DOD awards $25.6M for light trucks, with TGSUSA, LLC securing the contract

Contract Overview

Contract Amount: $25,630,173 ($25.6M)

Contractor: Tgsusa, LLC

Awarding Agency: Department of Defense

Start Date: 2018-10-23

End Date: 2020-09-30

Contract Duration: 708 days

Daily Burn Rate: $36.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 1ST ORDERING YEAR - TOYOTA LC 4X4 DOUBLE CAB 4 DOOR LHD AND CSP

Plain-Language Summary

Department of Defense obligated $25.6 million to TGSUSA, LLC for work described as: 1ST ORDERING YEAR - TOYOTA LC 4X4 DOUBLE CAB 4 DOOR LHD AND CSP Key points: 1. The contract value of $25.6 million represents a significant investment in utility vehicles for the Department of Defense. 2. Competition dynamics indicate a full and open process after source exclusion, suggesting a deliberate procurement strategy. 3. The firm-fixed-price contract type aims to control costs and provide predictability for the government. 4. The duration of 708 days suggests a substantial operational requirement for these vehicles. 5. The North American Industry Classification System (NAICS) code 336112 points to the light truck and utility vehicle manufacturing sector. 6. The award was a delivery order, implying it's part of a larger contract vehicle or program.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the vehicle configuration and quantity. However, the total award of $25.6 million for light trucks over approximately two years suggests a per-unit cost that would need to be compared against similar government procurements and commercial market prices for comparable vehicles. The firm-fixed-price structure provides cost certainty, but the overall value-for-money depends heavily on the negotiated price relative to the specifications and market conditions at the time of award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was broadly open, specific sources may have been excluded based on predefined criteria. The number of bidders is not explicitly stated, but the designation suggests that multiple responsible sources were considered. This approach aims to balance broad competition with specific requirements that might limit the pool of eligible offerors.

Taxpayer Impact: A full and open competition, even with exclusions, generally promotes competitive pricing and allows taxpayers to benefit from potentially lower costs due to market pressures.

Public Impact

The primary beneficiaries are the Department of the Army, receiving essential light utility vehicles for operational needs. The services delivered include the manufacturing and provision of specific Toyota Land Cruiser 4x4 double cab vehicles. The geographic impact is likely concentrated within military installations and operational theaters where these vehicles are deployed. Workforce implications may include employment within TGSUSA, LLC and its supply chain, as well as the military personnel who will operate and maintain the vehicles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if the exclusion of sources narrowed the field significantly.
Dependence on a single contractor (TGSUSA, LLC) for this specific delivery order.
Risk of price escalation if market conditions change unfavorably during the contract period.
Ensuring the delivered vehicles meet all stringent military specifications and performance requirements.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Awarded under a competitive process, suggesting an effort to obtain fair market value.
The specific vehicle model (Toyota LC 4x4) is known for its durability and off-road capability, potentially leading to lower lifecycle costs.
The contract duration allows for phased delivery and integration into operations.

Sector Analysis

This contract falls within the broader automotive manufacturing sector, specifically focusing on light trucks and utility vehicles. The market for military vehicles is a specialized segment within this industry, often characterized by stringent performance requirements, durability standards, and specific technological integrations. Comparable spending benchmarks would involve analyzing other government awards for similar vehicle types, considering factors like quantity, customization, and delivery timelines. The size of the overall defense vehicle procurement market is substantial, with significant annual spending.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' field is false and 'ss' is false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. Therefore, the direct impact on the small business ecosystem for this particular contract appears minimal, unless TGSUSA, LLC voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the procurement or performance of this contract.

Related Government Programs

Tactical Wheeled Vehicles
Light Duty Vehicles
Military Truck Procurement
Department of Defense Vehicle Fleet Management

Risk Flags

Potential for limited competition due to source exclusion.
Dependence on specific vehicle model may limit future sourcing flexibility.
Need to verify vehicle specifications meet all operational requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.6 million to TGSUSA, LLC. 1ST ORDERING YEAR - TOYOTA LC 4X4 DOUBLE CAB 4 DOOR LHD AND CSP

Who is the contractor on this award?

