DoD awards $227.8M for non-combat vehicles, with OSHKOSH CORP receiving the largest portion

Contract Overview

Contract Amount: $227,877,570 ($227.9M)

Contractor: Oshkosh Corp

Awarding Agency: Department of Defense

Start Date: 2002-12-26

End Date: 2006-06-30

Contract Duration: 1,282 days

Daily Burn Rate: $177.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200308!001767!2100!AE07 !TACOM - WARREN !DAAE0701DS014 !A!N! !N!0068 !20021226!20060331!006070445!006070445!006070445!N!OSHKOSH TRUCK CORP !2307OREGON STREET !OSHKOSH !WI!54903!60500!139!55!OSHKOSH !WINNEBAGO !WISCONSIN !+000225676214!N!N!000000000000!2540!VEHICULAR FURNITURE AND ACCESSORIES !A4B!NON-COMBAT VEHICLES !1000!NOT DISCERNABLE OR CLASSIFIED !336211!E! !5!A!S! ! ! !99990909!B! ! !N!Z!D!N!J!1!001!N!1G!A!N!F! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $227.9 million to OSHKOSH CORP for work described as: 200308!001767!2100!AE07 !TACOM - WARREN !DAAE0701DS014 !A!N! !N!0068 !20021226!20060331!006070445!006070445!006070445!N!OSHKOSH TRUCK CORP !2307OREGON STREET !OSHKOSH !WI!54903!60500!139!55!OSHKOSH !WINNE… Key points: 1. Contract awarded to OSHKOSH CORP for vehicular furniture and accessories. 2. Significant portion of spending allocated to non-combat vehicles. 3. Contract duration spans over 3 years. 4. Awarded by the Department of the Army, indicating a focus on ground vehicle support. 5. The contract is a firm fixed-price award, providing cost certainty. 6. The North American Industry Classification System (NAICS) code 336211 points to motor vehicle body manufacturing.

Value Assessment

Rating: fair

The total award amount of $227.8 million for vehicular furniture and accessories appears substantial. Benchmarking this against similar contracts for non-combat vehicle components is difficult without more specific details on the exact items procured. However, the firm fixed-price nature suggests a degree of cost control was intended at the time of award. The contract's duration of over three years also implies a significant need for these components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means that the government did not benefit from potential price reductions or innovative solutions that might arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. The absence of multiple bids means the government may not have secured the best possible value for the funds expended.

Public Impact

The Department of the Army is the primary beneficiary, receiving essential components for its non-combat vehicle fleet. Services delivered include the provision of vehicular furniture and accessories, crucial for vehicle functionality and crew comfort. The geographic impact is primarily within Wisconsin, where OSHKOSH CORP is headquartered, potentially supporting local employment and economic activity. Workforce implications may include sustained employment at OSHKOSH CORP and its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than a competed contract.
The specific nature of 'vehicular furniture and accessories' is broad and could encompass a wide range of items, making value assessment challenging.
The contract's duration could lead to price increases if market conditions change significantly over its term.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a known entity (OSHKOSH CORP) suggests a reliance on established capabilities.
The contract addresses a clear need for vehicle components within the Department of the Army.

Sector Analysis

This contract falls within the Motor Vehicle Body Manufacturing sector (NAICS 336211), a segment of the broader automotive and defense manufacturing industries. The defense sector often procures specialized vehicles and components, making this a typical award for military readiness. Spending in this area is influenced by military modernization efforts, operational tempo, and the need to maintain existing fleets. Comparable spending benchmarks would typically be found within other Department of Defense contracts for vehicle parts and manufacturing.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'SB' being false. There is no explicit mention of subcontracting plans for small businesses. This suggests that the primary awardee, OSHKOSH CORP, is expected to fulfill the contract requirements directly or through its own resources, potentially limiting opportunities for small businesses within the supply chain for this specific award.

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 structure, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is generally maintained through contract databases, although specific details of the 'vehicular furniture and accessories' may be limited due to operational security or proprietary information. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Vehicle Procurement
Army Ground Vehicle Modernization
Tactical Vehicle Component Supply
OSHKOSH CORP Defense Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Broad description of 'furniture and accessories' may obscure specific value.
Contract duration could outpace technological relevance or market price shifts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $227.9 million to OSHKOSH CORP. 200308!001767!2100!AE07 !TACOM - WARREN !DAAE0701DS014 !A!N! !N!0068 !20021226!20060331!006070445!006070445!006070445!N!OSHKOSH TRUCK CORP !2307OREGON STREET !OSHKOSH !WI!54903!60500!139!55!OSHKOSH !WINNEBAGO !WISCONSIN !+000225676214!N!N!000000000000!2540!VEHICULAR FURNITURE AND ACCESSORIES !A4B!NON-COMBAT VEHICLES !1000!NOT DISCERNABLE OR CLASSIFIED !336211!E! !5!A!S! ! ! !99990909!B

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 $227.9 million.

