DoD Awards $583M for 1,274 HEMTT Trucks and 98 PLS Trailers to Oshkosh Defense
Contract Overview
Contract Amount: $583,045,233 ($583.0M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2010-06-29
End Date: 2013-12-31
Contract Duration: 1,281 days
Daily Burn Rate: $455.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PURCHASE OF 1,274 HEMTT TRUCKS, 452 RECAP HEMTT TRUCKS AND 98 PLS TRAILERS
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $583.0 million to OSHKOSH DEFENSE LLC for work described as: PURCHASE OF 1,274 HEMTT TRUCKS, 452 RECAP HEMTT TRUCKS AND 98 PLS TRAILERS Key points: 1. Significant investment in tactical vehicle fleet modernization. 2. Oshkosh Defense holds a strong position in the tactical wheeled vehicle market. 3. Risk associated with sole-source procurement and potential for price escalation. 4. Spending concentrated in the Defense sector, specifically tactical vehicle manufacturing.
Value Assessment
Rating: fair
The total award of $583M for 1,274 HEMTT trucks, 452 recap HEMTT trucks, and 98 PLS trailers appears high given the firm fixed price contract type. Benchmarking against similar large-scale tactical vehicle procurements is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This procurement was not competed, indicating a sole-source award to Oshkosh Defense. Lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: Taxpayers may bear a higher cost due to the absence of competitive bidding, potentially impacting the overall value for money.
Public Impact
Enhances military operational readiness and logistical capabilities. Supports domestic manufacturing jobs within the defense industrial base. Ensures the availability of critical transportation assets for military operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement limits competition.
- Potential for cost overruns without competitive pressure.
- Long contract duration could lead to price volatility.
Positive Signals
- Addresses critical military equipment needs.
- Supports a key defense contractor.
Sector Analysis
The defense sector, particularly tactical vehicle manufacturing, is characterized by high R&D costs and long production cycles. This award aligns with typical large-scale procurements for military logistics and transport.
Small Business Impact
No information is available regarding small business participation in this contract. Large sole-source awards often have limited direct subcontracting opportunities for small businesses.
Oversight & Accountability
The contract was awarded as a delivery order under a larger contract, suggesting some level of prior review. However, the sole-source nature warrants close oversight to ensure fair pricing and performance.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source procurement.
- Lack of competitive bidding.
- Potential for price escalation.
- Limited transparency on cost justification.
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 $583.0 million to OSHKOSH DEFENSE LLC. PURCHASE OF 1,274 HEMTT TRUCKS, 452 RECAP HEMTT TRUCKS AND 98 PLS TRAILERS
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 $583.0 million.
What is the period of performance?
Start: 2010-06-29. End: 2013-12-31.
What was the rationale for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data indicates the contract was 'NOT COMPETED'. A sole-source award typically occurs when only one responsible source can provide the required supplies or services. Reasons can include unique capabilities, urgent needs, or lack of market research. Without further documentation, it's unclear if alternatives were explored or if specific justifications like national security or proprietary technology were cited.
How does the per-unit cost of these HEMTT trucks and PLS trailers compare to industry benchmarks or previous procurements of similar vehicles?
The total award of $583M for 1,274 HEMTT trucks, 452 recap HEMTT trucks, and 98 PLS trailers, without a breakdown of units per vehicle type, makes direct per-unit cost comparison difficult. The average cost per vehicle is approximately $350,000. Benchmarking requires detailed specifications and market data for comparable tactical vehicles, which is not provided. The lack of competition further complicates price validation.
What are the long-term implications of relying on a single supplier for such a significant portion of the tactical vehicle fleet?
Long-term reliance on a single supplier like Oshkosh Defense for critical assets can create dependency and reduce negotiating leverage for future procurements. While it can foster specialized expertise and streamlined production, it also poses risks if the supplier faces financial instability, production issues, or significant price increases. Diversification strategies or robust long-term agreements with clear performance metrics are crucial for mitigating these risks.
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: $583,045,233
Exercised Options: $583,045,233
Current Obligation: $583,045,233
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: 2010-06-29
Current End Date: 2013-12-31
Potential End Date: 2013-12-31 12:12:00
Last Modified: 2016-11-16
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)