DoD's $186M Oshkosh Corp Contract for Turbine Upgrade Kits Lacked Competition
Contract Overview
Contract Amount: $186,359,691 ($186.4M)
Contractor: Oshkosh Corp
Awarding Agency: Department of Defense
Start Date: 2008-09-30
End Date: 2011-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $170.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Manufacturing
Official Description: ORDER ECP 89, ECP 94, AND ECP 75 UPGRADE KITS.
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54903
Plain-Language Summary
Department of Defense obligated $186.4 million to OSHKOSH CORP for work described as: ORDER ECP 89, ECP 94, AND ECP 75 UPGRADE KITS. Key points: 1. Significant spending on turbine upgrade kits by the Department of the Navy. 2. Sole-source award to Oshkosh Corp raises questions about price discovery. 3. Contract duration of 3 years with a firm fixed-price structure. 4. Manufacturing sector focus on turbine and generator set units.
Value Assessment
Rating: questionable
The contract value of $186.6 million for turbine upgrade kits is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts or alternative solutions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award to Oshkosh Corp. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition in this $186.6 million contract may result in inflated prices, impacting taxpayer funds negatively.
Public Impact
Taxpayers may be overpaying for essential military equipment due to a lack of competitive bidding. The Department of Defense relies on a single supplier for critical upgrade kits, potentially creating supply chain vulnerabilities. This contract highlights a potential area for improved procurement practices within the Navy to ensure better value for money.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for overpayment
Positive Signals
- Firm fixed-price contract
- Defined contract duration
Sector Analysis
This contract falls within the manufacturing sector, specifically for turbine and turbine generator set units. The $186.6 million award is significant for this niche manufacturing area, and the lack of competition warrants scrutiny.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation may be needed to determine if small business participation was considered or possible.
Oversight & Accountability
The sole-source nature of this contract suggests a potential gap in oversight regarding competitive procurement strategies. Ensuring fair and open competition is crucial for accountability and cost-effectiveness.
Related Government Programs
- Turbine and Turbine Generator Set Units Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Sole-source award
- Potential for inflated pricing
- Limited transparency in cost justification
- Potential supply chain vulnerability
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 $186.4 million to OSHKOSH CORP. ORDER ECP 89, ECP 94, AND ECP 75 UPGRADE KITS.
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 $186.4 million.
What is the period of performance?
Start: 2008-09-30. End: 2011-09-30.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified by factors such as unique capabilities, urgent needs, or the unavailability of other sources. A thorough review would be required to validate the necessity of this approach and ensure it was the most cost-effective option for the government.
How does the unit cost of these upgrade kits compare to industry benchmarks or previous procurements?
Without competitive bidding data or access to detailed cost breakdowns, it is challenging to establish a precise unit cost benchmark. The $186.6 million total award over 1095 days for an unspecified number of kits makes per-unit cost calculation difficult. Comparing this to similar contracts or internal cost estimates would be necessary to assess value.
What is the potential impact on operational readiness if Oshkosh Corp is the only provider of these critical upgrade kits?
Sole reliance on Oshkosh Corp for these critical upgrade kits could pose a risk to operational readiness. Any disruption in Oshkosh's production, supply chain issues, or pricing disputes could directly impact the Navy's ability to maintain its turbine systems. Diversifying suppliers or ensuring robust contingency plans would mitigate this risk.
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
Financial Breakdown
Contract Ceiling: $186,364,899
Exercised Options: $186,364,899
Current Obligation: $186,359,691
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: M6785404D5016
IDV Type: IDC
Timeline
Start Date: 2008-09-30
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2011-10-04
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