DoD Awards $74.5M for 370 M915A5 Trucks to Daimler Truck North America
Contract Overview
Contract Amount: $74,562,100 ($74.6M)
Contractor: Daimler Truck North America LLC
Awarding Agency: Department of Defense
Start Date: 2010-06-23
End Date: 2013-12-30
Contract Duration: 1,286 days
Daily Burn Rate: $58.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PRODUCTION QUANTITY OF 370 M915A5
Place of Performance
Location: PORTLAND, MULTNOMAH County, OREGON, 97217
State: Oregon Government Spending
Plain-Language Summary
Department of Defense obligated $74.6 million to DAIMLER TRUCK NORTH AMERICA LLC for work described as: PRODUCTION QUANTITY OF 370 M915A5 Key points: 1. The contract value is substantial, indicating a significant procurement by the Department of the Army. 2. Daimler Truck North America LLC is the sole awardee, raising questions about the extent of competition. 3. The risk appears moderate given the firm fixed price contract, but potential supply chain or production issues could arise. 4. The sector is primarily defense logistics and manufacturing.
Value Assessment
Rating: good
The award amount of $74.5M for 370 units suggests a per-unit cost of approximately $201,573. This pricing needs to be benchmarked against similar heavy-duty truck procurements by the government and commercial markets to assess value.
Cost Per Unit: $201,573
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the single award to Daimler Truck North America LLC implies that only one offer was deemed acceptable or that other bidders did not participate effectively.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers. The final price achieved will determine the ultimate taxpayer impact.
Public Impact
Ensures the Department of the Army has essential transportation assets for logistical operations. Supports jobs within the defense manufacturing sector and at Daimler Truck North America. The procurement contributes to the readiness and operational capability of military forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition despite 'full and open' designation if only one strong bid emerged.
- Reliance on a single supplier could create future supply chain vulnerabilities.
- Firm fixed price contracts can sometimes lead to higher initial costs if risks are heavily factored in by the contractor.
Positive Signals
- Awarded under full and open competition, maximizing potential for competitive pricing.
- Firm fixed price contract provides cost certainty for the government.
- Procurement addresses a clear operational need for the Department of the Army.
Sector Analysis
This procurement falls within the defense logistics and heavy vehicle manufacturing sector. Spending benchmarks for similar military truck acquisitions would be relevant for a detailed value assessment. The duration of the contract (1286 days) suggests a significant production run.
Small Business Impact
Analysis of small business participation is not directly available from the provided data. Further investigation would be needed to determine if small businesses were involved as subcontractors or if specific set-aside goals were applied.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms for major procurements. The duration and value suggest it would be subject to standard program management and financial oversight.
Related Government Programs
- Travel Trailer and Camper Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for limited effective competition.
- Sole awardee concentration risk.
- Long contract duration may increase exposure to market fluctuations.
- Need for detailed cost benchmarking.
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 $74.6 million to DAIMLER TRUCK NORTH AMERICA LLC. PRODUCTION QUANTITY OF 370 M915A5
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 $74.6 million.
What is the period of performance?
Start: 2010-06-23. End: 2013-12-30.
How does the per-unit cost of $201,573 compare to similar military truck procurements or commercial equivalents?
Benchmarking this per-unit cost against historical military truck contracts (e.g., other variants of the M915 series or similar heavy tactical trucks) and commercial heavy-duty truck prices is crucial. Factors like specialized military modifications, warranty, and support services can justify higher costs compared to commercial models. A detailed comparison would reveal if the price represents good value or if there's potential for cost savings in future procurements.
What factors led to only one award despite a 'full and open' competition designation?
A 'full and open' competition designation theoretically allows all responsible sources to submit offers. If only one award was made, it could indicate that only one offer met the technical requirements, that other bidders withdrew, or that the evaluation criteria heavily favored the selected contractor. Understanding the specific solicitation requirements and the evaluation process is key to assessing if the competition was truly robust and yielded the best possible outcome.
What are the potential risks associated with a firm fixed price contract for this type of specialized equipment?
Firm fixed price contracts offer cost certainty to the buyer but place cost risk on the seller. For specialized equipment like military trucks, risks include potential cost overruns for the contractor due to unforeseen material price increases, labor shortages, or production challenges. If the contractor underestimated these risks, they might cut corners on quality or seek contract modifications, potentially impacting long-term reliability and maintainability.
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: $74,562,100
Exercised Options: $74,562,100
Current Obligation: $74,562,100
Contract Characteristics
Consolidated Contract: Yes
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAE0700DS022
IDV Type: IDC
Timeline
Start Date: 2010-06-23
Current End Date: 2013-12-30
Potential End Date: 2013-12-30 00:00:00
Last Modified: 2012-08-22
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