Army awards $798M contract for wheeled trucks and truck tractors to Freightliner of Savannah, Inc

Contract Overview

Contract Amount: $16,475,513 ($16.5M)

Contractor: Freightliner of Savannah, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-05-31

End Date: 2009-04-15

Contract Duration: 1,415 days

Daily Burn Rate: $11.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200508!007403!2100!W56HZV!TACOM - WARREN !W56HZV05C0442 !A!N! !N! ! !20050531!20080630!798192803!798192803!798192803!N!FREIGHTLINER OF SAVANNAH INC !301 OLEARY RD !SAVANNAH !GA!31407!69000!051!13!SAVANNAH !CHATHAM !GEORGIA !+000008042500!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !S1 !SERVICES !000 !* !336212!E! !1! ! ! ! ! !20200930!B! ! !N!A!D!N!J!2!001!N!2A!Z!N!Z! ! !Y!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SAVANNAH, CHATHAM County, GEORGIA, 31407

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $16.5 million to FREIGHTLINER OF SAVANNAH, INC. for work described as: 200508!007403!2100!W56HZV!TACOM - WARREN !W56HZV05C0442 !A!N! !N! ! !20050531!20080630!798192803!798192803!798192803!N!FREIGHTLINER OF SAVANNAH INC !301 OLEARY RD !SAVANNAH !GA!31407!69000!051!13!SAVANNAH !CHAT… Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear pricing expectations. 2. The contract was not competed, raising questions about potential price discovery and value. 3. A long duration of 1415 days suggests a significant, ongoing need for these vehicles. 4. The primary contractor, Freightliner of Savannah, Inc., is a single entity for this award. 5. The contract falls under the 'Trucks and Truck Tractors, Wheeled' category, a critical defense logistics component. 6. The award value of $798,192,803 represents a substantial investment in ground transportation assets.

Value Assessment

Rating: fair

The contract value of approximately $798 million over its duration represents a significant expenditure. Without comparable contract data for similar wheeled truck and tractor procurements, a precise value-for-money assessment is challenging. However, the lack of competition suggests potential for higher-than-market pricing. Benchmarking against industry standards for heavy-duty truck acquisition and maintenance would be necessary for a more definitive evaluation of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed among multiple vendors. This approach limits the opportunity for competitive bidding, which typically drives down prices and encourages innovation. The absence of competition means the government did not benefit from a range of proposals and pricing structures that could have been available in a fully open market.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government may not secure the most competitive pricing available in the market.

Public Impact

The primary beneficiaries are the U.S. Army units requiring reliable wheeled trucks and truck tractors for logistical support and operational mobility. The contract delivers essential ground transportation assets crucial for military operations, supply chain management, and troop deployment. The geographic impact is national, supporting Army readiness across various installations and operational theaters. Workforce implications include potential support roles for maintenance, repair, and logistics personnel associated with these vehicles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in suboptimal pricing for taxpayers.
Sole-source nature limits transparency in the procurement process.
Long contract duration without competitive re-evaluation could mask inefficiencies.
Dependence on a single supplier for critical assets poses a potential supply chain risk.

Positive Signals

Award to an established entity suggests potential for reliable delivery of essential equipment.
Firm-fixed-price contract provides cost certainty for the awarded scope.
Focus on wheeled trucks and tractors addresses a fundamental military logistics requirement.

Sector Analysis

The defense sector relies heavily on robust ground transportation to maintain operational readiness and logistical capabilities. Wheeled trucks and truck tractors are fundamental assets within this sector, supporting everything from troop movement to equipment transport. The market for these vehicles is characterized by large manufacturers and specialized suppliers. This contract represents a significant procurement within the broader defense logistics and vehicle acquisition landscape, likely aligning with broader Army fleet modernization or replacement strategies.

Small Business Impact

The contract was awarded to Freightliner of Savannah, Inc., a specific commercial entity. There is no explicit indication of small business set-asides or subcontracting plans within the provided data. The scale of this award suggests it is likely beyond the capacity of most small businesses to fulfill independently, and subcontracting opportunities, if any, would depend on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Inspector General (IG) investigations could be initiated if any irregularities or performance issues arise. Transparency is limited by the sole-source nature of the award; however, contract modifications and performance reports would be subject to internal Army oversight and potentially public reporting mechanisms like the Federal Procurement Data System (FPDS).

