Marine Corps awards $69.2M contract for vehicular components, with Oshkosh Truck Corporation as the sole provider

Contract Overview

Contract Amount: $69,222,814 ($69.2M)

Contractor: Oshkosh Corp

Awarding Agency: Department of Defense

Start Date: 2000-08-17

End Date: 2010-06-18

Contract Duration: 3,592 days

Daily Burn Rate: $19.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200012!1700!000342!F7004 !MARINE CORPS LOGISTICS BASE !M6700400C0031 !A!*!* !20000817!20040817!006070445!006070445!006070445!N!45152!OSHKOSH TRUCK CORPORATION !2307 OREGON ST !OSHKOSH !WI!54902!60525!139!55!OSHKOSH !WINNEBAGO !WISCONSIN !0001!+000001421000!N!N!000000000000!2590!MISCELLANEOUS VEHICULAR COMPONENTS !A4B!NON-COMBAT VEHICLES !2000!NOT DISCERNABLE OR CLASSIFIED !5013!3!*!*!*!B!N!Z!C !U!J!1!001!N!1G!Z!Y!Z!* !* !N!C!*!Z!Z!A!A!A!A!* !*!N!A!B!N!*!*!*!*!*!

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $69.2 million to OSHKOSH CORP for work described as: 200012!1700!000342!F7004 !MARINE CORPS LOGISTICS BASE !M6700400C0031 !A!*!* !20000817!20040817!006070445!006070445!006070445!N!45152!OSHKOSH TRUCK CORPORATION !2307 OREGON ST !OSHKOSH !WI!54902!60525!139!55!OSHKOSH !WIN… Key points: 1. The contract value of $69.2 million represents a significant investment in specialized vehicular components. 2. Oshkosh Truck Corporation's sole-source award suggests a lack of readily available alternatives or unique capabilities. 3. The contract duration of approximately 10 years (August 2000 to June 2010) indicates a long-term need for these components. 4. The Public Service Code (PSC) for 'Miscellaneous Vehicular Components' points to a broad category of parts, potentially including specialized or custom-made items. 5. The award was made under a Firm Fixed Price contract type, which shifts cost risk to the contractor. 6. The contract was not competed, raising questions about potential cost savings and market exploration.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the 'Miscellaneous Vehicular Components' classification and the sole-source nature of the award. Without competitive bids, it's difficult to ascertain if the $69.2 million price reflects optimal market value. The long duration suggests a stable, albeit potentially unoptimized, pricing structure over time. Further analysis would require understanding the specific components procured and comparing their costs to similar, if available, non-sole-source procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the government's requirements. The lack of competition means that the government did not benefit from the price discovery mechanisms inherent in a competitive bidding process, potentially leading to higher costs than if multiple vendors had vied for the contract.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without alternative bids, it's harder to ensure the most cost-effective solution was secured.

Public Impact

The U.S. Marine Corps benefits from the supply of essential vehicular components, ensuring operational readiness and maintenance of its fleet. The contract supports the sustainment and modernization of non-combat vehicles, crucial for logistics and support operations. The geographic impact is primarily centered around Oshkosh, Wisconsin, where Oshkosh Truck Corporation is based, potentially supporting local employment and economic activity. The contract implies a sustained demand for specialized manufacturing and assembly related to vehicular parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of competition makes it difficult to assess if the government received the best possible value.
The broad 'Miscellaneous Vehicular Components' category could obscure specific cost drivers or potential inefficiencies.
The contract's long duration (2000-2010) might mean prices were not regularly re-evaluated against evolving market conditions.

Positive Signals

Oshkosh Truck Corporation is a known entity in vehicle manufacturing, suggesting a degree of reliability.
Firm Fixed Price contract type provides cost certainty for the government once awarded.
The contract addresses a clear need for essential vehicular components for the Marine Corps.

Sector Analysis

This contract falls within the broader 'Motor Vehicle Parts Manufacturing' sector, specifically NAICS code 336399. This industry is characterized by the production of a wide array of parts and accessories for motor vehicles. The market size for vehicular components is substantial, driven by both original equipment manufacturers (OEMs) and the aftermarket. This specific contract, however, appears to be for specialized or non-standard components, as indicated by the sole-source award and the 'Miscellaneous' classification, rather than high-volume, standardized parts.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false'. Furthermore, there is no explicit mention of subcontracting plans for small businesses. The sole-source nature of the award to a large corporation like Oshkosh Truck Corporation suggests limited opportunities for small businesses to participate directly in this specific contract. The impact on the small business ecosystem is likely minimal unless Oshkosh actively engages small businesses in its supply chain, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. As a sole-source award, scrutiny might focus on the justification for not competing the contract and the reasonableness of the price. Transparency is limited by the lack of competitive bidding information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance or award process.

