DoD awards Oshkosh Corp $83M for Marine Corps vehicle armor upgrades, a sole-source contract
Contract Overview
Contract Amount: $82,984,862 ($83.0M)
Contractor: Oshkosh Corp
Awarding Agency: Department of Defense
Start Date: 2010-04-19
End Date: 2013-11-30
Contract Duration: 1,321 days
Daily Burn Rate: $62.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MOTORIZED MARINE CORPS TRANSPARENT ARMOR GUN SHIELD (MCTAGS), MTVR DOOR UPGRADES FOR NON-REDUCIBLE HEIGHT ARMOR, AND MTVR TROOP CARRIER UPGRADE KITS
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $83.0 million to OSHKOSH CORP for work described as: MOTORIZED MARINE CORPS TRANSPARENT ARMOR GUN SHIELD (MCTAGS), MTVR DOOR UPGRADES FOR NON-REDUCIBLE HEIGHT ARMOR, AND MTVR TROOP CARRIER UPGRADE KITS Key points: 1. The contract focuses on specialized armor for Marine Corps vehicles, indicating a niche but critical need. 2. Oshkosh Corp, a known defense contractor, is the sole awardee, raising questions about competition. 3. The $83M award for vehicle upgrades presents a significant expenditure for military hardware. 4. The sector is defense manufacturing, characterized by high-value, specialized equipment procurement.
Value Assessment
Rating: fair
The contract value of $83M for vehicle armor upgrades appears substantial. Without specific unit cost data or benchmarks for similar armor systems, a precise value assessment is difficult. The fixed-price nature offers some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Oshkosh Corp. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this $83M contract may result in taxpayers paying a premium for the specialized armor upgrades.
Public Impact
Enhances survivability for Marines in high-threat environments. Supports ongoing military operations and vehicle modernization efforts. Potential for extended deployment capabilities due to improved protection. Impacts readiness and effectiveness of Marine Corps ground units.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of transparency in pricing due to non-competitive nature.
- Potential for cost overruns if not closely monitored.
Positive Signals
- Addresses critical survivability needs for military personnel.
- Utilizes a known defense contractor with relevant expertise.
- Firm fixed-price contract provides some cost predictability.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on vehicle armor. Spending in this area is driven by operational needs and technological advancements in protection. Benchmarks are difficult without specific system comparisons, but $83M is a significant investment.
Small Business Impact
The awardee, Oshkosh Corp, is a large business. There is no indication of small business participation in this specific contract, which is common for large, specialized defense procurements.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure fair pricing and effective delivery. DoD contracting officers must justify the lack of competition and monitor performance rigorously.
Related Government Programs
- Turbine and Turbine Generator Set Units Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency
- Dependence on a single supplier
Tags
turbine-and-turbine-generator-set-units-, department-of-defense, wi, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $83.0 million to OSHKOSH CORP. MOTORIZED MARINE CORPS TRANSPARENT ARMOR GUN SHIELD (MCTAGS), MTVR DOOR UPGRADES FOR NON-REDUCIBLE HEIGHT ARMOR, AND MTVR TROOP CARRIER 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 $83.0 million.
What is the period of performance?
Start: 2010-04-19. End: 2013-11-30.
What specific technological advancements or unique requirements justified a sole-source award for these armor upgrades?
Justification for a sole-source award typically hinges on unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For these specific armor upgrades, the justification would likely detail specialized design, integration challenges with existing MTVR platforms, or specific performance characteristics only Oshkosh Corp could provide within the required timeframe.
How does the $83M cost compare to the expected lifespan and operational benefits of the upgraded armor systems?
Assessing the $83M cost against lifespan and benefits requires detailed lifecycle cost analysis and threat assessment. If the upgrades significantly extend vehicle operational life, reduce maintenance, and demonstrably improve survivability, the investment could be justified. However, without data on expected service life, failure rates, and quantified risk reduction, it's difficult to definitively state if the cost is reasonable relative to the value.
What mechanisms are in place to ensure the effectiveness and quality of the armor upgrades, given the lack of competitive pressure?
Despite the sole-source nature, the DoD employs stringent quality assurance and acceptance testing protocols. This includes detailed technical specifications, pre-production reviews, material testing, and post-installation inspections. Performance metrics and contractor accountability clauses within the contract also serve to ensure effectiveness and quality, holding Oshkosh Corp responsible for meeting all contractual requirements.
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: $82,984,862
Exercised Options: $82,984,862
Current Obligation: $82,984,862
Contract Characteristics
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: M6785404D5016
IDV Type: IDC
Timeline
Start Date: 2010-04-19
Current End Date: 2013-11-30
Potential End Date: 2013-11-30 00:00:00
Last Modified: 2013-11-26
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