DoD Spends $334M on MRAP Vehicles from ND Defense LLC Under Full and Open Competition
Contract Overview
Contract Amount: $334,381,305 ($334.4M)
Contractor: ND Defense LLC
Awarding Agency: Department of Defense
Start Date: 2008-12-10
End Date: 2010-11-01
Contract Duration: 691 days
Daily Burn Rate: $483.9K/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 $334.4 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 was full and open, suggesting a competitive bidding process. 3. Contract awarded to ND Defense LLC, a key supplier in this niche. 4. Firm Fixed Price contract type aims to control costs. 5. Sector focus on military vehicle manufacturing.
Value Assessment
Rating: good
The total award amount of $334.4 million for 10 MRAP vehicles appears reasonable given the specialized nature of military armored vehicles. Benchmarking against similar large-scale defense procurements would provide a more precise assessment.
Cost Per Unit: $33,438,130
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for critical defense equipment, with the competitive process aiming to ensure value for money.
Public Impact
Enhances troop protection in combat zones. Supports ongoing military operations and readiness. Contributes to the defense industrial base. Potential for technology transfer and innovation in armored vehicle design.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope changes.
- Long-term sustainment and maintenance costs not detailed.
- Geopolitical risks impacting deployment and need.
Positive Signals
- Addresses critical need for troop survivability.
- Competitive award process suggests potential for good value.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the Defense sector, specifically military armored vehicle manufacturing. Spending benchmarks in this area are highly variable, depending on vehicle type, quantity, and technological sophistication. The $334M award for 10 MRAPs suggests a high per-unit cost, typical for advanced military hardware.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this significant defense procurement.
Oversight & Accountability
The contract was awarded by the Department of the Navy, part of the Department of Defense. Oversight would typically involve program management reviews, quality assurance checks, and financial audits to ensure contract compliance and effective use of funds.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- High per-unit cost.
- Limited contract duration may not cover full lifecycle.
- Potential for cost escalation if contract terms are not strictly managed.
- Dependence on a single awardee for this specific contract.
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 $334.4 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 $334.4 million.
What is the period of performance?
Start: 2008-12-10. End: 2010-11-01.
What is the expected operational lifespan and total cost of ownership for these MRAP vehicles, including maintenance and upgrades?
The provided data focuses on the initial procurement cost and duration of the contract (691 days). Information regarding the expected operational lifespan, ongoing maintenance requirements, and potential upgrade costs is not included. A comprehensive total cost of ownership analysis would be necessary to fully assess the long-term financial commitment beyond the initial purchase price.
How does the per-unit cost of these MRAP vehicles compare to similar vehicles procured by other allied nations or through different contract vehicles?
The per-unit cost of approximately $33.4 million is substantial, reflecting the advanced protection and capabilities of MRAP vehicles. Direct comparisons require detailed specifications of competing vehicles, including armor levels, mine-blast resistance, payload capacity, and technological features. Benchmarking against international procurements or other DoD contracts for similar platforms would reveal if this price is competitive or indicates a premium.
What specific technological advancements or unique features are incorporated into these MRAP vehicles that justify the significant investment?
The data does not specify the unique technological advancements or features of these particular MRAP vehicles. The 'CATEGORY I MRAP' designation suggests a standard type, but specific innovations in blast mitigation, sensor suites, communication systems, or powerplants would need further documentation. Understanding these details is crucial for assessing the value proposition and ensuring the investment aligns with evolving battlefield requirements.
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: $334,381,305
Exercised Options: $334,381,305
Current Obligation: $334,381,305
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785407D5032
IDV Type: IDC
Timeline
Start Date: 2008-12-10
Current End Date: 2010-11-01
Potential End Date: 2010-11-01 00:00:00
Last Modified: 2012-04-24
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