DoD Spends $24.5M on MRAP Sustainment Spare Parts from ND Defense LLC
Contract Overview
Contract Amount: $24,500,936 ($24.5M)
Contractor: ND Defense LLC
Awarding Agency: Department of Defense
Start Date: 2009-08-13
End Date: 2010-01-13
Contract Duration: 153 days
Daily Burn Rate: $160.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MRAP SUSTAINMENT SPARE PARTS.
Place of Performance
Location: WARRENVILLE, DUPAGE County, ILLINOIS, 60555
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $24.5 million to ND DEFENSE LLC for work described as: MRAP SUSTAINMENT SPARE PARTS. Key points: 1. Significant expenditure on specialized vehicle parts highlights critical sustainment needs. 2. Lack of competition raises concerns about potential overpricing and limited market engagement. 3. The sole-source nature of this award warrants scrutiny for taxpayer value. 4. Focus on a niche manufacturing sector (336399) indicates specialized supply chain reliance.
Value Assessment
Rating: questionable
The $24.5 million award for MRAP sustainment spare parts lacks a clear benchmark for comparison due to its sole-source nature. Without competitive bids, assessing whether the price is fair and reasonable against market alternatives is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for the government compared to a competitively bid contract.
Taxpayer Impact: The absence of competition for these critical spare parts potentially leads to inefficient use of taxpayer funds, as the government may be paying a premium without market validation.
Public Impact
Ensures operational readiness of Mine-Resistant Ambush Protected (MRAP) vehicles. Supports specialized manufacturing within the automotive parts sector. Potential for increased costs impacts overall defense budget allocation. Highlights reliance on specific contractors for critical military equipment sustainment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for price inflation
- Limited transparency on pricing justification
Positive Signals
- Ensures availability of critical parts for MRAP vehicles
- Supports specific defense logistics needs
Sector Analysis
This contract falls within the 'All Other Motor Vehicle Parts Manufacturing' sector, a specialized area often characterized by unique production requirements and potentially limited suppliers. Benchmarking spending in this niche requires careful consideration of specific part complexities and production volumes.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if small businesses were considered or had the capability to fulfill this requirement.
Oversight & Accountability
The sole-source nature of this award suggests a need for robust oversight to ensure the necessity of this procurement method and the reasonableness of the price paid. Documentation justifying the sole-source decision is crucial for accountability.
Related Government Programs
- All Other Motor Vehicle Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of market pressure.
- Limited transparency on cost justification.
- Reliance on a single contractor for critical parts.
- No indication of small business participation.
Tags
all-other-motor-vehicle-parts-manufactur, department-of-defense, il, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.5 million to ND DEFENSE LLC. MRAP SUSTAINMENT SPARE PARTS.
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 $24.5 million.
What is the period of performance?
Start: 2009-08-13. End: 2010-01-13.
What was the justification for awarding this contract on a sole-source basis, and were alternative sources considered?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without further documentation, it's unclear if alternative sources were thoroughly investigated or if specific market conditions necessitated this approach, impacting potential cost savings.
How does the unit cost of these spare parts compare to industry benchmarks or previous procurements, if available?
Given this is a sole-source award for specialized MRAP sustainment parts, direct comparison to industry benchmarks or previous competitive procurements is challenging. The lack of competition limits the ability to establish a fair market price. A detailed cost analysis by the Defense Contract Audit Agency (DCAA) would be necessary to validate the pricing reasonableness against estimated costs and potential profit margins.
What is the long-term strategy for ensuring competitive sourcing for MRAP sustainment parts to mitigate future sole-source awards?
The long-term strategy should focus on market research to identify potential new sources, encourage competition through clearer requirements, or explore alternative sustainment solutions. Developing a robust supply chain management plan that anticipates future needs and fosters a competitive environment is essential to avoid recurring sole-source awards and ensure better value for taxpayer money.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Parts Manufacturing › All Other Motor Vehicle Parts Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
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, 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: $25,563,222
Exercised Options: $24,500,936
Current Obligation: $24,500,936
Timeline
Start Date: 2009-08-13
Current End Date: 2010-01-13
Potential End Date: 2010-01-13 00:00:00
Last Modified: 2009-12-02
More Contracts from ND Defense LLC
- Category I Mrap — $1.4B (Department of Defense)
- Accelerated Category I Mrap — $900.3M (Department of Defense)
- Category I Mrap — $760.1M (Department of Defense)
- 1200 Category I Mrap — $736.7M (Department of Defense)
- Long Wheel Base Rolling Chassis — $702.9M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)