Department of Defense awards $36.5M for 93 heavy-duty trucks to Mack Defense LLC

Contract Overview

Contract Amount: $36,520,213 ($36.5M)

Contractor: Mack Defense LLC

Awarding Agency: Department of Defense

Start Date: 2020-11-30

End Date: 2026-01-31

Contract Duration: 1,888 days

Daily Burn Rate: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER W56HZV21F0056 PROCURES 93 M917A3 TRUCKS IN SUPPORT OF CONTRACT W56HZV-18-D-0042.

Place of Performance

Location: ALLENTOWN, LEHIGH County, PENNSYLVANIA, 18106

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $36.5 million to MACK DEFENSE LLC for work described as: DELIVERY ORDER W56HZV21F0056 PROCURES 93 M917A3 TRUCKS IN SUPPORT OF CONTRACT W56HZV-18-D-0042. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 3. Delivery order supports a larger contract (W56HZV-18-D-0042), indicating a phased procurement approach. 4. The procurement is for M917A3 trucks, a specific heavy-duty vehicle model. 5. The contract duration extends to January 2026, implying a long-term need. 6. The awardee, Mack Defense LLC, is a known entity in the defense vehicle manufacturing sector.

Value Assessment

Rating: good

The total award amount of $36.5 million for 93 trucks equates to approximately $392,690 per truck. Benchmarking this against similar heavy-duty military vehicle procurements would be necessary for a precise value-for-money assessment. However, the firm-fixed-price nature of the contract provides a degree of cost control for the Department of Defense. The award through full and open competition suggests that pricing was likely scrutinized against multiple offers.

Cost Per Unit: Approximately $392,690 per truck. Further benchmarking against market rates for comparable heavy-duty military trucks is recommended.

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and terms for the government. The Department of the Army's approach suggests they sought the best value through a broad solicitation.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and encouraging multiple vendors to offer their best terms, potentially leading to cost savings.

Public Impact

The primary beneficiaries are the U.S. Army personnel who will utilize the M917A3 heavy-duty trucks. The services delivered include the manufacturing and delivery of specialized military vehicles. The geographic impact is primarily within Pennsylvania, where Mack Defense LLC is located, and the eventual deployment locations of the Army units. Workforce implications include jobs in manufacturing, engineering, and logistics at Mack Defense LLC and its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Reliance on a single awardee for a significant quantity of specialized vehicles.
Ensuring long-term sustainment and maintenance support for these heavy-duty trucks.

Positive Signals

Award through full and open competition suggests a competitive pricing environment.
Firm-fixed-price contract provides cost certainty for the government.
Delivery order supports an existing contract, indicating a structured procurement process.
Mack Defense LLC's established presence in defense vehicle manufacturing.

Sector Analysis

The heavy-duty truck manufacturing sector is a critical component of the industrial base, supporting both commercial and defense needs. Within the defense sector, specialized vehicles like the M917A3 are essential for logistics, engineering, and operational support. Spending in this area is often driven by modernization efforts and the need to replace aging fleets. Comparable spending benchmarks would involve analyzing other large-volume procurements of military-grade trucks or heavy equipment by various branches of the U.S. military.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. As a large prime contract likely awarded to a major manufacturer, the primary impact on small businesses would be through their role as suppliers within Mack Defense LLC's supply chain. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is facilitated by the contract award being made under full and open competition, with details typically available through federal procurement databases. The Inspector General's office for the Department of Defense may also conduct audits or investigations as deemed necessary.

Related Government Programs

M917A3 Truck Program
Heavy Tactical Wheeled Vehicles
Department of Defense Vehicle Procurement
Army Logistics Modernization

Risk Flags

Potential for supply chain disruptions
Long-term sustainment planning required
Dependence on specific manufacturing capabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.5 million to MACK DEFENSE LLC. DELIVERY ORDER W56HZV21F0056 PROCURES 93 M917A3 TRUCKS IN SUPPORT OF CONTRACT W56HZV-18-D-0042.

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 $36.5 million.

What is the period of performance?

Start: 2020-11-30. End: 2026-01-31.

What is the track record of Mack Defense LLC in fulfilling similar large-scale military vehicle contracts?

Mack Defense LLC, a subsidiary of Mack Trucks, has a history of supplying vehicles to military and government entities. While specific details on past large-scale contracts for the M917A3 model are not immediately available from this data alone, the company's experience in producing heavy-duty trucks and its established relationship with the Department of Defense suggest a foundational capability. Assessing their performance on previous contracts, including on-time delivery, quality adherence, and cost management, would provide a clearer picture of their reliability for this specific award. Reviewing past performance evaluations and any contract modifications or disputes would be crucial for a comprehensive understanding of their track record.

How does the per-unit cost of the M917A3 trucks compare to other heavy-duty military trucks procured by the DoD?

The per-unit cost for the M917A3 trucks under this delivery order is approximately $392,690. To benchmark this effectively, a comparison with other heavy-duty military trucks procured by the Department of Defense is necessary. This would involve identifying similar vehicle classes (e.g., dump trucks, tactical trucks with heavy payload capacities) acquired through comparable contract types (firm-fixed-price) and competition levels (full and open). Factors such as specific capabilities, armor, technological features, and quantity ordered can significantly influence per-unit costs. Without direct comparative data on similar procurements, it is challenging to definitively state whether this price represents excellent, fair, or concerning value.

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

Primary risks associated with this contract include potential delays in manufacturing and delivery due to supply chain issues or production challenges, the risk of cost overruns if unforeseen issues arise (though mitigated by the firm-fixed-price structure), and the potential for performance issues with the vehicles themselves. Mitigation strategies likely involve robust contract management by the Department of the Army, including regular progress reviews, adherence to strict quality control measures during manufacturing, and potentially performance bonds. The long contract duration also presents a risk of obsolescence or changing military requirements, which would need to be managed through contract modifications or future procurement strategies.

What is the overall effectiveness of the M917A3 truck program in meeting Army operational requirements?

The effectiveness of the M917A3 truck program hinges on its ability to meet the specific operational requirements of the U.S. Army, which typically involve robust performance in demanding environments, reliability, and suitability for logistical and engineering support tasks. As a heavy-duty truck, its effectiveness would be measured by its payload capacity, off-road mobility, durability, and ease of maintenance. This particular delivery order supports a larger contract (W56HZV-18-D-0042), suggesting a sustained program need. Evaluating the program's effectiveness would require analyzing user feedback, operational deployment data, maintenance records, and whether the trucks are fulfilling their intended roles without significant deficiencies.

How has historical spending on heavy-duty military truck procurements by the Department of Defense trended over the past five years?

Historical spending on heavy-duty military truck procurements by the Department of Defense has generally been substantial, driven by ongoing modernization efforts, operational tempo, and the need to replace aging fleets. Trends often show significant investment in tactical wheeled vehicles, including heavy variants, across different branches. Factors influencing spending include geopolitical conditions, specific program requirements (like the M917A3), and budget allocations. Analyzing aggregate spending data for similar vehicle categories over the past five years would reveal patterns of investment, identify major programs, and potentially highlight fluctuations based on defense priorities and available funding.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Manufacturing › Heavy Duty Truck Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $36,520,213

Exercised Options: $36,520,213

Current Obligation: $36,520,213

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV18D0042

IDV Type: IDC

Timeline