DoD Awards $892M for 1,460 MRAP All-Terrain Vehicles to Oshkosh Defense
Contract Overview
Contract Amount: $892,326,075 ($892.3M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2010-02-22
End Date: 2012-10-10
Contract Duration: 961 days
Daily Burn Rate: $928.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MRAP ALL-TERRAIN VEHICLES, D.O. 0004 ADDS 1,460 EACH M-ATVS AND BASIC ISSUE ITEMS TO THE CONTRACT
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $892.3 million to OSHKOSH DEFENSE LLC for work described as: MRAP ALL-TERRAIN VEHICLES, D.O. 0004 ADDS 1,460 EACH M-ATVS AND BASIC ISSUE ITEMS TO THE CONTRACT Key points: 1. Significant investment in armored vehicle procurement for the Army. 2. Oshkosh Defense is a key supplier in the military vehicle sector. 3. Potential for high operational readiness and troop protection. 4. Contract awarded under full and open competition, suggesting market availability.
Value Assessment
Rating: good
The total award value of $892.3 million for 1,460 MRAP vehicles and basic issue items appears reasonable given the specialized nature and scale of the procurement. Benchmarking against similar large-scale military vehicle contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is expected to drive favorable pricing and ensure the government receives the best value.
Taxpayer Impact: Taxpayer funds are being utilized for critical defense equipment, enhancing military capabilities and troop safety.
Public Impact
Enhances troop survivability in combat zones. Supports ongoing military operations and strategic deployment needs. Contributes to the readiness and modernization of the U.S. Army fleet. Potential for job creation within the defense manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns on large, complex contracts.
- Dependence on a single supplier for critical components.
- Logistical challenges in deploying and maintaining a large fleet.
Positive Signals
- Addresses urgent need for advanced protected mobility.
- Leverages established manufacturing capabilities of Oshkosh Defense.
- Awarded through a competitive process.
Sector Analysis
The defense sector, particularly military vehicle manufacturing, involves substantial government contracts. Spending benchmarks for armored vehicles vary widely based on technology, quantity, and specific mission requirements.
Small Business Impact
While Oshkosh Defense is a large prime contractor, subcontracts for components and services may offer opportunities for small businesses within the defense industrial base.
Oversight & Accountability
The Department of the Army's contracting office managed this award. Oversight would typically involve contract performance monitoring, quality assurance, and financial management to ensure compliance and value.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract awarded under Firm Fixed Price, which shifts risk to the contractor but can lead to higher initial prices.
- The duration of the contract (961 days) indicates a long-term commitment, increasing exposure to potential market or technological shifts.
- The 'WI' (Wisconsin) state code might indicate a specific manufacturing location, potentially concentrating economic impact or supply chain risks.
- The absence of a specific PSC code makes it harder to benchmark against similar procurements.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, wi, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $892.3 million to OSHKOSH DEFENSE LLC. MRAP ALL-TERRAIN VEHICLES, D.O. 0004 ADDS 1,460 EACH M-ATVS AND BASIC ISSUE ITEMS TO THE CONTRACT
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 $892.3 million.
What is the period of performance?
Start: 2010-02-22. End: 2012-10-10.
What is the projected lifespan and maintenance cost for these MRAP vehicles?
The projected lifespan and associated maintenance costs for these MRAP vehicles are critical factors in assessing their long-term value. Detailed lifecycle cost analyses, including expected operational hours, repair schedules, and spare parts provisioning, are necessary to fully understand the total cost of ownership beyond the initial procurement price.
How does the performance of these MRAP ATVs compare to previous models or alternative vehicle types in similar operational environments?
Comparing the performance of these MRAP All-Terrain Vehicles (ATVs) against previous models and alternative vehicle types is essential for validating their effectiveness. Key performance indicators such as off-road mobility, mine blast protection, speed, payload capacity, and fuel efficiency in diverse combat terrains should be evaluated to ensure they meet or exceed operational requirements and justify the investment.
What are the specific technological advancements incorporated into these MRAP ATVs that justify the investment?
The specific technological advancements incorporated into these MRAP ATVs are crucial for understanding their value proposition. This includes assessing improvements in armor protection, advanced suspension systems for all-terrain capability, enhanced communication and sensor suites, and potentially upgraded powerplants for better performance and fuel efficiency, all contributing to increased survivability and operational effectiveness.
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
Parent Company: Oshkosh Corp (UEI: 006070445)
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: $892,339,807
Exercised Options: $892,339,807
Current Obligation: $892,326,075
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV09D0111
IDV Type: IDC
Timeline
Start Date: 2010-02-22
Current End Date: 2012-10-10
Potential End Date: 2012-10-10 12:10:00
Last Modified: 2019-07-31
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