DoD Awards $169.5M for 800+ Heavy Vehicles to Daimler Truck North America
Contract Overview
Contract Amount: $169,506,837 ($169.5M)
Contractor: Daimler Truck North America LLC
Awarding Agency: Department of Defense
Start Date: 2008-04-18
End Date: 2009-10-31
Contract Duration: 561 days
Daily Burn Rate: $302.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS DELIVERY ORDER ADDS 600 EACH - M916A3 LIGHT EQUIPMENT TRANSPORTERS, 150 EACH - M917A2 DUMP TRUCKS & 50 EACH, M917A2 W/MCS DUMP TRUCKS.
Place of Performance
Location: PORTLAND, MULTNOMAH County, OREGON, 97217
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $169.5 million to DAIMLER TRUCK NORTH AMERICA LLC for work described as: THIS DELIVERY ORDER ADDS 600 EACH - M916A3 LIGHT EQUIPMENT TRANSPORTERS, 150 EACH - M917A2 DUMP TRUCKS & 50 EACH, M917A2 W/MCS DUMP TRUCKS. Key points: 1. Significant award for heavy transport vehicles (transporters and dump trucks). 2. Daimler Truck North America is the sole awardee, indicating a specific capability or existing contract. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The sector appears to be Defense logistics and equipment.
Value Assessment
Rating: good
The total award amount is substantial. Without specific per-unit cost data or benchmarks for these specialized vehicles, a precise value assessment is difficult. However, the firm fixed price contract suggests an attempt to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method generally promotes competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for essential military equipment procurement, with competition aiming for cost-effectiveness.
Public Impact
Enhances military logistical capabilities with new heavy transport vehicles. Supports the Department of the Army's equipment modernization efforts. Award to a major manufacturer like Daimler Truck North America can have economic ripple effects.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed per-unit cost breakdown.
- Potential for long-term sustainment and maintenance costs not detailed.
- Specific vehicle configurations (e.g., M917A2 w/MCS) may limit future competition if unique.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type.
- Significant investment in critical military assets.
Sector Analysis
This award falls within the Defense sector, specifically related to the procurement of heavy-duty tactical vehicles. Spending benchmarks for such specialized military equipment are highly variable and depend on configuration and quantity.
Small Business Impact
The awardee is Daimler Truck North America LLC, a large corporation. There is no explicit indication of small business participation in this specific delivery order, though the prime contractor may utilize subcontractors.
Oversight & Accountability
The award was made by the Department of the Army. Oversight would typically involve contract management offices ensuring delivery, quality, and adherence to terms. The firm fixed price nature simplifies some financial oversight.
Related Government Programs
- Travel Trailer and Camper Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of detailed cost breakdown.
- Potential for high lifecycle costs.
- Limited visibility into small business subcontracting.
- Dependence on a single large manufacturer.
- Specific vehicle configurations may limit future competition.
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 $169.5 million to DAIMLER TRUCK NORTH AMERICA LLC. THIS DELIVERY ORDER ADDS 600 EACH - M916A3 LIGHT EQUIPMENT TRANSPORTERS, 150 EACH - M917A2 DUMP TRUCKS & 50 EACH, M917A2 W/MCS DUMP TRUCKS.
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 $169.5 million.
What is the period of performance?
Start: 2008-04-18. End: 2009-10-31.
What is the historical cost performance of similar heavy transport vehicle procurements by the DoD?
Historical data on similar heavy transport vehicle procurements is crucial for benchmarking. Without it, assessing whether $169.5 million for 800+ vehicles represents good value is challenging. Factors like specific technological requirements, customization, and market conditions at the time of bidding significantly influence pricing, making direct comparisons difficult but essential for robust analysis.
What are the long-term sustainment and maintenance cost implications of this vehicle acquisition?
The initial acquisition cost is only part of the total ownership expense. The long-term sustainment and maintenance costs for these M916A3 and M917A2 vehicles are a significant consideration. Factors such as parts availability, specialized technician training, and expected lifespan will impact the overall financial burden on the Department of Defense beyond the initial $169.5 million award.
How effectively did the 'full and open competition' process ensure optimal pricing and selection for these specialized vehicles?
While 'full and open competition' theoretically maximizes opportunities, its effectiveness hinges on the number and capability of bidders for highly specialized equipment. For these specific heavy transport vehicles, understanding the competitive landscape and the number of responsive bids received is key to determining if the process truly drove optimal pricing and secured the best solution for the Army's needs.
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: $169,506,837
Exercised Options: $169,506,837
Current Obligation: $169,506,837
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAE0700DS022
IDV Type: IDC
Timeline
Start Date: 2008-04-18
Current End Date: 2009-10-31
Potential End Date: 2009-10-31 00:00:00
Last Modified: 2012-08-22
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