DoD Awards Oshkosh Defense $33.6M for Heavy Duty Truck Manufacturing in Full Rate Production
Contract Overview
Contract Amount: $33,603,368 ($33.6M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2017-05-22
End Date: 2018-10-31
Contract Duration: 527 days
Daily Burn Rate: $63.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FULL RATE PRODUCTION (FRP) VEHICLE
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $33.6 million to OSHKOSH DEFENSE LLC for work described as: FULL RATE PRODUCTION (FRP) VEHICLE Key points: 1. The contract is for full rate production of heavy-duty trucks, indicating a mature product. 2. Oshkosh Defense is the sole awardee, raising questions about competition despite a 'Full and Open' designation. 3. The contract value is substantial, requiring careful oversight of performance and cost. 4. The sector is heavy-duty truck manufacturing, a critical component for military logistics.
Value Assessment
Rating: good
The award value of $33.6M for a delivery order under a larger contract suggests a reasonable price for specialized heavy-duty vehicles. Benchmarking against similar military truck procurements would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although designated 'Full and Open Competition,' the award went to a single contractor, Oshkosh Defense. This suggests either a highly specialized requirement or potential limitations in the competitive landscape for this specific vehicle.
Taxpayer Impact: Taxpayer funds are being used for essential military equipment. The 'Full and Open' designation aims to ensure competitive pricing, but the single award warrants scrutiny to confirm value for money.
Public Impact
Ensures continued supply of critical heavy-duty vehicles for military operations. Supports a major defense contractor and its manufacturing capabilities. Potential for follow-on contracts if production meets expectations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Single award despite 'Full and Open' designation.
- Limited visibility into specific unit costs without further breakdown.
Positive Signals
- Award supports full rate production, indicating product maturity.
- Contract is firm fixed price, providing cost certainty.
Sector Analysis
The heavy-duty truck manufacturing sector is vital for military logistics and sustainment. Spending in this area is typically driven by defense modernization and operational readiness needs, with significant investment required for specialized vehicles.
Small Business Impact
The data does not indicate any specific subcontracting goals for small businesses on this particular delivery order. Further analysis would be needed to determine if small businesses are involved in the supply chain for these heavy-duty trucks.
Oversight & Accountability
The Department of the Navy is the contracting agency, with the Department of Defense overseeing overall strategy. Standard contract oversight mechanisms should be in place to monitor performance, delivery, and adherence to the firm fixed price.
Related Government Programs
- Heavy Duty Truck Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential lack of robust competition despite 'Full and Open' status.
- Need for detailed cost breakdown to ensure value for money.
- Dependence on a single supplier for critical equipment.
- Long-term sustainment costs are not detailed in this award.
Tags
heavy-duty-truck-manufacturing, department-of-defense, wi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.6 million to OSHKOSH DEFENSE LLC. FULL RATE PRODUCTION (FRP) VEHICLE
Who is the contractor on this award?
The obligated recipient is OSHKOSH DEFENSE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $33.6 million.
What is the period of performance?
Start: 2017-05-22. End: 2018-10-31.
What specific factors led to a single award despite the 'Full and Open Competition' designation, and how was price competitiveness ensured?
The 'Full and Open Competition' designation implies that all responsible sources were permitted to submit offers. However, the specific nature of the heavy-duty vehicle, its technical requirements, and existing platform integration may have resulted in only one offeror meeting all criteria. Price competitiveness would have been assessed against established benchmarks, historical pricing, and potentially a cost realism analysis by the contracting agency.
What is the projected lifecycle cost of these vehicles, and how does this initial award contribute to that?
This award represents the cost for full rate production of a specific quantity of vehicles. The projected lifecycle cost would encompass not only the initial procurement but also sustainment, maintenance, upgrades, and eventual disposal. Understanding the total ownership cost is crucial for long-term budget planning and ensuring the overall value proposition of the vehicle platform.
How does the performance of these trucks in operational environments compare to similar vehicles procured through different methods?
Assessing operational performance requires data beyond this contract award. Key metrics would include reliability, maintainability, fuel efficiency, and suitability for intended missions. Comparing this performance against similar vehicles, whether procured competitively or through other means, would provide insights into the effectiveness and value derived from this specific procurement strategy.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Manufacturing › Heavy Duty Truck Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: M6785413R0214
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Oshkosh Corp (UEI: 006070445)
Address: 2307 OREGON ST, OSHKOSH, WI, 54903
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,603,368
Exercised Options: $33,603,368
Current Obligation: $33,603,368
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785413D0214
IDV Type: IDC
Timeline
Start Date: 2017-05-22
Current End Date: 2018-10-31
Potential End Date: 2018-10-31 00:00:00
Last Modified: 2020-03-13
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