Army Awards Oshkosh Defense $1.55 Billion for 1,941 Medium Tactical Vehicles
Contract Overview
Contract Amount: $1,553,283,937 ($1.6B)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2010-11-29
End Date: 2016-03-31
Contract Duration: 1,949 days
Daily Burn Rate: $797.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ADDING 1,941 EACH FAMILY OF MEDIUM TACTICAL VEHICLES (FMTV) AND FRET FOR ARMY NATIONAL GUARD REQUIREMENTS
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $1.55 billion to OSHKOSH DEFENSE LLC for work described as: ADDING 1,941 EACH FAMILY OF MEDIUM TACTICAL VEHICLES (FMTV) AND FRET FOR ARMY NATIONAL GUARD REQUIREMENTS Key points: 1. Significant investment in tactical vehicle fleet modernization. 2. Oshkosh Defense holds a strong position in the tactical vehicle market. 3. Potential risks include production delays and cost overruns. 4. Spending aligns with broader defense sector modernization efforts.
Value Assessment
Rating: good
The total award of $1.55 billion for 1,941 vehicles suggests a per-unit cost of approximately $802,737. This is within a reasonable range for specialized military vehicles, considering complexity and customization.
Cost Per Unit: $802,737
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: The competitive award aims to ensure taxpayer funds are used efficiently for essential military equipment.
Public Impact
Enhances Army National Guard operational readiness and mobility. Supports domestic manufacturing and jobs in the defense industry. Provides critical equipment for troop deployment and logistics.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for schedule slippage given the large quantity and duration.
- Reliance on a single supplier for this specific vehicle family.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost certainty.
- Addresses critical Army National Guard equipment needs.
Sector Analysis
This spending falls within the Defense sector, specifically in the manufacturing of tactical vehicles. Benchmarks for similar large-scale vehicle procurements vary widely based on vehicle type and specifications.
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 supply chain.
Oversight & Accountability
The award is a delivery order under a larger contract, implying ongoing oversight of performance, quality, and delivery schedules by the Department of the Army.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Production capacity and lead times for large-scale orders.
- Potential for scope creep or change requests impacting cost and schedule.
- Long-term sustainment and maintenance support availability.
- Geopolitical factors affecting supply chain stability for components.
Tags
truck-trailer-manufacturing, department-of-defense, wi, delivery-order, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.55 billion to OSHKOSH DEFENSE LLC. ADDING 1,941 EACH FAMILY OF MEDIUM TACTICAL VEHICLES (FMTV) AND FRET FOR ARMY NATIONAL GUARD REQUIREMENTS
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 $1.55 billion.
What is the period of performance?
Start: 2010-11-29. End: 2016-03-31.
What is the projected lifecycle cost of these vehicles, including maintenance and upgrades?
The provided data focuses on the acquisition cost. A comprehensive lifecycle cost analysis would need to account for sustainment, maintenance, spare parts, fuel, training, and potential future upgrades. This information is crucial for understanding the total financial commitment beyond the initial purchase price and for long-term budget planning.
How does the performance and reliability of these Oshkosh vehicles compare to previous generations or competitor models?
The effectiveness of these vehicles hinges on their performance and reliability in diverse operational environments. Benchmarking against previous models and competitor offerings, through testing and operational feedback, is essential. This comparison informs whether the investment yields improved capabilities, reduced downtime, and enhanced soldier safety, ultimately validating the value proposition.
What are the specific technological advancements incorporated into these FMTVs that justify the investment?
The justification for this significant investment likely lies in technological advancements that enhance survivability, mobility, payload capacity, or fuel efficiency. Understanding these specific upgrades, such as improved armor, advanced navigation systems, or more efficient powertrains, is key to assessing the strategic value and future-proofing of the Army's tactical fleet.
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: 1
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: $1,553,283,937
Exercised Options: $1,553,283,937
Current Obligation: $1,553,283,937
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV09D0159
IDV Type: IDC
Timeline
Start Date: 2010-11-29
Current End Date: 2016-03-31
Potential End Date: 2016-03-31 12:03:00
Last Modified: 2021-09-16
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