Marine Corps awards $327.6M contract for combat vehicles to Oshkosh Truck Corp
Contract Overview
Contract Amount: $327,640,961 ($327.6M)
Contractor: Oshkosh Corp
Awarding Agency: Department of Defense
Start Date: 2004-09-08
End Date: 2014-02-06
Contract Duration: 3,438 days
Daily Burn Rate: $95.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200412!007163!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785404D5016 !A!N! !N!0005 ! !20040908!20051231!006070445!006070445!006070445!N!OSHKOSH TRUCK CORP !2307OREGON STREET !OSHKOSH !WI!54903!60500!139!55!OSHKOSH !WINNEBAGO !WISCONSIN !+000144641358!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4A!COMBAT VEHICLES !000 !* !333611!E! !5!A!S! ! !D!20100101!B! ! !A! !C!U!J!1!001!N!1B!A!W!F! ! !N!C!N! ! ! !A!A!A!A!000!A!B!Y! ! ! ! ! ! !0001! !
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54903
Plain-Language Summary
Department of Defense obligated $327.6 million to OSHKOSH CORP for work described as: 200412!007163!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785404D5016 !A!N! !N!0005 ! !20040908!20051231!006070445!006070445!006070445!N!OSHKOSH TRUCK CORP !2307OREGON STREET !OSHKOSH !WI!54903!60500!139!55!OSHKOSH !WINN… Key points: 1. The contract is for combat vehicles, a critical component of military operations. 2. Oshkosh Truck Corp. is a significant player in the defense manufacturing sector. 3. The contract's value of over $327 million represents a substantial investment. 4. Potential risks include supply chain disruptions and technological obsolescence for combat vehicles.
Value Assessment
Rating: good
The contract value of $327.6 million for combat vehicles appears reasonable given the nature of specialized military equipment. Benchmarking against similar large-scale vehicle procurements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher cost to the government compared to a competitive process.
Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for these combat vehicles.
Public Impact
Enhances the Marine Corps' combat readiness and operational capabilities. Supports a major defense contractor and its associated supply chain. Represents a significant allocation of taxpayer funds towards national defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns in sole-source contracts
- Long-term sustainment and maintenance costs not fully detailed
Positive Signals
- Award to established defense contractor
- Addresses critical military equipment needs
- Long contract duration suggests strategic planning
Sector Analysis
This contract falls within the Defense sector, specifically for the procurement of combat vehicles. Spending in this area is driven by national security needs and technological advancements in military hardware.
Small Business Impact
The data does not provide information on small business participation in this contract. Large sole-source awards often have limited direct subcontracting opportunities for small businesses.
Oversight & Accountability
The contract's sole-source nature warrants close oversight to ensure fair pricing and prevent potential cost creep. Regular performance reviews and audits are crucial for accountability.
Related Government Programs
- Turbine and Turbine Generator Set Units Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potential for cost overruns due to lack of competitive pressure.
- Long-term sustainment and upgrade costs are not fully detailed.
- Dependence on a single supplier for critical defense equipment.
- Risk of technological obsolescence over the contract's extended period.
Tags
turbine-and-turbine-generator-set-units-, department-of-defense, wi, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $327.6 million to OSHKOSH CORP. 200412!007163!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785404D5016 !A!N! !N!0005 ! !20040908!20051231!006070445!006070445!006070445!N!OSHKOSH TRUCK CORP !2307OREGON STREET !OSHKOSH !WI!54903!60500!139!55!OSHKOSH !WINNEBAGO !WISCONSIN !+000144641358!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4A!COMBAT VEHICLES !000 !* !333611!E! !5!A!S! ! !D!201
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 Navy).
What is the total obligated amount?
The obligated amount is $327.6 million.
What is the period of performance?
Start: 2004-09-08. End: 2014-02-06.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. To ensure fair pricing, the government should have conducted a thorough cost analysis, reviewed historical pricing, and potentially engaged in negotiation with the contractor to achieve a reasonable price. Independent cost estimates and market research are also critical.
What are the projected lifecycle costs for these combat vehicles, including maintenance, upgrades, and disposal?
Lifecycle cost projections are essential for understanding the total financial commitment beyond the initial procurement. This includes budgeting for ongoing maintenance, potential upgrades to incorporate new technologies or address evolving threats, and eventual disposal or demilitarization. Without this information, the true long-term value and cost-effectiveness of the acquisition remain unclear.
How does the performance of these combat vehicles compare to similar systems acquired by other military branches or allied nations?
Comparing the performance of these combat vehicles against similar systems provides valuable insights into their effectiveness and technological standing. This analysis helps determine if the Marine Corps is acquiring a state-of-the-art system, if there are areas for improvement, or if alternative solutions might offer better capabilities or value for money. Such comparisons inform future procurement decisions.
Industry Classification
NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Turbine and Turbine Generator Set Units 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: 2307OREGON STREET, OSHKOSH, WI, 54903
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: M6785404D5016
IDV Type: IDC
Timeline
Start Date: 2004-09-08
Current End Date: 2014-02-06
Potential End Date: 2014-02-06 00:00:00
Last Modified: 2021-02-17
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