DOD awards $358.8M for 1780 M915A3 Truck Tractors to Daimler Truck North America
Contract Overview
Contract Amount: $358,849,150 ($358.8M)
Contractor: Daimler Truck North America LLC
Awarding Agency: Department of Defense
Start Date: 2009-08-06
End Date: 2013-08-31
Contract Duration: 1,486 days
Daily Burn Rate: $241.5K/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 1780 EACH M915A3 TRUCK TRACTORS.
Place of Performance
Location: PORTLAND, MULTNOMAH County, OREGON, 97217
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $358.8 million to DAIMLER TRUCK NORTH AMERICA LLC for work described as: DELIVERY ORDER FOR THE PROCUREMENT OF 1780 EACH M915A3 TRUCK TRACTORS. Key points: 1. Significant investment in heavy-duty truck procurement for military logistics. 2. Daimler Truck North America is a major player in the commercial vehicle market. 3. Risk associated with reliance on a single supplier for a critical asset. 4. Spending falls within the broad category of transportation and logistics equipment.
Value Assessment
Rating: fair
The total award of $358.8 million for 1780 truck tractors results in a per-unit cost of approximately $201,590. This price needs to be benchmarked against similar military or commercial heavy-duty truck procurements to assess value.
Cost Per Unit: $201,590
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the data does not provide details on the number of bidders or the price discovery mechanisms used, which are crucial for ensuring optimal pricing.
Taxpayer Impact: Taxpayer funds are being used for a substantial procurement of essential military vehicles. The effectiveness of the competition in securing a fair price will directly impact the overall value for taxpayers.
Public Impact
Ensures the U.S. Army maintains its fleet of heavy-duty transport vehicles. Supports military readiness and logistical capabilities for deployment and operations. Potential economic impact through manufacturing and supply chain activities. Contributes to the modernization of military transportation assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation over the contract duration.
- Dependence on a single manufacturer for a large quantity of critical vehicles.
- Logistical challenges in delivery and maintenance of a large fleet.
Positive Signals
- Awarded through full and open competition.
- Procurement of a standardized, proven vehicle model (M915A3).
- Long-term contract duration allows for phased delivery and potential cost averaging.
Sector Analysis
This procurement falls under the defense sector, specifically focusing on heavy-duty vehicle acquisition. Spending benchmarks for similar military truck procurements would be relevant for a comprehensive value assessment.
Small Business Impact
The data indicates the prime contractor is Daimler Truck North America LLC, a large corporation. There is no explicit information on subcontracting to small businesses within this award, which warrants further investigation to ensure small business participation.
Oversight & Accountability
Oversight of this large-value contract would typically involve the Department of the Army's contracting command and potentially the Government Accountability Office (GAO) for audits and reviews. Accountability for delivery timelines and vehicle quality is paramount.
Related Government Programs
- Travel Trailer and Camper Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Price competitiveness not fully detailed.
- Potential for sole-source reliance in future sustainment.
- Lack of small business subcontracting data.
- Long-term operational and maintenance cost uncertainty.
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 $358.8 million to DAIMLER TRUCK NORTH AMERICA LLC. DELIVERY ORDER FOR THE PROCUREMENT OF 1780 EACH M915A3 TRUCK TRACTORS.
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 $358.8 million.
What is the period of performance?
Start: 2009-08-06. End: 2013-08-31.
What was the competitive landscape during the bidding process for these truck tractors?
While the award states 'full and open competition,' the specific number of bids received and the details of the evaluation process are not provided. Understanding the number of competing offers and the basis for selecting Daimler Truck North America is crucial to confirm that the competition effectively drove down prices and ensured the best value for the government.
What are the long-term maintenance and operational costs associated with these M915A3 truck tractors?
The initial procurement cost is significant, but the total cost of ownership extends beyond the purchase price. Information on expected fuel efficiency, maintenance schedules, spare parts availability, and potential repair costs over the lifespan of these 1780 vehicles is essential for a complete value assessment and future budgeting.
How does the per-unit cost of these M915A3 truck tractors compare to similar commercial heavy-duty trucks purchased by the government or private sector?
Benchmarking the per-unit cost of $201,590 against comparable commercial heavy-duty trucks is vital. Factors like military-specific modifications, warranty provisions, and bulk purchasing discounts influence the price. A detailed comparison would reveal if the government secured a favorable price or if there are opportunities for cost savings in future procurements.
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: $358,849,150
Exercised Options: $358,849,150
Current Obligation: $358,849,150
Contract Characteristics
Consolidated Contract: Yes
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: DAAE0700DS022
IDV Type: IDC
Timeline
Start Date: 2009-08-06
Current End Date: 2013-08-31
Potential End Date: 2013-08-31 00:00:00
Last Modified: 2013-05-22
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