DoD awards $30.8M for 220 "DAVID" Urban Light Utility Vehicles to M D T Armor Corporation
Contract Overview
Contract Amount: $30,800,000 ($30.8M)
Contractor: M D T Armor Corporation
Awarding Agency: Department of Defense
Start Date: 2012-11-20
End Date: 2016-12-30
Contract Duration: 1,501 days
Daily Burn Rate: $20.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 220 "DAVID" URBAN LIGHT UTILITY VEHICLE FOR THE COUNTRY OF ISRAEL
Place of Performance
Location: AUBURN, LEE County, ALABAMA, 36832
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $30.8 million to M D T ARMOR CORPORATION for work described as: 220 "DAVID" URBAN LIGHT UTILITY VEHICLE FOR THE COUNTRY OF ISRAEL Key points: 1. High value contract for specialized armored vehicles. 2. Sole-source award to M D T Armor Corporation. 3. Significant taxpayer investment in defense equipment. 4. Contract duration spans over four years.
Value Assessment
Rating: questionable
The contract value of $30.8 million for 220 vehicles suggests a per-unit cost of approximately $139,999. Without specific feature comparisons or detailed cost breakdowns, it's difficult to definitively assess if this pricing is competitive against similar specialized armored vehicles.
Cost Per Unit: $139,999
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This limits price discovery and potentially leads to higher costs for the government compared to a competitive bidding process.
Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium due to the lack of competitive pressure to lower prices.
Public Impact
Enhances Israel's urban defense capabilities. Supports a specific niche in military vehicle manufacturing. Represents a significant allocation of defense funds for specialized equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of detailed cost justification for the unit price.
- Long contract duration without clear performance milestones.
Positive Signals
- Provides critical equipment to an allied nation.
- Addresses a specific need for urban warfare vehicles.
Sector Analysis
The defense sector, particularly military vehicle manufacturing, often involves high-value, specialized contracts. Spending benchmarks for armored utility vehicles can vary widely based on customization, protection levels, and intended use, making direct comparisons challenging without detailed specifications.
Small Business Impact
This contract was awarded to M D T Armor Corporation, a large business. There is no indication of small business participation in this specific award, suggesting limited opportunities for small businesses in this particular procurement.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure the price paid is reasonable and that the government is receiving the best value. Accountability for the justification of the sole-source award and the final product's performance is crucial.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- High per-unit cost without clear justification.
- Long contract duration may indicate production challenges or scope creep.
- Limited transparency on specific vehicle capabilities and performance metrics.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.8 million to M D T ARMOR CORPORATION. 220 "DAVID" URBAN LIGHT UTILITY VEHICLE FOR THE COUNTRY OF ISRAEL
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 $30.8 million.
What is the period of performance?
Start: 2012-11-20. End: 2016-12-30.
What specific capabilities does the "DAVID" Urban Light Utility Vehicle offer that justify its specialized nature and sole-source procurement?
The "DAVID" Urban Light Utility Vehicle is designed for specific urban combat scenarios, likely offering enhanced ballistic protection, maneuverability in confined spaces, and potentially specialized sensor or weapon systems tailored for city environments. Its sole-source procurement suggests unique design features or proprietary technology that the Department of the Army deemed essential and unavailable from other manufacturers at the time of the award.
How does the per-unit cost of $139,999 compare to similar armored utility vehicles in the market, considering the lack of competition?
Without direct competitive bids, a precise comparison is difficult. However, $139,999 per unit for an armored utility vehicle is on the higher end, especially if it lacks advanced offensive capabilities. Similar vehicles with robust armor and moderate utility functions can range from $80,000 to $150,000. The sole-source nature likely inflated this price, necessitating a thorough review of the justification for this cost.
What measures are in place to ensure the effectiveness and timely delivery of these vehicles, given the long contract duration and sole-source award?
Given the sole-source award and a duration of over four years, robust oversight mechanisms are critical. This includes detailed performance metrics, regular progress reviews, and potentially independent technical evaluations of the delivered vehicles. The Department of the Army should have clear contractual clauses for delivery schedules, quality control, and remedies for non-performance to ensure effectiveness and timely fulfillment.
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 COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56HZV12R0568
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, 36832
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,800,000
Exercised Options: $30,800,000
Current Obligation: $30,800,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2012-11-20
Current End Date: 2016-12-30
Potential End Date: 2016-12-30 12:12:00
Last Modified: 2016-08-01
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