Truck Order Illustrates Diversity of Global Defense Suppliers

by: Matthew Potter
June 3, 2011

Category: Business Line, Companies, Contract Awards, Department of Defense, Events, logistics, production program, Services, U.S. Army | RSS 2.0

The U.S. Army like all other military organizations does not just procure weapons and hardened equipment as it also needs basic, non-military gear to move personnel and supplies around. Much of what is produced for the civilian market will also meet these kind of needs so it can be bought strait off of the lot so to speak.

The recent order for 6,000 trucks from Global Fleet Sales, Inc. illustrates this. The modified Ford vehicles will be used by the Military Police as well as transport cargo. Some of the trucks will have repair kits built into them to support other vehicles. The total contract is worth about $140 million.

Global Fleet Sales is part of RMA Automotive which is actually based in Thailand. The work converting the trucks and delivery will take place in that country. There primary market is to provide vehicles for NGO and other organizations involved in aid and relief work.

This indicates that the contracted vehicles may not actually be used by the U.S. Army or other services but could be provided to another country as a FMS case or as direct aid. It also shows that the U.S. military has the ability to search out for the best price from vendors across the globe especially for a contract such as this that does not involve the transfer of military technology which has strict limits placed on it by law.

Contracts like this also allow companies like RMA to get established within the U.S. acquisition system which will expand their abilities to meet contracts and offer the U.S. better prices and more competition. It is a fact of life now with the declining U.S. industrial base that to meet competition needs and requirements the U.S. has had to look to overseas companies who have quickly established U.S. subsidiaries or acquired American defense contractors. In the long run more competition will aid the Pentagon in getting better value for their declining procurement funds.

Photo from Auswandern Malaysia’s Flickr photostream.

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