Army Spends $646M on 728 Oshkosh Trucks via Non-Competed Delivery Order
Contract Overview
Contract Amount: $646,250,325 ($646.3M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2009-12-22
End Date: 2013-04-30
Contract Duration: 1,225 days
Daily Burn Rate: $527.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PURCHASE OF 728 PLS TRUCKS
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $646.3 million to OSHKOSH DEFENSE LLC for work described as: PURCHASE OF 728 PLS TRUCKS Key points: 1. Significant investment of $646.25M for 728 trucks. 2. Sole-source award to Oshkosh Defense LLC raises competition concerns. 3. Contract awarded as a delivery order, suggesting a specific need. 4. Truck Trailer Manufacturing sector (NAICS 336212) is the focus.
Value Assessment
Rating: questionable
The total award of $646.25M for 728 trucks results in an average price of approximately $887,637 per truck. Without comparable contract data for similar heavy-duty military trucks, it's difficult to definitively assess if this price is competitive.
Cost Per Unit: $887,637
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Oshkosh Defense LLC. The lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition in this large procurement may result in taxpayers paying a premium for these trucks.
Public Impact
Military readiness potentially enhanced by the acquisition of new trucks. Taxpayer funds are significantly allocated to defense procurement. Oshkosh Defense LLC benefits from a large, sole-source contract. The long contract duration (1225 days) suggests a substantial and ongoing need.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High per-unit cost
- Sole-source award
Positive Signals
- Acquisition of critical equipment
- Award to established defense contractor
Sector Analysis
The Department of the Army's procurement falls within the broader defense sector, specifically focusing on vehicle manufacturing. Spending benchmarks in this area can vary widely based on vehicle type, technology, and quantity, but large sole-source awards warrant scrutiny.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature of the award further suggests limited opportunity for small business participation.
Oversight & Accountability
The 'NOT COMPETED' status flags this award for potential oversight review. Agencies should justify sole-source procurements to ensure they are necessary and that fair and reasonable pricing was achieved.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Sole-source award
- High per-unit cost
- No small business participation indicated
Tags
truck-trailer-manufacturing, department-of-defense, wi, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $646.3 million to OSHKOSH DEFENSE LLC. PURCHASE OF 728 PLS TRUCKS
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 $646.3 million.
What is the period of performance?
Start: 2009-12-22. End: 2013-04-30.
What specific military requirements justified a sole-source award for these 728 PLS trucks, and were alternative solutions or competitive approaches considered?
Justifying a sole-source award typically requires demonstrating that only one responsible source can provide the supplies or services, or that a compelling urgency necessitates bypassing full and open competition. For these PLS trucks, the justification would likely center on unique technical specifications, existing platform integration, or specific mission requirements that only Oshkosh Defense could meet. A thorough review would examine the documentation supporting these claims and whether any market research was conducted to explore competitive alternatives.
How does the per-unit cost of $887,637 for these PLS trucks compare to similar military truck procurements, and what factors contribute to this cost?
The per-unit cost of $887,637 is substantial and requires comparison with similar military truck acquisitions to assess value. Factors influencing this cost could include advanced armor, specialized equipment, logistical support packages, and the specific capabilities of the PLS (Palletized Load System) truck. Without access to detailed specifications and pricing breakdowns, or benchmark data from comparable contracts, it's challenging to determine if this price represents fair market value or if it's inflated due to the lack of competition.
What is the long-term strategic value and operational effectiveness of acquiring these 728 PLS trucks, particularly given the sole-source procurement method?
The long-term strategic value lies in enhancing the Army's logistical capabilities, enabling efficient transport of essential supplies and equipment to the front lines. The operational effectiveness depends on the trucks' reliability, performance in various terrains and conditions, and integration with existing military systems. However, the sole-source procurement method raises questions about whether the most cost-effective and technologically advanced solution was secured, potentially impacting the overall value proposition for taxpayer investment.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer 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
Parent Company: Oshkosh Corp (UEI: 006070445)
Address: 2307 OREGON ST, OSHKOSH, WI, 54903
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $646,250,325
Exercised Options: $646,250,325
Current Obligation: $646,250,325
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV09D0024
IDV Type: IDC
Timeline
Start Date: 2009-12-22
Current End Date: 2013-04-30
Potential End Date: 2013-04-30 12:04:00
Last Modified: 2016-11-08
More Contracts from Oshkosh Defense LLC
- THE Contract Includes Firm Fixed Price (FFP) Contact Line Item Numbers (clin) for Vehicles, Trailers, Kits (packaged and Installed), Test Hardware and Support, Vehicle Refurbishment, Systems Engineering/ Program Management (sepm), Storage and Maintenance of Vehicles, Vehicle Refurbishment, Integrated Product Support (IPS), and a Technical Data Package (TDP). the Contract Also Includes Cost Plus Fixed FEE (cpff) Clins for System Technical Support (STS), Total Package Fielding (TPF), and Interim Contractor Support (ICS). the Contract Contains Provisions for an Economic Price Adjustment (EPA) for Material Fluctuations for the Vehicles Procured in Option Periods SIX, Seven, and Eight — $6.1B (Department of Defense)
- Purchase Mrap Atvs, Including Associated Parts and Field Support — $3.5B (Department of Defense)
- Contract W56hzv-20-C-0050 IS Issued to Provide Continuation of Contract W56hzv-15-C-0095 — $2.1B (Department of Defense)
- Adding 2,634 Each Family of Medium Tactical Vehicles (fmtv), Ordering Year (OY) 02 Program Support, and Fret to Contract W56hzv-09-D-0159 — $1.9B (Department of Defense)
- Adding 1,941 Each Family of Medium Tactical Vehicles (fmtv) and Fret for Army National Guard Requirements — $1.6B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)