Daimler Truck North America Awarded $12.4M for 27 Military Transport Vehicles Under Full and Open Competition
Contract Overview
Contract Amount: $12,446,174 ($12.4M)
Contractor: Daimler Truck North America LLC
Awarding Agency: Department of Defense
Start Date: 2007-04-04
End Date: 2008-02-28
Contract Duration: 330 days
Daily Burn Rate: $37.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 20 EACH - M916A3 LIGHT EQUIPMENT TRANSPORTERS FOR THE ARNG AND 7 EACH - M915 FLATBED TRUCKS FOR THE NAVY.
Place of Performance
Location: PORTLAND, MULTNOMAH County, OREGON, 97217
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $12.4 million to DAIMLER TRUCK NORTH AMERICA LLC for work described as: 20 EACH - M916A3 LIGHT EQUIPMENT TRANSPORTERS FOR THE ARNG AND 7 EACH - M915 FLATBED TRUCKS FOR THE NAVY. Key points: 1. The contract covers 20 M916A3 Light Equipment Transporters and 7 M915 Flatbed Trucks. 2. Awarded to Daimler Truck North America LLC, a significant player in the commercial vehicle market. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract was awarded by the Department of the Army, supporting military logistics needs.
Value Assessment
Rating: good
The total award of $12,446,174.47 for 27 vehicles averages to approximately $461,000 per vehicle. This price appears reasonable given the specialized nature and military specifications of heavy transport trucks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive bidding process likely resulted in a fair market price, minimizing unnecessary taxpayer expenditure for essential military equipment.
Public Impact
Enhances military logistical capabilities for the Army National Guard and Navy. Supports domestic defense readiness and deployment of equipment. Procurement of specialized heavy-duty transport vehicles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for long-term maintenance and spare parts costs.
- Dependence on a single supplier for these specific vehicle models.
Positive Signals
- Awarded through full and open competition.
- Supports critical military operational needs.
- Utilizes a firm fixed-price contract type.
Sector Analysis
The procurement falls under the manufacturing of heavy-duty transport vehicles, a sector critical for defense logistics. Benchmarks for similar military vehicle contracts vary widely based on specialization and quantity.
Small Business Impact
The data indicates the primary award went to Daimler Truck North America LLC. There is no explicit information on small business participation in this specific contract award.
Oversight & Accountability
The contract was awarded by the Department of the Army, implying oversight from military procurement officials. The firm fixed-price structure provides cost certainty, but monitoring delivery and quality is essential.
Related Government Programs
- Travel Trailer and Camper Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for high lifecycle sustainment costs.
- Dependence on a single manufacturer for specific models.
- Limited information on small business subcontracting.
- Delivery timeline may be subject to production constraints.
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 $12.4 million to DAIMLER TRUCK NORTH AMERICA LLC. 20 EACH - M916A3 LIGHT EQUIPMENT TRANSPORTERS FOR THE ARNG AND 7 EACH - M915 FLATBED TRUCKS FOR THE NAVY.
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 $12.4 million.
What is the period of performance?
Start: 2007-04-04. End: 2008-02-28.
What is the expected lifespan and operational readiness rate for these M916A3 and M915 vehicles under typical military conditions?
The expected lifespan and operational readiness rate for military vehicles like the M916A3 and M915 are influenced by factors such as maintenance schedules, operational tempo, and environmental conditions. While specific figures are not provided in this award notice, military equipment is generally designed for robust performance and longevity, with readiness rates often targeted above 85% through rigorous maintenance programs and spare parts availability.
How does the per-unit cost of these vehicles compare to commercially available heavy-duty trucks with similar payload capacities?
The per-unit cost of these military vehicles, averaging around $461,000, is likely higher than comparable commercial trucks due to specialized military-grade components, enhanced durability, specific mission requirements (e.g., off-road capability, armor potential), and lower production volumes. Commercial trucks prioritize different features and are produced at much higher scales, leading to lower unit costs.
What are the long-term sustainment costs associated with these vehicles, including maintenance, spare parts, and training?
Long-term sustainment costs for military vehicles are significant and include ongoing maintenance, the procurement of specialized spare parts, and comprehensive training for operators and mechanics. These costs can often exceed the initial acquisition price over the vehicle's lifecycle. The firm fixed-price nature of the award covers initial acquisition, but sustainment planning and budgeting are crucial for long-term operational effectiveness.
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: $12,446,174
Exercised Options: $12,446,174
Current Obligation: $12,446,174
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAE0700DS022
IDV Type: IDC
Timeline
Start Date: 2007-04-04
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
- Delivery Order for the Procurement of 1780 Each M915A3 Truck Tractors — $358.8M (Department of Defense)
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- 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)
- Award of 793 Each M915A3 Truck Tractors and 119 Each M916A3 Light Equipment Transporters — $108.7M (Department of Defense)
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