Oshkosh Corp awarded $124.3M for FIFTH WHEEL VARIANT - VEHICLE, highlighting automobile manufacturing sector spending

Contract Overview

Contract Amount: $124,309,698 ($124.3M)

Contractor: Oshkosh Corp

Awarding Agency: Department of Defense

Start Date: 2010-02-05

End Date: 2011-12-31

Contract Duration: 694 days

Daily Burn Rate: $179.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FIFTH WHEEL VARIANT - VEHICLE

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54903

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $124.3 million to OSHKOSH CORP for work described as: FIFTH WHEEL VARIANT - VEHICLE Key points: 1. Contract value represents significant investment in specialized vehicle components. 2. Oshkosh Corp's role suggests established capabilities in defense vehicle production. 3. Full and open competition indicates a potentially competitive bidding process. 4. Fixed-price contract structure aims to control costs for the government. 5. Awarded by the Department of the Navy, aligning with naval fleet modernization. 6. The contract duration of nearly two years suggests a substantial production run.

Value Assessment

Rating: good

The contract value of $124.3 million for FIFTH WHEEL VARIANT - VEHICLE appears substantial, reflecting the specialized nature of the components. Benchmarking against similar defense vehicle contracts would provide a clearer picture of value for money. However, the firm fixed-price nature suggests an effort to establish cost certainty. Without specific per-unit data or comparison to market rates for these specialized fifth wheel variants, a precise value assessment is challenging, but the scale implies a significant procurement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. This approach typically fosters a competitive environment, potentially leading to better pricing and innovation. The number of bidders is not specified, but the designation implies a robust process was intended. The open competition is a positive indicator for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Taxpayers benefit from the potential for cost savings and access to a wider range of qualified suppliers through the full and open competition process.

Public Impact

The U.S. Department of the Navy benefits from the acquisition of critical vehicle components for its fleet. This contract supports the operational readiness and modernization of naval vehicles. The primary service delivered is the manufacturing and supply of specialized fifth wheel variants. The geographic impact is likely concentrated around Oshkosh Corp's manufacturing facilities and their supply chain. Workforce implications include employment opportunities in automobile manufacturing and related supply industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial pricing did not fully account for production complexities.
Dependence on a single manufacturer (Oshkosh Corp) for this specific variant could pose supply chain risks.
Ensuring quality control and adherence to strict military specifications throughout the production process.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract provides cost certainty for the government.
Oshkosh Corp has a significant track record in defense vehicle manufacturing.
The contract supports a critical component for naval vehicle operations.

Sector Analysis

This contract falls within the automobile manufacturing sector (NAICS 336111), specifically focusing on specialized components for heavy-duty vehicles. The defense industry is a significant consumer of such manufactured goods, often requiring robust and durable solutions. Spending in this area is driven by military readiness requirements and fleet modernization programs. Comparable spending benchmarks would involve analyzing other large-scale vehicle component procurements for military applications.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Oshkosh Corp, as a large prime contractor, may engage small businesses as subcontractors. However, without specific subcontracting plans or data, the direct impact on the small business ecosystem is unclear. The focus on a large prime award suggests opportunities for small businesses would likely be through the supply chain rather than direct prime contracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified components. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Vehicle Procurement
Heavy-Duty Truck Manufacturing
Defense Logistics Support
Naval Fleet Support Equipment

Risk Flags

Potential for cost overruns if initial estimates are inaccurate.
Supply chain dependency on a single prime contractor.
Ensuring adherence to stringent military specifications.
Long-term availability of spare parts and maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $124.3 million to OSHKOSH CORP. FIFTH WHEEL 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 $124.3 million.

What is the period of performance?

Start: 2010-02-05. End: 2011-12-31.

What is Oshkosh Corp's historical performance and track record with Department of Defense contracts, particularly for vehicle components?

Oshkosh Corporation has a long-standing and extensive history of supplying vehicles and components to the U.S. Department of Defense. They are well-known for producing a wide range of military vehicles, including the Family of Medium Tactical Vehicles (FMTV), Joint Light Tactical Vehicles (JLTV), and heavy equipment transporters. Their track record generally indicates a strong capability in meeting stringent military specifications and delivery schedules. However, like any large defense contractor, they may have faced specific performance challenges or contract disputes on individual awards. A detailed review of their contract history, including past performance evaluations and any significant issues, would be necessary for a comprehensive assessment. This specific $124.3 million contract for fifth wheel variants suggests a specialized component within their broader portfolio, likely leveraging their expertise in heavy vehicle systems.

