DoD's $702M MRAP Contract Awarded to ND Defense LLC Under Full and Open Competition
Contract Overview
Contract Amount: $702,044,245 ($702.0M)
Contractor: ND Defense LLC
Awarding Agency: Department of Defense
Start Date: 2007-10-29
End Date: 2009-06-05
Contract Duration: 585 days
Daily Burn Rate: $1.2M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CATEGORY I MRAP
Place of Performance
Location: WARRENVILLE, DUPAGE County, ILLINOIS, 60555, UNITED STATES OF AMERICA
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $702.0 million to ND DEFENSE LLC for work described as: CATEGORY I MRAP Key points: 1. Significant investment in armored vehicle manufacturing. 2. ND Defense LLC secured a major contract. 3. Full and open competition suggests potential for competitive pricing. 4. Sector focus on military armored vehicle production.
Value Assessment
Rating: fair
The contract value of $702M for MRAP vehicles is substantial. Benchmarking against similar military vehicle contracts is difficult without more specific unit cost data, but the overall award size indicates a significant procurement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for a broad range of potential bidders and can drive competitive pricing. The award notice indicates a firm fixed price contract.
Taxpayer Impact: Taxpayer funds are being utilized for a large-scale defense procurement, with the expectation that competitive bidding will ensure reasonable value for money.
Public Impact
Enhances military operational capabilities with advanced armored vehicles. Supports domestic manufacturing and jobs in the defense sector. Represents a significant allocation of federal resources towards national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific per-unit cost data for detailed value assessment.
- Contract duration and potential for follow-on orders could extend spending.
- Reliance on a single awardee for a critical defense asset.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Significant investment in defense modernization.
Sector Analysis
This contract falls within the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector. Spending in this area is driven by national security needs and technological advancements in defense equipment.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. The primary contractor, ND Defense LLC, is likely a larger entity within the defense manufacturing industry.
Oversight & Accountability
The Department of the Navy awarded this contract under full and open competition, suggesting adherence to standard procurement processes. Oversight would focus on contract performance, delivery schedules, and adherence to the firm fixed price.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of detailed cost breakdown.
- Potential for sole-source dependency if follow-on work is extensive.
- Contract performance risk for specialized manufacturing.
- Geopolitical factors impacting defense spending priorities.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, il, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $702.0 million to ND DEFENSE LLC. CATEGORY I MRAP
Who is the contractor on this award?
The obligated recipient is ND DEFENSE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $702.0 million.
What is the period of performance?
Start: 2007-10-29. End: 2009-06-05.
What was the average per-unit cost for the MRAP vehicles under this contract, and how does it compare to industry benchmarks for similar armored vehicles?
The provided data does not include the specific per-unit cost for the MRAP vehicles. To assess value, this information would need to be obtained and compared against benchmarks for similar military-grade armored vehicles, considering factors like armor specifications, mobility, and technological features.
What are the primary risks associated with a large, firm fixed-price contract for specialized military vehicles awarded to a single entity?
Risks include potential cost overruns if initial estimates were inaccurate, quality control issues if the contractor prioritizes speed over standards, and supply chain disruptions affecting delivery. Dependence on a single supplier can also create vulnerabilities if the contractor faces financial or operational difficulties.
How effectively does this contract contribute to the Department of Defense's overall mission readiness and technological superiority in armored warfare?
This contract directly contributes by procuring critical MRAP vehicles, enhancing troop protection and mobility in combat zones. Its effectiveness hinges on the vehicles meeting operational requirements, timely delivery, and integration with existing military assets, ultimately bolstering the DoD's capacity for armored engagements.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Navistar International Corporation (UEI: 161984646)
Address: 4201 WINFIELD RD, WARRENVILLE, IL, 60555
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $702,044,245
Exercised Options: $702,044,245
Current Obligation: $702,044,245
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785407D5032
IDV Type: IDC
Timeline
Start Date: 2007-10-29
Current End Date: 2009-06-05
Potential End Date: 2009-06-05 00:00:00
Last Modified: 2015-09-03
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