DoD awards Oshkosh Defense $361.8M for M-ATV Underbody Improvement Kits
Contract Overview
Contract Amount: $361,799,556 ($361.8M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2011-06-16
End Date: 2012-11-30
Contract Duration: 533 days
Daily Burn Rate: $678.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UNDERBODY IMPROVEMENT KITS FOR THE M-ATV.
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $361.8 million to OSHKOSH DEFENSE LLC for work described as: UNDERBODY IMPROVEMENT KITS FOR THE M-ATV. Key points: 1. Significant contract value for specialized military vehicle components. 2. Oshkosh Defense holds a strong position in the armored vehicle market. 3. Potential risks include supply chain disruptions and evolving military requirements. 4. Spending falls within the broad 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' sector.
Value Assessment
Rating: good
The contract value of $361.8 million for underbody improvement kits appears substantial, reflecting the specialized nature of the M-ATV. Benchmarking against similar defense contracts for vehicle upgrades would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair market prices, though specific bid details are not provided.
Taxpayer Impact: Taxpayer funds are allocated for essential military equipment upgrades, aimed at enhancing vehicle survivability and performance.
Public Impact
Enhances the survivability and operational effectiveness of the M-ATV fleet. Supports the readiness of military personnel operating in demanding environments. Contributes to the ongoing modernization of U.S. military ground vehicles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical challenges arise.
- Dependence on a single supplier for critical components could pose a risk.
- Changes in military operational needs could impact the relevance of these upgrades.
Positive Signals
- Awarded through full and open competition, indicating market responsiveness.
- Addresses a critical need for vehicle survivability improvements.
- Supports a key defense contractor and associated supply chain.
Sector Analysis
This contract falls under the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' sector, which is characterized by high R&D investment and stringent quality requirements. Spending benchmarks for similar upgrade programs are typically in the tens to hundreds of millions.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as Oshkosh Defense LLC is a large corporation. There is no specific information on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure compliance and accountability.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source supplier risk (if applicable for specific components)
- Technological obsolescence
- Supply chain disruptions
- Scope creep leading to cost overruns
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, wi, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $361.8 million to OSHKOSH DEFENSE LLC. UNDERBODY IMPROVEMENT KITS FOR THE M-ATV.
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 $361.8 million.
What is the period of performance?
Start: 2011-06-16. End: 2012-11-30.
What is the specific technical improvement these kits provide to the M-ATV, and how does it enhance survivability?
The underbody improvement kits are designed to enhance the mine-resistance and blast-protection capabilities of the M-ATV. This typically involves reinforcing the V-shaped hull and adding specialized materials to better absorb and deflect explosive forces, thereby significantly increasing the safety of the vehicle's occupants during IED or mine detonations.
What are the primary risks associated with the long-term sustainment and potential obsolescence of these M-ATV underbody improvements?
Long-term risks include the potential for the technology to become outdated as threat environments evolve, requiring further costly upgrades. Obsolescence could also arise from the availability of newer vehicle platforms. Sustainment risks involve ensuring the continued availability of specialized parts and maintenance expertise over the operational life of the M-ATV fleet.
How effectively does the 'full and open competition' procurement method ensure value for money for these specialized vehicle components?
Full and open competition is designed to maximize the number of potential bidders, fostering price competition and encouraging innovative solutions. For specialized components like these M-ATV kits, it increases the likelihood that the government receives competitive bids from qualified manufacturers, thereby promoting value for money. However, the effectiveness also depends on the clarity of technical specifications and the evaluation criteria used.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $361,799,556
Exercised Options: $361,799,556
Current Obligation: $361,799,556
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV09D0111
IDV Type: IDC
Timeline
Start Date: 2011-06-16
Current End Date: 2012-11-30
Potential End Date: 2012-11-30 00:00:00
Last Modified: 2016-02-10
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