Army Awards $49.9M for Wheeled Trucks, Awarded to Freightliner LLC

Contract Overview

Contract Amount: $16,685,721 ($16.7M)

Contractor: Daimler Truck North America LLC

Awarding Agency: Department of Defense

Start Date: 2006-09-25

End Date: 2007-12-31

Contract Duration: 462 days

Daily Burn Rate: $36.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200612!009510!2100!W56HZV!TACOM - WARREN !W56HZV05D0233 !A!N! !N!0006 ! !20060925!20080530!009029687!061315107!498999044!N!FREIGHTLINER LLC !4747 N CHANNEL AVE !PORTLAND !OR!97217!59000!051!41!PORTLAND !MULTNOMAH !OREGON !+000016674078!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !336120!E! !5!A!S! ! ! !99990909!B! ! !B! !D!N!J!1!001!N!1A!Z!N!Z! ! !Y!C!N! ! ! !A!A!A!A!000!A!A!N! ! ! ! ! ! !0001! !

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97217

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $16.7 million to DAIMLER TRUCK NORTH AMERICA LLC for work described as: 200612!009510!2100!W56HZV!TACOM - WARREN !W56HZV05D0233 !A!N! !N!0006 ! !20060925!20080530!009029687!061315107!498999044!N!FREIGHTLINER LLC !4747 N CHANNEL AVE !PORTLAND !OR!97217!59000!051!41!PORTLAND !MULT… Key points: 1. The contract for trucks and truck tractors was awarded to Freightliner LLC. 2. This award represents a significant portion of the total contract value. 3. The procurement method was 'NOT COMPETED', raising questions about price discovery. 4. The sector is primarily Defense, specifically wheeled vehicles.

Value Assessment

Rating: questionable

The awarded amount of $49,899,904.40 for 1 unit appears high for a single truck, especially given the contract type and competition method. Benchmarking against similar truck procurements is necessary for a full assessment.

Cost Per Unit: $49,899,904.40

Competition Analysis

Competition Level: sole-source

The contract was awarded using a sole-source (NOT COMPETED) method. This limits price competition and may not result in the best value for taxpayers.

Taxpayer Impact: The lack of competition could lead to higher prices than if multiple vendors had bid, impacting taxpayer funds.

Public Impact

Taxpayers may be paying a premium due to the sole-source award. The Department of the Army received specialized wheeled trucks for its operations. This contract supports a specific manufacturer, Freightliner LLC, and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
High per-unit cost warrants further investigation.
Contract duration is relatively short for a large award.

Positive Signals

Awarded to a known entity (Freightliner LLC).
Specific need for wheeled trucks likely met.

Sector Analysis

This procurement falls within the Defense sector, specifically for wheeled vehicles. Spending benchmarks for similar truck procurements are difficult to ascertain without more detailed specifications and competitive data.

Small Business Impact

The data does not indicate any specific provisions or awards made to small businesses within this contract. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The sole-source nature of this award suggests a potential lack of robust oversight in ensuring competitive pricing. A review of the justification for sole-sourcing is recommended.

Related Government Programs

Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award
High per-unit cost
Lack of competition
Potential for overpayment
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to DAIMLER TRUCK NORTH AMERICA LLC. 200612!009510!2100!W56HZV!TACOM - WARREN !W56HZV05D0233 !A!N! !N!0006 ! !20060925!20080530!009029687!061315107!498999044!N!FREIGHTLINER LLC !4747 N CHANNEL AVE !PORTLAND !OR!97217!59000!051!41!PORTLAND !MULTNOMAH !OREGON !+000016674078!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !C2 !CONSTRUCTION !000 !NOT DISCERNABLE !336120!E! !5!A!S! ! ! !999

Who is the contractor on this award?

The obligated recipient is DAIMLER TRUCK NORTH AMERICA 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 $16.7 million.

What is the period of performance?

Start: 2006-09-25. End: 2007-12-31.

What was the specific justification for awarding this contract on a sole-source basis, and was a full and open competition truly not feasible?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without the specific justification document, it's impossible to confirm why full and open competition was bypassed. This lack of transparency raises concerns about potential inefficiencies and whether the government secured the best possible price.

How does the per-unit cost of $49.9 million for a single truck compare to market rates for similar heavy-duty or specialized wheeled vehicles?

A per-unit cost of $49.9 million for a single truck is exceptionally high and warrants significant scrutiny. Standard heavy-duty trucks typically range from tens of thousands to a few hundred thousand dollars. Specialized military vehicles can be more expensive, but this figure suggests either a highly unique vehicle, a substantial support package included, or a potential overpayment due to the lack of competition.

What is the operational effectiveness and intended use of these specific wheeled trucks, and how does this award contribute to the Army's mission readiness?

The intended use of these 'TRUCKS AND TRUCK TRACTORS, WHEELED' is likely for logistical support, troop transport, or equipment hauling within various Army operations. While the award addresses a need for such vehicles, the high cost and sole-source nature raise questions about the overall effectiveness of the procurement process in maximizing value for the taxpayer while ensuring mission readiness.

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Daimlerchrysler AG (UEI: 498999044)

Address: 4747 N CHANNEL AVE, PORTLAND, OR, 90

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: W56HZV05D0233

IDV Type: IDC

Timeline