DoD Spends $125M on MRAP Vehicles from ND Defense LLC Under Full and Open Competition
Contract Overview
Contract Amount: $125,409,273 ($125.4M)
Contractor: ND Defense LLC
Awarding Agency: Department of Defense
Start Date: 2010-12-09
End Date: 2012-01-31
Contract Duration: 418 days
Daily Burn Rate: $300.0K/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: WEST POINT, ADAMS County, MISSISSIPPI, 39773
Plain-Language Summary
Department of Defense obligated $125.4 million to ND DEFENSE LLC for work described as: CATEGORY I MRAP Key points: 1. Significant investment in armored vehicle manufacturing. 2. Competition was open, suggesting potential for competitive pricing. 3. Risk is moderate due to the nature of military hardware procurement. 4. Sector focus is defense manufacturing, a critical area for national security.
Value Assessment
Rating: good
The total award of $125.4M for MRAP vehicles appears reasonable given the specialized nature of military hardware. Benchmarking against similar large-scale defense contracts would provide a more precise assessment of value.
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 pricing and ensures the government receives the best value. The use of a delivery order indicates a specific need within a broader contract vehicle.
Taxpayer Impact: Taxpayer funds are being used for essential military equipment, with competition aiming to maximize the efficiency of this spending.
Public Impact
Enhances military operational capabilities with advanced armored vehicles. Supports domestic manufacturing and jobs in the defense sector. Ensures readiness for personnel in high-risk environments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large defense contracts.
- Long-term sustainment and maintenance costs not detailed.
- Geopolitical factors could impact future demand or production.
Positive Signals
- Awarded through full and open competition.
- Supports critical defense infrastructure.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This spending falls within the defense manufacturing sector, specifically military armored vehicles. Benchmarks for similar large-scale vehicle procurements would be necessary for a detailed cost-effectiveness analysis.
Small Business Impact
The data does not indicate specific subcontracting to small businesses. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The Department of the Navy managed this procurement, with oversight expected through standard DoD acquisition processes. The firm fixed price contract offers some level of cost control.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Large contract value increases potential for cost overruns.
- Dependence on a single manufacturer (ND DEFENSE LLC) for this specific order.
- Limited visibility into long-term operational and maintenance costs.
- Potential for scope creep or change orders in defense contracts.
- Geopolitical instability could affect future needs or supply chains.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, ms, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $125.4 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 $125.4 million.
What is the period of performance?
Start: 2010-12-09. End: 2012-01-31.
What is the long-term cost projection for the sustainment and maintenance of these MRAP vehicles?
The provided data focuses on the initial procurement cost of $125.4 million for the MRAP vehicles. Information regarding long-term sustainment and maintenance costs, which can be substantial for military hardware, is not included. A comprehensive value assessment would require projections for the total lifecycle costs, including spare parts, repairs, and upgrades over the operational life of the vehicles.
How does the unit cost of these MRAP vehicles compare to similar vehicles procured by other allied nations?
Direct comparison of unit costs with allied nations' procurements is challenging without specific, contemporaneous data. Factors like technological specifications, quantity discounts, and differing procurement processes can significantly influence pricing. However, the 'full and open competition' clause suggests an effort to achieve a competitive price within the US context.
What are the specific performance improvements or technological advancements these MRAP vehicles offer over previous models?
The data identifies the purchase as 'CATEGORY I MRAP' and specifies the manufacturer and award amount. It does not detail the specific technological advancements or performance improvements these vehicles bring compared to older models. Understanding these upgrades is crucial for assessing the effectiveness and value proposition of this significant investment.
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, 60555
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $125,409,273
Exercised Options: $125,409,273
Current Obligation: $125,409,273
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785407D5032
IDV Type: IDC
Timeline
Start Date: 2010-12-09
Current End Date: 2012-01-31
Potential End Date: 2012-01-31 00:00:00
Last Modified: 2018-10-17
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