Related Government Programs

Marine Corps Vehicle Procurement
Department of Defense Vehicle Maintenance Contracts
Non-Combat Vehicle Support
Oshkosh Corporation Contracts
Vehicular Component Supply Chain

Risk Flags

Sole-source award lacks competitive justification.
Long contract duration may not reflect current market pricing.
Broad PSC classification hinders detailed value analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.2 million to OSHKOSH CORP. 200012!1700!000342!F7004 !MARINE CORPS LOGISTICS BASE !M6700400C0031 !A!*!* !20000817!20040817!006070445!006070445!006070445!N!45152!OSHKOSH TRUCK CORPORATION !2307 OREGON ST !OSHKOSH !WI!54902!60525!139!55!OSHKOSH !WINNEBAGO !WISCONSIN !0001!+000001421000!N!N!000000000000!2590!MISCELLANEOUS VEHICULAR COMPONENTS !A4B!NON-COMBAT VEHICLES !2000!NOT DISCERNABLE OR CLASSIFIED !5013!3!*!*!*!B!N!Z!C !U!J!

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 $69.2 million.

What is the period of performance?

Start: 2000-08-17. End: 2010-06-18.

What specific types of 'Miscellaneous Vehicular Components' were procured under this contract?

The provided data identifies the Public Service Code (PSC) as 2590, which corresponds to 'MISCELLANEOUS VEHICULAR COMPONENTS'. However, the data does not specify the exact nature or types of components included under this broad classification. These could range from specialized engine parts, unique chassis components, electronic systems, or custom-fabricated parts not readily available from multiple manufacturers. Without further details from the contract's statement of work or line item descriptions, it is impossible to determine the precise nature of these components. This lack of specificity is common in broad category awards but hinders detailed cost analysis.

What was the justification for awarding this contract on a sole-source basis to Oshkosh Truck Corporation?

The data indicates the contract was awarded under a 'sole-source' basis, meaning it was not competed. While the specific justification is not provided in the abbreviated data, common reasons for sole-source awards include unique capabilities, proprietary technology, urgent and compelling needs where only one source can reasonably fulfill the requirement, or when a specific contractor is the only responsible source capable of making the supply. Given Oshkosh Truck Corporation's established role in military vehicle manufacturing, it is plausible they possessed proprietary designs, specialized manufacturing processes, or were the sole qualified supplier for these particular components, necessitating a sole-source procurement.

How does the contract's duration (August 2000 - June 2010) compare to typical procurement cycles for vehicular components?

A contract duration spanning nearly ten years (from August 2000 to June 2010) is exceptionally long for the procurement of specific vehicular components, especially if these were standard parts. Typical procurement cycles for components often involve shorter-term contracts (1-5 years) with options for renewal, allowing for periodic re-competition and price adjustments. A decade-long contract suggests either a highly specialized, long-lifecycle component where obsolescence is not an immediate concern, or potentially a less dynamic procurement strategy. Such extended durations can sometimes lead to outdated pricing or missed opportunities for cost savings through competitive re-bidding, unless specific price adjustment mechanisms were built into the contract.

What is the significance of the 'Firm Fixed Price' (FFP) contract type in this context?

The contract was awarded as 'Firm Fixed Price' (FFP). This contract type is characterized by a set price that is not subject to adjustment based on the contractor's cost experience during performance. For the government, FFP offers the highest degree of cost certainty, as the total price is known upfront. This shifts the risk of cost overruns entirely to the contractor, Oshkosh Truck Corporation. While beneficial for budget predictability, FFP contracts can sometimes lead to higher initial prices compared to cost-reimbursement types, as contractors may build in a contingency to cover potential cost increases. In a sole-source scenario, the FFP provides certainty but doesn't inherently guarantee the lowest possible price.

What does the 'All Other Motor Vehicle Parts Manufacturing' NAICS code (336399) imply about this contract?

The North American Industry Classification System (NAICS) code 336399, 'All Other Motor Vehicle Parts Manufacturing,' indicates that the components procured under this contract do not fit into more specific categories like engine parts, brake systems, or electrical equipment manufacturing. This suggests the components are either highly specialized, custom-designed for a particular vehicle platform (likely military), or a mix of various smaller parts that don't warrant a dedicated classification. For this contract, it implies a potentially niche market and reinforces the possibility that Oshkosh Truck Corporation was a unique or primary supplier due to the specialized nature of these 'miscellaneous' parts.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Parts Manufacturing › All Other Motor Vehicle Parts Manufacturing

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

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: 2307 OREGON ST, OSHKOSH, WI, 06

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline