Daimler Truck North America awarded $11.97M for M915A3 truck tractors and M916A3 light equipment transporters for Afghanistan

Contract Overview

Contract Amount: $11,971,747 ($12.0M)

Contractor: Daimler Truck North America LLC

Awarding Agency: Department of Defense

Start Date: 2008-03-31

End Date: 2008-10-31

Contract Duration: 214 days

Daily Burn Rate: $55.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS ORDER ADDS 85 EACH, M915A3 TRUCK TRACTORS (0001AA) AND 10 EACH, M916A3 LIGHT EQUIPMENT TRANSPORTERS (0002AA) TO THE CONTRACT FOR AFGHANISTAN UNDER FMS CASE B6-B-FAF.

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97217

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $12.0 million to DAIMLER TRUCK NORTH AMERICA LLC for work described as: THIS ORDER ADDS 85 EACH, M915A3 TRUCK TRACTORS (0001AA) AND 10 EACH, M916A3 LIGHT EQUIPMENT TRANSPORTERS (0002AA) TO THE CONTRACT FOR AFGHANISTAN UNDER FMS CASE B6-B-FAF. Key points: 1. Contract awarded for specialized military vehicles, indicating a need for heavy transport capabilities. 2. The award was made under a Foreign Military Sales case, suggesting international cooperation and support. 3. The contract duration of 214 days points to a focused, short-term delivery requirement. 4. The firm-fixed-price contract type suggests that cost risks were largely borne by the contractor. 5. The procurement falls under the broader category of tactical wheeled vehicles, crucial for military logistics. 6. The specific North American Industry Classification System (NAICS) code 336214 relates to trailer manufacturing, which may encompass specialized military vehicle chassis.

Value Assessment

Rating: fair

The contract value of $11.97 million for 85 truck tractors and 10 light equipment transporters suggests a per-unit cost of approximately $126,000. This figure needs to be benchmarked against similar military vehicle procurements, considering the specialized nature and modifications for military use. Without direct comparisons for these specific models and quantities, a definitive value-for-money assessment is challenging. However, the firm-fixed-price nature implies that the government secured a defined cost for these assets.

Cost Per Unit: Approximately $126,000 per vehicle (combined average for M915A3 and M916A3).

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple potential bidders had the opportunity to submit proposals. The presence of two bids suggests a moderate level of competition for this specialized equipment. While two bidders are better than one, a higher number of competitors typically leads to more aggressive pricing and potentially better value for the government.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging competitive pricing and ensuring that the government explores available market options.

Public Impact

The primary beneficiaries are the military forces operating in Afghanistan, receiving essential logistical support vehicles. The services delivered include the provision of heavy-duty truck tractors and light equipment transporters. The geographic impact is focused on Afghanistan, where these vehicles will be deployed for operational use. Workforce implications may include manufacturing jobs at Daimler Truck North America and its suppliers, as well as roles in logistics and delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have resulted in higher prices than a more robust bidding environment.
The specific end-use in a foreign country (Afghanistan) introduces geopolitical and operational risks not directly tied to the contract itself.
The NAICS code 336214 (Trailer Manufacturing) might not fully capture the complexity of military truck tractor production, potentially affecting cost estimations.

Positive Signals

Awarded under full and open competition, ensuring a broad search for qualified contractors.
Firm-fixed-price contract type provides cost certainty for the government.
Daimler Truck North America is a known entity in the commercial and military vehicle manufacturing sector.

Sector Analysis

This contract falls within the broader defense manufacturing and transportation equipment sector. The market for specialized military vehicles is often characterized by a limited number of prime contractors capable of meeting stringent military specifications and production volumes. Spending in this area is driven by defense modernization, operational readiness, and foreign military sales requirements. Comparable spending benchmarks would involve analyzing other contracts for tactical wheeled vehicles awarded by the Department of Defense.

Small Business Impact

The contract details do not indicate any specific small business set-asides or subcontracting requirements. Given the prime contractor is Daimler Truck North America LLC, a large business, it is possible that subcontracting opportunities may exist for small businesses within their supply chain, but this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting command and potentially the Defense Contract Management Agency (DCMA). Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of specified goods. Transparency is generally maintained through contract award databases, though specific performance details might be limited.

Related Government Programs

Tactical Wheeled Vehicles
Foreign Military Sales
Heavy Truck Procurement
Logistics Support Vehicles

Risk Flags

International Deployment Risk
Limited Competition Indicator
Potential for Price Inflation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to DAIMLER TRUCK NORTH AMERICA LLC. THIS ORDER ADDS 85 EACH, M915A3 TRUCK TRACTORS (0001AA) AND 10 EACH, M916A3 LIGHT EQUIPMENT TRANSPORTERS (0002AA) TO THE CONTRACT FOR AFGHANISTAN UNDER FMS CASE B6-B-FAF.

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 $12.0 million.

What is the period of performance?

Start: 2008-03-31. End: 2008-10-31.

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

Daimler Truck North America LLC, a subsidiary of Daimler AG, has a significant history of supplying vehicles to the U.S. military and other government agencies. They are known for producing a range of commercial and specialized vehicles, including those adapted for military applications. Their experience often involves meeting rigorous military specifications for durability, performance, and reliability. While specific details on past performance for identical contracts are not provided here, their established presence in the industry suggests a capacity to handle such procurements. Government contract databases often contain performance ratings and past performance information that would offer a more granular view of their track record.

How does the per-unit cost of these vehicles compare to similar military procurements?

The estimated per-unit cost of approximately $126,000 for the M915A3 truck tractors and M916A3 light equipment transporters is a blended average. The M915A3 is a heavy-duty truck tractor designed for hauling semi-trailers, often used for transporting tanks or other heavy equipment. The M916A3 is a light equipment transporter, typically used for moving smaller vehicles or equipment. Military vehicle costs can vary significantly based on specific configurations, armor, technology integration, and quantity. Without direct comparisons for these exact models and configurations procured under similar competitive conditions, it is difficult to definitively benchmark the value. However, specialized military vehicles often command higher prices than their commercial counterparts due to their enhanced capabilities and ruggedization.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential delivery delays, especially given the international destination (Afghanistan) which can introduce logistical and geopolitical complexities. There's also a risk related to the operational effectiveness and maintenance of the vehicles in the intended environment, which may be harsh. Since the contract was awarded under full and open competition with two bidders, there's a moderate risk that the pricing might not have been as competitive as it could have been with more bidders. Finally, the firm-fixed-price nature shifts cost overrun risks to the contractor, but could lead to disputes if unforeseen issues arise that impact the contractor's ability to deliver at the agreed price.

What is the historical spending pattern for similar military truck procurements by the Department of the Army?

Historical spending patterns for similar military truck procurements by the Department of the Army show consistent investment in tactical wheeled vehicles to support global operations. The Army procures a wide array of trucks, from light tactical vehicles to heavy equipment transporters, often through competitive bidding processes. Spending levels fluctuate based on operational tempo, modernization initiatives, and budget allocations. Contracts for heavy truck tractors and transporters, like the M915A3 and M916A3, are recurring needs, particularly for sustainment and logistical support in deployed environments. Analysis of past contracts would reveal trends in pricing, quantities, and the types of competition utilized for these essential assets.

How does the Foreign Military Sales (FMS) case impact the contract's administration and oversight?

The involvement of a Foreign Military Sales (FMS) case (B6-B-FAF) means that this contract is part of a U.S. government program to provide defense articles and services to a foreign country. This adds layers of administration and oversight. The U.S. Army, acting as the FMS case manager, is responsible for ensuring the contract meets the requirements of the foreign partner nation. Oversight extends beyond typical contract administration to include compliance with FMS regulations, which govern pricing, transportation, and end-use monitoring. The foreign government is the ultimate customer, and their requirements and acceptance criteria are paramount, potentially influencing delivery schedules and final acceptance procedures.

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: $11,971,747

Exercised Options: $11,971,747

Current Obligation: $11,971,747

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAE0700DS022

IDV Type: IDC

Timeline