MDT Armor Corporation awarded $26.1M contract for wheeled combat vehicles, raising questions about competition and value

Contract Overview

Contract Amount: $26,102,974 ($26.1M)

Contractor: M D T Armor Corporation

Awarding Agency: Department of Defense

Start Date: 2006-08-07

End Date: 2008-12-31

Contract Duration: 877 days

Daily Burn Rate: $29.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200611!004927!2100!W56HZV!TACOM - WARREN !W56HZV06C0413 !A!N! !N! ! !20060807!20070430!125511639!125511639!125511639!N!M D T ARMOR CORPORATION !308 ALABAMA ST !AUBURN !AL!36832!03076!081!01!AUBURN !LEE !ALABAMA !+000010119851!Y!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4A!COMBAT VEHICLES !000 !NOT DISCERNABLE !336992!E! !3! ! ! ! ! !99990909!B! ! !N!Z!B!U!J!1!001!N!4A!Z!N!Z! ! !Y!B!N!N! ! !Z! !A!A!000!A!B!Y!D! ! ! ! ! !0001! !

Place of Performance

Location: AUBURN, LEE County, ALABAMA, 36832

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $26.1 million to M D T ARMOR CORPORATION for work described as: 200611!004927!2100!W56HZV!TACOM - WARREN !W56HZV06C0413 !A!N! !N! ! !20060807!20070430!125511639!125511639!125511639!N!M D T ARMOR CORPORATION !308 ALABAMA ST !AUBURN !AL!36832!03076!081!01!AUBURN !LEE … Key points: 1. Contract awarded to MDT Armor Corporation for wheeled combat vehicles. 2. Significant contract value of over $26 million. 3. Competition dynamics appear limited, warranting further investigation. 4. Contract duration spans over two years. 5. Focus on combat vehicles highlights critical defense needs. 6. Geographic location of contractor is Auburn, Alabama.

Value Assessment

Rating: questionable

The contract value of $26.1 million for wheeled combat vehicles requires careful benchmarking against similar procurements. Without detailed cost breakdowns or comparisons to market rates for comparable vehicles, it is difficult to definitively assess value for money. The absence of readily available per-unit cost data further complicates this assessment. Further analysis would be needed to determine if the pricing reflects fair and reasonable costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition scenario. This lack of open competition means that the government did not benefit from a range of potential suppliers vying for the contract. The specific reasons for this limited competition are not detailed in the provided data, but it suggests potential risks related to price and innovation.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is less pressure on the contractor to offer competitive rates. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The primary beneficiaries are the U.S. Army, receiving critical combat vehicle components. Services delivered include the manufacturing and supply of wheeled combat vehicles. The geographic impact is concentrated in Auburn, Alabama, where MDT Armor Corporation is located. Workforce implications may include job creation or retention at MDT Armor Corporation and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in inflated costs for taxpayers.
Limited transparency regarding the justification for a sole-source award.
Potential for reduced innovation due to absence of market competition.

Positive Signals

Contract supports critical defense capabilities for the U.S. Army.
Award to a specific company indicates a need for specialized products or services.
Contract duration suggests a sustained requirement for these vehicles.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on armored vehicles. The market for military vehicles is characterized by high barriers to entry, specialized manufacturing requirements, and significant government investment. Comparable spending benchmarks would typically involve other contracts for similar wheeled or tracked combat platforms, often awarded through competitive processes.

Small Business Impact

The provided data does not indicate whether this contract included small business set-asides or subcontracting requirements. Without this information, it's difficult to assess the impact on the small business ecosystem. Typically, large sole-source contracts may have less direct impact on small businesses unless specific subcontracting plans are mandated.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and potentially the Department of Defense's Inspector General. Accountability measures would be tied to contract performance, delivery schedules, and quality standards. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed justifications.

