Department of Defense awards $22.1M contract for MaxxPro vehicle protection kits to ND Defense LLC

Contract Overview

Contract Amount: $22,142,270 ($22.1M)

Contractor: ND Defense LLC

Awarding Agency: Department of Defense

Start Date: 2015-04-13

End Date: 2016-06-30

Contract Duration: 444 days

Daily Burn Rate: $49.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF SEVEN HARDWARE KITS NEEDED TO UPGRADE THE MAXXPRO DASH VEHICLES WITH OBJECTIVE GUNNER PROTECTION KIT AND COMMON REMOTELY OPERATED WEAPON STATIONS.

Place of Performance

Location: LISLE, DUPAGE County, ILLINOIS, 60532

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $22.1 million to ND DEFENSE LLC for work described as: PROCUREMENT OF SEVEN HARDWARE KITS NEEDED TO UPGRADE THE MAXXPRO DASH VEHICLES WITH OBJECTIVE GUNNER PROTECTION KIT AND COMMON REMOTELY OPERATED WEAPON STATIONS. Key points: 1. Contract awarded for essential hardware to upgrade existing military vehicles. 2. Sole-source award raises questions about potential for competitive pricing. 3. Fixed-price contract type aims to control costs, but initial award price needs benchmarking. 4. Limited competition may impact overall value for money. 5. Contract duration of 444 days suggests a focused, short-term upgrade project. 6. Awarded to ND Defense LLC, a company with a track record in defense contracting.

Value Assessment

Rating: fair

The contract value of $22.1 million for seven hardware kits is substantial. Without specific details on the kits' components and complexity, direct comparison to similar contracts is challenging. However, the price per kit is approximately $3.16 million. Benchmarking this against industry standards for advanced vehicle protection systems is crucial to assess value for money. The fixed-price nature of the contract provides cost certainty for the government, but the lack of competition in the award process may have prevented a lower price.

Cost Per Unit: Approximately $3.16 million per kit. Market rates for advanced vehicle protection systems vary widely based on technology and integration complexity; further benchmarking is required.

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, ND Defense LLC, was solicited. This approach is typically used when a specific capability is required that only one source can provide, or in urgent situations. The lack of competition means that the government did not benefit from multiple bids, which could have driven down the price through a competitive bidding process. This limits the government's ability to ensure it received the best possible price.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the potential for competitive pressure to lower prices is absent. This necessitates rigorous justification and oversight to ensure fair pricing.

Public Impact

The primary beneficiaries are the U.S. Army personnel who will operate the upgraded MaxxPro vehicles. The contract delivers critical hardware for enhancing the survivability and effectiveness of armored vehicles. The geographic impact is primarily within military operational theaters where these vehicles are deployed. Workforce implications may include specialized manufacturing and installation roles for ND Defense LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing opportunities.
High per-unit cost requires thorough justification and benchmarking.
Lack of transparency in the sole-source justification process.

Positive Signals

Fixed-price contract type provides cost certainty.
Focus on upgrading existing, proven vehicle platforms.
Procurement of essential safety and operational enhancement kits.

Sector Analysis

The defense sector, specifically military vehicle manufacturing and upgrades, is characterized by high technological complexity and significant government investment. Contracts in this area often involve specialized components and integration services. The market size for armored vehicle protection systems is substantial, driven by ongoing global security needs. This contract fits within the broader category of military equipment modernization, aiming to enhance the capabilities of existing platforms.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor are there explicit subcontracting requirements mentioned in the provided data. As a sole-source award to ND Defense LLC, the direct impact on the small business ecosystem is likely minimal unless ND Defense LLC actively engages small businesses for subcontracting opportunities. Further investigation into ND Defense LLC's subcontracting plans would be necessary to assess the broader impact.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the fixed-price contract structure, which obligates the contractor to deliver specified goods. Transparency is limited due to the sole-source nature of the award; however, contract award data is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

MaxxPro MRAP Vehicle
Mine-Resistant Ambush Protected Vehicles
Vehicle Armor and Protection Systems
Military Vehicle Modernization Programs

Risk Flags

Sole-source award
High per-unit cost
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.1 million to ND DEFENSE LLC. PROCUREMENT OF SEVEN HARDWARE KITS NEEDED TO UPGRADE THE MAXXPRO DASH VEHICLES WITH OBJECTIVE GUNNER PROTECTION KIT AND COMMON REMOTELY OPERATED WEAPON STATIONS.

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 $22.1 million.

What is the period of performance?

Start: 2015-04-13. End: 2016-06-30.

What is the specific technical capability or justification that necessitated a sole-source award to ND Defense LLC for these hardware kits?

