DoD awards $144.6M contract for Truck Trailer Manufacturing to ND DEFENSE LLC

Contract Overview

Contract Amount: $144,570,333 ($144.6M)

Contractor: ND Defense LLC

Awarding Agency: Department of Defense

Start Date: 2009-04-28

End Date: 2009-12-23

Contract Duration: 239 days

Daily Burn Rate: $604.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: D.O. 33

Place of Performance

Location: WARRENVILLE, DUPAGE County, ILLINOIS, 60555

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $144.6 million to ND DEFENSE LLC for work described as: D.O. 33 Key points: 1. The contract value is substantial at $144.6 million. 2. Competition was limited, with the award going to ND DEFENSE LLC. 3. The sector is Truck Trailer Manufacturing, a niche within defense logistics. 4. The contract duration is 239 days.

Value Assessment

Rating: questionable

The contract was not competed, making a direct pricing assessment difficult. The awarded amount of $144.6 million for 239 days of work needs further scrutiny against industry benchmarks for similar trailer manufacturing contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for the government compared to a competitive process.

Taxpayer Impact: The lack of competition raises concerns about potential overspending, impacting taxpayer value.

Public Impact

Military logistics capabilities are supported by this contract. Taxpayers may be impacted by the lack of competitive bidding. The defense industrial base benefits from this award to ND DEFENSE LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Limited duration

Positive Signals

Supports defense logistics

Sector Analysis

This contract falls within the Truck Trailer Manufacturing sector, supporting the Department of the Army's logistical needs. Spending benchmarks for specialized defense equipment manufacturing can vary significantly.

Small Business Impact

The data indicates this contract was not awarded to a small business, as 'sb' is false. Further analysis would be needed to determine if small businesses were subcontracting opportunities.

Oversight & Accountability

The sole-source nature of this award warrants oversight to ensure fair pricing and necessity. Accountability for the decision not to compete is crucial.

Related Government Programs

Truck Trailer Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award raises concerns about price fairness.
Lack of competition may lead to suboptimal pricing.
Limited contract duration might indicate a specific, short-term need.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $144.6 million to ND DEFENSE LLC. D.O. 33

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 Army).

What is the total obligated amount?

The obligated amount is $144.6 million.

What is the period of performance?

Start: 2009-04-28. End: 2009-12-23.

What was the justification for the sole-source award, and how was the price determined to be fair and reasonable?

The justification for a sole-source award typically involves specific circumstances like unique capabilities, urgent needs, or lack of other responsible sources. The price is usually determined fair and reasonable through cost analysis, price analysis, or comparison to historical data. Without the specific justification documentation, it's difficult to assess the validity of the pricing.

What are the risks associated with awarding a large contract without competition in the defense sector?

Awarding large contracts without competition poses several risks. It can lead to inflated prices due to the absence of market pressure, stifle innovation by not encouraging new entrants, and potentially create vendor lock-in. Furthermore, it raises concerns about the efficient use of taxpayer funds and can reduce overall government purchasing power.

How does this contract contribute to the overall effectiveness of the Department of the Army's logistical operations?

This contract directly supports the Department of the Army's logistical operations by providing essential truck trailers. These trailers are critical for transporting equipment, supplies, and personnel, enabling mission readiness and deployment capabilities. The timely delivery and quality of these trailers are paramount to maintaining operational effectiveness.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $144,570,333

Exercised Options: $144,570,333

Current Obligation: $144,570,333

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV08DG097

IDV Type: IDC

Timeline