DoD Awards $760M for MRAP Vehicles to ND Defense LLC
Contract Overview
Contract Amount: $760,147,909 ($760.1M)
Contractor: ND Defense LLC
Awarding Agency: Department of Defense
Start Date: 2010-02-12
End Date: 2011-09-30
Contract Duration: 595 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 $760.1 million to ND DEFENSE LLC for work described as: CATEGORY I MRAP Key points: 1. Significant contract value of $760M for military armored vehicles. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Fixed-price contract type aims to control costs for the Department of the Navy. 4. The contract duration is 595 days, indicating a medium-term project.
Value Assessment
Rating: fair
The contract value of $760M is substantial for armored vehicles. Benchmarking against similar large-scale military vehicle procurements would be necessary to assess if this price is competitive, especially given the fixed-price nature which typically aims for cost efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, which generally promotes competitive pricing and allows a broad range of qualified vendors to bid. This method is expected to yield a fair market price for the MRAP vehicles.
Taxpayer Impact: The use of full and open competition and a firm fixed-price contract are positive indicators for taxpayer value, aiming to secure the best possible price for the required military equipment.
Public Impact
Enhances military operational capabilities with specialized armored vehicles. Supports the defense industrial base and manufacturing sector. Potential for job creation in the manufacturing and supply chain related to this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific per-unit cost data makes detailed value assessment difficult.
- Contract awarded to a single entity (ND Defense LLC) despite full and open competition, warrants further review of the bidding process.
Positive Signals
- Firm fixed-price contract type helps manage cost overruns.
- Full and open competition suggests a robust procurement process.
- Awarded by the Department of the Navy, a major defense procurement agency.
Sector Analysis
This contract falls within the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector. Spending in this area is critical for national defense, and benchmarks would typically be assessed against historical procurement costs for similar vehicles and the overall defense budget allocation for ground vehicles.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small business subcontracting opportunities were mandated or pursued.
Oversight & Accountability
The Department of the Navy's procurement process, utilizing full and open competition, suggests a degree of oversight. However, the specific details of the evaluation and award process would require deeper investigation to ensure accountability.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential lack of robust competition despite 'full and open' designation.
- Absence of per-unit cost data hinders detailed value analysis.
- No indication of small business participation.
- Contract awarded to a single vendor.
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 $760.1 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 $760.1 million.
What is the period of performance?
Start: 2010-02-12. End: 2011-09-30.
What was the competitive landscape like during the bidding process for this MRAP contract?
While the contract was awarded under 'full and open competition,' it's notable that only one entity, ND Defense LLC, received the award. Further investigation into the number of bids received, the evaluation criteria, and any potential reasons for limited participation or a single award would be beneficial to fully understand the competitive dynamics and ensure optimal price discovery.
How does the $760M contract value compare to the cost of similar MRAP vehicles procured by other agencies or nations?
Without specific per-unit cost data or details on the exact MRAP variant and specifications, a direct cost comparison is challenging. Benchmarking the total contract value against historical procurements of similar armored vehicles by the DoD or allied nations, adjusted for inflation and capability differences, would be necessary to assess value for money. The firm fixed-price nature suggests an attempt to cap costs.
What is the expected impact of these MRAP vehicles on the Department of the Navy's operational effectiveness?
MRAP (Mine-Resistant Ambush Protected) vehicles are designed to provide enhanced protection against improvised explosive devices and ambushes, significantly improving survivability for personnel in high-threat environments. The procurement of these vehicles by the Department of the Navy suggests a strategic need to bolster ground force protection capabilities, potentially for specific operational roles or deployments where such threats are prevalent.
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: $760,147,909
Exercised Options: $760,147,909
Current Obligation: $760,147,909
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785407D5032
IDV Type: IDC
Timeline
Start Date: 2010-02-12
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2013-10-15
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