The obligated recipient is TGSUSA, 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 $25.6 million.

What is the period of performance?

Start: 2018-10-23. End: 2020-09-30.

What is the specific quantity of vehicles being procured under this delivery order?

The provided data does not explicitly state the exact quantity of vehicles being procured under this specific delivery order. The total award amount is $25,630,173.28, and the contract is for '1ST ORDERING YEAR - TOYOTA LC 4X4 DOUBLE CAB 4 DOOR LHD AND CSP'. To determine the quantity, one would need to know the average cost per vehicle, including any associated customization, delivery, and support costs. Without this per-unit cost, the exact number of vehicles remains unknown from the given data.

How does the per-unit cost of these vehicles compare to similar government or commercial procurements?

The provided data does not contain enough information to calculate a precise per-unit cost, as the total quantity of vehicles is not specified. To perform this comparison, the total award amount ($25,630,173.28) would need to be divided by the number of vehicles. Once a per-unit cost is estimated or known, it could be benchmarked against other Department of Defense or agency awards for similar Toyota Land Cruiser 4x4 double cab models, or against commercial retail and fleet pricing for comparable vehicles. Factors such as military-specific modifications, warranty terms, and delivery logistics would need to be accounted for in any meaningful comparison.

What specific 'CSP' (Customer Support Package or similar) is included in this contract, and what is its cost implication?

The abbreviation 'CSP' in the contract description '1ST ORDERING YEAR - TOYOTA LC 4X4 DOUBLE CAB 4 DOOR LHD AND CSP' likely refers to a Customer Support Package or a similar service component. This could encompass items such as maintenance support, spare parts, training, or specialized equipment. The data does not break down the cost of the CSP separately from the vehicles themselves. Its inclusion is intended to enhance the operational readiness and lifecycle support of the vehicles. The cost implication is absorbed within the total award of $25,630,173.28, and its value is realized through potentially reduced downtime and lower long-term maintenance expenses for the government.

What is the track record of TGSUSA, LLC in fulfilling similar government contracts, particularly for vehicle procurement?

Information on TGSUSA, LLC's specific track record for similar government contracts, especially vehicle procurement, is not detailed in the provided data snippet. A comprehensive assessment would require reviewing their past performance history, including on-time delivery rates, quality of goods provided, and any past performance issues or awards. Databases like the Federal Procurement Data System (FPDS) or CPARS (Contractor Performance Assessment Reporting System) would typically contain such information, allowing for an evaluation of their reliability and capability in meeting government requirements for vehicles or related equipment.

What are the key performance metrics or deliverables expected under this contract, and how are they measured?

The primary deliverable under this contract is the provision of Toyota Land Cruiser 4x4 double cab vehicles, likely configured for specific military operational needs (indicated by 'LHD' for Left-Hand Drive and 'CSP'). Key performance metrics would typically include adherence to delivery schedules, meeting all specified technical requirements and quality standards for the vehicles, and potentially warranty provisions. Measurement would occur through acceptance testing of the vehicles upon delivery, verification against the contract's specifications, and ongoing performance monitoring by the contracting officer's representative (COR) or technical point of contact.

How does the 'Full and Open Competition After Exclusion of Sources' process impact the potential for cost savings compared to a standard full and open competition?

The 'Full and Open Competition After Exclusion of Sources' process aims to balance broad competition with specific needs that might not be met by all potential offerors. By excluding certain sources, the government might be targeting specific capabilities or technologies. This could potentially lead to a more focused competition among qualified vendors, possibly resulting in better-tailored solutions. However, if the exclusion criteria are overly restrictive or not well-justified, it could inadvertently limit the number of bidders, potentially reducing the competitive pressure on pricing compared to a truly unrestricted full and open competition. The net effect on cost savings is therefore contingent on the rationale and scope of the source exclusions.

Industry Classification

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

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8300 BOONE BLVD STE 500, VIENNA, VA, 22182

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

Financial Breakdown

Contract Ceiling: $25,630,173

Exercised Options: $25,630,173

Current Obligation: $25,630,173

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: W56HZV19D0010

IDV Type: IDC

Timeline