Army awards $62.3M for Jeep kits, engines, and parts to FCA International Operations LLC
Contract Overview
Contract Amount: $62,311,649 ($62.3M)
Contractor: FCA International Operations LLC
Awarding Agency: Department of Defense
Start Date: 2010-12-22
End Date: 2014-09-27
Contract Duration: 1,375 days
Daily Burn Rate: $45.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CLIN 0001AA - LONG WHEEL BASE JEEP KITS, QTY 750 EA, ESD - 30 MAR 2011 CLIN 0002AA - SPARE DIESEL ENGINES, QTY - 750 EA, ESD - 16 JUN 2011 CLIN 0003AA - SPARE TRANSMISSIONS, QTY 375 EA, ESD - 30 MAR 2011 CLIN 0004AA - SPARES, QTY - 1 LOT, ESD - 1 JUNE 2012 CLIN 0005AA - SPECIAL TOOLS, QTY - 1 LOT, ESD - 28 JUN 2011
Place of Performance
Location: AUBURN HILLS, OAKLAND County, MICHIGAN, 48326
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $62.3 million to FCA INTERNATIONAL OPERATIONS LLC for work described as: CLIN 0001AA - LONG WHEEL BASE JEEP KITS, QTY 750 EA, ESD - 30 MAR 2011 CLIN 0002AA - SPARE DIESEL ENGINES, QTY - 750 EA, ESD - 16 JUN 2011 CLIN 0003AA - SPARE TRANSMISSIONS, QTY 375 EA, ESD - 30 MAR 2011 CLIN 0004AA - SPARES, QTY - 1 LOT, ESD - 1 JUNE 2012 CLIN 0005AA - SPECIAL T… Key points: 1. The contract covers essential vehicle components and spares for the Army. 2. FCA International Operations LLC is the sole awardee, indicating a limited competition scenario. 3. The total value is substantial, requiring careful monitoring of cost-effectiveness. 4. The sector is primarily light truck and utility vehicle manufacturing.
Value Assessment
Rating: fair
The total award value is $62.3 million. Without specific unit pricing or historical data for these components, a direct comparison to similar contracts is difficult. The pricing appears to be a lump sum for multiple CLINs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a sole-source or limited source award. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The government is spending $62.3 million on these components, which represents a significant taxpayer investment. The lack of competition raises concerns about the optimal use of these funds.
Public Impact
Ensures operational readiness by providing critical vehicle parts. Supports military logistics and maintenance capabilities. Potential for increased costs due to limited competition. Long-term availability of spare parts impacts vehicle lifespan.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns
- Long delivery timeline for some components
Positive Signals
- Ensures critical supply chain for military vehicles
- Supports a specific manufacturing sector
Sector Analysis
This contract falls within the Light Truck and Utility Vehicle Manufacturing sector. Spending benchmarks for similar military vehicle component procurements can vary widely based on quantity, complexity, and specific vehicle platforms.
Small Business Impact
The data indicates that small business participation was not a factor in this award, as the prime contractor is FCA International Operations LLC. Further analysis would be needed to determine if subcontracting opportunities were offered to small businesses.
Oversight & Accountability
The award was made by the Department of the Army, a component of the Department of Defense. Oversight would typically involve contract management teams ensuring delivery and quality, with potential for audits given the contract value.
Related Government Programs
- Light Truck and Utility Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may result in higher prices.
- Lack of detailed cost breakdown hinders value assessment.
- Long lead times for some components could impact readiness.
- Sole-source nature requires strong justification and oversight.
Tags
light-truck-and-utility-vehicle-manufact, department-of-defense, mi, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.3 million to FCA INTERNATIONAL OPERATIONS LLC. CLIN 0001AA - LONG WHEEL BASE JEEP KITS, QTY 750 EA, ESD - 30 MAR 2011 CLIN 0002AA - SPARE DIESEL ENGINES, QTY - 750 EA, ESD - 16 JUN 2011 CLIN 0003AA - SPARE TRANSMISSIONS, QTY 375 EA, ESD - 30 MAR 2011 CLIN 0004AA - SPARES, QTY - 1 LOT, ESD - 1 JUNE 2012 CLIN 0005AA - SPECIAL TOOLS, QTY - 1 LOT, ESD - 28 JUN 2011
Who is the contractor on this award?
The obligated recipient is FCA INTERNATIONAL OPERATIONS 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 $62.3 million.
What is the period of performance?
Start: 2010-12-22. End: 2014-09-27.
What is the breakdown of costs per CLIN to understand the value of individual components?
The provided data aggregates the total award value across multiple CLINs without itemized pricing. A detailed cost breakdown per CLIN would be necessary to assess the value of specific components like Jeep kits, spare engines, and transmissions. This would allow for a more granular analysis of cost-effectiveness and identify any disproportionately high-priced items.
What specific factors led to the 'NOT AVAILABLE FOR COMPETITION' designation?
The designation 'NOT AVAILABLE FOR COMPETITION' suggests that only one source was capable of meeting the government's requirements, or that a specific justification for other-than-full-and-open competition was approved. This could be due to proprietary technology, unique manufacturing capabilities, or urgent needs where only one vendor could respond in time. Understanding the rationale is crucial for assessing risk.
How does the pricing of these components compare to commercial equivalents or previous government procurements?
Without specific unit pricing and detailed specifications for each CLIN, a direct comparison is challenging. However, given the limited competition, there's a risk that the pricing may be higher than if the contract were competitively bid. Benchmarking against similar military procurements or commercial off-the-shelf equivalents, if applicable, would be necessary to evaluate cost reasonableness.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Manufacturing › Light Truck and Utility Vehicle Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56HZV10R0515
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fiat SPA (UEI: 428003065)
Address: 1000 CHRYSLER DRIVE, AUBURN HILLS, MI, 11
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $62,311,649
Exercised Options: $62,311,649
Current Obligation: $62,311,649
Contract Characteristics
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2010-12-22
Current End Date: 2014-09-27
Potential End Date: 2014-09-27 00:00:00
Last Modified: 2014-07-08
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