Daimler Truck North America awarded $83M for M915A3 Truck Tractors, with 2 contract modifications

Contract Overview

Contract Amount: $83,042,591 ($83.0M)

Contractor: Daimler Truck North America LLC

Awarding Agency: Department of Defense

Start Date: 2007-09-07

End Date: 2008-12-23

Contract Duration: 473 days

Daily Burn Rate: $175.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: D.O. 0094 ADDS 714 EACH, M915A3 TRUCK TRACTORS TO THE CONTRACT.

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97217

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $83.0 million to DAIMLER TRUCK NORTH AMERICA LLC for work described as: D.O. 0094 ADDS 714 EACH, M915A3 TRUCK TRACTORS TO THE CONTRACT. Key points: 1. Contract value appears reasonable given the scope of heavy-duty truck acquisition. 2. Full and open competition suggests a competitive bidding process was utilized. 3. The contract duration and modifications indicate ongoing program needs. 4. Fixed-price contract type aims to control costs for the government. 5. The award falls within the broader category of tactical wheeled vehicle procurement.

Value Assessment

Rating: good

The total award amount of $83,042,591.10 for M915A3 Truck Tractors seems aligned with the procurement of specialized military vehicles. While specific per-unit cost benchmarks are not provided, the fixed-price nature of the contract suggests an effort to establish a predictable cost. Comparing this to similar large-scale truck procurements would offer further insight into its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this specific requirement. A higher number of bidders typically leads to more aggressive pricing and better value for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation.

Public Impact

The U.S. Army benefits from the acquisition of essential heavy-duty truck tractors. These trucks are critical for logistical support and transportation of equipment and supplies. The contract supports manufacturing jobs within the defense industrial base. Geographic impact is primarily within the United States, supporting domestic manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future modifications if not carefully managed.
Dependence on a single manufacturer for a critical component of the fleet.

Positive Signals

Fixed-price contract type helps to mitigate cost overruns.
Full and open competition suggests a fair market approach was taken.
The contract has been active for a significant period, indicating sustained utility.

Sector Analysis

This contract falls within the heavy truck manufacturing sector, a segment of the broader industrial and defense manufacturing market. The market for tactical military vehicles is specialized, with a limited number of prime contractors capable of meeting stringent military specifications. Spending in this area is driven by defense readiness requirements and the need to modernize aging vehicle fleets.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor, Daimler Truck North America LLC, may engage small businesses as subcontractors for parts or services, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and program managers. The fixed-price nature of the contract provides a degree of cost control. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud or significant mismanagement.

Related Government Programs

Tactical Wheeled Vehicles
Heavy Truck Procurement
Military Logistics Support Vehicles

Risk Flags

Potential for long-term sustainment costs
Availability of spare parts over vehicle lifecycle

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $83.0 million to DAIMLER TRUCK NORTH AMERICA LLC. D.O. 0094 ADDS 714 EACH, M915A3 TRUCK TRACTORS TO THE CONTRACT.

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 $83.0 million.

What is the period of performance?

Start: 2007-09-07. End: 2008-12-23.

What is the historical spending trend for M915A3 Truck Tractors under this contract vehicle?

The provided data indicates an initial award of $83,042,591.10 with two modifications (D.O. 0094 adding 714 EACH, M915A3 TRUCK TRACTORS). Without access to the specific values of these modifications or any other contract actions, it is difficult to establish a comprehensive historical spending trend. However, the initial award suggests a significant investment in these vehicles. Further analysis would require examining all contract modifications and delivery orders issued against this contract to understand the total expenditure over its lifecycle and identify any patterns in spending frequency or value.

How does the unit cost of the M915A3 Truck Tractor compare to similar military or commercial heavy-duty trucks?

The provided data does not specify the number of units procured under the initial award or the modifications, making it impossible to calculate a precise unit cost. Additionally, without knowing the specific configuration and capabilities of the M915A3, a direct comparison to commercial heavy-duty trucks or even other military variants is challenging. Military-specific vehicles often incorporate specialized features (e.g., armor, enhanced mobility, specific electronic systems) that increase their cost compared to commercial counterparts. A detailed unit cost analysis would require knowing the total number of units delivered and the total contract value, then comparing that to industry benchmarks for comparable heavy-duty trucks with similar specifications.

What are the key performance indicators (KPIs) used to evaluate the success of this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for a contract involving the procurement of military vehicles like the M915A3 Truck Tractor, typical KPIs would likely include on-time delivery, adherence to technical specifications and quality standards, vehicle reliability and durability in operational environments, and potentially lifecycle cost performance. The Department of the Army would establish these metrics to ensure the vehicles meet operational readiness requirements and provide value for the investment. Contract modifications and performance reports would detail adherence to these KPIs.

What is the track record of Daimler Truck North America LLC in fulfilling similar large-scale military vehicle contracts?

Daimler Truck North America LLC, as a major manufacturer of commercial and specialized vehicles, has a significant track record in producing heavy-duty trucks. While specific details on their past performance with the U.S. military for the M915A3 model are not in the provided data, their established presence in the industry suggests experience with large-scale production and potentially meeting stringent military requirements. A thorough assessment would involve reviewing past contract performance ratings, delivery history, and any documented issues or successes on similar government contracts to gauge their reliability and capability.

Are there any identified risks associated with the long-term sustainment and maintenance of these M915A3 Truck Tractors?

Potential long-term risks associated with the sustainment and maintenance of the M915A3 Truck Tractors could include the availability of spare parts, the cost of maintenance over the vehicle's lifecycle, and the obsolescence of certain components. As the vehicles age, finding replacement parts may become more difficult or expensive, potentially impacting readiness. The U.S. Army would typically develop sustainment plans, including maintenance contracts and parts provisioning strategies, to mitigate these risks. The specific design and modularity of the M915A3 would influence the ease and cost of long-term maintenance.

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: $83,042,591

Exercised Options: $83,042,591

Current Obligation: $83,042,591

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAE0700DS022

IDV Type: IDC

Timeline