DoD awards $1.03B for 1000 MATV vehicles, with Oshkosh Defense securing the contract

Contract Overview

Contract Amount: $1,028,769,668 ($1.0B)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2009-11-10

End Date: 2012-08-31

Contract Duration: 1,025 days

Daily Burn Rate: $1.0M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PURCHASE 1000 EACH MATV VEHICLES AND BII

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902, UNITED STATES OF AMERICA

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $1.03 billion to OSHKOSH DEFENSE LLC for work described as: PURCHASE 1000 EACH MATV VEHICLES AND BII Key points: 1. Value for money assessed against similar armored vehicle procurements. 2. Competition dynamics indicate a robust bidding process for this significant award. 3. Risk indicators monitored for delivery timelines and vehicle performance. 4. Performance context tied to military operational readiness and vehicle survivability. 5. Sector positioning within the broader defense manufacturing landscape. 6. Contract type (Firm Fixed Price) shifts cost risk to the contractor.

Value Assessment

Rating: good

The contract value of $1.03 billion for 1000 MATV vehicles suggests a per-unit cost of approximately $1.03 million. This figure needs to be benchmarked against similar armored vehicle procurements, considering the specific capabilities and technological advancements of the MATV. While a firm fixed-price contract generally offers cost certainty, the overall value proposition depends on the vehicle's lifecycle costs and operational effectiveness compared to alternatives.

Cost Per Unit: Approximately $1.03 million per vehicle, benchmark required against comparable military vehicle systems.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. With 5 bidders identified, this suggests a healthy level of competition for this significant defense contract. A competitive process generally leads to better pricing and innovation, as contractors strive to offer the most advantageous terms to the government.

Taxpayer Impact: A competitive award process is beneficial for taxpayers as it drives down costs and encourages contractors to offer their best value, ensuring efficient use of public funds.

Public Impact

Benefits military personnel by providing protected mobility in combat zones. Delivers essential tactical vehicles for troop transport and support operations. Geographic impact is national, supporting Army readiness across various deployments. Workforce implications include jobs in defense manufacturing and supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays in production and delivery.
Risk of cost overruns if unforeseen technical issues arise.
Dependence on a single contractor for a critical defense asset.

Positive Signals

Firm Fixed Price contract structure mitigates cost escalation risk for the government.
Award to a known entity (Oshkosh Defense) suggests familiarity with production capabilities.
Multiple bidders indicate a competitive market for this type of vehicle.

Sector Analysis

The defense manufacturing sector is characterized by high technological complexity and significant government investment. This contract for MATV vehicles falls within the military armored vehicle segment, a critical area for force protection and mobility. The market size for such specialized vehicles is substantial, driven by ongoing global security needs and military modernization programs. Comparable spending benchmarks would involve analyzing other large-scale armored vehicle procurements by the DoD and allied nations.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions. However, the prime contractor, Oshkosh Defense, will likely engage small businesses as subcontractors for various components and services, contributing to the broader small business ecosystem within the defense industrial base.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army's contracting command, with potential involvement from the Defense Contract Management Agency (DCMA) for quality assurance and delivery monitoring. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Mine-Resistant Ambush Protected (MRAP) Vehicles
Joint Light Tactical Vehicles (JLTV)
Armored Personnel Carriers
Tactical Wheeled Vehicles

Risk Flags

Production timeline adherence
Component quality and reliability
Cost containment within fixed price
Technological obsolescence risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $1.03 billion to OSHKOSH DEFENSE LLC. PURCHASE 1000 EACH MATV VEHICLES AND BII

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 $1.03 billion.

What is the period of performance?

Start: 2009-11-10. End: 2012-08-31.

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

Oshkosh Defense has a significant track record in producing military vehicles, including the Joint Light Tactical Vehicle (JLTV) program, which has seen substantial awards and deliveries. They are also known for their Family of Military Vehicles (FOMV) and have historically supplied various tactical trucks and armored vehicles to the U.S. military and international allies. Their experience spans decades, encompassing design, manufacturing, and sustainment of complex defense platforms. This extensive background suggests a strong capability to meet the requirements of the MATV contract, although specific performance metrics and any past issues on similar programs would require deeper investigation into individual contract histories.

How does the per-unit cost of these MATV vehicles compare to other armored vehicle procurements?

The per-unit cost of approximately $1.03 million for the MATV vehicles needs careful comparison. The MRAP (Mine-Resistant Ambush Protected) program, which preceded some modern armored vehicle efforts, saw a wide range of costs depending on the specific variant and manufacturer, often falling in the $500,000 to $1 million range, though some specialized versions could exceed this. The JLTV program, designed to replace the Humvee, has also had varying per-unit costs, often cited in the $200,000 to $400,000 range, but this is for a lighter class of vehicle. The MATV's cost is likely influenced by its specific protection levels, payload capacity, and technological features, which may differ significantly from these other platforms. A direct comparison requires aligning specifications, production volumes, and the time period of procurement.

What are the primary risks associated with the production and delivery of these vehicles?

Key risks include production delays stemming from supply chain disruptions, manufacturing complexities, or labor shortages, which could impact the Army's operational readiness timelines. Technical risks involve potential design flaws or component failures that might emerge during testing or deployment, requiring costly redesigns or repairs. Furthermore, the reliance on a single contractor for a large quantity of critical assets introduces program risk if the contractor faces financial instability or significant operational challenges. Cybersecurity risks related to vehicle systems and data transmission also present a growing concern in modern military procurements.

How effective are MATV vehicles in meeting modern battlefield requirements?

The MATV (Mine-Resistant, All-Terrain Vehicle) was designed to provide enhanced protection against improvised explosive devices (IEDs) and ambushes, a critical need identified in conflicts like Iraq and Afghanistan. Its design incorporates a V-shaped hull to deflect blasts and offers a higher level of survivability than traditional light tactical vehicles. Its all-terrain capability allows for operation in diverse environments. However, effectiveness is context-dependent; while superior to older designs, newer platforms like the JLTV offer different balances of protection, mobility, and payload. The MATV's effectiveness is best judged by its performance in specific operational theaters and its ability to integrate with evolving battlefield technologies and tactics.

What has been the historical spending trend for similar armored vehicle procurements by the Department of Defense?

Historical spending on armored vehicles by the DoD has fluctuated significantly based on geopolitical events and strategic priorities. The MRAP program saw a massive surge in spending during the height of the wars in Iraq and Afghanistan, reaching tens of billions of dollars over several years to rapidly field thousands of vehicles. Post-conflict, spending on such large-scale, immediate-need procurements has generally decreased, shifting towards modernization, sustainment, and the development of next-generation platforms like the JLTV. The MATV contract, awarded in 2009, falls within a period of heightened demand for protected mobility, reflecting the operational realities of the time. Future spending will likely focus on multi-role vehicles with advanced networked capabilities.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2307 OREGON ST, OSHKOSH, WI, 54903

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: $1,028,769,668

Exercised Options: $1,028,769,668

Current Obligation: $1,028,769,668

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV09D0111

IDV Type: IDC

Timeline