DoD awards $29.4M for 20 heavy cranes to Grove U.S. LLC, supporting National Guard readiness

Contract Overview

Contract Amount: $29,409,131 ($29.4M)

Contractor: Grove U.S. LLC

Awarding Agency: Department of Defense

Start Date: 2019-09-19

End Date: 2022-09-30

Contract Duration: 1,107 days

Daily Burn Rate: $26.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS DELIVERY ORDER W56HZV-19-F-0589 UNDER REQUIREMENTS CONTRACT W56HZV-15-D-0052 (TYPE II HEAVY CRANE) FUNDS 20 PRODUCTION UNITS AND SUPPORTING ITEMS FOR THE NATIONAL GUARD.

Place of Performance

Location: SHADY GROVE, FRANKLIN County, PENNSYLVANIA, 17256

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $29.4 million to GROVE U.S. LLC for work described as: THIS DELIVERY ORDER W56HZV-19-F-0589 UNDER REQUIREMENTS CONTRACT W56HZV-15-D-0052 (TYPE II HEAVY CRANE) FUNDS 20 PRODUCTION UNITS AND SUPPORTING ITEMS FOR THE NATIONAL GUARD. Key points: 1. Contract supports critical National Guard equipment needs for heavy lifting operations. 2. Procurement of 20 production units indicates a significant investment in fleet modernization. 3. The firm-fixed-price contract type aims to control costs and provide budget certainty. 4. Delivery order structure suggests a phased approach to fulfilling the overall requirement. 5. The contract's duration of over three years allows for timely production and delivery. 6. Focus on construction machinery manufacturing highlights a specific industrial capability.

Value Assessment

Rating: good

The total award of $29.4 million for 20 heavy cranes appears reasonable given the specialized nature of the equipment. Benchmarking against similar large-scale construction machinery procurements would provide further context on value for money. The firm-fixed-price structure is a positive indicator for cost control. Without specific per-unit cost data or comparisons to commercial equivalents, a definitive value assessment is challenging, but the scale suggests a strategic acquisition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was utilized. This approach is generally expected to yield better pricing and a wider selection of qualified suppliers.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it promotes a competitive environment, driving down prices and ensuring the government receives the best value for its investment.

Public Impact

The National Guard will benefit from enhanced operational capabilities through the acquisition of new heavy cranes. These cranes will support various missions, including logistical support, construction, and disaster relief operations. The procurement directly impacts the construction machinery manufacturing sector, supporting jobs and production within the industry. The geographic impact is primarily within the United States, supporting domestic manufacturing and the National Guard's readiness across the country.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for long-term sustainment and maintenance costs not fully detailed in this award.
Dependence on a single manufacturer for a critical piece of equipment could pose future supply chain risks.
The specific technical requirements may limit future interoperability with other systems if not carefully managed.

Positive Signals

Awarding to a known entity in the construction machinery sector suggests a reliable supplier.
The firm-fixed-price contract type provides cost certainty for this acquisition.
The phased delivery over several years allows for efficient production planning and resource allocation.
The procurement directly addresses a stated need for heavy crane capabilities within the National Guard.

Sector Analysis

The construction machinery manufacturing sector is a vital part of the industrial base, producing specialized equipment for infrastructure projects, defense, and disaster response. This contract for heavy cranes falls within the NAICS code 333120, which covers construction machinery manufacturing. The market for such specialized equipment is often characterized by a few key players capable of meeting stringent military specifications. The total federal spending on construction machinery manufacturing can fluctuate based on infrastructure initiatives and defense modernization efforts.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit mention of subcontracting goals for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though the prime contractor may engage small businesses for support services or components.

Oversight & Accountability

The contract is a delivery order under a larger requirements contract, implying that oversight mechanisms are likely in place at the contract level. The Department of the Army's contracting officers are responsible for monitoring performance and ensuring compliance. Transparency is generally facilitated through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

National Guard Equipment Modernization Programs
Heavy Construction Equipment Procurements
Defense Logistics Agency (DLA) Support Contracts
Army Combat Support Equipment

Risk Flags

Potential for production delays
Long-term sustainment and maintenance costs
Supply chain dependency for critical components

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.4 million to GROVE U.S. LLC. THIS DELIVERY ORDER W56HZV-19-F-0589 UNDER REQUIREMENTS CONTRACT W56HZV-15-D-0052 (TYPE II HEAVY CRANE) FUNDS 20 PRODUCTION UNITS AND SUPPORTING ITEMS FOR THE NATIONAL GUARD.

