DoD Awards $689M Truck Trailer Contract to AM General LLC Under Full and Open Competition
Contract Overview
Contract Amount: $689,345,431 ($689.3M)
Contractor: AM General LLC
Awarding Agency: Department of Defense
Start Date: 2024-07-31
End Date: 2026-12-31
Contract Duration: 883 days
Daily Burn Rate: $780.7K/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 $689.3 million to AM GENERAL LLC for work described as: PRICED DELIVERY ORDER OFF OF BASE CONTRACT, W56HZV-23-D-0008. Key points: 1. Significant award value of $689.3 million for truck trailers. 2. AM General LLC secured the contract through full and open competition. 3. Potential risks include delivery timelines and long-term sustainment costs. 4. Spending falls within the Truck Trailer Manufacturing sector (NAICS 336212).
Value Assessment
Rating: good
The contract is a firm-fixed-price delivery order, which provides cost certainty. Benchmarking against similar large-scale trailer manufacturing contracts is difficult without more specific details on trailer types and quantities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that should drive favorable pricing. The firm-fixed-price structure further aids in price discovery and limits contractor risk.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by encouraging multiple bidders to offer competitive prices.
Public Impact
Ensures the Army's logistical capabilities with essential trailer equipment. Supports manufacturing jobs within the Truck Trailer Manufacturing industry. Long-term contract duration may indicate sustained demand for these assets.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for cost overruns if unforeseen issues arise during production.
- Dependence on a single contractor for a large volume of critical equipment.
Positive Signals
- Awarded through full and open competition.
- Firm-fixed-price contract type offers cost predictability.
- Long contract duration suggests strategic planning and sustained need.
Sector Analysis
This award falls under the Truck Trailer Manufacturing sector, a critical component of the defense industrial base. Spending benchmarks for similar large-scale military trailer contracts are not readily available but this award represents a substantial investment.
Small Business Impact
While the prime contractor is AM General LLC, a large entity, the contract's execution may involve subcontracting opportunities for small businesses in the supply chain for components and services.
Oversight & Accountability
The contract is a delivery order off a base contract, implying prior oversight and vetting. Further oversight will focus on delivery schedules, quality control, 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
- Contract awarded under full and open competition.
- Firm-fixed-price contract type.
- Significant award value.
- Long contract duration (2026-12-31).
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 $689.3 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 $689.3 million.
What is the period of performance?
Start: 2024-07-31. End: 2026-12-31.
What specific types and quantities of trailers are included in this $689 million award, and how do these align with current Army operational needs?
The provided data does not specify the exact types or quantities of trailers. Understanding this detail is crucial for assessing the true value and operational relevance of the award. It's essential to confirm that the procured trailers directly address identified logistical gaps and support current and future mission requirements effectively.
What are the key performance indicators (KPIs) and quality assurance measures in place to mitigate risks associated with the firm-fixed-price contract and ensure timely delivery of high-quality traile
While the contract is firm-fixed-price, mitigating risks requires robust KPIs and QA. These should include strict adherence to production schedules, material quality checks, defect rates, and performance metrics for trailer durability and functionality. Regular government inspections and acceptance testing are vital to ensure compliance and prevent costly rework or delays.
How does the pricing of this contract compare to industry benchmarks for similar military-grade truck trailers, considering the scale and duration of the award?
Directly comparing pricing without detailed specifications (e.g., payload capacity, specialized features, materials) is challenging. However, the full and open competition suggests a competitive price was achieved. Further analysis would involve benchmarking against publicly available data for comparable government or commercial contracts, adjusting for scale, features, and contract type.
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: $689,345,431
Exercised Options: $689,345,431
Current Obligation: $689,345,431
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: 2024-07-31
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 12:12:00
Last Modified: 2025-12-17
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