Navy Awards Oshkosh Defense $61.1M for Ship Interdiction System LRIP
Contract Overview
Contract Amount: $61,161,679 ($61.2M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-30
End Date: 2026-12-31
Contract Duration: 1,188 days
Daily Burn Rate: $51.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NAVY MARINE SHIP INTERDICTION SYSTEM - CARRIER - LOW RATE INITIAL PRODUCTION
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $61.2 million to OSHKOSH DEFENSE LLC for work described as: NAVY MARINE SHIP INTERDICTION SYSTEM - CARRIER - LOW RATE INITIAL PRODUCTION Key points: 1. Significant award to Oshkosh Defense for critical ship interdiction systems. 2. Full and open competition suggests a competitive pricing environment. 3. Potential for cost overruns or schedule delays exists in LRIP phases. 4. Heavy Duty Truck Manufacturing sector sees substantial defense spending.
Value Assessment
Rating: good
The award value of $61.1M for LRIP seems reasonable given the complexity of military hardware. Benchmarking against similar defense vehicle contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: Taxpayer funds are being used for advanced defense capabilities, with competition aiming to maximize the value received for this investment.
Public Impact
Enhances naval capabilities for ship interdiction. Supports advanced manufacturing and defense industrial base. Potential for job creation within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- LRIP phase risks
- Supply chain dependencies
- Technological obsolescence
Positive Signals
- Experienced prime contractor
- Competitive award process
- Clear delivery timeline
Sector Analysis
This award falls within the Heavy Duty Truck Manufacturing sector, a key area for defense logistics and specialized vehicle production. Defense spending in this sector often involves high-value, complex systems.
Small Business Impact
No specific small business participation was indicated in the provided data. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The award process under full and open competition suggests a degree of oversight. However, ongoing monitoring of LRIP milestones and spending is crucial for accountability.
Related Government Programs
- Heavy Duty Truck Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- LRIP inherent risks
- Potential for schedule slippage
- Dependence on sole-source component suppliers (potential)
- Long-term sustainment costs unknown
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 $61.2 million to OSHKOSH DEFENSE LLC. NAVY MARINE SHIP INTERDICTION SYSTEM - CARRIER - LOW RATE INITIAL PRODUCTION
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 $61.2 million.
What is the period of performance?
Start: 2023-09-30. End: 2026-12-31.
What is the projected per-unit cost for the ship interdiction systems, and how does it compare to industry benchmarks?
The provided data does not specify the number of units or the per-unit cost. A detailed cost breakdown would be necessary to compare against industry benchmarks for similar specialized defense equipment. Without this, a precise value assessment is difficult.
What are the primary risks associated with the Low Rate Initial Production (LRIP) phase for this system?
LRIP phases often carry risks such as manufacturing process immaturity, potential design flaws discovered during initial production, supply chain disruptions for specialized components, and the possibility of cost overruns as production scales up. These factors require close monitoring.
How effectively will this system contribute to the Navy's ship interdiction mission compared to existing capabilities?
The effectiveness hinges on the system's technological capabilities, reliability, and integration with existing naval operations. While the award signifies a commitment to enhancing this mission, a post-deployment analysis of operational performance and mission success rates will be the ultimate measure of effectiveness.
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: M6785422R1002
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Oshkosh Corporation
Address: 2307 OREGON ST, OSHKOSH, WI, 54902
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: $61,431,691
Exercised Options: $61,431,691
Current Obligation: $61,161,679
Subaward Activity
Number of Subawards: 440
Total Subaward Amount: $65,656,757
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: M6785422D1002
IDV Type: IDC
Timeline
Start Date: 2023-09-30
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-01-08
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