DoD awards $134M for armored vehicle components, with 10 bidders indicating robust competition
Contract Overview
Contract Amount: $134,037,480 ($134.0M)
Contractor: ND Defense LLC
Awarding Agency: Department of Defense
Start Date: 2011-07-12
End Date: 2013-07-31
Contract Duration: 750 days
Daily Burn Rate: $178.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LRIP 23
Place of Performance
Location: LISLE, DUPAGE County, ILLINOIS, 60532
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $134.0 million to ND DEFENSE LLC for work described as: LRIP 23 Key points: 1. Contract value of $134M for armored vehicle components suggests significant investment in defense readiness. 2. Robust competition with 10 bidders points to a healthy market for these specialized defense goods. 3. The firm fixed-price contract type aims to control costs and transfer risk to the contractor. 4. Delivery order award indicates a specific need within a larger contracting vehicle. 5. The contract's duration of 750 days aligns with typical defense procurement timelines for complex components. 6. Focus on armored vehicle components highlights a critical area of military equipment sustainment and modernization.
Value Assessment
Rating: good
The contract value of $134M for armored vehicle components appears reasonable given the specialized nature of the goods. Benchmarking against similar contracts for military vehicle parts is challenging without more specific component details. However, the presence of 10 bidders suggests competitive pricing was likely achieved. The firm fixed-price structure further supports value for money by capping potential cost overruns for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with 10 distinct bidders vying for the opportunity. This high level of competition is a positive indicator, suggesting that the market for these armored vehicle components is accessible to a wide range of qualified suppliers. The significant number of bidders likely contributed to a more competitive pricing environment and a broader selection of technical solutions for the Department of Defense.
Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government received the best possible value for its investment in critical defense equipment.
Public Impact
The primary beneficiaries are the U.S. Army or Marine Corps units requiring these armored vehicle components for operational readiness. The services delivered include the manufacturing and supply of essential parts for military armored vehicles, ensuring their functionality and longevity. The geographic impact is primarily within Illinois, where the contractor is located, potentially creating or sustaining local manufacturing jobs. Workforce implications include skilled labor in manufacturing, engineering, and quality control within the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions if the contractor faces production issues.
- Long-term reliance on a single supplier for specific components could pose a risk if not managed.
- Ensuring consistent quality and adherence to stringent military specifications is paramount.
Positive Signals
- Award to ND DEFENSE LLC indicates a trusted supplier within the defense sector.
- Firm fixed-price contract provides cost certainty for the government.
- Robust competition suggests a healthy and accessible market for defense components.
Sector Analysis
The defense industrial base for armored vehicle components is a critical segment of the broader manufacturing sector. This contract fits within the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' industry. The market is characterized by high barriers to entry due to specialized technology, stringent quality requirements, and long product lifecycles. Spending in this area is driven by military modernization efforts, operational tempo, and the need to maintain aging fleets. Comparable spending benchmarks would typically be found within the Department of Defense's overall procurement budget for ground combat systems.
Small Business Impact
This contract was not specifically set aside for small businesses, and the data indicates the prime contractor is ND DEFENSE LLC. There is no explicit information on subcontracting plans for small businesses within this award. The impact on the small business ecosystem is therefore neutral to potentially limited unless ND DEFENSE LLC actively engages small businesses for subcontracting opportunities.
Oversight & Accountability
Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet contractual requirements. Accountability measures are embedded in the firm fixed-price contract type, which incentivizes contractor performance. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Armored Vehicle Procurement
- Military Vehicle Parts Manufacturing
- Defense Contract Awards
- Ground Combat Systems
Risk Flags
- Potential for supply chain disruption
- Quality control adherence to military specifications
- Long-term contractor performance reliability
Tags
defense, department-of-defense, armored-vehicle-components, military-armored-vehicle-tank-and-tank-component-manufacturing, full-and-open-competition, delivery-order, firm-fixed-price, illinois, nd-defense-llc, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $134.0 million to ND DEFENSE LLC. LRIP 23
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 $134.0 million.
What is the period of performance?
Start: 2011-07-12. End: 2013-07-31.
What is the track record of ND DEFENSE LLC in fulfilling defense contracts, particularly for armored vehicle components?
ND DEFENSE LLC has been awarded this $134M contract for armored vehicle components, indicating a level of trust and capability recognized by the Department of Defense. Further analysis would require examining their contract history for past performance, on-time delivery rates, quality compliance, and any history of contract disputes or terminations. Understanding their experience with similar components and their capacity to scale production to meet demand would provide a more comprehensive view of their reliability as a contractor in this specialized defense sector.
How does the $134M contract value compare to historical spending on similar armored vehicle components by the DoD?
The $134M contract value represents a significant investment in armored vehicle components. To benchmark this effectively, one would need to analyze historical DoD spending data for comparable component types, considering factors like inflation, technological advancements, and the specific military platforms these parts support. Without granular data on the exact components procured, a direct comparison is difficult. However, the number of bidders (10) suggests that this value is competitive within the market for such specialized defense matériel, implying it is not an outlier in terms of cost.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential production delays, quality control issues failing to meet stringent military specifications, and supply chain vulnerabilities. Mitigation strategies are inherent in the contract structure: the firm fixed-price (FFP) nature transfers cost overrun risk to the contractor, incentivizing efficient production. The robust competition (10 bidders) reduces the risk of sole-source dependency and encourages competitive pricing. Furthermore, the Defense Contract Management Agency (DCMA) likely provides oversight to monitor performance and quality, and the contract's defined duration (750 days) sets clear expectations for delivery timelines.
How effective is the 'full and open competition' strategy in ensuring value for money for this specific armored vehicle component contract?
The 'full and open competition' strategy, evidenced by 10 bidders, is generally highly effective in ensuring value for money. It maximizes the pool of potential suppliers, fostering a competitive environment that drives down prices and encourages innovation. For this armored vehicle component contract, the high number of bidders suggests that the market is robust and accessible, allowing the DoD to select the most technically capable and cost-effective solution. This approach minimizes the risk of paying inflated prices often associated with limited or sole-source procurements.
What are the long-term implications of this contract award on the supply chain for armored vehicle components?
This award to ND DEFENSE LLC, under full and open competition, suggests a healthy and potentially diversified supply chain for these specific armored vehicle components. The presence of 10 bidders indicates that multiple firms possess the capability to produce these parts, reducing reliance on any single entity. This can enhance supply chain resilience against disruptions. However, the long-term implications also depend on the contractor's ability to maintain production capacity and quality, and whether this contract stimulates further investment or competition within the broader armored vehicle component manufacturing sector.
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: $134,125,517
Exercised Options: $134,125,517
Current Obligation: $134,037,480
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: 2011-07-12
Current End Date: 2013-07-31
Potential End Date: 2013-07-31 00:00:00
Last Modified: 2017-06-20
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