DoD procures 181 M916A3 transporters for Afghanistan National Army for $36.6M, awarded via full and open competition

Contract Overview

Contract Amount: $36,567,123 ($36.6M)

Contractor: Daimler Truck North America LLC

Awarding Agency: Department of Defense

Start Date: 2010-08-19

End Date: 2011-06-30

Contract Duration: 315 days

Daily Burn Rate: $116.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF 181 EACH M916A3 LIGHT EQUIPMENT TRANSPORTERS FOR FMS. THE TRUCK TRACTORS ARE FOR THE ANA (AFGHANISTAN NATIONAL ARMY.)

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97217

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $36.6 million to DAIMLER TRUCK NORTH AMERICA LLC for work described as: PROCUREMENT OF 181 EACH M916A3 LIGHT EQUIPMENT TRANSPORTERS FOR FMS. THE TRUCK TRACTORS ARE FOR THE ANA (AFGHANISTAN NATIONAL ARMY.) Key points: 1. The contract value of $36.6 million for 181 light equipment transporters represents a significant investment in foreign military sales. 2. Awarded under full and open competition, this suggests a potentially competitive bidding process that could drive favorable pricing. 3. The fixed-price contract type shifts performance risk to the contractor, Daimler Truck North America LLC. 4. The procurement is for the Afghanistan National Army, indicating a focus on supporting allied military capabilities. 5. The relatively short performance period of approximately 10 months suggests a focused delivery schedule. 6. The North American Industry Classification System (NAICS) code 336214 points to the manufacturing of travel trailers and campers, which may not be the primary focus for heavy-duty military vehicle production.

Value Assessment

Rating: fair

The total contract value of $36.6 million for 181 M916A3 Light Equipment Transporters averages to approximately $202,000 per unit. Benchmarking this against similar heavy-duty military vehicle procurements is challenging without more specific data on the M916A3's capabilities and market conditions at the time of award. However, the unit cost appears within a reasonable range for specialized military equipment of this nature. The firm fixed-price contract type suggests that the initial price was determined to be fair and reasonable by the contracting officer.

Cost Per Unit: Approximately $202,000 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 data does not specify the number of bids received, but the designation implies a competitive environment. Full and open competition is generally expected to lead to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Taxpayers benefit from full and open competition as it increases the likelihood of obtaining the best possible price for the equipment, minimizing wasteful spending.

Public Impact

The primary beneficiaries are the Afghanistan National Army, receiving critical logistical support equipment. The services delivered include the procurement and delivery of 181 specialized heavy-duty truck tractors. The geographic impact is primarily in Afghanistan, where the equipment will be utilized for military operations. Workforce implications are likely within Daimler Truck North America LLC's manufacturing and logistics operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The NAICS code 336214 (Travel Trailer and Camper Manufacturing) is unusual for heavy military equipment procurement, raising questions about the specific manufacturing capabilities or if this represents a niche segment of the company's operations.
The contract was awarded to Daimler Truck North America LLC, a large business. There is no explicit information on small business subcontracting plans or performance, which could be a missed opportunity for small business engagement.

Positive Signals

The award was made under full and open competition, suggesting a robust bidding process that could lead to better value.
The firm fixed-price contract type transfers cost overrun risk to the contractor, providing cost certainty for the government.
The procurement directly supports a foreign military sales initiative, aligning with U.S. foreign policy and security objectives.

Sector Analysis

The procurement of heavy-duty truck tractors falls within the broader defense manufacturing and transportation equipment sector. This sector is characterized by specialized engineering, stringent quality control, and often long production lead times. The market for military vehicles is typically dominated by a few large, established defense contractors. The value of this contract, $36.6 million, is a moderate-sized procurement within the context of overall Department of Defense spending on equipment.

Small Business Impact

The contract was awarded to Daimler Truck North America LLC, a large business. There is no indication in the provided data regarding small business set-asides or specific subcontracting goals for this particular award. This suggests that small businesses may not have been directly involved as prime contractors, and their participation would likely be through subcontracting opportunities offered by the prime contractor, the extent of which is not detailed here.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically be managed by the contracting officer and program management offices within the Army. The firm fixed-price nature of the contract implies that financial oversight will focus on ensuring delivery according to specifications rather than managing cost-plus elements. Transparency is generally facilitated through contract award databases, but detailed performance and oversight reports are often internal or classified.

