DoD's $696M MRAP Contract with ND Defense LLC Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $696,422,465 ($696.4M)
Contractor: ND Defense LLC
Awarding Agency: Department of Defense
Start Date: 2008-09-04
End Date: 2010-02-28
Contract Duration: 542 days
Daily Burn Rate: $1.3M/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
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $696.4 million to ND DEFENSE LLC for work described as: CATEGORY I MRAP Key points: 1. Significant investment in armored vehicles for military operations. 2. Competition method suggests potential for competitive pricing. 3. Contract duration and firm fixed price indicate cost control efforts. 4. Sector focus on defense manufacturing highlights critical national security spending.
Value Assessment
Rating: good
The contract value of $696.4 million for MRAP vehicles appears substantial. Benchmarking against similar military vehicle procurements would be necessary for a precise assessment, but the scale suggests a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive bidding and can lead to more favorable pricing for the government. This method allows all responsible sources to submit offers.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value through a competitive process.
Public Impact
Ensures availability of critical armored vehicles for military personnel. Supports the defense manufacturing industrial base. Potential for technological advancements in vehicle protection.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract awarded during a period of active conflict (implied by MRAP need).
- Firm Fixed Price contract can lead to cost overruns if scope changes.
- Lack of specific performance metrics in provided data.
- Potential for long-term sustainment costs not detailed.
Positive Signals
- Awarded under full and open competition.
- Clear contract type (Firm Fixed Price) for cost certainty.
- Specific product category (MRAP) indicates a defined need.
- Contract awarded to a single entity, potentially streamlining execution.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically military armored vehicles. Spending in this area is driven by operational needs and national security priorities, with benchmarks often tied to defense budgets and geopolitical events.
Small Business Impact
The provided data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to assess small business participation in this significant defense procurement.
Oversight & Accountability
The Department of the Navy managed this procurement, implying standard oversight processes for defense contracts. The firm fixed price structure and full and open competition suggest mechanisms for accountability, but detailed oversight reports are not provided.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract awarded during a period of high demand for MRAPs.
- Potential for scope creep in a large, multi-year contract.
- Dependence on a single contractor (ND DEFENSE LLC) for this award.
- Lack of detailed performance metrics in the provided summary.
- Firm Fixed Price contracts can be less flexible to changing requirements.
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 $696.4 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 $696.4 million.
What is the period of performance?
Start: 2008-09-04. End: 2010-02-28.
What was the average per-unit cost of the MRAP vehicles procured under this contract, and how does it compare to industry benchmarks for similar vehicles?
The provided data does not allow for a direct per-unit cost calculation as the total contract value is given without the number of units. To determine this, the total award amount ($696,422,464.93) would need to be divided by the number of MRAP vehicles delivered. Benchmarking would then involve comparing this calculated per-unit cost against publicly available data for similar armored vehicle procurements from other defense contracts or industry reports.
What were the primary risks identified during the solicitation and award process for this MRAP contract, and what mitigation strategies were implemented?
Specific risks identified during the solicitation and award are not detailed in the provided data. However, common risks for large defense procurements include supply chain disruptions, technological obsolescence, contractor performance issues, and cost overruns. Mitigation strategies typically involve robust pre-award evaluations, clear contract terms, performance incentives, and contingency planning. The firm fixed price and full and open competition suggest an effort to mitigate cost and ensure a competitive selection.
How effectively did the full and open competition process ensure the Department of Defense received the best value for its investment in MRAP vehicles?
The full and open competition process is designed to maximize value by encouraging multiple bidders to offer their best pricing and technical solutions. While this method generally leads to better value, the ultimate effectiveness depends on the number and quality of bids received, the evaluation criteria used, and the final negotiated price. Without details on the bidding landscape and negotiation outcomes, it's presumed that this process aimed for, and likely achieved, a competitive value.
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
Solicitation ID: M6785407R5000
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, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $696,422,465
Exercised Options: $696,422,465
Current Obligation: $696,422,465
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785407D5032
IDV Type: IDC
Timeline
Start Date: 2008-09-04
Current End Date: 2010-02-28
Potential End Date: 2010-02-28 00:00:00
Last Modified: 2014-09-30
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