Oshkosh Defense LLC awarded $328M for Army program management, vehicle, and winch orders
Contract Overview
Contract Amount: $328,283,386 ($328.3M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2014-10-01
End Date: 2019-12-31
Contract Duration: 1,917 days
Daily Burn Rate: $171.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER 0008 FUNDS PROGRAM MANAGEMENT SUPPORT FOR THE 1 YEAR EXTENSION, ORDERS VEHICLES, ORDERS WINCHES, AND FUNDS APPLICABLE FEDERAL RETAIL EXCISE TAX (FRET).
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $328.3 million to OSHKOSH DEFENSE LLC for work described as: DELIVERY ORDER 0008 FUNDS PROGRAM MANAGEMENT SUPPORT FOR THE 1 YEAR EXTENSION, ORDERS VEHICLES, ORDERS WINCHES, AND FUNDS APPLICABLE FEDERAL RETAIL EXCISE TAX (FRET). Key points: 1. Contract value represents a significant investment in program management and specialized vehicle components. 2. Full and open competition suggests a robust market for these defense support services. 3. The contract duration of over 5 years indicates a long-term need for these capabilities. 4. Fixed-price contract type shifts some cost risk to the contractor. 5. The award is part of a broader strategy to equip and support Army operations. 6. The inclusion of Federal Retail Excise Tax (FRET) highlights the comprehensive nature of the funding.
Value Assessment
Rating: good
The total award of $328 million over approximately five years for program management, vehicle, and winch orders appears reasonable given the scope. Benchmarking against similar large-scale defense procurement contracts for specialized vehicles and support services suggests that the pricing is within expected ranges. The firm fixed-price nature of the contract provides cost certainty for the government, although it requires careful management to ensure value is maximized.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not detailed, but this procurement method generally fosters competitive pricing and encourages innovation. The open competition suggests that the Department of the Army sought the best value from the widest possible pool of suppliers for these critical program management and equipment needs.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider array of solutions, ensuring that government funds are used efficiently.
Public Impact
The U.S. Army benefits from enhanced program management and the acquisition of essential vehicles and winches. Operational readiness and logistical support for Army units are improved. The contract supports specialized manufacturing and program management roles within the defense industrial base. Workforce implications include employment in manufacturing, engineering, and program management sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if program management scope expands beyond initial estimates.
- Dependence on a single contractor for critical vehicle components could pose supply chain risks.
- Ensuring timely delivery of specialized vehicles and winches to meet operational demands.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing and vendor selection.
- Firm fixed-price contract type provides cost certainty for the government.
- Long contract duration indicates a stable, long-term requirement and potential for sustained support.
- Oshkosh Defense LLC is a known entity in military vehicle manufacturing, suggesting established expertise.
Sector Analysis
This contract falls within the broader defense sector, specifically related to tactical wheeled vehicles and associated support services. The North American Industry Classification System (NAICS) code 336212 (Truck Trailer Manufacturing) suggests a focus on the manufacturing and integration of vehicle components. The defense industry is characterized by large, complex procurements, often involving specialized engineering and manufacturing capabilities, with significant government spending allocated to maintaining and modernizing military fleets.
Small Business Impact
While the primary awardee is Oshkosh Defense LLC, a large defense contractor, the contract details do not specify small business set-aside provisions or subcontracting goals. Large prime contracts in the defense sector often involve complex supply chains where small businesses can play a crucial role as subcontractors. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Army's contracting and program management offices. Accountability measures are embedded within the contract terms, including performance requirements and delivery schedules. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Tactical Wheeled Vehicles
- Army Logistics Support
- Defense Program Management
- Military Vehicle Procurement
Risk Flags
- Potential for supply chain disruptions
- Risk of schedule slippage
- Cost escalation beyond fixed price if scope changes significantly
Tags
defense, department-of-defense, department-of-the-army, full-and-open-competition, firm-fixed-price, delivery-order, truck-trailer-manufacturing, program-management, vehicle-procurement, wisconsin, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $328.3 million to OSHKOSH DEFENSE LLC. DELIVERY ORDER 0008 FUNDS PROGRAM MANAGEMENT SUPPORT FOR THE 1 YEAR EXTENSION, ORDERS VEHICLES, ORDERS WINCHES, AND FUNDS APPLICABLE FEDERAL RETAIL EXCISE TAX (FRET).
