DoD's $356M LRIP 19 Contract Awarded to ND Defense LLC for Military Vehicles
Contract Overview
Contract Amount: $356,266,036 ($356.3M)
Contractor: ND Defense LLC
Awarding Agency: Department of Defense
Start Date: 2011-06-01
End Date: 2012-07-31
Contract Duration: 426 days
Daily Burn Rate: $836.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LRIP 19
Place of Performance
Location: WARRENVILLE, DUPAGE County, ILLINOIS, 60555
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $356.3 million to ND DEFENSE LLC for work described as: LRIP 19 Key points: 1. Significant investment in military armored vehicle production. 2. ND Defense LLC secured a substantial contract, indicating strong market position. 3. Potential risks include reliance on a single supplier for this LRIP phase. 4. Spending falls within the broad 'Defense' sector, specifically military hardware manufacturing.
Value Assessment
Rating: good
The contract value of $356.3 million for LRIP 19 appears reasonable given the scope of military armored vehicle production. Benchmarking against similar large-scale defense manufacturing contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense equipment.
Public Impact
Enhances national defense capabilities through advanced armored vehicle technology. Supports the Department of the Navy's strategic equipment modernization efforts. Contributes to the defense industrial base and associated supply chains.
Waste & Efficiency Indicators
Waste Risk Score: 83 / 10
Warning Flags
- Potential for cost overruns in future production phases.
- Dependence on specific manufacturing capabilities of ND Defense LLC.
- Long-term sustainment and maintenance costs not detailed.
Positive Signals
- Awarded through full and open competition.
- Utilizes a Firm Fixed Price contract type, limiting cost risk.
- Supports critical military hardware requirements.
Sector Analysis
This contract falls under the defense manufacturing sector, specifically armored vehicles. Spending benchmarks for similar LRIP contracts can vary widely based on vehicle type, quantity, and technological complexity.
Small Business Impact
The data does not indicate any specific subcontracting or participation by small businesses in this particular contract award. Further analysis would be needed to determine small business involvement.
Oversight & Accountability
The Department of Defense's contracting processes are subject to various oversight mechanisms, including audits and reviews, to ensure compliance and accountability. The LRIP designation suggests a controlled production ramp-up.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for future cost increases in subsequent production phases.
- Dependence on a single contractor for critical vehicle components.
- Long-term sustainment and upgrade costs are not detailed.
- Geographic concentration of manufacturing in Illinois.
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 $356.3 million to ND DEFENSE LLC. LRIP 19
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 $356.3 million.
What is the period of performance?
Start: 2011-06-01. End: 2012-07-31.
What is the projected total lifecycle cost for this vehicle program beyond LRIP 19?
The provided data focuses solely on LRIP 19, totaling $356.3 million. Information regarding the total lifecycle cost beyond this initial production phase is not available. Comprehensive lifecycle cost analysis is crucial for understanding the long-term financial commitment and ensuring overall program affordability and value for taxpayer investment.
What are the key performance metrics and quality assurance measures for the armored vehicles produced under this contract?
While the contract is Firm Fixed Price, specific details on key performance metrics and quality assurance measures are not provided. Robust quality assurance protocols and clearly defined performance standards are essential to ensure the delivered vehicles meet stringent military requirements and operational readiness, mitigating risks associated with defects or underperformance.
How does the unit cost of these armored vehicles compare to similar platforms acquired by other military branches or allied nations?
A direct unit cost comparison is challenging without detailed specifications and quantities for comparable platforms. However, the full and open competition award suggests a competitive price was achieved for this specific contract. Benchmarking against international acquisitions could reveal potential cost efficiencies or highlight unique aspects of this U.S. defense procurement.
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: $356,266,036
Exercised Options: $356,266,036
Current Obligation: $356,266,036
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785407D5032
IDV Type: IDC
Timeline
Start Date: 2011-06-01
Current End Date: 2012-07-31
Potential End Date: 2012-07-31 00:00:00
Last Modified: 2012-08-09
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