DoD Awards $60.9M FFP Contract to ND Defense for MRAP Vehicle Refurbishment and Upgrade
Contract Overview
Contract Amount: $60,919,205 ($60.9M)
Contractor: ND Defense LLC
Awarding Agency: Department of Defense
Start Date: 2023-12-29
End Date: 2024-10-01
Contract Duration: 277 days
Daily Burn Rate: $219.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FIRM FIXED PRICE (FFP) CONTRACT TO THE OEM. UAE HAS ENTERED INTO A FMS LOA CASE AZ-B-ZVA AMD 1 WITH THE UNITED STATES TO PROCURE THE REFURBISHMENT AND UPGRADE OF 106 EACH MAXXPRO PLUS MRAP EDA VEHICLES TO CODE A STANDARDS AND WITH ADDITIONAL ECPS.
Place of Performance
Location: MADISON HEIGHTS, OAKLAND County, MICHIGAN, 48071
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $60.9 million to ND DEFENSE LLC for work described as: FIRM FIXED PRICE (FFP) CONTRACT TO THE OEM. UAE HAS ENTERED INTO A FMS LOA CASE AZ-B-ZVA AMD 1 WITH THE UNITED STATES TO PROCURE THE REFURBISHMENT AND UPGRADE OF 106 EACH MAXXPRO PLUS MRAP EDA VEHICLES TO CODE A STANDARDS AND WITH ADDITIONAL ECPS. Key points: 1. Contract awarded to ND Defense LLC for refurbishment and upgrade of 106 MRAP vehicles. 2. This is a Firm Fixed Price (FFP) contract, indicating a set price for the work. 3. The contract is part of a Foreign Military Sales (FMS) case for the UAE. 4. The scope includes upgrading vehicles to Code A standards with additional Engineering Change Proposals (ECPs).
Value Assessment
Rating: good
The contract is a Firm Fixed Price (FFP) type, which generally provides cost certainty. The total award amount is $60.9 million for 106 vehicles.
Cost Per Unit: $574,709.48
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited source procurement, likely due to the nature of the OEM (Original Equipment Manufacturer) requirement for refurbishment and upgrades.
Taxpayer Impact: Taxpayer funds are being used to support a foreign military sale, impacting the overall defense budget and potentially reducing funds available for domestic military needs.
Public Impact
Enhances the capabilities of UAE's MRAP fleet, contributing to regional security. Supports the defense industrial base through refurbishment and upgrade activities. Facilitates interoperability and strengthens alliances through FMS programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher prices than a competitive bid.
- Reliance on OEM for specialized upgrades could create vendor lock-in.
- Foreign Military Sales contracts require careful monitoring to ensure U.S. interests are met.
Positive Signals
- FFP contract provides cost predictability.
- Upgrade ensures vehicles meet current operational standards.
- Supports a key ally through FMS.
Sector Analysis
This contract falls under the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector. Spending in this sector is critical for maintaining and modernizing armored fleets, with benchmarks varying based on vehicle type, age, and upgrade complexity.
Small Business Impact
The contract was awarded to ND Defense LLC, which is not identified as a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The contract is a definitive contract awarded by the Department of the Army. Oversight will focus on ensuring the refurbishment and upgrade meet the specified standards and timelines, as well as proper execution of the FMS case requirements.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Foreign Military Sales (FMS) contract
- High per-unit cost for refurbishment
- Reliance on OEM for specialized upgrades
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, mi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $60.9 million to ND DEFENSE LLC. FIRM FIXED PRICE (FFP) CONTRACT TO THE OEM. UAE HAS ENTERED INTO A FMS LOA CASE AZ-B-ZVA AMD 1 WITH THE UNITED STATES TO PROCURE THE REFURBISHMENT AND UPGRADE OF 106 EACH MAXXPRO PLUS MRAP EDA VEHICLES TO CODE A STANDARDS AND WITH ADDITIONAL ECPS.
Who is the contractor on this award?
The obligated recipient is ND DEFENSE 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 $60.9 million.
What is the period of performance?
Start: 2023-12-29. End: 2024-10-01.
What is the justification for limiting competition for this MRAP refurbishment contract?
The contract is noted as 'NOT AVAILABLE FOR COMPETITION,' strongly suggesting that the refurbishment and upgrade require specialized knowledge, parts, or certifications exclusively held by the Original Equipment Manufacturer (OEM) or a designated service provider. This is common for complex military vehicle systems where maintaining original specifications and ensuring full functionality post-upgrade is paramount.
How does the per-unit cost of this refurbishment compare to similar upgrades or new MRAP acquisitions?
The per-unit cost of approximately $574,709 for refurbishment and upgrade is significant. Benchmarking against similar FFP contracts for MRAP upgrades or even the acquisition of new, less advanced armored vehicles would be necessary to assess value. Factors like the extent of the upgrade (Code A standards, ECPs) and the age/condition of the base vehicles heavily influence this comparison.
What are the potential risks associated with this FMS contract for the UAE?
Key risks include potential delays in refurbishment, cost overruns if unforeseen issues arise (though FFP aims to mitigate this), and ensuring the upgraded vehicles meet the UAE's specific operational requirements. There's also the geopolitical risk associated with military sales and the long-term sustainment and parts availability for these specialized vehicles.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56HZV23R0061
Offers Received: 1
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: $60,919,205
Exercised Options: $60,919,205
Current Obligation: $60,919,205
Subaward Activity
Number of Subawards: 75
Total Subaward Amount: $25,790,572
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-12-29
Current End Date: 2024-10-01
Potential End Date: 2024-10-01 12:10:00
Last Modified: 2024-08-15
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