Related Government Programs

Army Logistics Modernization Programs
Tactical Wheeled Vehicle Fleet Management
Defense Ground Transportation Contracts
Heavy Equipment Procurement
Military Vehicle Sustainment

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency in procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 million to FREIGHTLINER OF SAVANNAH, INC.. 200508!007403!2100!W56HZV!TACOM - WARREN !W56HZV05C0442 !A!N! !N! ! !20050531!20080630!798192803!798192803!798192803!N!FREIGHTLINER OF SAVANNAH INC !301 OLEARY RD !SAVANNAH !GA!31407!69000!051!13!SAVANNAH !CHATHAM !GEORGIA !+000008042500!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !S1 !SERVICES !000 !* !336212!E! !1! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is FREIGHTLINER OF SAVANNAH, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.5 million.

What is the period of performance?

Start: 2005-05-31. End: 2009-04-15.

What is the historical spending pattern for similar wheeled trucks and truck tractors by the Department of the Army?

Analyzing historical spending for similar wheeled trucks and truck tractors by the Department of the Army requires access to comprehensive procurement data over multiple fiscal years. Typically, such analysis would involve querying databases like the Federal Procurement Data System (FPDS) for contracts with relevant Product Service Codes (PSCs) such as 2320 (Trucks and Truck Tractors, Wheeled) and filtering by agency (Department of the Army). This would reveal trends in contract values, award types (competed vs. sole-source), number of bidders, and average contract durations. Without specific historical data for this analysis, it's difficult to provide precise figures, but it's common for the Army to award multi-year, high-value contracts for these essential assets, often in the hundreds of millions of dollars, reflecting the scale of their operational needs and fleet replacement cycles.

How does the per-unit cost of the vehicles procured under this contract compare to market rates for similar commercial vehicles?

Determining the per-unit cost comparison requires breaking down the total contract value by the number of units procured, which is not explicitly provided in the summary data. Assuming the $798 million contract covers a significant quantity of heavy-duty wheeled trucks and tractors, the per-unit cost would need to be calculated. This figure would then be benchmarked against the prices of comparable commercial off-the-shelf (COTS) vehicles from manufacturers like Freightliner, PACCAR, or Navistar, considering any military-specific modifications or requirements. Given the sole-source nature of this award, there's a risk that the per-unit cost might be higher than what could be achieved through competitive bidding. A detailed analysis would involve obtaining the exact quantity of vehicles and comparing specifications to commercial equivalents.

What are the specific risks associated with a sole-source award for critical military transportation assets?

A sole-source award for critical military transportation assets like wheeled trucks and truck tractors carries several risks. Firstly, the lack of competition can lead to inflated prices, as the government does not benefit from the cost-saving pressures inherent in a competitive bidding process. Secondly, it can reduce transparency and accountability, making it harder to ensure the government is receiving the best possible value. Thirdly, reliance on a single supplier can create supply chain vulnerabilities; if the sole-source contractor experiences production issues, delivery delays, or financial instability, it could significantly disrupt the military's logistical capabilities. Finally, without competitive benchmarking, it is more challenging to assess the contractor's performance and the overall effectiveness of the procurement strategy.

What is the track record of Freightliner of Savannah, Inc. in fulfilling large government contracts, particularly for the Department of Defense?

Freightliner of Savannah, Inc. appears to be a commercial dealership or entity focused on Freightliner vehicles. Information regarding its specific track record in fulfilling large, sole-source government contracts, especially for the Department of Defense, is not detailed in the provided data snippet. Typically, assessing a contractor's track record involves reviewing past performance evaluations, contract completion history, and any history of disputes or contract terminations. For a contract of this magnitude ($798 million), the government would usually conduct a pre-award assessment of the contractor's capacity, financial stability, and past performance. Without access to such detailed performance data, it's difficult to definitively evaluate their suitability beyond their role as a supplier of these vehicles.

How does the duration of this contract (1415 days) align with typical procurement cycles for military vehicles?

A contract duration of 1415 days, approximately 3.88 years, is relatively long but not uncommon for major military vehicle procurements. Such extended durations often reflect the time required for manufacturing, delivery schedules, and potential sustainment or support services associated with large fleets of heavy equipment. Military branches often opt for longer contract periods to ensure a steady supply of critical assets and to potentially lock in pricing over several years. However, very long durations, especially without clear performance milestones or opportunities for re-evaluation, can sometimes reduce flexibility and may not always reflect the most current market conditions or technological advancements. The specific need for these vehicles and the production lead times would dictate the appropriateness of this duration.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer 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

Address: 301 OLEARY RD, SAVANNAH, GA, 01

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline