DoD awards $6.5M for 113 forklifts to Advanced Material Handling LLC, supporting Army logistics
Contract Overview
Contract Amount: $6,522,220 ($6.5M)
Contractor: Advanced Material Handling LLC
Awarding Agency: Department of Defense
Start Date: 2024-09-26
End Date: 2026-01-31
Contract Duration: 492 days
Daily Burn Rate: $13.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THIS REQUIREMENT PROCURES 113 FORKLIFTS IN SUPPORT OF ASC.
Place of Performance
Location: ATLANTA, FULTON County, GEORGIA, 30336
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $6.5 million to ADVANCED MATERIAL HANDLING LLC for work described as: THIS REQUIREMENT PROCURES 113 FORKLIFTS IN SUPPORT OF ASC. Key points: 1. Value for money appears reasonable given the quantity and specialized nature of industrial trucks. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are low, with a firm fixed-price contract and a single awardee. 4. Performance context is tied to Army logistics support, a critical operational function. 5. Sector positioning is within industrial machinery manufacturing, supporting defense logistics needs.
Value Assessment
Rating: good
The contract value of $6.52 million for 113 forklifts averages to approximately $57,718 per unit. This price point seems competitive when considering the specialized nature of industrial trucks, which can vary significantly in cost based on lifting capacity, features, and intended use. Benchmarking against similar government procurements for industrial forklifts suggests this pricing is within a reasonable range, especially for a bulk purchase. The firm fixed-price structure further supports value by locking in costs.
Cost Per Unit: Approximately $57,718 per unit.
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of three bidders suggests a moderate level of competition for this requirement. While three bidders are better than one, a higher number could potentially drive prices down further. However, the firm fixed-price contract type helps mitigate risks associated with price fluctuations.
Taxpayer Impact: The full and open competition, with three bidders, likely resulted in a fair market price for taxpayers, avoiding excessive costs that might arise from a less competitive process.
Public Impact
The primary beneficiaries are the Department of the Army, receiving essential equipment for logistical operations. The services delivered include the provision of 113 industrial forklifts, crucial for material handling. The geographic impact is centered in Georgia, where the contract is being performed. Workforce implications are minimal in terms of direct job creation from this contract, but the forklifts will support existing Army logistics personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited future competition if Advanced Material Handling LLC becomes the sole provider of specialized parts or maintenance.
- Dependence on a single awardee for a critical piece of equipment could pose a risk if performance issues arise.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Award to a single entity simplifies contract administration.
- Delivery order structure allows for phased acquisition of equipment.
Sector Analysis
The industrial truck, tractor, trailer, and stacker machinery manufacturing sector (NAICS 333924) is a vital component of the broader manufacturing industry. This contract falls within the defense logistics sub-sector, where reliable material handling equipment is essential for operational readiness. The total market for industrial trucks is substantial, serving warehousing, manufacturing, and military applications. This procurement represents a specific demand within the government's need for specialized logistics assets.
Small Business Impact
This contract does not appear to have a small business set-aside component, nor is there an indication of significant subcontracting opportunities for small businesses based on the provided data. The awardee, Advanced Material Handling LLC, is not explicitly identified as a small business. Therefore, the direct impact on the small business ecosystem from this specific award seems limited.
Oversight & Accountability
Oversight for this contract will be managed by the Department of the Army, likely through contracting officers and program managers responsible for logistics. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified equipment by a certain date. Transparency is facilitated by the public nature of federal contract awards, allowing for review of basic contract details.
Related Government Programs
- Department of Defense Logistics Support Contracts
- Army Equipment Procurement
- Industrial Machinery Manufacturing Contracts
- Material Handling Equipment Acquisition
Risk Flags
- Potential for delivery delays impacting operational readiness.
- Risk of equipment malfunction or defects.
- Dependency on a single supplier for specialized parts or maintenance in the future.
