DoD awards $70M for Heavy Duty Trucks and Spares to ND Defense LLC under full and open competition

Contract Overview

Contract Amount: $70,036,651 ($70.0M)

Contractor: ND Defense LLC

Awarding Agency: Department of Defense

Start Date: 2008-09-03

End Date: 2009-09-08

Contract Duration: 370 days

Daily Burn Rate: $189.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: GENERAL TRANSPORT TRUCK AND SPARES

Place of Performance

Location: LISLE, DUPAGE County, ILLINOIS, 60532

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $70.0 million to ND DEFENSE LLC for work described as: GENERAL TRANSPORT TRUCK AND SPARES Key points: 1. Spending on heavy-duty truck manufacturing is significant, with this contract representing a portion of the DoD's overall equipment procurement. 2. ND Defense LLC secured this contract, indicating competition within the heavy-duty truck manufacturing sector. 3. The contract's value of $70M warrants scrutiny for cost-effectiveness and alignment with market rates. 4. Potential risks include supply chain disruptions or performance issues impacting military readiness.

Value Assessment

Rating: fair

The contract value of $70M for heavy-duty trucks and spares appears substantial. Benchmarking against similar DoD contracts for comparable vehicles and parts would be necessary to assess if the pricing is competitive and reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives the best possible value for its investment.

Public Impact

Ensures the Department of Defense has essential heavy-duty trucks and spare parts for operational needs. Supports the heavy-duty truck manufacturing industry and its supply chain. The large contract value may influence market dynamics for specialized truck components. Transparency in the bidding process under full and open competition is a positive for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for cost overruns if not closely managed.
Dependence on a single supplier for critical spares.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type limits cost risk to the government.
Contract duration allows for planned procurement and delivery.

Sector Analysis

The defense sector heavily relies on specialized manufacturing for equipment like heavy-duty trucks. Spending benchmarks in this area are often driven by technological advancements, durability requirements, and the scale of military operations.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.

Oversight & Accountability

Oversight would focus on contract performance, delivery schedules, and adherence to specifications. The Department of the Army's contracting office is responsible for ensuring accountability and value for taxpayer money.

Related Government Programs

Heavy Duty Truck Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for price creep if scope changes.
Supply chain vulnerabilities for specialized components.
Performance degradation over time impacting operational readiness.
Limited visibility into specific cost drivers for spares.
Dependence on a single contractor for critical equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $70.0 million to ND DEFENSE LLC. GENERAL TRANSPORT TRUCK AND SPARES

Who is the contractor on this award?

The obligated recipient is ND DEFENSE 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 $70.0 million.

What is the period of performance?

Start: 2008-09-03. End: 2009-09-08.

What is the breakdown of costs between trucks and spares, and how does this align with typical operational needs?

The provided data does not specify the cost allocation between the heavy-duty trucks and the spare parts. A detailed breakdown is crucial for understanding the value proposition. Typically, spares constitute a smaller but critical portion of the total contract value, essential for maintaining fleet readiness and minimizing downtime. Further analysis would require access to the contract's detailed financial exhibits.

What are the specific performance standards and delivery timelines for these trucks and spares, and what are the penalties for non-compliance?

The provided data lacks specific performance standards and delivery timelines. While the contract duration is 370 days, the exact milestones for truck delivery and spare parts provisioning are not detailed. Robust oversight would involve tracking adherence to these schedules and enforcing contractual penalties for delays or quality issues to mitigate risks to military operations.

How does the unit cost of these heavy-duty trucks compare to commercially available models with similar specifications?

A direct comparison of unit cost to commercially available models is difficult without knowing the exact specifications and required modifications for military use. Military vehicles often incorporate specialized features (e.g., armor, enhanced mobility, specific communication systems) that increase costs. A thorough analysis would involve comparing the government's negotiated price against the cost of equivalent commercial trucks plus the documented cost of necessary military-specific enhancements.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Manufacturing › Heavy Duty Truck Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W56HZV08R0496

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, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $70,036,651

Exercised Options: $70,036,651

Current Obligation: $70,036,651

Contract Characteristics

Cost or Pricing Data: YES

Timeline