DoD awards $631.8M for Family of Medium Tactical Vehicles, with Oshkosh Defense as prime contractor

Contract Overview

Contract Amount: $631,790,382 ($631.8M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2012-03-26

End Date: 2016-04-30

Contract Duration: 1,496 days

Daily Burn Rate: $422.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ADDING ORDERING YEAR (OY) 04 PROGRAM SUPPORT, 2,517 EACH FAMILY OF MEDIUM TACTICAL VEHICLES (FMTV), AND APPLICABLE FEDERAL RETAIL EXCISE TAX (FRET) TO THE CONTRACT

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $631.8 million to OSHKOSH DEFENSE LLC for work described as: ADDING ORDERING YEAR (OY) 04 PROGRAM SUPPORT, 2,517 EACH FAMILY OF MEDIUM TACTICAL VEHICLES (FMTV), AND APPLICABLE FEDERAL RETAIL EXCISE TAX (FRET) TO THE CONTRACT Key points: 1. Contract awarded in 2012 for vehicle procurement and support, spanning over 1400 days. 2. Primarily focused on acquiring a significant quantity of medium tactical vehicles. 3. Oversight by the Department of the Army, indicating a critical defense logistics need. 4. Contract type is Firm Fixed Price, aiming to control costs for the government. 5. The procurement falls under the Truck Trailer Manufacturing industry code. 6. This award represents a substantial investment in tactical mobility for military operations.

Value Assessment

Rating: good

The total contract value of $631.8 million over approximately four years suggests a significant investment in tactical vehicle acquisition and support. While specific per-unit cost benchmarks are not provided in the raw data, the firm fixed-price nature of the contract indicates an effort to establish predictable costs. Comparing this to similar large-scale vehicle procurements would be necessary for a definitive value-for-money assessment, but the scale implies a competitive bidding process likely aimed at achieving economies of scale.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. This approach typically fosters a competitive environment, encouraging bidders to offer their best pricing and technical solutions to secure the award. The specific number of bidders is not detailed, but the 'full and open' designation implies a robust competition that should benefit price discovery.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by ensuring a wide range of potential suppliers can compete, driving down costs through market forces.

Public Impact

The primary beneficiaries are the U.S. Army personnel who will utilize these medium tactical vehicles for various operational and logistical missions. The contract delivers essential tactical vehicles, enhancing the mobility and operational readiness of the armed forces. The geographic impact is national, supporting military readiness across different deployment locations. Workforce implications include support for manufacturing and logistics jobs within the defense industrial base, particularly at Oshkosh Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial estimates did not fully account for all associated costs, despite FFP.
Long-term sustainment and maintenance costs beyond the initial delivery period are not detailed.
Dependence on a single prime contractor, Oshkosh Defense, could pose risks if production or support is disrupted.

Positive Signals

Firm Fixed Price contract structure provides cost certainty for the government.
Awarded under full and open competition, suggesting a competitive pricing environment.
Significant quantity award indicates a strategic investment in critical military assets.

Sector Analysis

This contract falls within the broader defense manufacturing sector, specifically focusing on tactical vehicle production. The market for military vehicles is characterized by large, complex contracts often awarded through competitive bidding processes. The size of this award, over $631 million, is substantial and reflects the significant demand for reliable and versatile medium tactical vehicles within the U.S. military's operational framework. Comparable spending benchmarks would involve analyzing other large-scale vehicle procurement contracts within the Department of Defense.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside criterion for this prime contract (ss: false, sb: false). While Oshkosh Defense, as the prime contractor, may engage small businesses as subcontractors, there is no explicit requirement or analysis of small business set-asides presented in this data. The impact on the small business ecosystem would depend on Oshkosh's subcontracting strategy, which is not detailed here.

Oversight & Accountability

Oversight for this contract is managed by the Department of the Army, a component of the Department of Defense. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed performance metrics and specific oversight activities are not publicly itemized in this summary data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Family of Medium Tactical Vehicles (FMTV)
Tactical Wheeled Vehicles
Defense Logistics Contracts
Military Vehicle Procurement
Oshkosh Corporation Contracts

Risk Flags

Potential for long-term sustainment costs not fully captured in initial procurement.
Dependence on prime contractor for parts and specialized knowledge.
Risk of component obsolescence over the vehicles' operational lifespan.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $631.8 million to OSHKOSH DEFENSE LLC. ADDING ORDERING YEAR (OY) 04 PROGRAM SUPPORT, 2,517 EACH FAMILY OF MEDIUM TACTICAL VEHICLES (FMTV), AND APPLICABLE FEDERAL RETAIL EXCISE TAX (FRET) 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 $631.8 million.

