DoD Spends $150M on 1769 HEMTT A4 B-Kits from Oshkosh Corp
Contract Overview
Contract Amount: $149,793,120 ($149.8M)
Contractor: Oshkosh Corp
Awarding Agency: Department of Defense
Start Date: 2009-01-23
End Date: 2012-09-30
Contract Duration: 1,346 days
Daily Burn Rate: $111.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PURCHASE OF 1769 B-KITS FOR THE HEMTT A4.
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $149.8 million to OSHKOSH CORP for work described as: PURCHASE OF 1769 B-KITS FOR THE HEMTT A4. Key points: 1. High contract value of $150M for specialized vehicle kits. 2. Sole-source award to Oshkosh Corp, limiting competitive pricing. 3. Potential risk of overpayment due to lack of competition. 4. Spending concentrated in the Truck Trailer Manufacturing sector.
Value Assessment
Rating: questionable
The total award of $149.8M for 1769 units results in a per-unit cost of approximately $84,677. Without competitive bids, it's difficult to assess if this price is fair market value compared to similar military vehicle component contracts.
Cost Per Unit: $84,677
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Oshkosh Corp, was considered. This significantly limits price discovery and competition, potentially leading to higher costs for the government.
Taxpayer Impact: The lack of competition on this $150M contract raises concerns about taxpayer value, as a more competitive process could have yielded significant cost savings.
Public Impact
Military readiness potentially impacted by availability of specialized HEMTT A4 kits. Taxpayer funds allocated to a single, non-competed defense contract. Oshkosh Corp benefits from a large sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value
- Lack of competition
Positive Signals
- Specific military need addressed
- Contract awarded to established manufacturer
Sector Analysis
This spending falls within the Truck Trailer Manufacturing sector, specifically for components of heavy equipment transport vehicles. Benchmarks for similar specialized military vehicle component contracts are hard to establish due to the sole-source nature of this award.
Small Business Impact
The contract was awarded to Oshkosh Corp, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting limited small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny regarding the justification for not seeking competitive bids. Oversight should focus on ensuring the necessity and fair pricing of such non-competed contracts.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- High total contract value raises concerns about taxpayer efficiency.
- Lack of small business participation noted.
- Potential for cost overruns due to non-competitive pricing.
Tags
truck-trailer-manufacturing, department-of-defense, wi, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $149.8 million to OSHKOSH CORP. PURCHASE OF 1769 B-KITS FOR THE HEMTT A4.
Who is the contractor on this award?
The obligated recipient is OSHKOSH CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $149.8 million.
What is the period of performance?
Start: 2009-01-23. End: 2012-09-30.
What was the justification for awarding this contract on a sole-source basis, and were alternative solutions or vendors considered?
The provided data indicates a sole-source award, suggesting that the Department of Defense or Army determined that only Oshkosh Corp could fulfill the requirement. This could be due to unique technical specifications, proprietary technology, or urgent need. A thorough review would require access to the justification documents to understand the rationale and confirm no viable alternatives were overlooked.
How does the per-unit cost of $84,677 for these B-Kits compare to industry benchmarks for similar heavy vehicle components, especially considering the lack of competition?
Without competitive bidding, establishing a precise benchmark is challenging. However, $84,677 per unit for specialized vehicle kits is a significant expenditure. A comparative analysis against publicly available data for high-mobility vehicle components or similar military truck upgrades, while accounting for unique specifications, would be necessary to assess potential overpricing.
What is the long-term strategic value and operational impact of these HEMTT A4 B-Kits for the Department of the Army, and how does this justify the $150M investment?
The HEMTT A4 (Heavy Expanded Mobility Tactical Truck) is a critical asset for logistics and transport in demanding environments. The B-Kits likely represent essential upgrades or replacements for maintaining the fleet's operational readiness. The $150M investment is justified if these kits are vital for ensuring the Army's mobility and sustainment capabilities, particularly if the existing fleet requires modernization or extensive repair.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2307 OREGON ST, OSHKOSH, WI, 06
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $149,793,120
Exercised Options: $149,793,120
Current Obligation: $149,793,120
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV09D0024
IDV Type: IDC
Timeline
Start Date: 2009-01-23
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2014-08-08
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