What is the period of performance?

Start: 2002-12-26. End: 2006-06-30.

What specific types of vehicular furniture and accessories were procured under this contract?

The contract data indicates the procurement of 'VEHICULAR FURNITURE AND ACCESSORIES' under NAICS code 336211 (Motor Vehicle Body Manufacturing). However, the specific details of these items are not publicly itemized in the provided data. This category could encompass a wide range of components, from seating and interior fittings to specialized equipment mounts and storage solutions for various non-combat military vehicles. Without a more granular breakdown, it is difficult to assess the precise nature and value of each component procured. Further investigation into contract line item numbers (CLINs) or associated documentation would be necessary for a detailed understanding.

How does the $227.8 million award compare to historical spending on similar vehicle components by the Department of the Army?

Comparing the $227.8 million award for vehicular furniture and accessories to historical spending requires access to comprehensive historical contract data for the Department of the Army, specifically for similar components and vehicle types. The provided data offers a single contract award. To establish a benchmark, one would need to analyze trends in spending on non-combat vehicle outfitting and accessories over several fiscal years, identifying average award values, contract durations, and the number of bidders for comparable procurements. This contract's value appears substantial, but its relative size can only be determined through a broader historical analysis of the Army's procurement patterns in this specific category.

What are the primary risks associated with a sole-source award of this magnitude for vehicle components?

The primary risks associated with a sole-source award of $227.8 million for vehicle components include potential overpricing due to the lack of competitive bidding, reduced incentive for the contractor to innovate or offer cost efficiencies, and a lack of market validation for the chosen solution. Taxpayers may bear a higher cost than if the contract had been competed. Additionally, reliance on a single source can create supply chain vulnerabilities if the contractor experiences production issues or financial instability. The government also loses the opportunity to discover potentially superior or more cost-effective alternatives from other vendors.

What is OSHKOSH CORP's track record with the Department of Defense, particularly for vehicle components?

OSHKOSH CORP has a significant and long-standing track record as a major supplier to the Department of Defense, particularly in the area of military vehicles. They are well-known for producing a wide range of tactical and non-tactical wheeled vehicles, including heavy equipment transporters, joint light tactical vehicles (JLTVs), and various support vehicles. Their involvement in providing components, such as furniture and accessories, aligns with their core business of vehicle manufacturing and integration. Historical data would likely show numerous contracts awarded to OSHKOSH CORP by various branches of the DoD, indicating a strong established relationship and proven capability in meeting military specifications and delivery requirements.

How does the firm fixed-price contract type mitigate or introduce risks for this procurement?

A firm fixed-price (FFP) contract type is generally favored by the government for its cost certainty. For this $227.8 million award for vehicular furniture and accessories, FFP means that OSHKOSH CORP is obligated to deliver the specified goods at the agreed-upon price, regardless of their actual costs. This shifts the risk of cost overruns from the government to the contractor. However, risks can still exist. If the initial price was not adequately negotiated or based on flawed estimates, the government might end up paying more than necessary. Conversely, if the contractor underestimated costs, they might cut corners on quality, introducing performance risks. The lack of competition in this sole-source award amplifies the importance of robust initial price negotiation.

What is the significance of the NAICS code 336211 (Motor Vehicle Body Manufacturing) in the context of this contract?

The assignment of NAICS code 336211, 'Motor Vehicle Body Manufacturing,' to this contract signifies that the primary focus of the procurement is on the fabrication and assembly of the bodies or major structural components of vehicles, or the manufacturing of related parts that are integral to the vehicle's structure and function. While the description mentions 'vehicular furniture and accessories,' the classification suggests these items are either manufactured as part of the vehicle body process or are substantial components directly related to the vehicle's physical construction and interior outfitting. This code places the contract within the heavy manufacturing sector, indicating a need for specialized production capabilities and adherence to automotive manufacturing standards.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Motor Vehicle Body Manufacturing

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 2307 OREGON ST, OSHKOSH, WI, 06

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: DAAE0701DS014

IDV Type: IDC

Timeline