DOD Awards $21.5M for 91 Dump Trucks to Daimler Truck North America, Extending Contract to 2030
Contract Overview
Contract Amount: $21,505,844 ($21.5M)
Contractor: Daimler Truck North America LLC
Awarding Agency: Department of Defense
Start Date: 2009-08-17
End Date: 2030-05-10
Contract Duration: 7,571 days
Daily Burn Rate: $2.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ADDITION OF 91 EACH M917A2 DUMP TRUCKS.
Place of Performance
Location: PORTLAND, MULTNOMAH County, OREGON, 97217
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $21.5 million to DAIMLER TRUCK NORTH AMERICA LLC for work described as: ADDITION OF 91 EACH M917A2 DUMP TRUCKS. Key points: 1. Significant investment in heavy-duty vehicles for military logistics. 2. Daimler Truck North America secures a substantial contract. 3. Long contract duration raises questions about long-term value and potential obsolescence. 4. Focus on dump trucks indicates a need for robust ground transportation capabilities.
Value Assessment
Rating: fair
The total award amount of $21.5M for 91 dump trucks averages to approximately $236,327 per truck. This price needs to be benchmarked against similar government and commercial procurements for heavy-duty dump trucks to assess value.
Cost Per Unit: $236,327
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the long duration and potential for follow-on orders could limit future price discovery if not managed carefully.
Taxpayer Impact: Taxpayer funds are being used for essential military equipment. The long-term nature of the contract requires careful monitoring to ensure cost-effectiveness over the life of the agreement.
Public Impact
Ensures operational readiness by providing critical heavy equipment for military logistics and construction. Supports the defense industrial base by awarding contracts to major manufacturers. Long-term contract may lead to predictable supply chains for essential vehicles. Potential for technology upgrades or obsolescence over the contract's extended period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (11 years) increases risk of price escalation and technological obsolescence.
- Limited information on specific performance requirements and maintenance schedules.
- Potential for sole-source follow-on orders if not managed proactively.
Positive Signals
- Awarded under full and open competition, indicating initial price competitiveness.
- Addresses a clear need for essential heavy-duty transportation assets.
- Long-term contract provides supply chain stability for critical equipment.
Sector Analysis
The defense sector relies heavily on specialized vehicles for logistics, construction, and operational support. Spending benchmarks for heavy-duty trucks within the Department of Defense can vary significantly based on specific configurations and quantities.
Small Business Impact
While the primary awardee is a large corporation, the contract may indirectly benefit small businesses through subcontracts for parts, maintenance, or specialized services. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The long contract duration necessitates robust oversight to ensure the government receives value for money, monitors performance, and manages potential risks associated with extended agreements. Regular reviews of pricing and technological relevance are crucial.
Related Government Programs
- Travel Trailer and Camper Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (11 years)
- Potential for price escalation over time
- Risk of technological obsolescence
- Limited visibility into total cost of ownership
- Dependence on a single supplier for an extended period
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 $21.5 million to DAIMLER TRUCK NORTH AMERICA LLC. ADDITION OF 91 EACH M917A2 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 $21.5 million.
What is the period of performance?
Start: 2009-08-17. End: 2030-05-10.
What is the projected total cost of ownership over the 11-year contract period, considering maintenance, fuel, and potential upgrades?
The total projected cost of ownership is not explicitly stated in the provided data. The current award is $21.5M for the initial acquisition of 91 trucks. A comprehensive total cost of ownership analysis would require detailed projections for maintenance, repair parts, fuel consumption, operator training, and potential technology refresh cycles over the 11-year period, which are not available.
How will the Department of Defense ensure the dump trucks remain technologically relevant and operationally effective throughout the contract's 11-year duration?
Ensuring technological relevance over an 11-year period typically involves incorporating clauses for periodic reviews, potential upgrade paths, and performance-based metrics. The DOD may also leverage market research and industry engagement to identify emerging technologies and negotiate modifications or replacements as needed to maintain operational effectiveness.
What mechanisms are in place to re-evaluate pricing and ensure continued cost-effectiveness, especially given the long-term nature of the contract?
Mechanisms for re-evaluating pricing in long-term contracts often include economic price adjustment clauses, periodic market surveys, and performance-based incentive structures. The government should conduct regular reviews to compare actual costs against benchmarks and negotiate adjustments if prices become uncompetitive or if the scope of work changes significantly.
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: $21,505,844
Exercised Options: $21,505,844
Current Obligation: $21,505,844
Contract Characteristics
Consolidated Contract: Yes
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAE0700DS022
IDV Type: IDC
Timeline
Start Date: 2009-08-17
Current End Date: 2030-05-10
Potential End Date: 2030-05-10 00:00:00
Last Modified: 2012-08-22
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