What is the period of performance?

Start: 2012-03-26. End: 2016-04-30.

What is the historical spending trend for the Family of Medium Tactical Vehicles (FMTV) program prior to and following this award?

Analyzing historical spending trends for the FMTV program requires accessing contract data beyond this single award. This specific contract, awarded in 2012 with an end date in 2016, represents a significant procurement effort during that period. To understand the broader trend, one would need to examine prior awards for FMTV systems, including potential sole-source or competitive contracts, and subsequent awards that may have continued production or introduced upgrades. Factors such as changing military requirements, budget allocations, and competition dynamics would influence these trends. Without access to a comprehensive contract history database, it's difficult to provide specific figures, but large-scale vehicle programs often see multi-year procurement cycles with varying award values based on quantity and specific configurations.

How does the per-unit cost of the FMTVs procured under this contract compare to industry benchmarks or similar government procurements?

The provided data does not include the specific number of vehicles procured under the $631.8 million contract, only mentioning '2,517 EACH FAMILY OF MEDIUM TACTICAL VEHICLES (FMTV)' as part of the order details. To calculate a per-unit cost, we would need to isolate the vehicle procurement cost from other potential costs like support, taxes, and fees. Assuming the $631.8 million primarily covers the vehicles and associated costs, a rough estimate could be derived. However, without a clear breakdown of costs and the exact quantity of vehicles delivered under this specific order, a precise per-unit cost comparison is not feasible. Industry benchmarks for tactical vehicles vary widely based on size, capabilities, and configuration. A thorough analysis would require comparing the calculated per-unit cost against data from similar DoD procurements or commercial equivalents, considering factors like armor, payload capacity, and mission-specific modifications.

What are the key performance metrics used to evaluate Oshkosh Defense's performance under this contract?

Performance metrics for defense contracts like this typically revolve around delivery schedules, quality standards, and adherence to technical specifications. For the FMTV program, key performance indicators (KPIs) would likely include on-time delivery rates for the vehicles, the number of defects or failures reported during testing and acceptance, and compliance with the technical data package and performance requirements outlined in the contract. Reliability and maintainability metrics might also be tracked post-delivery. While the contract is firm fixed-price, ensuring cost control, performance evaluation remains crucial for mission success. Specific KPIs are usually detailed within the contract's statement of work and performance clauses, and are monitored by the contracting officer's representative (COR) or the Defense Contract Management Agency (DCMA).

What is Oshkosh Defense's track record with the Department of the Army and similar large-scale vehicle procurements?

Oshkosh Defense has a long-standing and significant track record with the Department of the Army, particularly as the primary provider of the Family of Medium Tactical Vehicles (FMTV) for many years. They have been instrumental in supplying these vehicles, which are crucial for logistics and troop transport. Beyond the FMTV, Oshkosh has also been a key contractor for other heavy and specialized military vehicles, including Joint Light Tactical Vehicles (JLTV) and various support vehicles. Their history includes navigating complex production schedules, evolving military requirements, and competitive bidding processes. While generally considered a reliable supplier, like any large defense contractor, they have faced scrutiny and challenges related to production timelines, cost adjustments, and contract modifications over their extensive history with the DoD.

Are there any identified risks associated with the long-term sustainment and maintenance of the FMTVs procured under this contract?

Long-term sustainment and maintenance risks for the FMTVs procured under this contract are inherent in any large fleet of complex military equipment. Key risks include the availability and cost of spare parts, the need for ongoing technical support and training for maintenance personnel, and the potential for obsolescence of certain components over the vehicles' lifespan. The initial contract focuses on procurement, and separate sustainment contracts or organic Army maintenance capabilities would address long-term support. Without specific details on the sustainment plan associated with this award, it's assumed that the Army has established or will establish provisions for maintenance, repair, and overhaul. However, reliance on a single manufacturer for parts and specialized knowledge can pose a risk if that manufacturer faces financial difficulties or changes its product strategy.

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

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: $631,790,382

Exercised Options: $631,790,382

Current Obligation: $631,790,382

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV09D0159

IDV Type: IDC

Timeline