Department of the Army awards $69.5M contract for 146 heavy military wreckers and support vehicles

Contract Overview

Contract Amount: $69,549,516 ($69.5M)

Contractor: Oshkosh Corp

Awarding Agency: Department of Defense

Start Date: 2010-09-27

End Date: 2013-04-30

Contract Duration: 946 days

Daily Burn Rate: $73.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER 0040 IS FOR THE DELIVERY OF 139 EA. HEMTT M984A4 WRECKER (W/O WINCH) AND 7 EA. M983A4 LETS IN FY11.

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $69.5 million to OSHKOSH CORP for work described as: DELIVERY ORDER 0040 IS FOR THE DELIVERY OF 139 EA. HEMTT M984A4 WRECKER (W/O WINCH) AND 7 EA. M983A4 LETS IN FY11. Key points: 1. Contract awarded to Oshkosh Corp for specialized military vehicles. 2. Vehicles include HEMTT M984A4 wreckers and M983A4 LET vehicles. 3. Delivery orders span FY11 with a duration of 946 days. 4. Contract type is Firm Fixed Price, indicating price certainty. 5. This award represents a significant investment in tactical vehicle sustainment. 6. The North American Industry Classification System (NAICS) code is 336212 for Truck Trailer Manufacturing.

Value Assessment

Rating: fair

The total award amount is $69.5 million for 146 vehicles. Benchmarking per-unit costs for specialized military vehicles like wreckers and LETs is challenging due to unique configurations and limited market data. However, the average unit price appears to be approximately $476,000. Without comparable contract data or detailed specifications, a precise value-for-money assessment is difficult. The firm fixed-price nature provides cost predictability for the government.

Cost Per Unit: Approximately $476,000 per unit (146 vehicles / $69.5M). N/A for direct comparison without detailed specifications and market data.

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The data explicitly states 'NOT COMPETED'. This suggests that either only one source was capable of meeting the requirement, or the government chose not to pursue a competitive process for this specific delivery order. The lack of competition limits price discovery and potentially leads to higher costs for the taxpayer.

Taxpayer Impact: Sole-source awards can result in higher prices for taxpayers as there is no competitive pressure to drive down costs. This limits the government's ability to secure the best possible value.

Public Impact

The U.S. Army benefits from the acquisition of critical recovery and logistics vehicles. These vehicles are essential for maintaining operational readiness and supporting combat missions. The delivery of these specialized trucks supports the Army's tactical vehicle fleet modernization. Workforce implications include manufacturing jobs at Oshkosh Corp and its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Potential for cost overruns if not managed closely due to sole-source nature.
Dependence on a single contractor for critical vehicle components.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Award to an established manufacturer with a track record in military vehicles.
Delivery orders align with stated fiscal year requirements.

Sector Analysis

The defense industrial base relies heavily on specialized vehicle manufacturers like Oshkosh Corp. This contract falls within the heavy truck and trailer manufacturing sector, a critical component of military logistics and sustainment. The market for such specialized military vehicles is often characterized by limited suppliers due to stringent technical requirements and security clearances. Comparable spending benchmarks are difficult to establish without specific vehicle configurations and quantities.

Small Business Impact

There is no indication of small business set-asides or subcontracting requirements in the provided data. As this was a sole-source award to Oshkosh Corp, the direct impact on small businesses is unclear. However, Oshkosh Corp likely utilizes a supply chain that includes small businesses for various components, indirectly benefiting them.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is limited due to the sole-source nature of the award, with less public visibility compared to competed contracts. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Tactical Wheeled Vehicles
Heavy Expanded Mobility Tactical Truck (HEMTT)
Logistics Support Vehicles
Military Truck Procurement
Defense Vehicle Manufacturing

Risk Flags

Sole-source award limits competition.
Lack of detailed cost breakdown hinders value assessment.
Long delivery timeline requires careful monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.5 million to OSHKOSH CORP. DELIVERY ORDER 0040 IS FOR THE DELIVERY OF 139 EA. HEMTT M984A4 WRECKER (W/O WINCH) AND 7 EA. M983A4 LETS IN FY11.

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 $69.5 million.

What is the period of performance?

Start: 2010-09-27. End: 2013-04-30.

What is Oshkosh Corp's track record with the Department of Defense for similar vehicle procurements?

Oshkosh Corporation has a long-standing and extensive track record with the Department of Defense, particularly in supplying tactical wheeled vehicles. They are a primary manufacturer of the Family of Heavy Tactical Vehicles (FHTV), which includes the HEMTT (Heavy Expanded Mobility Tactical Truck) and the LET (Load Handling System). Their history with the DoD includes numerous contracts for various configurations of these vehicles, often awarded through competitive processes but also through sole-source extensions or specialized requirements. Oshkosh is known for its engineering capabilities and ability to meet the demanding specifications of military operations. Their consistent role as a supplier suggests a strong performance history, though specific contract performance metrics (on-time delivery, quality) would require deeper analysis of individual contract data.

How does the per-unit cost of these vehicles compare to other similar military vehicle contracts?

The average per-unit cost of approximately $476,000 for the HEMTT M984A4 Wrecker and M983A4 LET vehicles is difficult to benchmark directly without detailed specifications and market context. Specialized military vehicles, especially those with recovery (wrecker) or heavy logistics (LET) capabilities, command higher prices than standard commercial trucks due to robust construction, advanced mobility features, and specific military requirements. Comparing this to other military truck contracts requires careful consideration of vehicle class, payload capacity, survivability features (like armor), and technological sophistication. For instance, lighter tactical vehicles or basic cargo trucks would be significantly less expensive. Without access to a database of comparable military vehicle unit costs with similar specifications, a precise comparison is not feasible, but the price point is consistent with specialized heavy-duty military equipment.

What are the primary risks associated with this sole-source contract award?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competitive bidding. Without competing offers, the government may not achieve the best possible value for its investment. Another risk is contractor dependency; if Oshkosh Corp faces production issues, supply chain disruptions, or financial difficulties, the Army's ability to procure these critical vehicles could be severely impacted. Furthermore, sole-source awards can sometimes indicate a lack of market research or an inability to identify alternative sources, which could represent a systemic risk in long-term procurement strategies. Ensuring robust oversight and negotiation is crucial to mitigate these risks.

What is the historical spending pattern for HEMTT M984A4 Wreckers and M983A4 LETs by the Department of the Army?

Historical spending on HEMTT M984A4 Wreckers and M983A4 LETs by the Department of the Army has been substantial over several fiscal years, reflecting the ongoing need for these specialized recovery and logistics platforms. The Army has consistently procured various configurations of the HEMTT family, including wreckers, since its introduction. Similarly, the M983A4 LET, a heavy-duty tractor truck, is a key component of the Army's logistics fleet. Spending patterns are influenced by modernization programs, operational tempo, and the lifecycle of existing vehicle fleets. While this specific delivery order is for FY11, similar procurement actions for these vehicle types have occurred in preceding and subsequent years. Analyzing aggregated contract data over multiple years would reveal trends in quantity, pricing, and total investment in these critical vehicle systems.

How does the delivery timeline (946 days) compare to typical lead times for such military vehicles?

A delivery timeline of 946 days (approximately 2.6 years) for 146 specialized military vehicles like the HEMTT M984A4 Wrecker and M983A4 LET is relatively long but not necessarily unusual for complex, low-volume military production. Lead times for such equipment are influenced by several factors: the manufacturer's production capacity, the complexity of the specific configurations ordered, the availability of specialized components from suppliers, and the government's phased delivery requirements. For high-demand, mass-produced items, shorter lead times are expected. However, for specialized vehicles that may require custom manufacturing or integration of unique systems, longer production cycles are common. This duration suggests a planned, phased delivery schedule rather than an urgent requirement, allowing the contractor adequate time for manufacturing and quality assurance.

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, 06

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $69,549,516

Exercised Options: $69,549,516

Current Obligation: $69,549,516

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV09D0024

IDV Type: IDC

Timeline