DoD Awards Oshkosh Defense $8.08M for MTVR to RSV Conversion, Facing Limited Competition

Contract Overview

Contract Amount: $8,078,117 ($8.1M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2025-12-12

End Date: 2026-12-11

Contract Duration: 364 days

Daily Burn Rate: $22.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONVERSION OF MTVR AMK27 TO RSV AMK37

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $8.1 million to OSHKOSH DEFENSE LLC for work described as: CONVERSION OF MTVR AMK27 TO RSV AMK37 Key points: 1. Significant investment in vehicle platform modernization. 2. Limited competition raises concerns about price discovery. 3. Potential for cost overruns due to sole-source nature. 4. Sector focus on defense vehicle manufacturing.

Value Assessment

Rating: questionable

The contract value of $8.08M for vehicle conversions is difficult to benchmark without specific per-unit cost data. The lack of competitive bidding suggests potential for higher pricing than if multiple vendors were involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under a limited competition, indicating that not all potential sources were solicited. This approach can restrict price discovery and potentially lead to less favorable terms for the government.

Taxpayer Impact: Taxpayer funds are utilized for this procurement. The limited competition may result in a higher overall cost compared to a fully open and competitive process.

Public Impact

Modernization of military vehicle fleet enhances operational capabilities. Focus on Oshkosh Defense highlights reliance on specific contractors. Potential impact on readiness if conversions are delayed or over budget.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition
  • Lack of detailed cost breakdown
  • Potential for sole-source escalation

Positive Signals

  • Modernization of critical military assets
  • Clear delivery timeline

Sector Analysis

This contract falls within the defense vehicle manufacturing sector, specifically focusing on the conversion of existing platforms. Spending benchmarks in this niche area are highly dependent on the specific vehicle type and conversion complexity.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. The prime contractor, Oshkosh Defense LLC, is a large entity, suggesting limited direct opportunities for small businesses through this specific award.

Oversight & Accountability

Oversight will be crucial to ensure the conversions meet specifications and are completed within budget, especially given the limited competition. The Department of the Navy's contracting office is responsible for monitoring performance.

Related Government Programs

  • Motor Vehicle Body Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Limited competition may lead to inflated costs.
  • Lack of transparency in pricing justification.
  • Potential for contractor lock-in.
  • Dependence on a single supplier for critical upgrades.

Tags

motor-vehicle-body-manufacturing, department-of-defense, wi, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.1 million to OSHKOSH DEFENSE LLC. CONVERSION OF MTVR AMK27 TO RSV AMK37

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 $8.1 million.

What is the period of performance?

Start: 2025-12-12. End: 2026-12-11.

What is the specific technical scope of the MTVR to RSV conversion, and how does it justify the $8.08M price tag?

The conversion likely involves significant upgrades to the MTVR (Medium Tactical Vehicle Replacement) to transform it into an RSV (Reconnaissance, Surveillance, and Patrol) vehicle. This could include enhanced armor, advanced sensor suites, improved communication systems, and potentially powertrain modifications. The $8.08M price tag would need to be justified by the complexity and cost of these integrated technological and structural enhancements, ensuring the new RSV meets demanding operational requirements.

What are the risks associated with limited competition for this vehicle conversion contract?

Limited competition poses several risks, including potentially higher prices due to the absence of competitive pressure, reduced incentive for the contractor to innovate or offer cost savings, and a lack of transparency in price justification. It also limits the government's ability to explore alternative solutions or technologies that might be offered by other qualified vendors, potentially impacting long-term value and strategic sourcing.

How effectively will this conversion enhance the Department of the Navy's reconnaissance and surveillance capabilities?

The effectiveness hinges on the specific upgrades incorporated into the RSV conversion. If the modifications successfully integrate advanced sensor technology, improved mobility, and robust communication systems, the RSV could significantly enhance the Navy's ability to gather intelligence, conduct surveillance, and perform patrol missions in various operational environments. Detailed performance metrics and post-conversion testing will be critical to assess actual effectiveness.

Industry Classification

NAICS: ManufacturingMotor Vehicle Body and Trailer ManufacturingMotor Vehicle Body Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: M6785424R0096

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: $8,078,117

Exercised Options: $8,078,117

Current Obligation: $8,078,117

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,714,780

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: M6785426D0024

IDV Type: IDC

Timeline

Start Date: 2025-12-12

Current End Date: 2026-12-11

Potential End Date: 2026-12-11 00:00:00

Last Modified: 2025-12-15

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