DoD Awards $138M for OCONUS Universal Workforce, Primarily for Armored Vehicle Components
Contract Overview
Contract Amount: $138,154,491 ($138.2M)
Contractor: ND Defense LLC
Awarding Agency: Department of Defense
Start Date: 2011-11-14
End Date: 2012-12-31
Contract Duration: 413 days
Daily Burn Rate: $334.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: OCONUS UNIVERSAL WORKFORCE
Place of Performance
Location: LISLE, DUPAGE County, ILLINOIS, 60532
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $138.2 million to ND DEFENSE LLC for work described as: OCONUS UNIVERSAL WORKFORCE Key points: 1. Significant award for military vehicle components, indicating sustained demand in defense manufacturing. 2. Competition was full and open, suggesting a healthy market for these specialized services. 3. The contract's duration and value present moderate risk related to long-term sustainment and potential cost overruns. 4. Spending is concentrated within the Defense sector, specifically in armored vehicle manufacturing.
Value Assessment
Rating: good
The contract value of $138M over approximately one year appears reasonable given the specialized nature of armored vehicle components. Benchmarking against similar large-scale defense manufacturing contracts would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple vendors to bid, driving competitive pricing and potentially leading to better value for the government.
Taxpayer Impact: Full and open competition generally maximizes taxpayer value by ensuring the government receives the best possible price and quality through a competitive bidding process.
Public Impact
Ensures continued availability of critical armored vehicle components for military operations. Supports jobs and economic activity within the defense manufacturing sector. Highlights the ongoing need for specialized manufacturing capabilities to maintain military readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions impacting delivery timelines.
- Risk of scope creep or change orders increasing the final cost.
- Dependence on a single awardee for a significant portion of the work.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type mitigates cost escalation risk.
- Awarded by a reputable agency (DCMA).
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the manufacturing of military armored vehicles and their components. Spending in this area is driven by military modernization efforts and operational readiness requirements, with benchmarks often tied to defense budgets and geopolitical factors.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. The focus on large-scale armored vehicle components likely requires specialized facilities and expertise typically held by larger defense contractors.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight, ensuring contract compliance and performance. The firm fixed price structure provides a degree of accountability for the contractor regarding cost.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for long-term sustainment challenges.
- Dependence on specialized manufacturing capabilities.
- Geopolitical factors influencing demand and supply.
- Risk of obsolescence for older vehicle platforms.
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 $138.2 million to ND DEFENSE LLC. OCONUS UNIVERSAL WORKFORCE
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 $138.2 million.
What is the period of performance?
Start: 2011-11-14. End: 2012-12-31.
What is the specific breakdown of components being procured and their criticality to current military operations?
The provided data does not detail the specific components. Understanding the exact nature of the armored vehicle parts and their immediate operational necessity would clarify the urgency and strategic importance of this $138M award. This information is crucial for assessing the true value and risk associated with the contract's execution and potential impact on military readiness.
How does the per-unit cost of these components compare to industry benchmarks or previous procurements?
Without specific unit cost data or detailed component specifications, a direct comparison is not possible. Benchmarking against similar armored vehicle components procured by other defense agencies or historical data from the DoD would be necessary to evaluate if the $138M award represents competitive pricing. This analysis is key to determining cost-effectiveness and identifying potential overspending.
What are the potential long-term implications of this contract on the supply chain for armored vehicle parts?
This $138M contract, awarded under full and open competition, suggests a robust supply chain currently exists. However, the long-term impact depends on the number of active suppliers post-award and the potential for future sole-source awards if competition dwindles. Monitoring the sustainment of competitive sourcing is vital to ensure continued availability and prevent future price increases or supply disruptions.
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: $138,154,491
Exercised Options: $138,154,491
Current Obligation: $138,154,491
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: 2011-11-14
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2016-09-29
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