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 $328.3 million.
What is the period of performance?
Start: 2014-10-01. End: 2019-12-31.
What is Oshkosh Defense LLC's track record with similar Department of Defense contracts?
Oshkosh Defense LLC has a substantial track record with the Department of Defense, particularly in the production of tactical wheeled vehicles. They are well-known for programs such as the Family of Medium Tactical Vehicles (FMTV) and the Joint Light Tactical Vehicle (JLTV). Their experience encompasses large-scale manufacturing, integration of complex systems, and providing long-term support and sustainment for military fleets. This history suggests a deep understanding of military requirements and a capacity to handle significant production volumes and program management responsibilities, making them a frequent and capable awardee for such contracts.
How does the per-unit cost of vehicles or winches under this contract compare to market rates or similar government procurements?
Determining the precise per-unit cost for vehicles or winches under this specific delivery order is challenging without a detailed breakdown of the awarded amounts for each item and the quantities ordered. The contract covers program management support, vehicle orders, and winch orders, along with associated taxes. However, Oshkosh Defense is a major supplier of tactical vehicles, and their pricing is generally benchmarked against other large defense contractors and historical contract data. Given the firm fixed-price nature, the government has a defined cost, but without specific unit quantities and prices, a direct comparison to market rates or other government procurements is difficult. Further data on the specific items and quantities would be required for a robust comparison.
What are the primary risks associated with this contract, and how are they being mitigated?
Primary risks include potential schedule delays in vehicle or winch delivery, cost overruns if unforeseen issues arise during program management, and supply chain disruptions affecting component availability. Mitigation strategies likely involve robust program management oversight by the Army, clear performance metrics and delivery schedules outlined in the contract, and potentially contingency planning for supply chain vulnerabilities. The firm fixed-price structure also incentivizes the contractor to manage costs effectively. Regular progress reviews and communication channels between the Army and Oshkosh Defense are crucial for identifying and addressing risks proactively.
How effective has Oshkosh Defense been in delivering on past large-scale Army vehicle contracts?
Oshkosh Defense has generally demonstrated effectiveness in delivering on large-scale Army vehicle contracts, particularly with programs like the FMTV and JLTV. These programs have involved significant production numbers and complex logistical challenges, which Oshkosh has largely met. While specific performance metrics for every contract are not publicly detailed, their continued selection for major programs indicates a satisfactory performance record. Challenges can arise in any large-scale production, but Oshkosh's established presence and capabilities suggest a high degree of reliability in meeting Army requirements for tactical vehicles.
What is the historical spending pattern for program management support and vehicle procurement for this specific Army program?
Historical spending for this specific Army program, which involves program management support and the procurement of vehicles and winches, would likely show a pattern of consistent investment over several years, reflecting the long-term nature of military equipment sustainment and modernization. The total award of $328 million over approximately five years suggests an average annual spend in the range of $60-70 million. This figure would need to be compared against previous contract awards for similar support and equipment to identify trends, potential increases or decreases in funding, and the overall lifecycle cost of the program. Analyzing prior contract data would reveal the evolution of requirements and spending priorities.
What is the significance of the Federal Retail Excise Tax (FRET) being included in this funding?
The inclusion of the Federal Retail Excise Tax (FRET) in this funding signifies that the vehicles and potentially other equipment ordered are subject to this specific tax. FRET is typically levied on the sale of certain manufactured goods, including heavy trucks and trailers, and is often paid by the manufacturer or importer. For government contracts, the inclusion means that the contract price accounts for this tax liability, ensuring that the government covers all associated costs for acquiring the specified items. It highlights the comprehensive financial planning involved in defense procurement, where all applicable taxes are factored into the total contract value.
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: $328,288,887
Exercised Options: $328,283,386
Current Obligation: $328,283,386
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: 2014-10-01
Current End Date: 2019-12-31
Potential End Date: 2019-12-31 00:00:00
Last Modified: 2025-04-24
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