DoD Awards $22.9M for M915A3/M916A3 Vehicles to Daimler Truck North America LLC
Contract Overview
Contract Amount: $22,926,649 ($22.9M)
Contractor: Daimler Truck North America LLC
Awarding Agency: Department of Defense
Start Date: 2009-07-17
End Date: 2010-01-29
Contract Duration: 196 days
Daily Burn Rate: $117.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER FOR THE PROCUREMENT OF M915A3 AND M916A3 VEHICLES.
Place of Performance
Location: PORTLAND, MULTNOMAH County, OREGON, 97217
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $22.9 million to DAIMLER TRUCK NORTH AMERICA LLC for work described as: DELIVERY ORDER FOR THE PROCUREMENT OF M915A3 AND M916A3 VEHICLES. Key points: 1. Significant award for heavy vehicle procurement. 2. Daimler Truck North America is a major player in the commercial vehicle market. 3. Potential for long-term sustainment and parts contracts. 4. Sector is critical for military logistics and operations.
Value Assessment
Rating: good
The award amount of $22.9M for 2 vehicles appears reasonable given the specialized nature of military trucks. Benchmarking against similar military vehicle procurements would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive award aims to ensure taxpayer funds are used efficiently for essential military equipment.
Public Impact
Ensures operational readiness for Army logistics units. Supports the defense industrial base and manufacturing jobs. Provides critical transportation assets for military deployments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in future orders.
- Dependence on a single supplier for specialized parts.
- Long-term sustainment costs not fully detailed.
Positive Signals
- Awarded through full and open competition.
- Procurement of essential military hardware.
- Supports a key defense contractor.
Sector Analysis
This procurement falls within the Defense sector, specifically focusing on tactical wheeled vehicles. Spending benchmarks for similar vehicle classes can vary widely based on customization and quantity.
Small Business Impact
The data indicates this award went to a large prime contractor, Daimler Truck North America LLC. There is no explicit information on small business participation in this specific delivery order.
Oversight & Accountability
The Department of the Army's contracting activity suggests adherence to standard procurement regulations. Oversight would focus on delivery timelines, quality, and final cost reconciliation.
Related Government Programs
- Travel Trailer and Camper Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High per-unit cost.
- Limited number of vehicles procured.
- Potential for long-term sustainment costs.
- Dependence on prime contractor for specialized parts.
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 $22.9 million to DAIMLER TRUCK NORTH AMERICA LLC. DELIVERY ORDER FOR THE PROCUREMENT OF M915A3 AND M916A3 VEHICLES.
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 $22.9 million.
What is the period of performance?
Start: 2009-07-17. End: 2010-01-29.
What is the total lifecycle cost of these vehicles, including maintenance and spare parts?
The provided data only covers the initial procurement cost of $22.9 million for two vehicles. A comprehensive lifecycle cost analysis would need to incorporate projected expenses for maintenance, repairs, spare parts, fuel, and eventual disposal over the vehicles' operational lifespan. This information is crucial for understanding the true long-term value and financial commitment associated with this acquisition.
How does the per-unit cost compare to commercially available heavy-duty trucks with similar capabilities?
Direct comparison to commercial trucks is challenging due to military-specific modifications, durability requirements, and integrated systems. While the $22.9M for two vehicles ($11.45M each) is substantial, military vehicles often incur higher costs for ruggedization, specialized electronics, and compliance with stringent defense standards. A detailed breakdown of these military-specific features would be needed for a precise cost-benefit assessment against commercial equivalents.
What mechanisms are in place to ensure continued competition for sustainment and future vehicle needs?
While this delivery order was competitively awarded, future sustainment and potential follow-on procurements require proactive planning. The government should explore options like ensuring technical data package availability, encouraging multiple service providers for maintenance, and setting clear contract terms that allow for future competitive bidding to prevent sole-source lock-in and manage long-term costs effectively.
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: $22,926,649
Exercised Options: $22,926,649
Current Obligation: $22,926,649
Contract Characteristics
Consolidated Contract: Yes
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAE0700DS022
IDV Type: IDC
Timeline
Start Date: 2009-07-17
Current End Date: 2010-01-29
Potential End Date: 2010-01-29 00:00:00
Last Modified: 2012-08-22
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