DoD awards $28.3M for 73 heavy dump trucks, extending contract for Army's Option Year 2

Contract Overview

Contract Amount: $28,325,755 ($28.3M)

Contractor: Mack Defense LLC

Awarding Agency: Department of Defense

Start Date: 2024-06-04

End Date: 2025-06-30

Contract Duration: 391 days

Daily Burn Rate: $72.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: M917A3 HEAVY DUMP TRUCK. THE DELIVERY ORDER WILL PROCURE 73 EA HDTS TO FULFILL THE EXERCISING OF OPTION YEAR 2.

Place of Performance

Location: ALLENTOWN, LEHIGH County, PENNSYLVANIA, 18103

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $28.3 million to MACK DEFENSE LLC for work described as: M917A3 HEAVY DUMP TRUCK. THE DELIVERY ORDER WILL PROCURE 73 EA HDTS TO FULFILL THE EXERCISING OF OPTION YEAR 2. Key points: 1. Value for money assessed through firm-fixed-price contract type, aiming for cost certainty. 2. Competition dynamics indicate full and open competition, suggesting a potentially competitive pricing environment. 3. Risk indicators include contract duration and potential for performance issues in heavy equipment delivery. 4. Performance context is tied to fulfilling an existing contract's Option Year 2 requirements. 5. Sector positioning within heavy duty truck manufacturing for defense applications. 6. The award represents a significant investment in tactical vehicle sustainment for the Army.

Value Assessment

Rating: good

The firm-fixed-price contract type provides a degree of cost certainty. Benchmarking the per-unit cost against similar military vehicle procurements would offer further insight into value. Given the specialized nature of heavy dump trucks for military use, direct comparisons to commercial off-the-shelf vehicles may not be entirely appropriate, but can serve as a baseline. The total award amount of approximately $28.3 million for 73 units suggests a unit price around $388,000.

Cost Per Unit: Approximately $388,000 per unit. This figure should be benchmarked against comparable military heavy dump truck procurements and market rates for specialized heavy equipment.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. This competitive process is designed to encourage a range of offers and potentially drive down prices. The number of bidders and the specific solicitation details would provide a clearer picture of the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where contractors must offer competitive pricing to win awards, potentially leading to better value for public funds.

Public Impact

The primary beneficiaries are the U.S. Army units requiring heavy dump trucks for logistical and engineering support. Services delivered include the procurement and delivery of 73 heavy dump trucks. The geographic impact is likely concentrated where Army engineering and logistics units are stationed or deployed. Workforce implications may include manufacturing jobs at Mack Defense LLC and its suppliers, as well as operational roles within the Army.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delivery delays impacting Army operational readiness.
Ensuring the trucks meet stringent military specifications and durability requirements.
Long-term maintenance and parts availability for specialized military vehicles.

Positive Signals

Award under full and open competition suggests a robust bidding process.
Firm-fixed-price contract type helps control costs.
Delivery order fulfills an existing contract option, indicating continuity and established relationship.

Sector Analysis

This contract falls within the heavy duty truck manufacturing sector, specifically catering to defense applications. The market for military vehicles is specialized, with requirements for durability, performance in harsh conditions, and specific logistical capabilities that often exceed commercial standards. Spending in this area is driven by military readiness needs and equipment modernization programs. Comparable spending benchmarks would involve analyzing other DoD procurements for tactical and engineering vehicles.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Analysis of subcontracting opportunities for small businesses would require further investigation into the contractor's subcontracting plan and performance. The primary awardee, Mack Defense LLC, is a significant entity, suggesting that direct subcontracting to small businesses might be a component of their supply chain management.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Army contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated through contract award databases like SAM.gov. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Tactical Wheeled Vehicles
Military Logistics Support Equipment
Heavy Construction Equipment Procurement
Defense Vehicle Manufacturing Contracts

Risk Flags

Potential for delivery delays impacting operational readiness.
Ensuring compliance with stringent military specifications.
Long-term sustainment and parts availability for specialized equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.3 million to MACK DEFENSE LLC. M917A3 HEAVY DUMP TRUCK. THE DELIVERY ORDER WILL PROCURE 73 EA HDTS TO FULFILL THE EXERCISING OF OPTION YEAR 2.

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: 2024-06-04. End: 2025-06-30.

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

Mack Defense LLC, a subsidiary of Mack Trucks, has a history of supplying vehicles to military and government entities. Their experience often includes adapting commercial truck platforms for military use, focusing on durability and specific operational requirements. Past performance on similar contracts, including delivery timelines, quality of vehicles, and adherence to specifications, would be crucial for assessing their reliability on this current award. Reviewing past contract awards and performance evaluations, if publicly available, would provide deeper insight into their capabilities and potential risks associated with this procurement.

How does the per-unit cost of these heavy dump trucks compare to similar military procurements?

The per-unit cost for these 73 heavy dump trucks is approximately $388,000 ($28.3M / 73 units). To benchmark this value, one would need to compare it against recent procurements of similar military-grade heavy dump trucks or specialized engineering vehicles by the DoD or other allied nations. Factors such as specific payload capacity, engine specifications, armor, and unique military modifications significantly influence cost. A direct comparison with commercial heavy-duty dump trucks would be misleading due to the added military requirements. If data on comparable military contracts is available, it would reveal whether this price is within the expected range for such specialized equipment.

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

Key risks include potential delivery delays, which could impact Army operational readiness, and ensuring the trucks meet stringent military specifications for durability and performance in demanding environments. Mitigation strategies likely involve the firm-fixed-price contract type, which incentivizes the contractor to meet cost targets, and the established relationship through an existing contract option, suggesting prior performance assessment. The contract duration (ending June 30, 2025) also provides a defined timeline. Further mitigation might involve performance bonds, liquidated damages clauses for delays, and rigorous inspection and acceptance testing protocols.

What is the historical spending pattern for heavy dump trucks by the Department of the Army?

Analyzing historical spending patterns for heavy dump trucks by the Department of the Army would involve reviewing procurement data over several fiscal years. This would help identify trends in acquisition volume, average unit costs, and the primary contractors. Understanding this history can reveal whether this $28.3 million award is an anomaly, a continuation of a steady procurement strategy, or part of a larger modernization effort. It also helps in assessing the overall investment in tactical and engineering vehicles and identifying potential periods of increased or decreased demand based on military operational needs and budget allocations.

How does the contract type (Firm Fixed Price) influence the risk and value proposition for the government?

A Firm Fixed Price (FFP) contract type is generally favored by the government when the scope of work is well-defined and risks are understood. For this procurement of 73 heavy dump trucks, FFP means the contractor, Mack Defense LLC, is obligated to deliver the specified trucks at the agreed-upon price, regardless of their actual costs. This shifts the cost risk to the contractor, providing the government with budget certainty and protecting against cost overruns. The value proposition is enhanced because the government knows the total expenditure upfront. However, it can also mean that the contractor may build in a higher profit margin to account for potential unforeseen costs, which could slightly increase the price compared to a cost-reimbursement contract if costs were lower than anticipated.

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: $28,325,755

Exercised Options: $28,325,755

Current Obligation: $28,325,755

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV18D0042

IDV Type: IDC

Timeline