DoD Awards Daimler $28.4M for 190 M915A3 Trucks and 19 M916A3 Transporters

Contract Overview

Contract Amount: $28,414,836 ($28.4M)

Contractor: Daimler Truck North America LLC

Awarding Agency: Department of Defense

Start Date: 2006-11-21

End Date: 2008-02-28

Contract Duration: 464 days

Daily Burn Rate: $61.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AWARD OF 190 EACH M915A3 TRUCK TRACTORS AND 19 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 $28.4 million to DAIMLER TRUCK NORTH AMERICA LLC for work described as: AWARD OF 190 EACH M915A3 TRUCK TRACTORS AND 19 EACH, M916A3 LIGHT EQUIPMENT TRANSPORTERS. Key points: 1. Significant award for heavy vehicle procurement by the Department of the Army. 2. Daimler Truck North America LLC secured the contract. 3. The contract involves 190 truck tractors and 19 light equipment transporters. 4. Procurement falls under the 'Travel Trailer and Camper Manufacturing' NAICS code, which may be a broad classification for this type of vehicle.

Value Assessment

Rating: good

The total award of $28.4 million for 190 truck tractors and 19 transporters suggests a per-unit cost of approximately $135,000. This is within a reasonable range for specialized military vehicles of this type, considering their robust specifications and expected durability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process likely contributed to achieving a fair market price for the vehicles.

Taxpayer Impact: Taxpayer funds are being used for essential military equipment, with the competitive award process aiming for cost-effectiveness.

Public Impact

Enhances military logistics and transport capabilities. Supports the operational readiness of Army units. Procurement of specialized vehicles for defense purposes.

Waste & Efficiency Indicators

Waste Risk Score: 60 / 10

Warning Flags

Positive Signals

Sector Analysis

This procurement falls under the defense sector, specifically related to vehicle acquisition. Spending benchmarks for military truck tractors and transporters can vary widely based on specifications, but this award appears to be a substantial investment in fleet modernization.

Small Business Impact

The data indicates the prime contractor is Daimler Truck North America LLC. There is no specific information provided regarding subcontracting to small businesses for this particular award.

Oversight & Accountability

The contract was awarded under full and open competition, suggesting a standard procurement process. Further oversight would involve monitoring delivery schedules and vehicle performance against specifications.

Related Government Programs

Risk Flags

Tags

travel-trailer-and-camper-manufacturing, department-of-defense, or, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.4 million to DAIMLER TRUCK NORTH AMERICA LLC. AWARD OF 190 EACH M915A3 TRUCK TRACTORS AND 19 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 $28.4 million.

What is the period of performance?

Start: 2006-11-21. End: 2008-02-28.

What is the specific military designation and key features of the M915A3 Truck Tractor and M916A3 Light Equipment Transporter?

The M915A3 Truck Tractor is a heavy-duty, tactical truck designed for hauling semi-trailers, often used for transporting equipment and supplies in various operational environments. The M916A3 Light Equipment Transporter is a specialized vehicle designed to transport armored vehicles and other heavy equipment. Both are built to withstand demanding military conditions.

How does the per-unit cost compare to similar commercial heavy-duty truck tractors and specialized transporters?

While exact military specifications drive costs, a rough estimate of $135,000 per unit for these specialized military vehicles is likely higher than comparable commercial heavy-duty trucks due to enhanced durability, off-road capabilities, and specific military requirements. However, for specialized equipment transporters, the cost may be more aligned with niche commercial offerings.

What are the potential risks associated with a firm fixed-price contract for specialized military vehicles with a delivery period of 464 days?

A firm fixed-price contract offers cost certainty to the government but can expose the contractor to risks if material costs or production challenges arise unexpectedly within the 464-day delivery window. For specialized military vehicles, long lead times for components or unforeseen production issues could impact timely delivery, potentially leading to delays or contractor financial strain.

Industry Classification

NAICS: ManufacturingMotor Vehicle Body and Trailer ManufacturingTravel 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: $28,414,836

Exercised Options: $28,414,836

Current Obligation: $28,414,836

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAE0700DS022

IDV Type: IDC

Timeline

Start Date: 2006-11-21

Current End Date: 2008-02-28

Potential End Date: 2010-06-30 00:00:00

Last Modified: 2012-08-22

More Contracts from Daimler Truck North America LLC

View all Daimler Truck North America LLC federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending