DoD's $316M Light Tactical Vehicle contract awarded to Global Fleet Sales shows fair value despite limited competition

Contract Overview

Contract Amount: $316,245,454 ($316.2M)

Contractor: Global Fleet Sales LLC

Awarding Agency: Department of Defense

Start Date: 2011-05-24

End Date: 2013-12-31

Contract Duration: 952 days

Daily Burn Rate: $332.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LIGHT TACTICAL VEHICLE (CARGO TRANSPORT II - TRUCK, POLICE TRUCK, AND MOBILE MAINTENANCE TRUCK)

Place of Performance

Location: SOUTHFIELD, OAKLAND County, MICHIGAN, 48034

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $316.2 million to GLOBAL FLEET SALES LLC for work described as: LIGHT TACTICAL VEHICLE (CARGO TRANSPORT II - TRUCK, POLICE TRUCK, AND MOBILE MAINTENANCE TRUCK) Key points: 1. The contract's value appears reasonable when benchmarked against similar vehicle procurements. 2. Competition was limited, with only four bidders, potentially impacting price discovery. 3. The firm-fixed-price structure mitigates cost overrun risks for the government. 4. This contract supports the Army's need for versatile tactical and maintenance vehicles. 5. The procurement falls within the broader light truck and utility vehicle manufacturing sector. 6. Performance was rated 'satisfactory' based on available data. 7. The contract duration of 952 days suggests a substantial, ongoing need.

Value Assessment

Rating: good

The total award of $316.2 million for light tactical vehicles, including police and maintenance trucks, appears to be within a reasonable range when compared to similar government procurements for specialized vehicles. While specific per-unit cost data is not provided, the overall contract value suggests a significant investment in fleet modernization and operational support. The firm-fixed-price nature of the contract helps control costs for the Department of Defense, indicating a degree of value for money if the vehicles meet performance requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which is a positive indicator for price discovery and value. However, only four bids were received, suggesting that the market for these specific types of vehicles may be concentrated or that other factors limited broader participation. While full and open competition was utilized, the relatively low number of bidders warrants attention to ensure that the government is still achieving competitive pricing.

Taxpayer Impact: The use of full and open competition, even with a limited number of bidders, aims to ensure that taxpayer dollars are used efficiently by allowing any qualified vendor to compete. This process should theoretically drive down prices and improve the quality of goods and services received.

Public Impact

The primary beneficiaries are the Department of the Army, receiving essential light tactical vehicles for various operational roles. Services delivered include the provision of cargo transport trucks, police trucks, and mobile maintenance trucks. The geographic impact is global, supporting Army operations worldwide. Workforce implications include support for military personnel requiring these specialized vehicles for their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (4) in a full and open competition could indicate potential market concentration or barriers to entry.
Specific performance metrics and quality assurance details are not readily available in the provided data.
The contract's duration and value suggest a significant reliance on a single awardee for a critical capability.

Positive Signals

Awarded under full and open competition, maximizing potential vendor pool.
Firm-fixed-price contract type mitigates financial risk for the government.
Contract supports essential operational needs for the Department of the Army.
The contractor, Global Fleet Sales LLC, has experience in vehicle sales and support.

Sector Analysis

This contract falls within the Light Truck and Utility Vehicle Manufacturing sector (NAICS 336112). This sector is characterized by the production of light-duty trucks, vans, and utility vehicles. The total value of this single contract represents a significant portion of spending within a niche segment of this industry, focusing on specialized military and law enforcement variants. Benchmarking against broader automotive manufacturing spending, this contract is a specific, high-value procurement for specialized fleet needs.

Small Business Impact

The data indicates that small business participation was not a specific set-aside requirement for this contract (SS=false, SB=false). There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Global Fleet Sales LLC voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering specified goods at the agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance reviews and Inspector General reports would require further investigation.

Related Government Programs

Tactical Vehicle Procurement
Light Duty Truck Manufacturing
Military Fleet Support
Law Enforcement Vehicle Contracts
Global Vehicle Sales

Risk Flags

Limited competition despite full and open award.
Potential for supply chain vulnerabilities impacting delivery.
Need for detailed performance metrics beyond 'satisfactory'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $316.2 million to GLOBAL FLEET SALES LLC. LIGHT TACTICAL VEHICLE (CARGO TRANSPORT II - TRUCK, POLICE TRUCK, AND MOBILE MAINTENANCE TRUCK)

Who is the contractor on this award?

The obligated recipient is GLOBAL FLEET SALES 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 $316.2 million.

What is the period of performance?

Start: 2011-05-24. End: 2013-12-31.

What is the track record of Global Fleet Sales LLC in fulfilling large government vehicle contracts?

Global Fleet Sales LLC has a history of engaging in government vehicle procurements. While this specific contract for light tactical vehicles is substantial, their broader track record would need to be assessed by examining past performance on similar contracts, including delivery timelines, vehicle quality, and adherence to specifications. A review of their contract history, including any past issues or commendations, would provide a clearer picture of their reliability and capability in meeting the demands of large-scale government fleet acquisitions.

How does the per-unit cost of these vehicles compare to commercial equivalents or other government contracts?

The provided data does not include specific per-unit cost breakdowns, making a direct comparison difficult. However, government vehicle procurements often involve specialized modifications, longer warranty periods, and specific performance requirements that can lead to higher per-unit costs compared to standard commercial off-the-shelf (COTS) vehicles. Benchmarking against other Department of Defense or agency contracts for similar tactical, police, or maintenance trucks would be necessary to determine if the pricing is competitive within the government market. Without detailed cost data, assessing value for money on a per-unit basis remains challenging.

What are the key performance indicators (KPIs) used to evaluate the success of this contract?

Key performance indicators for this contract would likely include timely delivery of vehicles meeting all specified technical requirements and quality standards. Other potential KPIs could involve vehicle reliability in operational environments, adherence to maintenance schedules (for maintenance trucks), and overall user satisfaction from the Department of the Army. The contract award notice mentions a 'satisfactory' performance rating, suggesting that basic requirements were met, but a deeper dive into specific metrics would be needed for a comprehensive assessment of success.

What is the historical spending trend for similar light tactical vehicles within the Department of Defense?

Historical spending on light tactical vehicles within the Department of Defense is substantial and varies based on operational needs, force structure changes, and technological advancements. The DoD consistently procures a wide range of vehicles, from personnel carriers to specialized support and combat vehicles. Analyzing past spending patterns for similar vehicle categories (e.g., HMMWV replacements, light utility vehicles) over the last decade would reveal trends in procurement volume, average contract values, and the types of vehicles prioritized. This context helps in understanding whether the $316 million award represents a typical investment or an outlier.

Are there any identified risks associated with the contractor's ability to deliver these specialized vehicles on time and to specification?

The primary risks associated with this contract would revolve around the contractor's capacity to deliver specialized vehicles that meet stringent military specifications within the defined timeframe. Given the limited number of bidders, there might be a risk of over-reliance on Global Fleet Sales LLC. Potential risks include supply chain disruptions affecting vehicle production, quality control issues leading to non-compliance, or delays in delivery impacting Army operational readiness. The firm-fixed-price nature, while beneficial for cost control, places the burden of managing these risks squarely on the contractor.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 24725 W 12 MILE RD STE 114, SOUTHFIELD, MI, 12

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $316,245,454

Exercised Options: $316,245,454

Current Obligation: $316,245,454

Contract Characteristics

Cost or Pricing Data: NO

Timeline