DoD Awards $25.2M to Mack Defense for Armored Personnel Carriers for African Security Assistance

Contract Overview

Contract Amount: $25,198,663 ($25.2M)

Contractor: Mack Defense LLC

Awarding Agency: Department of Defense

Start Date: 2015-09-25

End Date: 2019-11-29

Contract Duration: 1,526 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 62 ARMORED PERSONNEL CARRIERS AND SPARE PARTS FOR SIX AFRICA FMS CASES FOR SECURITY ASSISTANCE AND COUNTER-TERRORISM.

Place of Performance

Location: ALLENTOWN, LEHIGH County, PENNSYLVANIA, 18106

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $25.2 million to MACK DEFENSE LLC for work described as: 62 ARMORED PERSONNEL CARRIERS AND SPARE PARTS FOR SIX AFRICA FMS CASES FOR SECURITY ASSISTANCE AND COUNTER-TERRORISM. Key points: 1. Contract awarded to Mack Defense LLC for armored personnel carriers and spare parts. 2. Spending supports Foreign Military Sales (FMS) cases for security assistance and counter-terrorism in Africa. 3. Contract was awarded under full and open competition. 4. The contract value is $25,198,663.03. 5. The contract duration was 1526 days.

Value Assessment

Rating: good

The contract value of $25.2 million for 62 armored personnel carriers and spare parts appears reasonable given the specialized nature of the equipment and its intended use in security assistance programs. Benchmarking against similar defense contracts for armored vehicles suggests this pricing is within expected ranges.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. This method likely ensured the government received competitive pricing for the armored personnel carriers and associated parts.

Taxpayer Impact: Taxpayer funds are being used to enhance security and counter-terrorism capabilities in Africa through FMS, potentially contributing to regional stability and U.S. foreign policy objectives.

Public Impact

Enhances security and counter-terrorism capabilities in partner African nations. Supports U.S. foreign policy objectives in Africa through security assistance. Provides critical equipment for military operations in challenging environments. Potential for improved regional stability and reduced threats.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific performance metrics in provided data.
  • Potential for spare parts to be subject to price fluctuations.
  • Geopolitical risks associated with the recipient countries.

Positive Signals

  • Supports critical national security and foreign policy goals.
  • Awarded via full and open competition.
  • Addresses a clear need for security equipment.

Sector Analysis

This contract falls within the Heavy Duty Truck Manufacturing sector, specifically for specialized defense vehicles. Spending on such equipment is benchmarked against overall Department of Defense procurement for military hardware, which can vary significantly based on global security needs and technological advancements.

Small Business Impact

The data indicates the prime contractor is Mack Defense LLC, a known entity in heavy vehicle manufacturing. There is no explicit information provided regarding the extent of small business participation in this specific contract's subcontracting.

Oversight & Accountability

The Department of the Army, under the Department of Defense, managed this contract. Oversight would typically involve monitoring contract performance, delivery schedules, and adherence to specifications to ensure effective use of taxpayer funds and achievement of security assistance goals.

Related Government Programs

  • Heavy Duty Truck Manufacturing
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Contract duration significantly exceeded the initial period.
  • No mention of performance metrics or key performance indicators.
  • Potential for cost overruns on spare parts.
  • Geopolitical instability in recipient regions.
  • Dependence on foreign military sales processes.

Tags

heavy-duty-truck-manufacturing, department-of-defense, pa, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.2 million to MACK DEFENSE LLC. 62 ARMORED PERSONNEL CARRIERS AND SPARE PARTS FOR SIX AFRICA FMS CASES FOR SECURITY ASSISTANCE AND COUNTER-TERRORISM.

Who is the contractor on this award?

The obligated recipient is MACK 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 $25.2 million.

What is the period of performance?

Start: 2015-09-25. End: 2019-11-29.

What is the specific breakdown of costs between the armored personnel carriers and the spare parts?

The provided data does not offer a specific cost breakdown between the armored personnel carriers and the spare parts. The total award amount of $25,198,663.03 covers both the vehicles and the associated spare parts. A detailed breakdown would typically be found in the contract's line item details, which are not included in this summary.

What are the specific security risks associated with delivering these vehicles to the designated African countries?

Specific security risks include potential diversion of equipment, misuse by recipient forces, or capture by adversarial groups. The effectiveness of counter-terrorism efforts also depends on the training and operational capacity of the recipient nations, as well as the broader geopolitical stability of the region.

How will the effectiveness of these armored personnel carriers in counter-terrorism operations be measured?

Effectiveness is typically measured through post-delivery reporting from the recipient nations, focusing on operational successes attributed to the equipment, reduction in insurgent activity, and improved security force capabilities. Formal evaluations may be conducted by the Department of Defense or relevant agencies to assess the impact on counter-terrorism objectives.

Industry Classification

NAICS: ManufacturingMotor Vehicle ManufacturingHeavy Duty Truck Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W56HZV15R0135

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AB Volvo (UEI: 353952559)

Address: 7310 TILGHMAN ST STE 600, ALLENTOWN, PA, 18106

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,198,663

Exercised Options: $25,198,663

Current Obligation: $25,198,663

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline

Start Date: 2015-09-25

Current End Date: 2019-11-29

Potential End Date: 2019-11-29 12:11:00

Last Modified: 2019-09-26

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