Defense awards Oshkosh Truck Corp $200.5M for wheeled combat vehicles, raising cost concerns
Contract Overview
Contract Amount: $200,568,913 ($200.6M)
Contractor: Oshkosh Corp
Awarding Agency: Department of Defense
Start Date: 2005-09-30
End Date: 2012-09-18
Contract Duration: 2,545 days
Daily Burn Rate: $78.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200512!500144!1700!M67854!COMMANDING GENERAL !M6785404D5016 !A!N! !N!0021 ! !20050930!20071215!006070445!006070445!006070445!N!OSHKOSH TRUCK CORPORATION !2307 OREGON ST !OSHKOSH !WI!54902!60500!139!55!OSHKOSH !WINNEBAGO !WISCONSIN !+000193375133!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4A!COMBAT VEHICLES !000 !* !333611!E! !5!A!S! ! !D!20100101!B! ! !A! !C!U!J!1!001!N!1B!A!W!F! ! !N!C!N! ! ! !A!A!A!A!000!A!B!Y! ! ! ! !1727!M67854!0001! !
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54903
Plain-Language Summary
Department of Defense obligated $200.6 million to OSHKOSH CORP for work described as: 200512!500144!1700!M67854!COMMANDING GENERAL !M6785404D5016 !A!N! !N!0021 ! !20050930!20071215!006070445!006070445!006070445!N!OSHKOSH TRUCK CORPORATION !2307 OREGON ST !OSHKOSH !WI!54902!60500!139!55!OSHKOSH !WINN… Key points: 1. The contract for wheeled combat vehicles was awarded to Oshkosh Truck Corporation. 2. The total value of the contract is $200,568,913.22. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Defense, specifically related to combat vehicles.
Value Assessment
Rating: questionable
The contract value of $200.5 million for trucks and truck tractors seems high given the duration and lack of competition. Benchmarking against similar defense vehicle contracts is difficult without more specific unit cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This method may lead to higher prices as there is no competitive pressure to drive down costs.
Taxpayer Impact: Taxpayer funds may be at risk of being overspent due to the lack of competitive bidding, potentially inflating the final cost of the vehicles.
Public Impact
Military readiness may be impacted by the timely delivery of these combat vehicles. The Department of Defense's procurement strategy for specialized vehicles is highlighted. Potential for increased costs impacts the defense budget and taxpayer allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Long contract duration
Positive Signals
- Award to established defense contractor
- Specific vehicle type for combat operations
Sector Analysis
This contract falls within the Defense sector, specifically for wheeled combat vehicles. Spending in this area is critical for national security but requires careful oversight to ensure value for money.
Small Business Impact
The award went to Oshkosh Truck Corporation, a large established company. There is no indication of small business participation in this specific contract.
Oversight & Accountability
The lack of competition warrants further oversight to ensure the pricing is fair and reasonable. Accountability for the procurement process and cost justification is crucial.
Related Government Programs
- Turbine and Turbine Generator Set Units Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in award justification
- High total contract value
Tags
turbine-and-turbine-generator-set-units-, department-of-defense, wi, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $200.6 million to OSHKOSH CORP. 200512!500144!1700!M67854!COMMANDING GENERAL !M6785404D5016 !A!N! !N!0021 ! !20050930!20071215!006070445!006070445!006070445!N!OSHKOSH TRUCK CORPORATION !2307 OREGON ST !OSHKOSH !WI!54902!60500!139!55!OSHKOSH !WINNEBAGO !WISCONSIN !+000193375133!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4A!COMBAT VEHICLES !000 !* !333611!E! !5!A!S! ! !D!201
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 Navy).
What is the total obligated amount?
The obligated amount is $200.6 million.
What is the period of performance?
Start: 2005-09-30. End: 2012-09-18.
What specific factors justified the sole-source award for these combat vehicles, and were alternatives considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without detailed documentation, it's difficult to assess if alternatives were thoroughly explored or if specific technological requirements necessitated this approach. Further investigation into the contracting officer's justification is needed to understand the rationale.
How does the per-unit cost of these vehicles compare to similar platforms acquired through competitive processes?
Direct per-unit cost comparison is challenging without specific unit pricing data and detailed specifications for the vehicles. However, the overall contract value of $200.5 million over nearly 8 years suggests a significant investment. A lack of competition often leads to higher per-unit costs compared to competitively bid contracts, indicating potential overspending.
What is the long-term strategic value and operational effectiveness of these wheeled combat vehicles for the Department of Defense?
The long-term value and effectiveness depend on the specific mission requirements and technological advancements these vehicles are designed to meet. As combat vehicles, they are likely intended to enhance troop protection and operational capabilities. However, the significant investment necessitates rigorous testing and evaluation to ensure they fulfill their intended roles efficiently and remain relevant against evolving threats.
Industry Classification
NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Turbine and Turbine Generator Set Units 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: 2307OREGON STREET, OSHKOSH, WI, 06
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: M6785404D5016
IDV Type: IDC
Timeline
Start Date: 2005-09-30
Current End Date: 2012-09-18
Potential End Date: 2012-09-18 00:00:00
Last Modified: 2012-09-17
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