DoD Awards Oshkosh Corp $112.8M for M1070/M1074/M1075 Truck Rebuilds and Parts
Contract Overview
Contract Amount: $112,753,347 ($112.8M)
Contractor: Oshkosh Corp
Awarding Agency: Department of Defense
Start Date: 2006-12-05
End Date: 2009-01-15
Contract Duration: 772 days
Daily Burn Rate: $146.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: REBUILD OF 240 EA M1070 HET TRUCKS, 100 EA M1074 PLS TRUCKS, 100 EA M1075 PLS TRUCKS PLUS 100 EA 2ND FUEL TANKS, 75 EA M1076 PLS TRAILERS AND MISSING PARTS FOR 440 TRUCKS AND 75 TRAILERS.
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $112.8 million to OSHKOSH CORP for work described as: REBUILD OF 240 EA M1070 HET TRUCKS, 100 EA M1074 PLS TRUCKS, 100 EA M1075 PLS TRUCKS PLUS 100 EA 2ND FUEL TANKS, 75 EA M1076 PLS TRAILERS AND MISSING PARTS FOR 440 TRUCKS AND 75 TRAILERS. Key points: 1. Significant contract for heavy-duty military truck sustainment and parts. 2. Sole-source award to Oshkosh Corp, a major defense contractor. 3. Potential for cost overruns given the scope and duration. 4. Focus on maintaining critical logistics and transport capabilities.
Value Assessment
Rating: fair
The contract value of $112.8 million for rebuilding and parts for over 600 heavy trucks appears substantial. Benchmarking against similar sustainment contracts for specialized military vehicles is difficult without more granular data on the scope of work per unit.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Oshkosh Corp. This limits price discovery and potentially leads to higher costs compared to a competitive bidding process.
Taxpayer Impact: Taxpayer funds are being used for a sole-source contract, which may not represent the best value achievable through competition.
Public Impact
Ensures operational readiness of critical military logistics vehicles. Supports the U.S. Army's heavy-lift transport capabilities. Funds a significant portion of work for a major defense contractor. Impacts the supply chain for specialized truck manufacturing and repair.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price scrutiny.
- Extended contract duration (772 days) increases risk of cost escalation.
- Scope includes parts for numerous trucks and trailers, adding complexity.
Positive Signals
- Addresses critical need for vehicle sustainment.
- Awarded to a known, experienced contractor (Oshkosh Corp).
- Firm Fixed Price contract provides some cost certainty.
Sector Analysis
This contract falls within the Truck Trailer Manufacturing sector, specifically supporting military logistics vehicles. Spending benchmarks for specialized military vehicle rebuilds are highly variable and depend on the specific platform and scope of work.
Small Business Impact
The contract was awarded directly to Oshkosh Corp, a large business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and necessity. Oversight should focus on contract performance and adherence to the firm fixed price.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Long contract duration
- Complex scope of work
- Potential for cost escalation
- Lack of small business participation noted
Tags
truck-trailer-manufacturing, department-of-defense, wi, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $112.8 million to OSHKOSH CORP. REBUILD OF 240 EA M1070 HET TRUCKS, 100 EA M1074 PLS TRUCKS, 100 EA M1075 PLS TRUCKS PLUS 100 EA 2ND FUEL TANKS, 75 EA M1076 PLS TRAILERS AND MISSING PARTS FOR 440 TRUCKS AND 75 TRAILERS.
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 $112.8 million.
What is the period of performance?
Start: 2006-12-05. End: 2009-01-15.
What was the justification for awarding this contract on a sole-source basis instead of competing it?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For specialized military equipment like the M1070 and M1074/M1075 trucks, the original manufacturer or a highly specialized entity with unique technical knowledge and facilities might be the only option. This could be due to proprietary designs, unique repair processes, or specific integration requirements.
What are the primary risks associated with the extended duration and scope of this contract?
The 772-day duration increases the risk of unforeseen cost increases due to inflation, supply chain disruptions, or changes in material costs. The broad scope, including rebuilds for multiple truck types and parts for numerous additional vehicles, adds complexity. This complexity can lead to potential delays, scope creep, and challenges in accurately estimating and controlling costs throughout the contract lifecycle.
How does the firm fixed price contract structure mitigate potential cost overruns for the government?
A Firm Fixed Price (FFP) contract shifts the majority of the cost risk to the contractor. Oshkosh Corp is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This structure provides the government with cost certainty, as the total price is fixed upfront. However, the contractor may build in higher contingency amounts due to the sole-source nature and scope, potentially impacting the initial price.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
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: 2307OREGON STREET, OSHKOSH, WI, 06
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $112,753,347
Exercised Options: $112,753,347
Current Obligation: $112,753,347
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV04D0322
IDV Type: IDC
Timeline
Start Date: 2006-12-05
Current End Date: 2009-01-15
Potential End Date: 2009-01-15 00:00:00
Last Modified: 2009-07-31
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