DoD awards $17.6M for M871A3 Single Drop Platform Military Trailers to Fontaine Commercial Trailer, Inc
Contract Overview
Contract Amount: $17,579,568 ($17.6M)
Contractor: Fontaine Commercial Trailer, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-01-19
End Date: 2008-08-22
Contract Duration: 581 days
Daily Burn Rate: $30.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: M871A3 SINGLE DROP PLATFORM MILITARY TRAILERS
Place of Performance
Location: PRINCETON, CALDWELL County, KENTUCKY, 42445
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $17.6 million to FONTAINE COMMERCIAL TRAILER, INC. for work described as: M871A3 SINGLE DROP PLATFORM MILITARY TRAILERS Key points: 1. The contract value is $17.6 million for 581 days of performance. 2. Fontaine Commercial Trailer, Inc. was awarded the contract. 3. The contract was awarded under full and open competition. 4. The North American Industry Classification System (NAICS) code is 336112 (Light Truck and Utility Vehicle Manufacturing).
Value Assessment
Rating: fair
The contract value of $17.6 million for 581 days suggests a per-unit cost of approximately $30,257. This pricing needs to be benchmarked against similar military trailer acquisitions to assess value.
Cost Per Unit: $30,257
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing.
Taxpayer Impact: Competition in awarding this contract likely resulted in a fair price, minimizing unnecessary taxpayer expenditure.
Public Impact
Ensures military readiness by providing essential transportation equipment. Supports the Department of the Army's logistical capabilities. The award contributes to the manufacturing sector, specifically in trailer production.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if performance extends beyond the planned duration.
- Dependence on a single manufacturer could pose supply chain risks.
- Need to verify if the unit price is competitive with market rates.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Clear performance period and contract type (firm fixed price) provide cost certainty.
Sector Analysis
This contract falls under the Light Truck and Utility Vehicle Manufacturing sector. Spending in this area is critical for military logistics and operational support. Benchmarks for similar military trailer contracts would be useful for a comprehensive value assessment.
Small Business Impact
The award was made to Fontaine Commercial Trailer, Inc., a large business. There is no indication of specific small business subcontracting goals or participation in this particular award.
Oversight & Accountability
The contract was awarded by the Department of the Army. Oversight would involve monitoring performance, delivery schedules, and adherence to contract terms to ensure accountability and taxpayer value.
Related Government Programs
- Light Truck and Utility Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract awarded to a single vendor.
- Performance period of 581 days.
- Potential for quality issues if contractor faces cost pressures.
- Unit price requires further benchmarking.
Tags
light-truck-and-utility-vehicle-manufact, department-of-defense, ky, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.6 million to FONTAINE COMMERCIAL TRAILER, INC.. M871A3 SINGLE DROP PLATFORM MILITARY TRAILERS
Who is the contractor on this award?
The obligated recipient is FONTAINE COMMERCIAL TRAILER, 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 $17.6 million.
What is the period of performance?
Start: 2007-01-19. End: 2008-08-22.
What is the historical performance and reliability of M871A3 trailers from Fontaine Commercial Trailer, Inc.?
Historical performance data for M871A3 trailers from Fontaine Commercial Trailer, Inc. is not provided in this data. A thorough review would require examining past delivery records, defect reports, and user feedback to assess reliability and overall satisfaction with previous procurements. This information is crucial for understanding the long-term value and potential maintenance costs associated with this contract.
How does the awarded unit price compare to industry benchmarks for similar military-grade trailers?
The awarded unit price of approximately $30,257 needs to be compared against industry benchmarks for comparable military-grade trailers. Factors such as payload capacity, durability features, and specific military certifications influence pricing. Without access to a database of similar contract awards or commercial market data, it's difficult to definitively state if this price is competitive or represents a fair value.
What are the potential risks associated with the firm fixed price contract type for this acquisition?
A firm fixed price contract generally shifts most of the risk to the contractor. For the government, the primary risk is that the contractor may cut corners on quality or materials to maintain profitability if costs escalate unexpectedly. However, it also provides the most cost certainty for the buyer, as the price is set upfront, protecting against cost overruns unless significant contract modifications are required.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Manufacturing › Light Truck and Utility Vehicle Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Berkshire Hathaway Inc. (UEI: 001024314)
Address: 100 FONTAINE RD, PRINCETON, KY, 01
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $17,579,568
Exercised Options: $17,579,568
Current Obligation: $17,579,568
Parent Contract
Parent Award PIID: GS30F0011M
IDV Type: FSS
Timeline
Start Date: 2007-01-19
Current End Date: 2008-08-22
Potential End Date: 2008-08-22 00:00:00
Last Modified: 2008-08-08
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