Tags
defense, department-of-defense, department-of-the-army, logistics, material-handling-equipment, forklifts, industrial-machinery, full-and-open-competition, firm-fixed-price, delivery-order, georgia, advanced-material-handling-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.5 million to ADVANCED MATERIAL HANDLING LLC. THIS REQUIREMENT PROCURES 113 FORKLIFTS IN SUPPORT OF ASC.
Who is the contractor on this award?
The obligated recipient is ADVANCED MATERIAL HANDLING LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $6.5 million.
What is the period of performance?
Start: 2024-09-26. End: 2026-01-31.
What is the track record of Advanced Material Handling LLC with the federal government?
A review of federal procurement data indicates that Advanced Material Handling LLC has received multiple federal contracts, primarily from the Department of Defense. These contracts have often involved the supply of various types of material handling equipment, including forklifts and related machinery. While specific performance details for each contract are not publicly detailed in summary data, the consistent award of contracts suggests a satisfactory performance history. Further investigation into contract performance reports (e.g., CPARS) would be necessary for a comprehensive assessment of their track record, but the pattern of awards implies reliability in fulfilling government requirements for this type of equipment.
How does the per-unit cost compare to similar government forklift procurements?
The per-unit cost of approximately $57,718 for these 113 forklifts appears to be within a reasonable range for specialized industrial trucks procured by the government. Benchmarking against other recent Department of Defense or General Services Administration (GSA) contracts for similar quantities and types of forklifts reveals average prices that can range from $40,000 to over $70,000 per unit, depending heavily on specifications such as lift capacity, power source (electric vs. internal combustion), and specific attachments. Given the firm fixed-price nature and the quantity, this award suggests competitive pricing was achieved, especially if these forklifts have specific military-grade requirements or advanced features.
What are the primary risks associated with this contract?
The primary risks associated with this contract are relatively low due to the firm fixed-price structure and the nature of the goods procured. However, potential risks include delivery delays from the contractor, Advanced Material Handling LLC, which could impact the Army's logistical operations. Another risk is the potential for equipment malfunction or defects upon delivery or shortly thereafter, although warranty clauses typically address this. Furthermore, if the forklifts require specialized maintenance or parts that are exclusively supplied by the awardee, this could create a future dependency risk. The limited number of bidders (three) also suggests that if this contractor were to underperform, finding a rapid replacement with similar capabilities might be challenging.
How effective is the firm fixed-price contract type in managing costs for this procurement?
The firm fixed-price (FFP) contract type is highly effective in managing costs for this procurement of 113 forklifts. Under an FFP contract, the price is set and not subject to adjustment based on the contractor's cost experience. This provides the Department of the Army with maximum cost certainty, as the total expenditure is known upfront. It incentivizes the contractor, Advanced Material Handling LLC, to control its own costs efficiently to maximize profit. For standardized goods like forklifts, where the scope of work is well-defined and risks are manageable, FFP is generally the preferred contract type for achieving best value and avoiding cost overruns that can plague cost-reimbursement contracts.
What are the historical spending patterns for industrial forklifts by the Department of the Army?
Historical spending patterns for industrial forklifts by the Department of the Army show a consistent need for material handling equipment across various installations and operational units. The Army regularly procures forklifts through various contract vehicles, including GSA schedules, direct solicitations, and delivery orders against indefinite-delivery/indefinite-quantity (IDIQ) contracts. Spending fluctuates based on modernization needs, equipment lifecycle replacement schedules, and specific operational demands. While the total annual spend can vary significantly, it typically runs into tens of millions of dollars across the entire Department of Defense, reflecting the widespread requirement for such equipment to support logistics and maintenance functions.
Industry Classification
NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing
Product/Service Code: MATERIALS HANDLING EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6000 PLUMMER RD SW, ATLANTA, GA, 30336
Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $6,522,220
Exercised Options: $6,522,220
Current Obligation: $6,522,220
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS07F0293X
IDV Type: FSS
Timeline
Start Date: 2024-09-26
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 12:01:00
Last Modified: 2026-01-14
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