Sole-source awards are typically justified when a unique capability is required that only one vendor can provide, or in cases of urgent and compelling need where competition is not feasible. For this contract, the justification would likely stem from the specific design and integration requirements of the Objective Gunner Protection Kit and Common Remotely Operated Weapon Stations for the MaxxPro Dash vehicles. ND Defense LLC may possess proprietary technology, specific manufacturing expertise, or existing integration knowledge critical for this upgrade. Without access to the official sole-source justification documentation (e.g., a Justification and Approval document), the precise technical or programmatic reasons remain speculative. However, the government must demonstrate that no other responsible source could meet the requirement, or that the benefits of a sole-source award outweigh the benefits of full and open competition.

How does the per-unit cost of approximately $3.16 million for these protection kits compare to similar advanced vehicle protection systems in the defense market?

The per-unit cost of approximately $3.16 million for each hardware kit is a significant figure that requires careful benchmarking against comparable systems. Advanced vehicle protection systems, especially those integrating remotely operated weapon stations and enhanced gunner protection, can be very expensive due to their complexity, technological sophistication, and the rigorous testing and certification required for military applications. Factors influencing cost include the type of armor, the capabilities of the remotely operated weapon station (e.g., stabilization, targeting systems, ammunition capacity), the integration complexity with the vehicle's existing systems, and the level of survivability enhancement provided. To assess value, this cost should be compared to other MRAP (Mine-Resistant Ambush Protected) vehicle upgrade packages, turret systems, or modular protection kits procured by the U.S. military or allied nations. Without specific details on the components and performance specifications of the kits, a precise comparison is difficult, but this price point suggests a highly advanced and integrated solution.

What are the potential risks associated with a sole-source procurement for critical military hardware like vehicle protection kits?

The primary risk associated with a sole-source procurement for critical military hardware is the potential for inflated pricing due to the absence of competitive pressure. When only one vendor is solicited, they may not have the same incentive to offer their most competitive price as they would in a multi-bid scenario. This can lead to the government paying more than necessary, impacting overall budget efficiency. Another risk is a potential lack of innovation; without competition, the vendor may be less motivated to invest in developing more cost-effective or technologically superior solutions. Furthermore, sole-source awards can raise concerns about fairness and transparency in the procurement process, potentially leading to perceptions of favoritism or missed opportunities to engage a broader range of capable suppliers. Finally, reliance on a single source can create supply chain vulnerabilities if that source encounters production issues or goes out of business.

What is the expected impact of these upgraded protection kits on the operational effectiveness and survivability of the MaxxPro Dash vehicles?

The upgrade of MaxxPro Dash vehicles with the Objective Gunner Protection Kit (OGPK) and Common Remotely Operated Weapon Stations (CROWS) is expected to significantly enhance both survivability and operational effectiveness. The OGPK is designed to provide better protection for the gunner against small arms fire, fragmentation, and improvised explosive devices (IEDs), reducing the risk of injury or fatality. CROWS allows the gunner to operate the weapon system from within the protected confines of the vehicle, further increasing safety and enabling more precise targeting. This remote operation capability also allows for a wider field of fire and potentially faster engagement times. Collectively, these upgrades aim to improve the vehicle's ability to perform its mission in high-threat environments, increasing troop confidence and overall mission success rates.

What has been ND Defense LLC's track record with similar defense contracts, particularly concerning delivery performance and product quality?

ND Defense LLC has a history of providing defense contracting services, including work on vehicle systems and protection. Assessing their track record requires a review of past performance evaluations, contract completion history, and any reported issues related to delivery timeliness, product quality, or cost overruns on previous government contracts. Information on past performance is often available through government databases like the Contractor Performance Assessment Reporting System (CPARS), though access may be restricted. Generally, for a company to be awarded significant contracts, they must demonstrate a satisfactory performance history. However, specific details regarding their performance on contracts analogous to this one would provide a clearer picture of their reliability and the quality of their products and services.

How does this $22.1 million expenditure fit within the broader context of U.S. military vehicle modernization and protection system investments?

This $22.1 million contract represents a specific investment within the larger U.S. military strategy of modernizing its vehicle fleet and enhancing force protection. The U.S. military has consistently invested billions of dollars annually in upgrading existing platforms and procuring new ones to counter evolving threats. Programs like the MaxxPro upgrades are crucial for maintaining the relevance and effectiveness of legacy systems, particularly in counter-insurgency and asymmetric warfare scenarios where survivability is paramount. This expenditure should be viewed alongside other investments in areas such as next-generation combat vehicles, advanced armor technologies, and integrated electronic warfare systems. It reflects a commitment to ensuring that personnel operating in hazardous environments are equipped with the best available protection and weaponization capabilities.

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: W56HZV14R0356

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, 60532

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

Financial Breakdown

Contract Ceiling: $22,142,270

Exercised Options: $22,142,270

Current Obligation: $22,142,270

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $30,367,451

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline