Department of Defense awards $31.4M contract for light trucks to ND DEFENSE LLC

Contract Overview

Contract Amount: $31,437,478 ($31.4M)

Contractor: ND Defense LLC

Awarding Agency: Department of Defense

Start Date: 2018-09-14

End Date: 2019-04-30

Contract Duration: 228 days

Daily Burn Rate: $137.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: GTT 6X6&4X4

Place of Performance

Location: LISLE, DUPAGE County, ILLINOIS, 60532

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $31.4 million to ND DEFENSE LLC for work described as: GTT 6X6&4X4 Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential value. 2. Limited competition may have led to higher costs compared to a fully competed scenario. 3. The contract duration of 228 days is relatively short, suggesting a specific, immediate need. 4. Performance context is limited due to the sole-source nature and lack of public performance data. 5. The contract falls within the Light Truck and Utility Vehicle Manufacturing sector, a niche but essential area for military logistics. 6. No small business set-aside was utilized, indicating a focus on specific contractor capabilities.

Value Assessment

Rating: questionable

The contract value of $31.4 million for light trucks over approximately 7.5 months appears high given the limited competition. Without a benchmark from similar, competed contracts for comparable vehicles, it is difficult to definitively assess value for money. The sole-source award suggests that the government may not have explored all available options to secure the best pricing, potentially leading to a less favorable outcome for taxpayers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder was solicited. This approach is typically used when only one responsible source can provide the required supplies or services. The lack of competition means there was no opportunity for multiple companies to bid, which can limit price discovery and potentially lead to higher costs than if the contract had been competed.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to drive down prices, potentially resulting in higher expenditures for taxpayers compared to fully competed contracts.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who will receive light trucks for operational use. The services delivered include the manufacturing and provision of light trucks, essential for military logistics and mobility. The geographic impact is primarily within the operational theaters where these trucks will be deployed by the Army. Workforce implications are likely within ND DEFENSE LLC and its supply chain, supporting manufacturing jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value assessment.
Lack of transparency in the procurement process due to limited competition.
Potential for higher costs for taxpayers without competitive bidding.

Positive Signals

Contract addresses a specific need for light trucks within the Department of Defense.
ND DEFENSE LLC is the awarded contractor, implying they possess the required capabilities.
The contract is for a defined period, suggesting a focused requirement.

Sector Analysis

The contract falls under the Light Truck and Utility Vehicle Manufacturing sector (NAICS 336112). This sector is crucial for defense logistics, providing essential transportation for personnel and equipment. While specific market size data for military-specific light trucks is not readily available, the broader automotive manufacturing sector is substantial. This contract represents a specific procurement within this sector, likely fulfilling a specialized requirement for the Army.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to ND DEFENSE LLC suggests a focus on a prime contractor capable of fulfilling the requirement directly. This means the direct economic impact on the small business ecosystem from this specific contract may be limited unless ND DEFENSE LLC voluntarily engages small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight mechanisms. Accountability measures would be tied to the terms of the firm-fixed-price contract, ensuring delivery of specified light trucks. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Vehicle Procurement
Light Tactical Vehicle Programs
Army Logistics Support Contracts

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of detailed performance metrics makes value assessment difficult.
Limited public information on contractor track record for this specific award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.4 million to ND DEFENSE LLC. GTT 6X6&4X4

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 $31.4 million.

What is the period of performance?

Start: 2018-09-14. End: 2019-04-30.

What is the track record of ND DEFENSE LLC in fulfilling government contracts, particularly for light vehicles?

Information regarding ND DEFENSE LLC's specific track record for fulfilling government contracts, especially for light vehicles, is not detailed in the provided data. As this was a sole-source award, it implies the Department of the Army identified ND DEFENSE LLC as the only responsible source. Further investigation into the contractor's past performance, including any previous awards, delivery history, and quality of work, would be necessary for a comprehensive assessment. Government contract databases and past performance reviews would be the primary sources for this information.

How does the $31.4 million contract value compare to similar light truck procurements by the Department of Defense?

Direct comparison of the $31.4 million contract value is challenging without knowing the exact specifications, quantity, and duration of the light trucks procured. However, given that this was a sole-source award for a period of approximately 7.5 months (September 2018 to April 2019), the value appears substantial. Typically, competed contracts for similar vehicles would provide a clearer benchmark for value for money. The absence of competitive bidding in this instance makes it difficult to ascertain if this price represents a fair market value or if it is inflated due to the lack of competition.

What are the primary risks associated with a sole-source award for vehicle procurement?

The primary risks associated with a sole-source award for vehicle procurement include a lack of price competition, which can lead to higher costs for the government and taxpayers. There is also a reduced incentive for the contractor to innovate or offer the best possible value, as they are the only option. Furthermore, sole-source awards can raise concerns about fairness and transparency in the procurement process, potentially limiting the government's access to a wider range of solutions or technologies that might be available through open competition. Ensuring the sole-source justification is robust and that the awarded price is fair and reasonable becomes critical.

What is the expected effectiveness of these light trucks in supporting Department of Defense operations?

The effectiveness of these light trucks in supporting Department of Defense operations is presumed to be high, given that the Department of the Army identified ND DEFENSE LLC as the sole source for their procurement. Light trucks are critical for various military functions, including personnel transport, light cargo movement, reconnaissance, and command and control in diverse operational environments. The specific effectiveness would depend on the vehicle's capabilities, reliability, and suitability for the intended missions, which are not detailed in the provided data. However, the award itself suggests a recognized need and expected utility.

What has been the historical spending pattern for light truck and utility vehicle manufacturing by the Department of Defense?

Historical spending patterns for light truck and utility vehicle manufacturing by the Department of Defense are not detailed in the provided data. This specific contract represents a single award of $31.4 million in 2018-2019. To understand broader spending patterns, one would need to analyze aggregate data across multiple years and various defense agencies for similar vehicle procurements. This would involve looking at the total value of contracts awarded in NAICS code 336112, as well as specific contract vehicles used for military transport, to identify trends in spending, key contractors, and the prevalence of sole-source versus competed awards.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded on a sole-source basis ('CT': 'NOT COMPETED'). While the specific justification is not detailed, common reasons for sole-source awards include unique capabilities, urgent and compelling needs where competition is not feasible, or when only one responsible source exists. For a defense contract, this could relate to specialized vehicle designs, existing platform integration requirements, or specific technological advantages offered by ND DEFENSE LLC that cannot be met by other manufacturers within the required timeframe or specifications. A formal justification document would typically be required by federal acquisition regulations.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Manufacturing › Light Truck and Utility Vehicle Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $31,437,478

Exercised Options: $31,437,478

Current Obligation: $31,437,478

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV17D0112

IDV Type: IDC

Timeline