DoD Awards $164M Firm Fixed Price Delivery Order to AM General LLC for Truck Trailers
Contract Overview
Contract Amount: $164,173,143 ($164.2M)
Contractor: AM General LLC
Awarding Agency: Department of Defense
Start Date: 2024-07-09
End Date: 2026-05-31
Contract Duration: 691 days
Daily Burn Rate: $237.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PRICED DELIVERY ORDER OFF OF BASE CONTRACT W56HZV-23-D-0008
Place of Performance
Location: SOUTH BEND, ST JOSEPH County, INDIANA, 46617
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $164.2 million to AM GENERAL LLC for work described as: PRICED DELIVERY ORDER OFF OF BASE CONTRACT W56HZV-23-D-0008 Key points: 1. Significant contract value of $164.17M for truck trailer manufacturing. 2. Awarded under a full and open competition, indicating a competitive bidding process. 3. Potential risk associated with a single awardee, AM General LLC, for this specific delivery order. 4. The sector is Truck Trailer Manufacturing, a key component of defense logistics.
Value Assessment
Rating: good
The contract is a firm fixed price delivery order, which provides cost certainty. The total award value is substantial, and pricing will be assessed against similar contracts for truck trailer manufacturing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors can bid.
Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, maximizing taxpayer value for the acquired truck trailers.
Public Impact
Enhances military logistics capabilities with new truck trailers. Supports the defense industrial base through a significant contract award. Potential for job creation within AM General LLC and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Dependence on a single supplier for this specific delivery order.
- Long duration of the contract (691 days).
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type provides cost predictability.
Sector Analysis
This contract falls within the Truck Trailer Manufacturing sector, crucial for military logistics and transportation. Benchmarks for similar large-scale trailer manufacturing contracts would be relevant for further cost analysis.
Small Business Impact
The data indicates this award went to AM General LLC, a large business. There is no explicit indication of small business participation in this specific delivery order, suggesting limited direct impact on small businesses.
Oversight & Accountability
The award is managed by the Department of the Army. Oversight will focus on timely delivery, quality of the truck trailers, and adherence to the firm fixed price terms.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for sole-source dependency for this specific delivery order.
- Long contract duration may introduce unforeseen risks.
- Lack of explicit small business participation noted.
- Dependence on a single manufacturer for critical equipment.
Tags
truck-trailer-manufacturing, department-of-defense, in, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $164.2 million to AM GENERAL LLC. PRICED DELIVERY ORDER OFF OF BASE CONTRACT W56HZV-23-D-0008
Who is the contractor on this award?
The obligated recipient is AM GENERAL 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 $164.2 million.
What is the period of performance?
Start: 2024-07-09. End: 2026-05-31.
What is the historical pricing performance of AM General LLC on similar DoD contracts?
Analyzing AM General LLC's past performance on comparable Department of Defense contracts is crucial for validating the current pricing. A review of previous awards for truck trailers or related equipment would reveal trends in their pricing strategies and cost control measures. This historical data can highlight whether their current bid reflects competitive market rates or potentially inflated costs, providing a basis for assessing value for money.
What are the specific performance requirements and potential risks associated with the 691-day delivery duration?
The 691-day delivery duration for 237,588 units presents risks related to potential production delays, supply chain disruptions, and evolving technological requirements. Ensuring robust project management and contingency planning by AM General LLC is vital. The Department of the Army must closely monitor progress to mitigate risks of late delivery or obsolescence, which could impact operational readiness and overall program effectiveness.
How does the firm fixed price structure impact the government's ability to benefit from potential cost savings during contract performance?
A firm fixed price (FFP) contract generally shifts the risk of cost overruns to the contractor, AM General LLC. While this provides budget certainty for the Department of the Army, it limits the government's ability to directly benefit from contractor cost savings unless specific incentive clauses are included. The government's primary leverage for value lies in the initial competitive bidding process to ensure the FFP is set at a reasonable level.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 105 N NILES AVE, SOUTH BEND, IN, 46617
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: $164,173,143
Exercised Options: $164,173,143
Current Obligation: $164,173,143
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV23D0008
IDV Type: IDC
Timeline
Start Date: 2024-07-09
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 12:05:00
Last Modified: 2025-12-17
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