DoD Awards $1.18 Billion Contract to Oshkosh Truck Corp for Trailers
Contract Overview
Contract Amount: $1,182,909,266 ($1.2B)
Contractor: Oshkosh Corp
Awarding Agency: Department of Defense
Start Date: 1999-02-01
End Date: 2012-09-28
Contract Duration: 4,988 days
Daily Burn Rate: $237.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 199912!2100!0417!AE07 !USA TANK-AUTOMOTIVE & ARMAMENTS !DAAE0799CM007 !A!*!* !19990201!20050718!006070445!006070445!006070445!N!45152!OSHKOSH TRUCK CORPORATION !2307 OREGON ST !OSHKOSH !WI!54902!71000!141!18!SOUTH BEND !ST. JOSEPH !INDIANA !0001!+000049225894!N!Y!000853027418!2330!TRAILERS !A4B!NON-COMBAT VEHICLES !1000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!*!B!B!*!A !U!J!2!002!N!1B!A!N!Z!* !* !N!C!*!B!B!A!A!A!*!* !*!N!A!D!N!*!*!*!*!*!
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54903
Plain-Language Summary
Department of Defense obligated $1.18 billion to OSHKOSH CORP for work described as: 199912!2100!0417!AE07 !USA TANK-AUTOMOTIVE & ARMAMENTS !DAAE0799CM007 !A!*!* !19990201!20050718!006070445!006070445!006070445!N!45152!OSHKOSH TRUCK CORPORATION !2307 OREGON ST !OSHKOSH !WI!54902!71000!141!18!SOUTH BEND !ST. JO… Key points: 1. The contract, awarded in 1999, is for trailers and non-combat vehicles. 2. Oshkosh Truck Corporation, based in Wisconsin, secured this significant award. 3. The contract value is substantial at over $1.18 billion. 4. Competition was full and open, suggesting a competitive bidding process. 5. The primary sector is Defense, specifically for non-combat vehicles.
Value Assessment
Rating: fair
The contract value of $1.18 billion over its duration is significant. Without specific per-unit cost data or comparison points for similar trailer systems, a precise value assessment is difficult. However, the scale suggests a major procurement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The large contract value means taxpayers are funding a significant procurement. The competitive nature of the award suggests efforts were made to secure a reasonable price, but the long duration and potential for modifications warrant ongoing scrutiny.
Public Impact
Significant taxpayer investment in military logistics and support equipment. Supports the operational readiness of the U.S. military by providing essential transportation assets. Impacts the defense industrial base, particularly companies specializing in heavy vehicle and trailer manufacturing. Long-term contract duration implies sustained demand for these types of vehicles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (1999-2012) may have led to price changes or obsolescence.
- Lack of specific per-unit cost data makes detailed value analysis challenging.
- Potential for cost overruns or scope creep over such an extended period.
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process.
- Oshkosh Truck Corporation is a well-established defense contractor.
- Contract supports critical military logistics capabilities.
Sector Analysis
This contract falls within the Defense sector, specifically for the procurement of trailers and non-combat vehicles. Spending in this area is crucial for military logistics and operational support. Benchmarks for such large-scale vehicle procurements vary widely based on specific requirements and quantities.
Small Business Impact
The data indicates the prime contractor is Oshkosh Truck Corporation. There is no specific information provided regarding subcontracting to small businesses for this particular award. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Department of Defense. Oversight would typically involve program management offices within the relevant military branch (Department of the Navy in this case) to ensure contract compliance, delivery schedules, and quality standards are met throughout the contract's lifecycle.
Related Government Programs
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration potentially leading to outdated technology or increased costs.
- Lack of detailed per-unit cost data hinders precise value assessment.
- Potential for scope creep or cost overruns over an extended period.
- No explicit mention of small business subcontracting goals or achievements.
Tags
department-of-defense, wi, dca, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.18 billion to OSHKOSH CORP. 199912!2100!0417!AE07 !USA TANK-AUTOMOTIVE & ARMAMENTS !DAAE0799CM007 !A!*!* !19990201!20050718!006070445!006070445!006070445!N!45152!OSHKOSH TRUCK CORPORATION !2307 OREGON ST !OSHKOSH !WI!54902!71000!141!18!SOUTH BEND !ST. JOSEPH !INDIANA !0001!+000049225894!N!Y!000853027418!2330!TRAILERS !A4B!NON-COMBAT VEHICLES !1000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!*!B!B!*!A !U!J!2!0
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 $1.18 billion.
What is the period of performance?
Start: 1999-02-01. End: 2012-09-28.
What was the average per-unit cost for the trailers procured under this contract, and how does it compare to industry benchmarks for similar equipment during the contract period?
The provided data does not include specific per-unit cost breakdowns for the trailers. To assess value, a detailed analysis of the contract line items, quantities, and specifications would be required. Comparing this to industry benchmarks for similar military-grade trailers from the late 1990s to early 2010s would be necessary for a comprehensive evaluation of cost-effectiveness.
Given the contract's long duration (1999-2012), what mechanisms were in place to manage potential risks such as technological obsolescence, inflation, and changes in military requirements?
Long-duration contracts often include provisions for contract modifications, economic price adjustments, and periodic reviews to address evolving requirements and market conditions. The Department of Defense would have had oversight to manage these risks, potentially through contract line item adjustments or renegotiations. However, the effectiveness of these mechanisms in mitigating all risks over a 13-year period would require a detailed review of contract modifications and performance.
How effectively did the 'full and open competition' process ensure competitive pricing and optimal value for the taxpayer, considering the substantial award amount?
Full and open competition is designed to maximize the number of potential bidders, thereby fostering a competitive environment that should lead to better pricing. For this $1.18 billion contract, the competitive process likely resulted in a more favorable price than a sole-source award. However, the ultimate value for taxpayers also depends on the specific requirements, the quality of the delivered goods, and the management of the contract over its extended period.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
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, Special Designations, U.S.-Owned Business
Contract Characteristics
Multi-Year Contract: Yes
Cost or Pricing Data: NO
Timeline
Start Date: 1999-02-01
Current End Date: 2012-09-28
Potential End Date: 2012-09-28 00:00:00
Last Modified: 2012-09-24
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