Related Government Programs

Foreign Military Sales (FMS)
Tactical Wheeled Vehicles
Logistics Support Equipment
Department of Defense Procurement

Risk Flags

NAICS Code Mismatch
Limited Public Data on Competition Details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.6 million to DAIMLER TRUCK NORTH AMERICA LLC. PROCUREMENT OF 181 EACH M916A3 LIGHT EQUIPMENT TRANSPORTERS FOR FMS. THE TRUCK TRACTORS ARE FOR THE ANA (AFGHANISTAN NATIONAL ARMY.)

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 $36.6 million.

What is the period of performance?

Start: 2010-08-19. End: 2011-06-30.

What is the specific capability and intended use of the M916A3 Light Equipment Transporter in the context of the Afghanistan National Army's operations?

The M916A3 Light Equipment Transporter is a heavy-duty truck tractor designed for towing and transporting various types of military equipment, including armored vehicles, artillery pieces, and other logistical support assets. In the context of the Afghanistan National Army (ANA), these transporters would have been crucial for maintaining and moving their operational fleet, enabling troop deployment, and ensuring the logistical backbone of their military operations. Their ability to handle challenging terrain and heavy loads would have been particularly important in Afghanistan's diverse and often rugged environment, supporting the ANA's mission effectiveness and operational readiness.

How does the unit cost of approximately $202,000 per M916A3 compare to similar military truck tractor procurements by the U.S. Department of Defense or allied nations?

Directly comparing the unit cost of $202,000 for the M916A3 to other military truck tractor procurements requires detailed specifications of those comparable vehicles, including their payload capacity, off-road capabilities, armor, and technological features. However, for context, heavy-duty military truck tractors can range significantly in price. For instance, some tactical trucks might cost upwards of $100,000 to $300,000, while highly specialized or armored variants could easily exceed $500,000 or even $1 million. Given that the M916A3 is a specialized piece of equipment for towing heavy loads, the $202,000 unit price appears to be within a plausible range for such military assets, especially when procured under a competitive bid, though a precise benchmark would necessitate a detailed market analysis of contemporary procurements with similar specifications.

What were the key factors that led to the selection of Daimler Truck North America LLC as the contractor for this procurement?

While the provided data indicates the award was made to Daimler Truck North America LLC under full and open competition, it does not detail the specific selection factors. Typically, in a full and open competition, the contract is awarded to the responsible bidder whose proposal is the best value to the Government. This 'best value' determination often involves a trade-off analysis between price and non-price factors, such as technical approach, past performance, delivery schedule, and warranty provisions. Daimler Truck North America LLC likely submitted a competitive bid that met or exceeded the government's technical requirements and offered a favorable price, potentially combined with a strong past performance record or a superior technical solution that justified any potential price premium over lower-cost, but less capable, alternatives.

What are the potential risks associated with procuring military equipment for foreign military sales, and how might they have been mitigated for this contract?

Procuring military equipment for Foreign Military Sales (FMS) carries several risks, including potential misuse of equipment, challenges in maintenance and sustainment in the recipient country, political instability affecting the end-user, and ensuring interoperability with existing forces. For this contract, risks might have been mitigated through careful vetting of the Afghanistan National Army's capacity to operate and maintain the M916A3 transporters, clear contractual terms regarding delivery and acceptance, and potentially through training and technical support provisions (though not explicitly stated here). The firm fixed-price nature of the contract also mitigates financial risk for the U.S. government by capping costs. However, long-term sustainment and operational risks within Afghanistan would remain significant considerations beyond the scope of this specific procurement contract.

How does the NAICS code 336214 (Travel Trailer and Camper Manufacturing) align with the procurement of heavy-duty military truck tractors like the M916A3?

The North American Industry Classification System (NAICS) code 336214, 'Travel Trailer and Camper Manufacturing,' is generally associated with the production of recreational vehicles and trailers, not heavy-duty military equipment. This discrepancy raises a question about the classification's accuracy or the specific business segment of Daimler Truck North America LLC that was involved. It's possible that the code was assigned based on a broader classification of vehicle manufacturing within the company, or perhaps the M916A3 shares certain manufacturing processes or components with trailer production. However, it is more common for heavy military vehicles to fall under NAICS codes related to 'Truck and Bus Manufacturing' (e.g., 336120) or 'Specialty Vehicle Manufacturing.' This misalignment could indicate an administrative anomaly or a niche aspect of the contractor's operations.

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: $36,567,123

Exercised Options: $36,567,123

Current Obligation: $36,567,123

Contract Characteristics

Consolidated Contract: Yes

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAE0700DS022

IDV Type: IDC

Timeline