Department of the Army awards $284M for medium trucks and trailers to Oshkosh Defense LLC

Contract Overview

Contract Amount: $284,392,308 ($284.4M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2009-08-26

End Date: 2030-09-12

Contract Duration: 7,687 days

Daily Burn Rate: $37.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TO PURCHASE 1,367 MEDIUM TRUCKS, 1,204 TRAILERS, PROGRAM SUPPORT TEST COSTS, ETC.

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $284.4 million to OSHKOSH DEFENSE LLC for work described as: TO PURCHASE 1,367 MEDIUM TRUCKS, 1,204 TRAILERS, PROGRAM SUPPORT TEST COSTS, ETC. Key points: 1. The contract value of $284.4 million for 1,367 medium trucks and 1,204 trailers represents a significant investment in tactical vehicle fleet modernization. 2. Oshkosh Defense LLC, a well-established defense contractor, secured this award, indicating a reliance on proven suppliers for critical equipment. 3. The contract's long duration (over 7 years) suggests a phased delivery or sustainment plan, requiring ongoing oversight. 4. The award was made under full and open competition, which typically fosters competitive pricing, though specific bid details are not provided. 5. The absence of small business set-aside flags suggests this contract was not specifically targeted to boost small business participation. 6. The primary product service code (PSC) for Truck Trailer Manufacturing (336212) aligns with the nature of the goods procured.

Value Assessment

Rating: good

The total contract value of $284.4 million for 1,367 medium trucks and 1,204 trailers averages approximately $208,000 per truck and $236,000 per trailer. Benchmarking these figures against industry standards for similar tactical vehicles is challenging without specific model details. However, given the specialized nature of military-grade equipment, this pricing appears within a reasonable range for robust, durable vehicles designed for demanding operational environments. The firm-fixed-price contract type helps manage cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a competitive landscape, though the specific number of bids received is not detailed. A competitive process generally allows for price discovery and encourages contractors to offer their best pricing to win the award. The government's ability to select from multiple offers implies a degree of market responsiveness.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces, ensuring the government receives competitive value for its investment in these essential vehicles.

Public Impact

The Department of the Army is the primary beneficiary, receiving modernized tactical vehicles essential for troop mobility and logistics. The contract will deliver 1,367 medium trucks and 1,204 trailers, enhancing the operational capabilities of the armed forces. The geographic impact is likely nationwide, supporting Army operations across various installations and deployment zones. The contract supports jobs within the defense manufacturing sector, specifically related to truck and trailer production, primarily at Oshkosh Defense facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to scope creep or unforeseen cost increases if not managed diligently.
Reliance on a single primary contractor for a large quantity of critical equipment could pose supply chain risks.
Specific performance metrics and quality assurance details are not readily available, making it hard to assess ongoing performance risks.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type provides cost certainty for the government.
Oshkosh Defense LLC has a track record in producing military vehicles, indicating potential for reliable delivery.

Sector Analysis

This contract falls within the broader defense manufacturing sector, specifically focusing on tactical wheeled vehicles. The market for military trucks and trailers is dominated by a few specialized manufacturers capable of meeting stringent military specifications and production volumes. Spending in this area is driven by fleet modernization needs, operational readiness requirements, and the replacement of aging assets. Comparable spending benchmarks would typically involve other large-scale vehicle procurement contracts within the Department of Defense or allied nations.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, Oshkosh Defense LLC. While large contracts can sometimes include subcontracting opportunities for small businesses, the absence of specific set-aside provisions means that small businesses may not have had a direct pathway to compete for the prime contract. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

The Department of the Army is responsible for overseeing this contract, ensuring compliance with terms and conditions. As a delivery order under a larger contract, oversight would likely involve program managers monitoring delivery schedules, quality, and adherence to specifications. Transparency is facilitated by contract award databases, but detailed performance reports and Inspector General involvement would depend on specific triggers or ongoing audits. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor regarding cost.

