DoD awards $121.5M for Technical Support, with 10 delivery orders under a firm-fixed-price contract
Contract Overview
Contract Amount: $121,506,006 ($121.5M)
Contractor: ND Defense LLC
Awarding Agency: Department of Defense
Start Date: 2011-06-02
End Date: 2012-10-31
Contract Duration: 517 days
Daily Burn Rate: $235.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TECHNICAL SUPPORT - LABOR CAT III
Place of Performance
Location: LISLE, DUPAGE County, ILLINOIS, 60532
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $121.5 million to ND DEFENSE LLC for work described as: TECHNICAL SUPPORT - LABOR CAT III Key points: 1. Significant contract value of $121.5 million for technical support services. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract spans over 500 days, indicating a substantial service period. 4. Services are categorized under 'Military Armored Vehicle, Tank, and Tank Component Manufacturing'.
Value Assessment
Rating: fair
The total award amount is $121.5 million. Without specific per-unit cost data or benchmarks for similar technical support contracts in the defense sector, a precise value assessment is difficult. The firm-fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to better price discovery and potentially lower costs for the government. The existence of 10 delivery orders suggests flexibility within the contract.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it encourages multiple bidders to offer competitive pricing for the required technical support services.
Public Impact
Supports the Department of Defense's operational readiness and maintenance capabilities. Ensures the availability of specialized technical support for critical military hardware. The contract's duration and value indicate a long-term commitment to these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics in the provided data.
- Potential for cost overruns if scope creep occurs within delivery orders.
- Dependence on a single contractor (ND DEFENSE LLC) for critical support.
Positive Signals
- Awarded under full and open competition.
- Firm-fixed-price contract type helps manage cost certainty.
- Multiple delivery orders indicate flexibility in service provision.
Sector Analysis
This contract falls within the defense sector, specifically supporting military vehicle manufacturing and maintenance. Spending benchmarks for technical support in this niche can vary widely based on the complexity and criticality of the equipment supported.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. The prime contractor, ND DEFENSE LLC, is not specified as a small business, suggesting this may not directly benefit small businesses unless they are part of the subcontracting chain.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Standard oversight mechanisms would apply to ensure compliance with terms and conditions, though specific oversight details are not provided.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Contract duration is lengthy (517 days).
- Potential for scope creep in delivery orders.
- Lack of specific performance metrics.
- Dependence on a single prime contractor.
- Services tied to critical military hardware.
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 $121.5 million to ND DEFENSE LLC. TECHNICAL SUPPORT - LABOR CAT III
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 $121.5 million.
What is the period of performance?
Start: 2011-06-02. End: 2012-10-31.
What is the average cost per delivery order, and how does it compare to industry averages for similar technical support services?
With a total award of $121.5 million across 10 delivery orders, the average per order is approximately $12.15 million. Direct comparison to industry averages is challenging without knowing the specific technical support tasks involved. However, this figure suggests substantial individual task orders, potentially related to complex maintenance or specialized engineering support for armored vehicles.
What are the key performance indicators (KPIs) for this contract, and how is contractor performance being measured to mitigate risks?
The provided data does not specify the key performance indicators (KPIs) or the detailed performance measurement methods used for this contract. Effective oversight would typically involve tracking metrics related to response times, repair completion rates, technical accuracy, and adherence to schedules to ensure the contractor meets the government's needs and mitigate performance risks.
How does the firm-fixed-price structure effectively manage cost risks given the potential for unforeseen technical challenges in military hardware support?
The firm-fixed-price (FFP) structure aims to transfer cost risk to the contractor. For this contract, it means ND DEFENSE LLC is obligated to perform the work within the agreed price, regardless of unforeseen technical challenges. This incentivizes the contractor to manage their own costs efficiently and accurately estimate project expenses upfront.
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: $121,506,006
Exercised Options: $121,506,006
Current Obligation: $121,506,006
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: 2011-06-02
Current End Date: 2012-10-31
Potential End Date: 2012-10-31 00:00:00
Last Modified: 2016-11-16
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