Daimler Truck North America Awarded $70M for 34 M915A3 Trucks, 304 M916A3 Transporters, and 12 M917A2 Dump Trucks
Contract Overview
Contract Amount: $70,079,588 ($70.1M)
Contractor: Daimler Truck North America LLC
Awarding Agency: Department of Defense
Start Date: 2008-09-05
End Date: 2010-05-31
Contract Duration: 633 days
Daily Burn Rate: $110.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER 0104 ADDS 34 EACH, M915A3 TRUCK TRACTORS, 304 EACH, M916A3 LIGHT EQUIPMENT TRANSPORTERS AND 12 EACH, M917A2 DUMP TRUCKS TO THE CONTRACT.
Place of Performance
Location: PORTLAND, MULTNOMAH County, OREGON, 97217
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $70.1 million to DAIMLER TRUCK NORTH AMERICA LLC for work described as: DELIVERY ORDER 0104 ADDS 34 EACH, M915A3 TRUCK TRACTORS, 304 EACH, M916A3 LIGHT EQUIPMENT TRANSPORTERS AND 12 EACH, M917A2 DUMP TRUCKS TO THE CONTRACT. Key points: 1. Significant award for heavy-duty military transport vehicles. 2. Competition method was full and open, suggesting potential for competitive pricing. 3. Contract type is firm fixed price, which transfers cost risk to the contractor. 4. The sector involves specialized vehicle manufacturing for defense applications.
Value Assessment
Rating: good
The total award of $70,007,958.23 for a mix of heavy-duty trucks appears reasonable given the quantities and specialized nature of military vehicles. Benchmarking against similar large-scale military vehicle procurements would provide a more precise assessment.
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 had the opportunity to compete. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages a competitive environment that can drive down costs.
Public Impact
Enhances military logistics and operational capabilities with new transport vehicles. Supports domestic manufacturing and jobs within the heavy vehicle industry. Ensures readiness for troop deployment and equipment transport.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for obsolescence of older truck models.
- Long-term maintenance and sustainment costs not detailed.
- Dependence on a single supplier for these specific vehicle types.
Positive Signals
- Firm fixed price contract mitigates cost overrun risk for the government.
- Full and open competition suggests a competitive pricing environment.
- Award supports critical defense logistics infrastructure.
Sector Analysis
This procurement falls within the defense manufacturing sector, specifically heavy-duty military vehicles. Spending benchmarks for similar large-scale vehicle acquisitions are typically in the tens to hundreds of millions of dollars, depending on quantity and complexity.
Small Business Impact
The data does not indicate specific subcontracting goals or participation by small businesses in this particular award. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The award was issued as a Delivery Order under an existing contract, suggesting prior oversight. The Department of the Army is the procuring entity, implying adherence to established defense procurement regulations.
Related Government Programs
- Travel Trailer and Camper Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for long-term sustainment costs to exceed initial estimates.
- Dependence on a single manufacturer for critical military transport assets.
- Risk of technological obsolescence if vehicles have long service lives.
- Limited visibility into small business participation.
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 $70.1 million to DAIMLER TRUCK NORTH AMERICA LLC. DELIVERY ORDER 0104 ADDS 34 EACH, M915A3 TRUCK TRACTORS, 304 EACH, M916A3 LIGHT EQUIPMENT TRANSPORTERS AND 12 EACH, M917A2 DUMP TRUCKS 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 $70.1 million.
What is the period of performance?
Start: 2008-09-05. End: 2010-05-31.
What is the estimated per-unit cost for each truck model, and how does it compare to commercial equivalents?
The total award of $70,007,958.23 for 34 M915A3 trucks, 304 M916A3 transporters, and 12 M917A2 dump trucks averages to approximately $147,000 per vehicle. This figure is an average and does not reflect individual unit costs. Direct comparison to commercial equivalents is difficult due to specialized military modifications, but this price point seems within the expected range for heavy-duty, purpose-built military transport.
What are the long-term sustainment and maintenance cost implications for these newly acquired vehicles?
The provided data focuses solely on the acquisition cost of the vehicles and does not include details on long-term sustainment, maintenance, spare parts, or training. These factors represent a significant potential cost to the government over the vehicles' lifecycle and require separate analysis to fully understand the total cost of ownership and potential risks associated with upkeep.
How effective is the firm fixed price contract in ensuring value for money given potential supply chain disruptions?
A firm fixed price (FFP) contract is generally effective in controlling costs for the government, as the contractor assumes the risk of cost overruns. However, in the event of unforeseen supply chain disruptions or material cost increases, the contractor might seek modifications or face financial strain, potentially impacting delivery schedules or future pricing. The government's ability to enforce contract terms remains key to ensuring value.
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: $70,079,588
Exercised Options: $70,079,588
Current Obligation: $70,079,588
Contract Characteristics
Consolidated Contract: Yes
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAE0700DS022
IDV Type: IDC
Timeline
Start Date: 2008-09-05
Current End Date: 2010-05-31
Potential End Date: 2010-05-31 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)
- 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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