DoD Awards Daimler $108.7M for 912 M915A3 Trucks and M916A3 Transporters
Contract Overview
Contract Amount: $108,658,520 ($108.7M)
Contractor: Daimler Truck North America LLC
Awarding Agency: Department of Defense
Start Date: 2006-11-01
End Date: 2007-12-31
Contract Duration: 425 days
Daily Burn Rate: $255.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AWARD OF 793 EACH M915A3 TRUCK TRACTORS AND 119 EACH M916A3 LIGHT EQUIPMENT TRANSPORTERS
Place of Performance
Location: PORTLAND, MULTNOMAH County, OREGON, 97217
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $108.7 million to DAIMLER TRUCK NORTH AMERICA LLC for work described as: AWARD OF 793 EACH M915A3 TRUCK TRACTORS AND 119 EACH M916A3 LIGHT EQUIPMENT TRANSPORTERS Key points: 1. Significant award for tactical vehicle procurement by the Department of the Army. 2. Daimler Truck North America is a major player in the heavy vehicle manufacturing sector. 3. The contract value is substantial, indicating a large-scale acquisition. 4. Fixed-price contract type aims to control costs for the government.
Value Assessment
Rating: good
The contract value of $108.7 million for 912 vehicles averages to approximately $119,143 per unit. This price appears reasonable given the nature of military-grade heavy equipment.
Cost Per Unit: $119,143
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bidders likely participated. This competitive process should have driven price discovery and ensured a fair market price.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it promotes competitive pricing and potentially lower costs for the government.
Public Impact
Ensures the Army has essential transportation assets for troop and equipment movement. Supports military readiness and logistical capabilities. Impacts the defense industrial base and associated supply chains. Provides critical equipment for operational deployments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 425 days is relatively short for such a large award, potentially leading to follow-on needs.
- No specific mention of sustainment or long-term support in the award details.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type helps manage cost certainty.
Sector Analysis
This award falls within the defense sector, specifically focusing on tactical vehicle procurement. Spending benchmarks for similar large-scale vehicle acquisitions can vary widely based on vehicle type and quantity.
Small Business Impact
The awardee, Daimler Truck North America LLC, is a large business. There is no explicit information provided regarding subcontracting opportunities for small businesses within this award notice.
Oversight & Accountability
The award was made by the Department of the Army, part of the Department of Defense. Standard DoD oversight mechanisms would apply to ensure contract performance and financial accountability.
Related Government Programs
- Travel Trailer and Camper Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Short contract duration may necessitate future awards.
- Lack of detail on sustainment and long-term support.
- Potential for obsolescence if technology advances rapidly.
- Dependence on a single large supplier for critical assets.
Tags
travel-trailer-and-camper-manufacturing, department-of-defense, or, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $108.7 million to DAIMLER TRUCK NORTH AMERICA LLC. AWARD OF 793 EACH M915A3 TRUCK TRACTORS AND 119 EACH M916A3 LIGHT EQUIPMENT TRANSPORTERS
Who is the contractor on this award?
The obligated recipient is DAIMLER TRUCK NORTH AMERICA 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 $108.7 million.
What is the period of performance?
Start: 2006-11-01. End: 2007-12-31.
What is the expected operational lifespan of these M915A3 and M916A3 vehicles, and are there plans for their long-term sustainment?
The provided data does not specify the expected operational lifespan or long-term sustainment plans for the M915A3 truck tractors and M916A3 light equipment transporters. Typically, military vehicles are designed for extended service, but maintenance, upgrades, and eventual replacement cycles are crucial for readiness. Further analysis would be needed to determine if sustainment contracts are planned or if this award covers initial fielding only.
How does the per-unit cost of $119,143 compare to similar military truck procurements from the same era or for comparable vehicle classes?
The per-unit cost of approximately $119,143 for the M915A3 and M916A3 vehicles appears within a reasonable range for heavy-duty military transport trucks, especially considering the 2006-2007 timeframe. Benchmarking against similar procurements, such as other tactical truck contracts awarded by the DoD around that period, would be necessary for a precise comparison. Factors like specific capabilities, armor, and technology integration significantly influence unit costs.
What specific performance requirements or capabilities differentiate the M915A3 and M916A3 from commercial equivalents, justifying the military designation and pricing?
Military vehicles like the M915A3 and M916A3 are typically designed to meet stringent military specifications that go beyond commercial standards. This often includes enhanced durability for off-road use, higher load capacities, specialized suspension systems, integration with military communication and navigation systems, and potentially survivability features like armor plating or NBC protection. These specialized requirements contribute to higher development and production costs compared to their commercial counterparts.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Travel Trailer and Camper Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Daimlerchrysler AG (UEI: 498999044)
Address: 4747 N CHANNEL AVE, PORTLAND, OR, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $108,658,520
Exercised Options: $108,658,520
Current Obligation: $108,658,520
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAE0700DS022
IDV Type: IDC
Timeline
Start Date: 2006-11-01
Current End Date: 2007-12-31
Potential End Date: 2007-12-31 00:00:00
Last Modified: 2013-05-29
More Contracts from Daimler Truck North America LLC
- Delivery Order for the Procurement of 1780 Each M915A3 Truck Tractors — $358.8M (Department of Defense)
- This Delivery Order Adds 600 Each - M916A3 Light Equipment Transporters, 150 Each - M917A2 Dump Trucks & 50 Each, M917A2 W/Mcs Dump Trucks — $169.5M (Department of Defense)
- Award of 100 Each M915A3 Truck Tractors and 812 Each M916A3 Light Equipment Transporters — $162.5M (Department of Defense)
- Clin 0001AA Adds 600 Each, M916A3 Light Equipment Transporters — $128.0M (Department of Defense)
- D.O. 0094 Adds 714 Each, M915A3 Truck Tractors to the Contract — $83.0M (Department of Defense)
View all Daimler Truck North America LLC federal contracts →
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