Marine Corps awards $38.7M for heavy-duty trucks, a sole-source contract with a long duration

Contract Overview

Contract Amount: $38,763,445 ($38.8M)

Contractor: Oshkosh Corp

Awarding Agency: Department of Defense

Start Date: 2004-05-12

End Date: 2011-03-04

Contract Duration: 2,487 days

Daily Burn Rate: $15.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200410!006721!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785404C6006 !A!N! !N! ! !20040512!20050511!006070445!006070445!006070445!N!OSHKOSH TRUCK CORP !2307OREGON STREET !OSHKOSH !WI!54903!60500!139!55!OSHKOSH !WINNEBAGO !WISCONSIN !+000005390809!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4B!NON-COMBAT VEHICLES !000 !* !336120!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!J!1!001!N!1B!A!W!F! ! !N!C!N! ! ! !B!B!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $38.8 million to OSHKOSH CORP for work described as: 200410!006721!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785404C6006 !A!N! !N! ! !20040512!20050511!006070445!006070445!006070445!N!OSHKOSH TRUCK CORP !2307OREGON STREET !OSHKOSH !WI!54903!60500!139!55!OSHKOSH !WINN… Key points: 1. Contract awarded to Oshkosh Truck Corp for wheeled, non-combat vehicles. 2. The contract was not competed, raising questions about price discovery. 3. A long performance period of nearly 7 years suggests a significant, ongoing need. 4. The value of the contract is substantial, indicating a major procurement. 5. The specific vehicle type points to logistical support rather than direct combat roles.

Value Assessment

Rating: fair

The contract value of $38.7 million for heavy-duty trucks over a period of almost 7 years appears substantial. Without competitive bidding, it is difficult to benchmark the value for money. However, the duration suggests a sustained need for these vehicles. Further analysis would require comparison with similar sole-source procurements or industry pricing for comparable heavy-duty trucks.

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 limits the opportunity for price discovery and potentially higher costs for the government. The lack of competition suggests a specific reason, such as a unique capability or a prior relationship, but it bypasses the benefits of a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down prices. The government did not leverage multiple offers to secure the best possible value.

Public Impact

The U.S. Marine Corps benefits from the acquisition of essential heavy-duty trucks. These vehicles are crucial for logistical support, transportation of equipment, and personnel. The contract supports operations within the United States, specifically in Wisconsin where the contractor is located. The procurement likely supports manufacturing jobs at Oshkosh Truck Corp and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases cost.
Long contract duration of nearly 7 years could indicate potential for cost overruns or scope creep.
Lack of transparency in the justification for sole-source award.
No clear indication of small business subcontracting opportunities.

Positive Signals

Award to a known domestic manufacturer (Oshkosh Truck Corp).
Contract addresses a clear need for heavy-duty logistical vehicles.
Firm Fixed Price contract type provides cost certainty for the awarded scope.

Sector Analysis

This contract falls within the heavy-duty truck manufacturing sector, a segment of the broader industrial and defense manufacturing market. The market for specialized military vehicles is often characterized by a limited number of qualified suppliers due to stringent performance and security requirements. Spending in this area is critical for maintaining logistical capabilities. Comparable spending benchmarks would typically involve other large vehicle procurements by military branches.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no explicit mention of subcontracting goals. As a sole-source award to a large corporation, it is unlikely to have direct set-aside benefits for small businesses. The impact on the small business ecosystem would depend on whether Oshkosh Truck Corp utilizes small businesses in its supply chain, which is not detailed in this record.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management regulations. The firm fixed-price nature of the contract provides some cost control. Transparency is limited due to the sole-source nature. Inspector General oversight would apply to ensure compliance with regulations and prevent fraud, waste, and abuse.

Related Government Programs

Marine Corps Vehicle Procurement
Department of Defense Heavy Equipment
Tactical Wheeled Vehicles
Logistics and Support Vehicles

Risk Flags

Sole-source award
Long contract duration
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.8 million to OSHKOSH CORP. 200410!006721!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785404C6006 !A!N! !N! ! !20040512!20050511!006070445!006070445!006070445!N!OSHKOSH TRUCK CORP !2307OREGON STREET !OSHKOSH !WI!54903!60500!139!55!OSHKOSH !WINNEBAGO !WISCONSIN !+000005390809!N!N!000000000000!2320!TRUCKS AND TRUCK TRACTORS, WHEELED !A4B!NON-COMBAT VEHICLES !000 !* !336120!E! !3! ! ! ! ! !999

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 $38.8 million.

What is the period of performance?

Start: 2004-05-12. End: 2011-03-04.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. Reasons can include unique technical capabilities, proprietary technology, or a lack of adequate competition. Without this justification, it's difficult to assess if the sole-source decision was appropriate and if taxpayers received fair value. Further investigation into the contract file or agency procurement records would be necessary to uncover the official rationale.

How does the per-unit cost of these trucks compare to similar commercial heavy-duty trucks?

The total contract value is $38,763,444.57 over a duration of 2487 days (approximately 6.8 years). The number of units procured is not explicitly stated, making a direct per-unit cost calculation impossible from this data alone. However, if we assume a single delivery order or a fixed quantity, we could estimate. For example, if 100 trucks were procured, the average cost per truck would be approximately $387,634. This figure needs to be compared against the market price for specialized heavy-duty military trucks, which are typically more expensive than commercial equivalents due to ruggedization, specific military features, and lower production volumes. A direct comparison to commercial trucks would be misleading without accounting for these differences.

What are the performance risks associated with a sole-source contract of this duration?

Sole-source contracts of long duration, like this nearly 7-year award, carry inherent performance risks. Without competitive pressure, the contractor may have less incentive to innovate, improve efficiency, or maintain the highest quality standards throughout the contract period. There's also a risk of vendor lock-in, where the government becomes heavily reliant on a single supplier, making it difficult and costly to switch even if performance issues arise. Furthermore, the long timeframe increases the possibility of unforeseen technical challenges, changes in operational requirements, or contractor financial instability, all of which could impact delivery and performance.

What is the historical spending pattern for this type of vehicle by the Marine Corps?

The provided data represents a single contract award from 2004-2011. To understand historical spending patterns for this type of vehicle (trucks and truck tractors, wheeled, non-combat), one would need to analyze multiple contract awards over several fiscal years. This would involve querying federal procurement databases for similar contracts awarded by the Marine Corps and potentially other branches of the Department of Defense. Key metrics to track would include the total dollar amount spent annually, the number of contracts awarded, the types of competition used (competed vs. sole-source), and the primary contractors. This broader analysis would reveal trends in demand, pricing, and sourcing strategies.

What is the track record of Oshkosh Truck Corp with the federal government?

Oshkosh Truck Corporation (now Oshkosh Corporation) has a long-standing relationship with the U.S. military, particularly for producing tactical and heavy-duty vehicles. They are well-known for their Joint Light Tactical Vehicle (JLTV) program, as well as other heavy equipment like the Family of Heavy Tactical Vehicles (FHTV). Their track record includes numerous large contracts for various military branches. While specific performance details for each contract are not in this dataset, Oshkosh is generally considered a major and experienced defense contractor in the vehicle manufacturing space. Assessing their overall track record would involve reviewing past contract performance ratings, any significant disputes or contract terminations, and their history of meeting delivery schedules and quality standards across all their government awards.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Manufacturing › Heavy Duty Truck Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline