DoD Awards $87.8M for 50 HEMTT Wreckers to Oshkosh Corp, Delivery Order Issued
Contract Overview
Contract Amount: $87,828,742 ($87.8M)
Contractor: Oshkosh Corp
Awarding Agency: Department of Defense
Start Date: 2009-08-26
End Date: 2010-06-30
Contract Duration: 308 days
Daily Burn Rate: $285.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DO 0016 FOR 50 HEMTT M984A4 WRECKERS.
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $87.8 million to OSHKOSH CORP for work described as: DO 0016 FOR 50 HEMTT M984A4 WRECKERS. Key points: 1. Oshkosh Corp secures a significant delivery order for specialized military wreckers. 2. The contract is a firm fixed price, indicating clear cost expectations. 3. Lack of competition raises questions about potential price discovery. 4. The sector is specialized defense vehicle manufacturing, a niche area.
Value Assessment
Rating: fair
The total award is $87.8 million for 50 units. This suggests a per-unit cost of approximately $1.76 million. Without comparable contract data for similar heavy wreckers, a precise pricing assessment is difficult, but this figure appears substantial.
Cost Per Unit: $1,756,575
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This method can limit price discovery and potentially lead to higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if multiple vendors had vied for the contract.
Public Impact
Ensures operational readiness for military vehicle recovery. Supports a specific defense manufacturing capability. Impacts logistics and maintenance support for Army units.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High per-unit cost
- Sole-source award
Positive Signals
- Firm fixed price contract
- Specific operational need met
Sector Analysis
This contract falls within the defense manufacturing sector, specifically for heavy tactical vehicles. Spending benchmarks in this niche area are difficult to establish without proprietary data, but large vehicle procurements often represent significant investments.
Small Business Impact
The awardee, Oshkosh Corp, is a large business. There is no indication in the provided data that small businesses were involved as subcontractors or partners in this specific delivery order.
Oversight & Accountability
As a sole-source award, oversight is crucial to ensure fair pricing and contract compliance. The Department of the Army is responsible for monitoring this delivery order to confirm it meets requirements and represents good value.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- High per-unit cost requires justification.
- Potential for cost overruns without competitive pressure.
- Lack of transparency in pricing due to non-competitive nature.
Tags
truck-trailer-manufacturing, department-of-defense, wi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $87.8 million to OSHKOSH CORP. DO 0016 FOR 50 HEMTT M984A4 WRECKERS.
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 Army).
What is the total obligated amount?
The obligated amount is $87.8 million.
What is the period of performance?
Start: 2009-08-26. End: 2010-06-30.
What is the justification for the sole-source award, and were any attempts made to solicit competition?
The justification for a sole-source award is critical for understanding the procurement strategy. Without competition, the government relies on the awarded vendor's pricing. Further investigation into the contract file would reveal if a justification and approval (J&A) was used and the rationale provided, such as unique capabilities or urgent need.
How does the per-unit cost compare to similar heavy-duty recovery vehicles in the commercial market or other government contracts?
Benchmarking the per-unit cost of $1.76 million against commercial equivalents or other government contracts for similar heavy wreckers is essential for value assessment. While specialized military features may increase costs, a significant deviation from commercial pricing warrants scrutiny to ensure taxpayer funds are used efficiently.
What is the long-term sustainment and maintenance plan for these HEMTT wreckers, and are those costs factored into the overall value?
The initial award value does not capture the full lifecycle cost of these vehicles. Understanding the long-term sustainment, maintenance, spare parts, and training requirements is vital for a comprehensive value assessment. These ongoing costs can significantly impact the total ownership expense for the Department of Defense.
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
Address: 2307 OREGON ST, OSHKOSH, WI, 54902
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $87,828,742
Exercised Options: $87,828,742
Current Obligation: $87,828,742
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: 2009-08-26
Current End Date: 2010-06-30
Potential End Date: 2010-06-30 12:06:00
Last Modified: 2018-10-17
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