DoD awards $128M for 600 M916A3 Light Equipment Transporters to Daimler Truck North America LLC

Contract Overview

Contract Amount: $128,000,556 ($128.0M)

Contractor: Daimler Truck North America LLC

Awarding Agency: Department of Defense

Start Date: 2008-12-05

End Date: 2010-10-18

Contract Duration: 682 days

Daily Burn Rate: $187.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CLIN 0001AA ADDS 600 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 $128.0 million to DAIMLER TRUCK NORTH AMERICA LLC for work described as: CLIN 0001AA ADDS 600 EACH, M916A3 LIGHT EQUIPMENT TRANSPORTERS. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $128 million for 600 units implies a significant investment in military logistics. 3. The duration of 682 days indicates a medium-term project for delivery and potential integration. 4. The firm fixed-price contract type shifts cost risk to the contractor, potentially stabilizing government expenditure. 5. The award to a single contractor, Daimler Truck North America LLC, highlights their position in this specific vehicle market. 6. The North American Industry Classification System (NAICS) code 336214 points to the specialized manufacturing sector for trailers and campers.

Value Assessment

Rating: good

The contract value of $128 million for 600 M916A3 Light Equipment Transporters suggests a unit cost of approximately $213,334. Benchmarking this against similar heavy equipment procurements would be necessary for a definitive value assessment. However, the firm fixed-price nature of the contract provides cost certainty for the Department of Defense, mitigating the risk of cost overruns.

Cost Per Unit: Approximately $213,334 per unit.

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 degree of competition, though the exact number of potential bidders in this specialized market is unknown. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to offer their best pricing and capabilities, aiming to secure the contract. This can lead to lower overall costs compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the U.S. Army, which will receive the M916A3 Light Equipment Transporters to enhance their logistical capabilities. The services delivered include the manufacturing and supply of specialized heavy-duty transport vehicles. The geographic impact is likely national, with potential deployment to various military installations and operational theaters. Workforce implications may include employment opportunities within Daimler Truck North America LLC and its supply chain, particularly in manufacturing and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if only two bidders participated in a specialized market.
Dependence on a single contractor for a critical logistical asset.
Long-term sustainment and maintenance costs for these specialized vehicles are not detailed in this award.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Firm fixed-price contract provides cost certainty for the government.
Daimler Truck North America LLC is a known entity in heavy vehicle manufacturing, suggesting established quality and production capabilities.

Sector Analysis

This contract falls within the heavy vehicle manufacturing sector, specifically related to military logistics and transportation. The market for specialized military transport vehicles is often characterized by a limited number of large manufacturers capable of meeting stringent defense requirements. Spending in this area is critical for maintaining operational readiness and projecting force.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. It is possible that subcontracting opportunities may arise for small businesses within Daimler Truck North America LLC's supply chain, but this is not explicitly detailed in the award information. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified goods. Transparency is generally maintained through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Truck Procurement
Heavy Equipment Transport Vehicles
Department of Defense Logistics Modernization
Tactical Vehicle Acquisition Programs

Risk Flags

Potential for limited competition
Dependence on single contractor
Long-term sustainment planning needed

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $128.0 million to DAIMLER TRUCK NORTH AMERICA LLC. CLIN 0001AA ADDS 600 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 $128.0 million.

What is the period of performance?

Start: 2008-12-05. End: 2010-10-18.

What is the historical spending pattern for M916A3 Light Equipment Transporters or similar vehicles by the Department of Defense?

Analyzing historical spending for M916A3 Light Equipment Transporters or comparable military transport vehicles requires access to detailed procurement databases. Typically, the Department of Defense procures such assets in batches over several years, driven by modernization programs, fleet replacement needs, and operational demands. Spending can fluctuate significantly based on budget allocations, strategic priorities, and the lifecycle of existing equipment. Without specific historical data for this exact model or its predecessors, it's difficult to provide precise figures. However, large-scale procurements of heavy transport vehicles often run into tens or hundreds of millions of dollars over their program life, reflecting the complexity and cost of specialized military hardware. The current $128 million award suggests a significant, but potentially not unprecedented, investment in this capability.

How does the per-unit cost of these transporters compare to commercial heavy-duty trucks or similar civilian equipment?

The estimated per-unit cost of approximately $213,334 for the M916A3 Light Equipment Transporter is likely higher than comparable civilian heavy-duty trucks due to specialized military requirements. Military vehicles often incorporate enhanced durability, off-road capabilities, survivability features (like armor), specialized communication systems, and adherence to stricter military specifications that are not present in commercial counterparts. Commercial heavy-duty trucks, while robust, are designed for paved roads and different operational environments. Therefore, a direct price comparison can be misleading. The premium paid for military-grade equipment reflects its unique design, testing, and intended use in demanding and potentially hostile conditions, which adds significant cost to manufacturing.

What is Daimler Truck North America LLC's track record with Department of Defense contracts, particularly for heavy vehicles?

Daimler Truck North America LLC, through its various brands and predecessors, has a significant history of supplying vehicles to the U.S. military. Their experience spans a wide range of commercial and specialized vehicles, including those adapted for military use. The company has previously been awarded contracts for various truck platforms and related services for different branches of the armed forces. Their established presence in the heavy vehicle manufacturing industry, coupled with existing relationships and past performance with the DoD, likely positions them as a capable and reliable supplier for this type of specialized equipment. A review of contract databases would reveal the volume and nature of their past DoD awards.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract and the delivered transporters?

Key performance indicators for this contract would likely focus on delivery schedule adherence, quality of manufactured units, and compliance with technical specifications. For the M916A3 Light Equipment Transporters themselves, performance metrics would relate to operational reliability, fuel efficiency under load, transport capacity, maneuverability in various terrains, and durability over their expected service life. The Department of the Army would establish acceptance criteria for each delivered unit, ensuring they meet all contractual requirements. Post-delivery, operational readiness rates and maintenance requirements would serve as ongoing indicators of the transporters' performance and suitability for their intended logistical roles.

Are there any known risks associated with the M916A3 Light Equipment Transporter platform or its integration into existing military logistics systems?

Potential risks associated with the M916A3 Light Equipment Transporter could include integration challenges with existing communication and command systems, although this is less likely for a transport vehicle than for complex electronic platforms. Operational risks might involve maintenance complexity, availability of spare parts over the long term, and the platform's performance in diverse environmental conditions or under sustained high-tempo operations. Given the firm fixed-price nature of the contract, the primary risk to the government is ensuring the contractor meets all specifications and delivery timelines. Contractor performance risk, such as production delays or quality issues, is also a consideration, though mitigated by the contractor's experience and the contract terms.

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: $128,000,556

Exercised Options: $128,000,556

Current Obligation: $128,000,556

Contract Characteristics

Consolidated Contract: Yes

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAE0700DS022

IDV Type: IDC

Timeline