How does the $124.3 million contract value compare to similar procurements for fifth wheel variants or related heavy vehicle components?

Benchmarking the $124.3 million contract value for FIFTH WHEEL VARIANT - VEHICLE requires access to detailed historical procurement data for similar specialized components. Without specific unit counts or detailed specifications, direct comparison is difficult. However, the total value suggests a significant quantity or a highly specialized, high-cost variant. Large-scale procurements for major vehicle platforms or their critical sub-systems often run into tens or hundreds of millions of dollars. If this contract represents a substantial number of units or a particularly complex design, the value could be considered reasonable within the context of defense contracting. Conversely, if it's for a smaller quantity or a less complex variant, it might indicate a higher per-unit cost. Further analysis would involve identifying comparable contracts awarded by the DoD or other military branches for similar fifth wheel systems or related drivetrain components.

What are the primary risk indicators associated with this specific contract award to Oshkosh Corp?

Key risk indicators for this contract include potential supply chain disruptions, as reliance on a single manufacturer for specialized components can be vulnerable to unforeseen events. The firm fixed-price nature, while beneficial for cost control, can introduce risk if production costs escalate beyond initial estimates, potentially impacting Oshkosh Corp's profit margins or leading to pressure for contract modifications. Technical risks are also present, ensuring the fifth wheel variants meet all stringent military specifications and perform reliably under demanding operational conditions. Furthermore, the long-term availability of spare parts and maintenance support for these components needs consideration. Finally, the concentration of a large award with one contractor, even if competitively sourced, carries inherent risks related to vendor lock-in and potential future pricing power.

How effective is the 'full and open competition' strategy in ensuring value for money for this type of specialized vehicle component?

The 'full and open competition' strategy is generally considered effective in promoting value for money, especially for standardized or well-defined components. It allows a broad base of potential suppliers to compete, driving down prices through market forces and encouraging innovation. For specialized vehicle components like fifth wheel variants, its effectiveness depends on the clarity of the technical specifications and the number of capable manufacturers. If the specifications are precise and multiple companies possess the necessary expertise and manufacturing capacity, competition can yield significant cost savings and ensure the government obtains high-quality products at competitive prices. However, if the component is highly specialized, requiring unique technology or extensive R&D, the pool of eligible bidders might be limited, potentially reducing the competitive pressure and the realization of maximum value.

What are the historical spending patterns for FIFTH WHEEL VARIANT - VEHICLE or similar components by the Department of Defense?

Analyzing historical spending patterns for 'FIFTH WHEEL VARIANT - VEHICLE' requires specific product codes or detailed contract descriptions within procurement databases. Without such granular data, it's challenging to pinpoint exact historical spending solely on this variant. However, the Department of Defense (DoD) consistently spends billions annually on tactical and strategic wheeled vehicles, encompassing a vast array of components, including drivetrain elements like fifth wheels. Spending in this category is driven by fleet readiness, modernization programs, and the replacement of aging assets. Fluctuations in spending can be influenced by geopolitical events, budget allocations, and the introduction of new vehicle platforms. The $124.3 million award suggests a notable, albeit specific, investment within the broader context of DoD vehicle procurement.

What are the implications of the firm fixed-price (FFP) contract type on cost control and contractor risk for this award?

The firm fixed-price (FFP) contract type places the primary cost risk on the contractor, Oshkosh Corp, in this instance. This means the agreed-upon price is fixed regardless of the contractor's actual costs incurred during performance. For the government, this offers significant cost certainty and predictability, making budgeting more straightforward. It incentivizes the contractor to manage costs efficiently and control production expenses to maintain profitability. However, for highly complex or uncertain procurements, an FFP contract might lead contractors to inflate their initial bids to account for potential cost overruns, potentially resulting in a higher baseline price. Conversely, if Oshkosh Corp accurately estimates costs and manages production effectively, the FFP structure ensures the government receives the specified goods at the negotiated price without additional cost escalation.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Manufacturing › Automobile 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: $124,309,698

Exercised Options: $124,309,698

Current Obligation: $124,309,698

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785406D5028

IDV Type: IDC

Timeline