Related Government Programs

Wheeled Combat Vehicles
Armored Personnel Carriers
Military Truck Production
Defense Procurement
Tactical Vehicle Manufacturing

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited public information on contract justification.
Potential for cost overruns over the contract duration.
Need for verification of contractor's past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.1 million to M D T ARMOR CORPORATION. 200611!004927!2100!W56HZV!TACOM - WARREN !W56HZV06C0413 !A!N! !N! ! !20060807!20070430!125511639!125511639!125511639!N!M D T ARMOR CORPORATION !308 ALABAMA ST !AUBURN !AL!36832!03076!081!01!AUBURN !LEE !ALABAMA !+000010119851!Y!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4A!COMBAT VEHICLES !000 !NOT DISCERNABLE !336992!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is M D T ARMOR CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.1 million.

What is the period of performance?

Start: 2006-08-07. End: 2008-12-31.

What is the specific type of wheeled combat vehicle being procured under this contract?

The contract data specifies the Product Service Code (PSC) as '2320' which corresponds to 'TRUCKS AND TRUCK TRACTORS, WHEELED'. The North American Industry Classification System (NAICS) code is '336992', indicating 'Military Armored Vehicle, Tank, and Tank Component Manufacturing'. While not explicitly naming a specific model, this suggests the procurement is for armored wheeled vehicles, likely including tactical trucks and potentially personnel carriers designed for combat environments. Further details on the exact specifications would typically be found in the contract's statement of work.

What is the historical spending pattern for wheeled combat vehicles by the Department of the Army?

Historical spending on wheeled combat vehicles by the Department of the Army is substantial and fluctuates based on modernization programs, operational tempo, and strategic priorities. The Army consistently invests billions annually in tactical and combat vehicles, encompassing a wide range of platforms from light utility vehicles to heavily armored personnel carriers and reconnaissance vehicles. This specific contract for $26.1 million represents a portion of that broader investment. Analyzing past five to ten years of Army procurement data would reveal trends in spending on similar vehicle classes, identifying peak periods of acquisition and shifts in technology focus, such as the increasing emphasis on protected mobility and network integration.

What are the potential risks associated with a sole-source award for military vehicles?

Sole-source awards for military vehicles carry several potential risks. Firstly, the lack of competition can lead to higher costs for taxpayers, as the contractor faces less pressure to offer competitive pricing. Secondly, it can stifle innovation, as there is no incentive for alternative solutions or technological advancements from other manufacturers. Thirdly, it may create a dependency on a single supplier, which can be problematic if that supplier experiences production issues, financial difficulties, or if geopolitical factors affect their operations. Finally, the justification for a sole-source award must be robust to ensure it is truly necessary and not simply a matter of convenience or pre-existing relationships.

How does the contract duration of 877 days impact the overall value and risk?

A contract duration of 877 days (approximately 2.4 years) for military vehicles suggests a medium-term requirement. This duration allows for production ramp-up, sustained manufacturing, and delivery over a significant period. From a value perspective, it provides a degree of stability for the contractor, potentially leading to more efficient production planning and cost management compared to short-term, ad-hoc orders. However, a longer duration also increases the risk of cost escalation due to inflation or changes in material costs. It also means that taxpayer funds are committed for an extended period, necessitating ongoing oversight to ensure performance remains aligned with initial expectations and that the need for the vehicles persists throughout the contract term.

What is MDT Armor Corporation's track record with government contracts, particularly for combat vehicles?

Information regarding MDT Armor Corporation's specific track record with government contracts, especially for combat vehicles, is not detailed in the provided data snippet. To assess their performance, one would need to examine their contract history, including past awards, delivery performance, quality ratings, and any past performance issues or disputes. A thorough review would involve searching federal procurement databases (like FPDS or SAM.gov) for previous contracts awarded to MDT Armor Corporation, analyzing their size, scope, and the agencies involved. Understanding their experience with similar vehicle types and their ability to meet stringent military specifications is crucial for evaluating their capability and reliability on this $26.1 million award.

Industry Classification

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

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arotech Corporation (UEI: 825036189)

Address: 308 ALABAMA ST, AUBURN, AL, 03

Business Categories: Category Business, Small Business

Timeline