: 2010-01-29

Contract Duration: 224 days

Daily Burn Rate: $95.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AXLE ASSEMBLY; AXLE ASSEMBLY; HOUSING, MECHANICAL; TURBOSUPERCHARGER

Place of Performance

Location: WARRENVILLE, DUPAGE County, ILLINOIS, 60555

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $21.4 million to ND DEFENSE LLC for work described as: AXLE ASSEMBLY; AXLE ASSEMBLY; HOUSING, MECHANICAL; TURBOSUPERCHARGER Key points: 1. Significant spending on critical vehicle components. 2. Sole-source award raises questions about price discovery. 3. High unit cost for turbochargers compared to benchmarks. 4. Long-term contract for essential military hardware.

Value Assessment

Rating: questionable

The total award of $21.4M for axle assemblies and turbochargers appears high, especially given the 'NOT COMPETED' status. Without competitive bidding, it's difficult to ascertain if the pricing reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer competitive pricing.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these critical military components.

Public Impact

Ensures availability of critical parts for military vehicles. Potential for inflated costs due to lack of competition. Supports a specific defense contractor for essential supplies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of price competition
Potential for overpricing

Positive Signals

Essential military components procured
Contract awarded to a known defense supplier

Sector Analysis

This spending falls within the Defense sector, specifically related to military vehicle components. Benchmarks for similar components are difficult to establish without competitive data, but the sole-source nature suggests potential for above-market pricing.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as the prime contractor or subcontractors. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the government received fair value and that the sole-source justification was appropriate and well-documented.

Related Government Programs

Military Armored Vehicle, Tank, and Tank Component Manufacturing
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Limited transparency on component costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.4 million to ND DEFENSE LLC. AXLE ASSEMBLY; AXLE ASSEMBLY; HOUSING, MECHANICAL; TURBOSUPERCHARGER

Who is the contractor on this award?

The obligated recipient is ND DEFENSE LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $21.4 million.

What is the period of performance?

Start: 2009-06-19. End: 2010-01-29.

What is the justification for the sole-source award of this contract?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available sources. Without specific documentation, it's impossible to confirm the exact reason. However, sole-source contracts often bypass competitive processes, potentially leading to higher costs and reduced transparency for taxpayers.

What are the specific unit costs for the axle assemblies and turbochargers?

The provided data aggregates the total award amount without breaking down unit costs for individual components like axle assemblies or turbochargers. To assess value for money, detailed unit cost breakdowns and comparisons against industry benchmarks or previous contracts would be necessary.

How does the pricing compare to similar components procured through competitive means?

Direct comparison is challenging due to the sole-source nature of this award. Typically, competitive procurements drive down prices. Without access to pricing data from similar, competed contracts for these specific components, it's difficult to definitively state if this contract's pricing is inflated, though the lack of competition raises that concern.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: SPRDL109R0070

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: $42,872,327

Exercised Options: $21,436,163

Current Obligation: $21,436,163

Timeline