DoD Spends $19M to Up-Armor 205 Afghan Vehicles Amid Urgent Need
Contract Overview
Contract Amount: $19,031,414 ($19.0M)
Contractor: ND Defense LLC
Awarding Agency: Department of Defense
Start Date: 2013-02-15
End Date: 2014-02-28
Contract Duration: 378 days
Daily Burn Rate: $50.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UPGRADING AND UP-ARMORING OF 205 GFE MEDIUM TACTICAL VEHICLES FOR THE AFGHANISTAN NATIONAL ARMY AND AFGHANISTAN NATIONAL POLICE. URGENT REQUIREMENT.
Place of Performance
Location: LISLE, DUPAGE County, ILLINOIS, 60532
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $19.0 million to ND DEFENSE LLC for work described as: UPGRADING AND UP-ARMORING OF 205 GFE MEDIUM TACTICAL VEHICLES FOR THE AFGHANISTAN NATIONAL ARMY AND AFGHANISTAN NATIONAL POLICE. URGENT REQUIREMENT. Key points: 1. Significant investment in tactical vehicle upgrades for Afghan security forces. 2. Sole-source award to ND Defense LLC raises questions about competition. 3. Urgent requirement suggests potential for premium pricing. 4. Focus on military armored vehicle manufacturing sector.
Value Assessment
Rating: fair
The $19M contract for 205 vehicles averages to $93,280 per unit. This price needs comparison against similar up-armoring contracts for medium tactical vehicles to assess value.
Cost Per Unit: $93,280
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This lack of competition may have limited price discovery and potentially led to a higher cost for the government.
Taxpayer Impact: Taxpayers funded a critical upgrade for allied forces, but the sole-source nature may have resulted in less cost-efficiency than a competitive process.
Public Impact
Enhances operational capabilities of Afghan National Army and Police. Supports U.S. foreign policy objectives in Afghanistan. Addresses urgent security needs in a volatile region. Potential for long-term maintenance and support costs. Requires careful monitoring of vehicle performance and effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Urgent requirement may inflate price.
- Lack of clear performance metrics.
- Geopolitical instability in Afghanistan.
Positive Signals
- Addresses critical equipment needs.
- Supports partner nation security.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector. Spending in this area is often driven by geopolitical events and national security priorities, with significant R&D and production costs.
Small Business Impact
The contract was awarded to ND Defense LLC, a private company. There is no indication of small business subcontracting in the provided data, suggesting limited direct impact on small businesses for this specific award.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight would focus on ensuring timely delivery, quality of work, and adherence to the firm fixed price, especially given the urgent nature and sole-source award.
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
- Urgent requirement
- Lack of competition
- Potential for cost overruns
- Geopolitical instability affecting delivery/effectiveness
- Limited visibility into contractor's cost structure
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, il, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.0 million to ND DEFENSE LLC. UPGRADING AND UP-ARMORING OF 205 GFE MEDIUM TACTICAL VEHICLES FOR THE AFGHANISTAN NATIONAL ARMY AND AFGHANISTAN NATIONAL POLICE. URGENT REQUIREMENT.
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 $19.0 million.
What is the period of performance?
Start: 2013-02-15. End: 2014-02-28.
What was the justification for the sole-source award, and were alternatives considered?
The justification for a sole-source award typically involves specific circumstances like urgent and compelling needs, unique capabilities, or lack of other responsible sources. Without further documentation, it's unclear if alternatives were thoroughly explored or if the urgent requirement precluded a competitive process. This lack of competition is a key area for oversight.
How does the per-unit cost compare to similar up-armoring projects or new vehicle acquisitions?
Benchmarking the $93,280 per-unit cost against comparable contracts is crucial. If similar up-armoring services or even new, less specialized vehicles cost significantly less, it suggests potential overpayment. Conversely, if the cost aligns with specialized, high-threat environment modifications, it might be justified, but requires detailed comparison.
What are the projected long-term sustainment and maintenance costs for these up-armored vehicles?
The initial acquisition cost is only part of the total lifecycle expense. Understanding the sustainment plan, availability of spare parts, and specialized maintenance requirements for these up-armored vehicles is vital for assessing the true taxpayer impact. Unexpectedly high sustainment costs could negate initial value.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Navistar International Corporation (UEI: 161984646)
Address: 2701 NAVISTAR WAY, LISLE, IL, 06
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: $19,031,414
Exercised Options: $19,031,414
Current Obligation: $19,031,414
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2013-02-15
Current End Date: 2014-02-28
Potential End Date: 2014-02-28 00:00:00
Last Modified: 2013-09-30
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