DoD Awards $204M for MRAP Vehicles to ND Defense LLC Under Full and Open Competition
Contract Overview
Contract Amount: $204,108,142 ($204.1M)
Contractor: ND Defense LLC
Awarding Agency: Department of Defense
Start Date: 2011-05-04
End Date: 2012-10-31
Contract Duration: 546 days
Daily Burn Rate: $373.8K/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: LISLE, DUPAGE County, ILLINOIS, 60532
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $204.1 million to ND DEFENSE LLC for work described as: CATEGORY I MRAP Key points: 1. Significant contract value of $204 million for armored vehicles. 2. ND Defense LLC secured the award through full and open competition. 3. Potential risk associated with a single delivery order for a large sum. 4. Spending falls within the Defense sector, specifically military vehicle manufacturing.
Value Assessment
Rating: good
The contract value of $204 million for MRAP vehicles appears reasonable given the nature of military hardware. Benchmarking against similar large-scale vehicle procurements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: Full and open competition generally maximizes taxpayer value by ensuring the government receives the best possible prices through a competitive bidding process.
Public Impact
Ensures the availability of critical armored vehicles for military operations. Supports the defense industrial base and associated manufacturing jobs. Potential for enhanced soldier safety through advanced vehicle technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Concentration of spending in a single delivery order.
- Reliance on a single contractor for a significant procurement.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type provides cost certainty.
Sector Analysis
This contract falls within the Defense sector, specifically the manufacturing of military armored vehicles. Spending benchmarks for similar large-scale vehicle procurements are difficult to ascertain without specific program details, but $204 million represents a substantial investment.
Small Business Impact
The data does not indicate any specific provisions or awards to small businesses within this contract. Further analysis would be needed to determine if small business participation was encouraged or achieved.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, indicating established oversight mechanisms. The firm fixed price structure also provides a degree of accountability for the contractor's performance and costs.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for production delays due to large single order.
- Reliance on a single contractor for critical military assets.
- Lack of small business participation indicated.
- Contract duration of 546 days may be tight for full production.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, il, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $204.1 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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $204.1 million.
What is the period of performance?
Start: 2011-05-04. End: 2012-10-31.
What is the specific type and capability of the MRAP vehicles being procured, and how does this impact the overall value proposition?
The specific type of MRAP (Mine-Resistant Ambush Protected) vehicle is crucial for understanding its value. Different variants offer varying levels of protection, mobility, and payload capacity, directly influencing their suitability for diverse combat environments and their associated costs. Understanding these specifications is key to assessing if the $204 million award represents a fair price for the intended operational capabilities and soldier protection.
What are the potential risks associated with a single delivery order of this magnitude, particularly concerning production capacity and delivery timelines?
A single delivery order of $204 million for MRAP vehicles presents risks related to the contractor's production capacity and adherence to delivery timelines. If ND Defense LLC faces unforeseen production issues, supply chain disruptions, or capacity constraints, it could lead to significant delays in fielding critical assets. This concentration of risk necessitates robust monitoring by the Defense Contract Management Agency to ensure timely delivery and mitigate potential impacts on military readiness.
How effective is the firm fixed price contract type in ensuring cost control and value for money in this specific MRAP procurement?
The firm fixed price (FFP) contract type is generally effective in controlling costs and ensuring value for money, as it places the risk of cost overruns on the contractor. For this $204 million MRAP procurement, the FFP structure incentivizes ND Defense LLC to manage its expenses efficiently to maximize profit. However, the government's ability to realize full value depends on the initial negotiation of a fair price and the contractor's ability to meet all performance specifications within that fixed price.
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: $204,108,143
Exercised Options: $204,108,143
Current Obligation: $204,108,142
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: 2011-05-04
Current End Date: 2012-10-31
Potential End Date: 2012-10-31 00:00:00
Last Modified: 2016-08-03
More Contracts from ND Defense LLC
- Category I Mrap — $1.4B (Department of Defense)
- Accelerated Category I Mrap — $900.3M (Department of Defense)
- Category I Mrap — $760.1M (Department of Defense)
- 1200 Category I Mrap — $736.7M (Department of Defense)
- Long Wheel Base Rolling Chassis — $702.9M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)