Department of Defense awarded $11.5M for 5-ton cargo trucks, with a firm fixed price contract

Contract Overview

Contract Amount: $11,516,000 ($11.5M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2007-03-29

End Date: 2008-01-03

Contract Duration: 280 days

Daily Burn Rate: $41.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: {PIIN: W91GY007C0028} 5 TON CARGO TRUCKS

Plain-Language Summary

Department of Defense obligated $11.5 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: {PIIN: W91GY007C0028} 5 TON CARGO TRUCKS Key points: 1. The contract utilized a firm fixed price structure, aiming to control costs for the Department of Defense. 2. Awarded to 'Miscellaneous Foreign Awardees,' the specific contractor identity requires further investigation for performance history. 3. The contract duration was 280 days, suggesting a relatively short-term need for the cargo trucks. 4. The award was made under full and open competition, indicating a broad solicitation process. 5. The North American Industry Classification System (NAICS) code 541611 points to administrative and general management consulting services, which appears to be a misclassification for cargo trucks. 6. The contract value of $11.5 million for 5-ton cargo trucks needs benchmarking against similar procurements to assess value. 7. The absence of small business set-aside flags suggests this was not specifically targeted towards small businesses.

Value Assessment

Rating: questionable

The contract value of $11.5 million for 5-ton cargo trucks is a significant sum. Without specific details on the quantity and specifications of the trucks, it is difficult to benchmark the value effectively. The firm fixed price contract type suggests an attempt to lock in costs, but the overall value for money is uncertain due to the potential NAICS code misclassification and the broad 'Miscellaneous Foreign Awardees' designation. Further analysis would be needed to compare this to market rates for similar vehicles and services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. This approach typically fosters a competitive environment, potentially leading to better pricing and terms for the government. However, the specific number of bidders and the details of the bidding process are not provided, which limits a deeper analysis of the competition's effectiveness in driving down costs.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of suppliers to compete, which can lead to more cost-effective procurement outcomes.

Public Impact

The primary beneficiaries of this contract are likely military units requiring logistical support and transportation capabilities. The services delivered include the provision of 5-ton cargo trucks, essential for moving personnel and equipment. The geographic impact is likely within areas of operation for the Department of the Army, potentially overseas. Workforce implications are minimal, as this contract focuses on equipment procurement rather than direct labor services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential NAICS code misclassification (541611 for consulting services vs. cargo trucks) raises concerns about the accuracy of contract categorization and reporting.
The broad designation 'Miscellaneous Foreign Awardees' lacks transparency regarding the specific contractor, making it difficult to assess past performance and reliability.
The contract duration of 280 days is relatively short, which might indicate a temporary need or a phased approach, but the overall strategic intent is unclear.

Positive Signals

The use of a firm fixed price contract is a positive indicator for cost control, as it shifts risk to the contractor.
Awarding under full and open competition suggests an effort to maximize the pool of potential suppliers and achieve competitive pricing.
The procurement of essential logistical assets like 5-ton cargo trucks directly supports military operational readiness.

Sector Analysis

This contract falls within the broader defense procurement sector, specifically related to logistics and equipment. The market for heavy-duty cargo vehicles is substantial, with numerous domestic and international manufacturers. The Department of Defense is a major consumer of such assets, often procuring them through competitive bidding processes. Benchmarking this $11.5 million award would involve comparing it to similar procurements of 5-ton trucks by government agencies or large commercial fleets, considering factors like quantity, specifications, and delivery timelines.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and the 'sb' field is false. This suggests that the procurement was not specifically targeted to encourage participation from small businesses. Consequently, there are no direct subcontracting implications for small businesses stemming from this particular award. The impact on the broader small business ecosystem is likely minimal, as the focus was on full and open competition.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight mechanisms. Accountability measures would be tied to the terms of the firm fixed price contract, ensuring delivery of the specified cargo trucks. Transparency is somewhat limited by the 'Miscellaneous Foreign Awardees' designation. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Vehicle Procurement
Logistics and Transportation Support Contracts
Foreign Military Sales (potential, given awardee type)
Heavy Equipment Acquisition

Risk Flags

Potential NAICS Code Misclassification
Lack of Contractor Specificity ('Miscellaneous Foreign Awardees')
Unclear Quantity and Specifications of Procured Goods

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to MISCELLANEOUS FOREIGN AWARDEES. {PIIN: W91GY007C0028} 5 TON CARGO TRUCKS

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2007-03-29. End: 2008-01-03.

What specific types and quantities of 5-ton cargo trucks were procured under this contract?

The provided data does not specify the exact quantity or detailed specifications of the 5-ton cargo trucks procured. The contract description is limited to '5 TON CARGO TRUCKS'. To fully assess the value and appropriateness of the $11.5 million award, understanding the number of units and their technical characteristics (e.g., payload capacity, engine type, special features, intended operating environment) is crucial. Without this information, it's challenging to compare the per-unit cost to market benchmarks or similar government procurements.

Who are the 'Miscellaneous Foreign Awardees,' and what is their track record with the Department of Defense?

The designation 'Miscellaneous Foreign Awardees' is highly generic and lacks specific contractor identification. This makes it impossible to assess the contractor's track record, past performance, or reliability with the Department of Defense based solely on this data. A thorough review would require identifying the actual awardee(s) through contract details or agency records. Without this, there's an inherent risk associated with engaging an unknown entity, particularly for critical equipment like cargo trucks.

How does the $11.5 million contract value compare to market rates for similar 5-ton cargo trucks?

Benchmarking the $11.5 million contract value against market rates for 5-ton cargo trucks is difficult without knowing the quantity and specific configurations of the trucks procured. However, if this amount represents a significant number of vehicles, it could be competitive, especially if specialized or ruggedized versions were required. Conversely, if it's for a smaller fleet, it might indicate a higher per-unit cost. Further investigation into the number of trucks and their specifications is necessary for a meaningful comparison to commercial or other government procurement prices.

What is the significance of the NAICS code 541611 (Administrative Management and General Management Consulting Services) for a contract involving cargo trucks?

The assignment of NAICS code 541611, which pertains to 'Administrative Management and General Management Consulting Services,' to a contract for '5 TON CARGO TRUCKS' appears to be a significant misclassification. This discrepancy raises concerns about the accuracy of contract data reporting and categorization. It's possible the code was applied erroneously, or perhaps the contract included a consulting component related to logistics or fleet management alongside the vehicle acquisition. However, based on the description, the primary deliverable is physical equipment, not consulting services.

What were the historical spending patterns for 5-ton cargo trucks by the Department of the Army prior to or following this 2007-2008 contract?

The provided data only details this single contract from 2007-2008. To understand historical spending patterns for 5-ton cargo trucks by the Department of the Army, a broader analysis of federal procurement databases would be necessary. This would involve searching for similar contracts over multiple fiscal years, identifying trends in award values, quantities, contract types, and awardees. Such an analysis would reveal whether this $11.5 million award was typical, an outlier, or part of a larger acquisition strategy.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 08

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,516,000

Exercised Options: $11,516,000

Current Obligation: $11,516,000

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline