DoD Awards Daimler $162.5M for 100+ M915A3 Truck Tractors and 812 M916A3 Transporters
Contract Overview
Contract Amount: $162,497,629 ($162.5M)
Contractor: Daimler Truck North America LLC
Awarding Agency: Department of Defense
Start Date: 2007-06-27
End Date: 2008-12-15
Contract Duration: 537 days
Daily Burn Rate: $302.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AWARD OF 100 EACH M915A3 TRUCK TRACTORS AND 812 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 $162.5 million to DAIMLER TRUCK NORTH AMERICA LLC for work described as: AWARD OF 100 EACH M915A3 TRUCK TRACTORS AND 812 EACH M916A3 LIGHT EQUIPMENT TRANSPORTERS. Key points: 1. Significant award for heavy-duty military transport vehicles. 2. Daimler Truck North America is a major player in this sector. 3. Risk of supply chain disruptions for specialized vehicle components. 4. Spending aligns with defense logistics and equipment modernization needs.
Value Assessment
Rating: good
The total award of $162.5 million for 1812 vehicles suggests a per-unit cost of approximately $89,200. This price point appears reasonable for specialized military-grade heavy transport vehicles, considering their robust construction and specific military requirements.
Cost Per Unit: $89,200
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: Taxpayers benefit from a competitive bidding process that aims to secure the best value for essential military equipment.
Public Impact
Ensures operational readiness for troop and equipment movement. Supports military logistics and deployment capabilities. Contributes to the modernization of the Army's vehicle fleet.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for cost overruns if production faces unforeseen challenges.
- Dependence on a single supplier for critical components.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract limits cost escalation risk.
- Vehicles are essential for military operations.
Sector Analysis
This award falls within the defense sector, specifically focusing on tactical wheeled vehicles. Spending benchmarks for similar large-scale vehicle procurements vary widely based on vehicle type and quantity, but this award appears substantial for the specified equipment.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Large vehicle procurements often involve complex supply chains where small businesses may act as subcontractors.
Oversight & Accountability
The award was managed by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for defense contracts would apply, including performance monitoring and financial accountability.
Related Government Programs
- Travel Trailer and Camper Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Supply chain vulnerability for specialized components.
- Potential for obsolescence if technology advances rapidly.
- Maintenance and sustainment costs over the vehicle's lifecycle.
- Geopolitical factors impacting global supply chains.
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 $162.5 million to DAIMLER TRUCK NORTH AMERICA LLC. AWARD OF 100 EACH M915A3 TRUCK TRACTORS AND 812 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 $162.5 million.
What is the period of performance?
Start: 2007-06-27. End: 2008-12-15.
What is the expected lifespan and maintenance cost of these M915A3 and M916A3 vehicles?
The provided data does not specify the expected lifespan or projected maintenance costs for the M915A3 truck tractors and M916A3 light equipment transporters. This information is crucial for a comprehensive total ownership cost analysis and would typically be detailed in the vehicle's technical specifications and sustainment plans.
Were there any performance issues or delays reported during the contract performance period?
The contract was awarded in June 2007 and completed by December 2008, indicating a performance period of approximately 1.5 years. Without access to contract performance reports or post-award reviews, it's impossible to determine if any performance issues or delays were encountered during this timeframe.
How does the unit cost compare to commercially available heavy-duty trucks of similar specifications?
Comparing the $89,200 per-unit cost to commercial equivalents is challenging without detailed specifications. Military vehicles often incorporate specialized features (e.g., armor, enhanced durability, specific environmental resistance) that increase costs beyond standard commercial models. A direct comparison would require a detailed feature-by-feature analysis.
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: $162,497,629
Exercised Options: $162,497,629
Current Obligation: $162,497,629
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAE0700DS022
IDV Type: IDC
Timeline
Start Date: 2007-06-27
Current End Date: 2008-12-15
Potential End Date: 2008-12-15 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)
- 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)
- 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)
- 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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