Army awards $28.3M for 60 heavy dump trucks to Mack Defense LLC under full and open competition
Contract Overview
Contract Amount: $28,346,597 ($28.3M)
Contractor: Mack Defense LLC
Awarding Agency: Department of Defense
Start Date: 2022-03-11
End Date: 2023-05-31
Contract Duration: 446 days
Daily Burn Rate: $63.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER W56HZV22F0186 PROCURES 60 M917A3 HEAVY DUMP TRUCKS IN SUPPORT OF CONTRACT W56HZV-18-D-0042.
Place of Performance
Location: ALLENTOWN, LEHIGH County, PENNSYLVANIA, 18103
Plain-Language Summary
Department of Defense obligated $28.3 million to MACK DEFENSE LLC for work described as: DELIVERY ORDER W56HZV22F0186 PROCURES 60 M917A3 HEAVY DUMP TRUCKS IN SUPPORT OF CONTRACT W56HZV-18-D-0042. Key points: 1. Significant investment in heavy-duty truck manufacturing for military logistics. 2. Mack Defense LLC, a known entity in defense vehicle production, secured the contract. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The procurement supports the Department of the Army's operational readiness.
Value Assessment
Rating: good
The total award of $28.35 million for 60 trucks averages to approximately $472,443 per truck. This price appears reasonable when compared to similar heavy-duty military vehicle procurements, considering specialized features and durability requirements.
Cost Per Unit: $472,443
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive environment likely contributed to achieving a fair market price for the heavy dump trucks.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for essential military equipment, ensuring funds are used efficiently for defense needs.
Public Impact
Enhances military logistics and operational capabilities with new heavy dump trucks. Supports domestic manufacturing within the heavy-duty truck sector. Ensures the Department of the Army has modern, reliable equipment for various missions. The procurement process was transparent and competitive, fostering public trust in defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if production faces unforeseen challenges.
- Long-term maintenance and sustainment costs for the new fleet are not detailed.
Positive Signals
- Awarded under full and open competition.
- Procurement of essential, high-value military assets.
- Contract awarded to a reputable manufacturer.
Sector Analysis
This procurement falls within the heavy-duty truck manufacturing sector, a critical component of industrial capacity supporting defense and infrastructure. Spending benchmarks for similar military vehicle contracts vary widely based on specifications, but this award appears aligned with market rates for specialized, robust vehicles.
Small Business Impact
While the primary contractor is Mack Defense LLC, the extent of small business participation in the subcontracting process is not specified in the provided data. Further analysis would be needed to determine the impact on small businesses.
Oversight & Accountability
The award was made via a delivery order against an existing contract (W56HZV-18-D-0042), suggesting prior oversight and established terms. However, the specific oversight mechanisms for this delivery order and the overall contract's performance monitoring require further investigation.
Related Government Programs
- Heavy Duty Truck Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for production delays impacting delivery timelines.
- Dependence on a single supplier for a critical asset.
- Unspecified long-term sustainment and maintenance costs.
- Need for verification of small business participation.
Tags
heavy-duty-truck-manufacturing, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.3 million to MACK DEFENSE LLC. DELIVERY ORDER W56HZV22F0186 PROCURES 60 M917A3 HEAVY DUMP 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 $28.3 million.
What is the period of performance?
Start: 2022-03-11. End: 2023-05-31.
What is the expected lifespan and maintenance schedule for these M917A3 heavy dump trucks to ensure long-term value?
The provided data does not specify the expected lifespan or detailed maintenance schedule for the M917A3 heavy dump trucks. Understanding these factors is crucial for assessing the total cost of ownership and ensuring the long-term operational effectiveness and value of this significant investment. Further documentation or contract clauses related to sustainment and lifecycle management would be necessary for a comprehensive analysis.
How does the performance of Mack Defense LLC on previous contracts compare to the benchmark for this type of military vehicle procurement?
Information regarding Mack Defense LLC's past performance on similar military vehicle contracts is not included in the provided data. A thorough risk assessment would involve reviewing their track record, including on-time delivery, quality adherence, and cost control on previous procurements. Benchmarking against industry standards for heavy dump trucks and military vehicle production would help gauge potential risks and confirm the suitability of the selected contractor.
Are there any specific technological advancements or unique features in these trucks that justify the per-unit cost compared to commercial heavy dump trucks?
The data indicates these are M917A3 heavy dump trucks procured for military use, implying they likely possess specialized features beyond standard commercial models, such as enhanced armor, specific environmental operating capabilities, or unique payload/mobility requirements. These military-grade specifications and potential technological advancements would contribute to a higher per-unit cost compared to commercial equivalents. A detailed breakdown of these features would clarify the cost justification.
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
Parent Company: AB Volvo
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: $28,346,597
Exercised Options: $28,346,597
Current Obligation: $28,346,597
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV18D0042
IDV Type: IDC
Timeline
Start Date: 2022-03-11
Current End Date: 2023-05-31
Potential End Date: 2023-05-31 12:05:00
Last Modified: 2022-09-07
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