Contributor: Bill Norris
Source: Lt. Colonel Dow's collection, Detroit Library
WILLYS-OVERLAND MOTORS, INC.
Oct. 8th, 1940
Major J. Van Ness Ingram, Q.M.C.
Purchasing & Contract Officer,
Holabird Quartermaster Depot,
The following bid covers a contemplated negotiated contract for 500 1/2 Ton 4 x 4s with specifications similar to Invitation of July 11th, 1940, #398-41-9. It includes changes received by us to date, the last being in revised drawings forwarded Oct 4th. Any additional changed will be figured, as to additions or deductions as submitted in order that units will be as required. Pilot model will be ready Nov. 1st.
Mr. Carpenter, of Spicer Mfg. Co. tells us that total tool cost is $87,550.00. Our first figures are based on this spread over 500 units. Second figures figure a spread on 1500, and should you buy the tools there will, of course be no charge for this item. Our delivery is based on delivery of axles. Our capacity is considerably larger.
Our figures are as follows -
Two Wheel Steer Units
Price per unit - f.o.b. Toledo - $1523.38
Tool amortization per unit - 500 175.00 Total $1698.38
Total cost based on 1500 58.00 Total 1581.38
Total for 500 units on latter basis $790,690.00
Four Wheel Steer Units
Price per unit - f.o.b. Toledo - $1618.91
Tool amortization per unit - 500 175.00 Total $1794.91
Total cost based on 1500 58.00 Total 1677.91
Total for 500 units on latter basis $838,955.00
Deliveries will start in sixteen weeks after order is released. They will be at the rate of ten (10) a day and this is based on delivery promise from Spicer.
We are ready to meet with you and other manufacturers at any time you set and want to assure you of our co-operation in bettering delivery as promised, of possible and in keeping our costs to a minimum on any additional items wanted.
Very truly yours,
Eugene M. Rice
Fleet & Government Sales
cc - J. W. Fraser - Toledo