Related Government Programs

Tactical Wheeled Vehicles
Medium Tactical Trucks
Military Trailers
Defense Logistics Support
Fleet Modernization Programs

Risk Flags

Long contract duration
Potential supply chain concentration
Limited public performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $284.4 million to OSHKOSH DEFENSE LLC. TO PURCHASE 1,367 MEDIUM TRUCKS, 1,204 TRAILERS, PROGRAM SUPPORT TEST COSTS, ETC.

Who is the contractor on this award?

The obligated recipient is OSHKOSH 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 $284.4 million.

What is the period of performance?

Start: 2009-08-26. End: 2030-09-12.

What is Oshkosh Defense LLC's track record with similar military vehicle contracts?

Oshkosh Defense LLC has a significant and established track record in producing military vehicles for the U.S. Department of Defense and allied nations. They are known for their Joint Light Tactical Vehicle (JLTV) program, as well as their Family of Heavy Tactical Vehicles (FHTV). Their experience includes designing, manufacturing, and sustaining a wide range of tactical trucks and trailers, often under large, multi-year contracts. This extensive history suggests a deep understanding of military requirements, production capabilities, and logistical support necessary for fulfilling contracts like the one for medium trucks and trailers. Their ability to secure such awards repeatedly points to a strong performance history and established relationship with the DoD.

How does the average cost per unit compare to other government truck procurements?

The average cost per unit for the medium trucks and trailers procured under this contract is approximately $208,000 per truck and $236,000 per trailer. Direct comparison to other government truck procurements is complex due to variations in vehicle type, specifications, quantity, and contract terms. However, for specialized, military-grade tactical vehicles designed for rugged use and specific mission requirements, these figures are not inherently out of line. For instance, the U.S. Army's Joint Light Tactical Vehicle (JLTV) program has seen per-unit costs ranging significantly, often exceeding $200,000 depending on the variant and configuration. Standard commercial trucks procured by the government would be considerably less expensive, but lack the specialized armor, mobility, and durability features required for tactical applications.

What are the primary risks associated with this contract?

Several risks are associated with this contract. Firstly, the long duration (over 7 years) increases the potential for cost overruns due to inflation, changes in material costs, or unforeseen technical challenges. Secondly, the reliance on a single contractor, Oshkosh Defense LLC, for a substantial quantity of critical equipment introduces supply chain risk; any disruption to their production could impact the Army's operational readiness. Thirdly, while awarded under full and open competition, the specific details of the competition and the number of bids are limited, making it difficult to fully assess the pricing competitiveness. Finally, the lack of detailed public information on performance metrics and quality assurance makes it challenging to gauge the risk of subpar delivery or product defects.

How effective is the competition level in ensuring value for taxpayers?

The contract was awarded under 'full and open competition,' which is generally the most effective method for ensuring value for taxpayers. This approach allows any responsible source to bid, fostering a competitive environment where multiple companies vie for the contract. This competition typically drives down prices as bidders strive to offer the most attractive terms and cost-effective solutions to win the award. While the data indicates 3 bidders participated, the exact number of bids and the spread of pricing are not public. However, the principle of full and open competition itself is a strong indicator that the government sought to leverage market forces to achieve a fair and competitive price, thereby maximizing taxpayer value.

What are the historical spending patterns for similar truck and trailer procurements by the Department of the Army?

Historical spending patterns for similar truck and trailer procurements by the Department of the Army often show significant, multi-year investments in fleet modernization and sustainment. Large-scale awards for tactical vehicles are common, reflecting the continuous need to replace aging assets and adapt to evolving operational requirements. Spending can fluctuate based on budget allocations, strategic priorities, and the lifecycle of existing vehicle fleets. Contracts awarded to major defense manufacturers like Oshkosh Defense LLC are typically substantial, often running into hundreds of millions of dollars over several years. Analyzing past awards for similar vehicle types (e.g., medium tactical trucks, logistics vehicles) would reveal trends in contract values, durations, and the competitive landscape over time.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Oshkosh Corp (UEI: 006070445)

Address: 2307 OREGON ST, OSHKOSH, WI, 54903

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $284,392,308

Exercised Options: $284,392,308

Current Obligation: $284,392,308

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV09D0159

IDV Type: IDC

Timeline