DoD's Oshkosh Corp awarded $147.6M for CARGO VARIANT - VEHICLE, full and open competition

Contract Overview

Contract Amount: $147,630,830 ($147.6M)

Contractor: Oshkosh Corp

Awarding Agency: Department of Defense

Start Date: 2008-12-23

End Date: 2011-09-30

Contract Duration: 1,011 days

Daily Burn Rate: $146.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CARGO VARIANT - VEHICLE

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $147.6 million to OSHKOSH CORP for work described as: CARGO VARIANT - VEHICLE Key points: 1. Oshkosh Corp secured a significant contract for cargo vehicles. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract value is substantial, indicating a large-scale procurement. 4. The sector is automobile manufacturing, a critical component of defense logistics.

Value Assessment

Rating: good

The contract value of $147.6M for 1 unit over 1011 days suggests a high per-unit cost. Benchmarking against similar specialized vehicle procurements would be necessary for a precise assessment, but the duration and fixed-price nature imply a well-defined scope.

Cost Per Unit: $147,630,829.68

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The use of full and open competition is a positive sign for taxpayers, as it aims to achieve the best value through a competitive process.

Public Impact

Ensures the Department of the Navy has essential cargo vehicles for operations. Supports the automotive manufacturing sector and associated supply chains. The large contract value may indicate significant defense readiness needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • High per-unit cost warrants further investigation.
  • Long contract duration could introduce cost escalation risks if not managed.
  • Sole contractor for this specific variant might limit future competition.

Positive Signals

  • Awarded under full and open competition.
  • Firm fixed price contract type limits government cost risk.
  • Contract awarded to a known entity in the defense vehicle sector.

Sector Analysis

The automobile manufacturing sector, particularly for specialized defense vehicles, is characterized by high R&D costs and stringent quality requirements. Benchmarks for similar large-scale military vehicle procurements would provide further context for this $147.6M contract.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The primary contractor, Oshkosh Corp, is a large entity, suggesting that small business participation may have been through subcontracting opportunities rather than direct prime contract awards.

Oversight & Accountability

The contract was awarded in 2008 and completed in 2011, suggesting it is a historical contract. Oversight would have focused on contract performance, delivery schedules, and adherence to the firm fixed price. Post-award audits and reviews would assess value and compliance.

Related Government Programs

  • Automobile Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • High per-unit cost.
  • Long contract duration.
  • Potential for sole-source follow-on contracts.
  • Dependence on a single large manufacturer.

Tags

automobile-manufacturing, department-of-defense, wi, do, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $147.6 million to OSHKOSH CORP. CARGO VARIANT - VEHICLE

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 $147.6 million.

What is the period of performance?

Start: 2008-12-23. End: 2011-09-30.

What was the specific operational need driving the procurement of these high-cost cargo vehicles?

The operational need likely stemmed from requirements for robust, specialized cargo transport capabilities within the Department of the Navy's fleet. This could include supporting expeditionary operations, logistics in challenging environments, or replacing aging vehicle assets. The high cost per unit suggests advanced features, durability, or specific mission requirements beyond standard commercial cargo vehicles.

How did the full and open competition process ensure optimal value given the high per-unit cost?

Full and open competition theoretically allows multiple bidders to offer their best pricing and technical solutions. For high-cost, specialized items like these vehicles, the competition likely focused on meeting stringent military specifications while achieving the lowest possible price within those constraints. The government would have evaluated proposals based on a combination of technical merit and cost to ensure value.

What are the long-term implications of this contract on the Navy's vehicle fleet readiness and modernization?

This contract likely contributed to the modernization and readiness of the Navy's vehicle fleet by providing critical cargo transport capabilities. The specific variant procured would have addressed identified gaps or enhanced existing capacities. The long-term implications depend on the vehicle's performance, reliability, and how well it integrated into the overall logistics strategy, potentially influencing future procurement decisions.

Industry Classification

NAICS: ManufacturingMotor Vehicle ManufacturingAutomobile Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M6785406R5028

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2307 OREGON ST, OSHKOSH, WI, 06

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $147,630,830

Exercised Options: $147,630,830

Current Obligation: $147,630,830

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785406D5028

IDV Type: IDC

Timeline

Start Date: 2008-12-23

Current End Date: 2011-09-30

Potential End Date: 2011-09-30 00:00:00

Last Modified: 2010-12-22

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