DoD Awards $6.8M for 675 Pneumatic Tire Wheel Assemblies to ND Defense LLC

Contract Overview

Contract Amount: $6,839,114 ($6.8M)

Contractor: ND Defense LLC

Awarding Agency: Department of Defense

Start Date: 2025-12-18

End Date: 2027-01-20

Contract Duration: 398 days

Daily Burn Rate: $17.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS IS A DELIVERY ORDER FOR 675 EA., WHEEL ASSEMBLIES, PNEUMATIC TIRE, NSN: 2530-01-584-5955.

Place of Performance

Location: WEST POINT, CLAY County, MISSISSIPPI, 39773

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $6.8 million to ND DEFENSE LLC for work described as: THIS IS A DELIVERY ORDER FOR 675 EA., WHEEL ASSEMBLIES, PNEUMATIC TIRE, NSN: 2530-01-584-5955. Key points: 1. Significant award for essential defense components. 2. ND Defense LLC secures a substantial contract. 3. Potential for supply chain risks if sole-source. 4. Tire Manufacturing sector sees increased activity.

Value Assessment

Rating: fair

The award price of $6,839,113.50 for 675 wheel assemblies averages to approximately $10,147 per unit. Benchmarking against similar complex assemblies suggests this price may be on the higher end, warranting further scrutiny.

Cost Per Unit: $10,147

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The lack of competition limits price discovery and may result in a less favorable price for the government.

Taxpayer Impact: The absence of competitive bidding could lead to higher costs for taxpayers compared to a fully competed procurement.

Public Impact

Ensures availability of critical wheel assemblies for military vehicles. Supports a specific defense contractor, ND Defense LLC. Highlights reliance on potentially limited sources for specialized parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Sole-source award

Positive Signals

Ensures critical part availability
Supports existing defense supply chain

Sector Analysis

The award falls within the Tire Manufacturing sector, specifically for complex wheel assemblies. Spending benchmarks for specialized defense components can vary widely, but the sole-source nature here raises cost concerns.

Small Business Impact

The contract was awarded to ND Defense LLC, a small business (MS). While supporting a small business is positive, the sole-source nature limits broader small business participation opportunities.

Oversight & Accountability

The Department of Defense, through the Defense Logistics Agency, awarded this contract. Oversight should focus on validating the necessity of the sole-source award and ensuring fair pricing.

Related Government Programs

Tire Manufacturing (except Retreading)
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Sole-source award
Lack of competition
Potentially high per-unit cost
Reliance on a single supplier for critical parts

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.8 million to ND DEFENSE LLC. THIS IS A DELIVERY ORDER FOR 675 EA., WHEEL ASSEMBLIES, PNEUMATIC TIRE, NSN: 2530-01-584-5955.

Who is the contractor on this award?

The obligated recipient is ND DEFENSE LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $6.8 million.

What is the period of performance?

Start: 2025-12-18. End: 2027-01-20.

What is the justification for the sole-source award of this critical defense component?

The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of viable alternative sources. Without further documentation, it's difficult to ascertain the specific reason. However, the absence of competition raises concerns about potential price inflation and missed opportunities for other qualified suppliers to bid.

How does the per-unit cost of $10,147 compare to market rates for similar pneumatic tire wheel assemblies?

A per-unit cost of $10,147 for a pneumatic tire wheel assembly is substantial. While specialized military components can command higher prices due to stringent requirements and low production volumes, this figure warrants a detailed price analysis. Benchmarking against commercially available, high-performance assemblies and other government contracts is crucial to determine if this price is reasonable or inflated.

What is the potential impact on mission readiness if ND Defense LLC faces production or delivery issues?

Given this is a sole-source award for a critical component, any production or delivery issues from ND Defense LLC could significantly impact mission readiness. The Defense Logistics Agency would face challenges in finding an alternative supplier quickly, potentially leading to delays in vehicle maintenance and deployment. Contingency planning and close monitoring of the contractor's performance are essential.

Industry Classification

NAICS: Manufacturing › Rubber Product Manufacturing › Tire Manufacturing (except Retreading)

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Volkswagen Aktiengesellschaft

Address: 1675 E WHITCOMB AVE, MADISON HEIGHTS, MI, 48071

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,839,114

Exercised Options: $6,839,114

Current Obligation: $6,839,114

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPRDL124D0042

IDV Type: IDC

Timeline