Who is the contractor on this award?

The obligated recipient is GROVE U.S. 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 $29.4 million.

What is the period of performance?

Start: 2019-09-19. End: 2022-09-30.

What is the track record of Grove U.S. LLC in fulfilling government contracts, particularly for heavy machinery?

Grove U.S. LLC, a subsidiary of Manitowoc Company, has a history of supplying cranes and related equipment. While specific details on their past government contract performance are not provided in this data snippet, their established presence in the heavy machinery market suggests experience. Government contract databases would typically show past performance ratings, on-time delivery records, and any disputes or claims associated with previous awards. A thorough review of their contract history would be necessary to fully assess their reliability for this specific delivery order.

How does the per-unit cost of these heavy cranes compare to similar procurements by other government agencies or commercial entities?

The provided data does not include a per-unit cost breakdown, making direct comparison difficult. The total award of $29.4 million for 20 units averages to approximately $1.47 million per crane. This figure needs to be contextualized by the specific model, capabilities (lifting capacity, mobility, specialized features), and any included support or training. Benchmarking against recent procurements of similar heavy-lift cranes by agencies like the Navy, Air Force, or even large commercial construction firms would be essential to determine if this represents a competitive price. Factors like bulk discounts, customization for military use, and the competitive landscape at the time of bidding significantly influence per-unit pricing.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential production delays, quality control issues, and long-term sustainment challenges. Delays could impact the National Guard's operational readiness. Quality issues might lead to equipment failures and safety concerns. Sustainment risks involve the availability and cost of spare parts and maintenance over the equipment's lifecycle. Mitigation strategies likely include the firm-fixed-price contract type to incentivize timely delivery, stringent quality assurance protocols during manufacturing and acceptance testing, and potentially performance bonds. The multi-year delivery schedule also allows for phased risk management.

How effective is this procurement in enhancing the National Guard's operational capabilities?

This procurement is directly aimed at enhancing the National Guard's operational capabilities by providing essential heavy lifting equipment. These cranes are critical for tasks such as constructing forward operating bases, deploying heavy equipment, managing logistics in austere environments, and responding to natural disasters. By acquiring 20 new units, the National Guard can modernize its aging fleet, improve reliability, and increase its capacity to perform these vital functions, thereby bolstering overall readiness and response effectiveness.

What are the historical spending patterns for heavy construction machinery by the Department of Defense or the National Guard?

Historical spending on heavy construction machinery by the DoD and National Guard can vary significantly year-to-year, driven by modernization cycles, operational tempo, and infrastructure investment priorities. Large-scale procurements like this one are typically part of broader equipment recapitalization efforts. Analyzing past contract awards for similar equipment (e.g., excavators, bulldozers, specialized cranes) over the last 5-10 years would reveal trends in spending levels, preferred manufacturers, and contract types. This specific award of $29.4 million represents a substantial, but not unprecedented, investment in specialized heavy equipment.

What is the potential impact of this contract on the broader construction machinery manufacturing market?

This contract provides a significant revenue stream for Grove U.S. LLC and contributes to the overall health of the construction machinery manufacturing sector. It supports production capacity, potentially preserves or creates jobs, and validates the company's ability to meet demanding military specifications. For the broader market, such awards can signal demand for specific types of heavy equipment and influence investment decisions by other manufacturers. It also reinforces the importance of domestic industrial capacity for national security needs.

Industry Classification

NAICS: Manufacturing › Agriculture, Construction, and Mining Machinery Manufacturing › Construction Machinery Manufacturing

Product/Service Code: CONSTRUCT/MINE/EXCAVATE/HIGHWY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Manitowoc Company, Inc., the

Address: 1565 BUCHANAN TRL E, SHADY GROVE, PA, 17256

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,409,131

Exercised Options: $29,409,131

Current Obligation: $29,409,131

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV15D0052

IDV Type: IDC

Timeline