DLA awards $18M for vehicle components, with Oshkosh Defense securing the contract

Contract Overview

Contract Amount: $18,003,422 ($18.0M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2009-12-23

End Date: 2010-10-29

Contract Duration: 310 days

Daily Burn Rate: $58.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ENGINE, DIESEL; TRANSMISSION; TRANSFER CASE; WHEEL ASSY; GENERATOR; TURBOCHARGER

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902, UNITED STATES OF AMERICA

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $18.0 million to OSHKOSH DEFENSE LLC for work described as: ENGINE, DIESEL; TRANSMISSION; TRANSFER CASE; WHEEL ASSY; GENERATOR; TURBOCHARGER Key points: 1. Value for money assessed against comparable component procurements. 2. Competition dynamics indicate a single awardee for these specific components. 3. Risk indicators include potential single-source dependency for critical parts. 4. Performance context is within the broader Defense Logistics Agency's supply chain. 5. Sector positioning is within the defense manufacturing and vehicle component industry.

Value Assessment

Rating: fair

The contract value of $18 million for vehicle components appears moderate for defense procurement. Benchmarking against similar component contracts is challenging without more specific details on the exact parts and quantities. However, the award amount should be evaluated in the context of the total lifecycle cost of the vehicles these components support. The firm-fixed-price nature suggests cost certainty for the government, but the ultimate value depends on the quality and longevity of the delivered parts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. However, only one award was made, indicating that Oshkosh Defense was the most advantageous offer. The level of competition prior to the award is not detailed, but a single award can sometimes limit price discovery compared to multi-award contracts or those with a higher number of bidders.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value. However, a single award might mean less downward pressure on pricing than if multiple strong competitors had vied for the entire contract.

Public Impact

The Department of Defense benefits from the supply of essential vehicle components. Services delivered include the provision of engines, transmissions, and other critical vehicle parts. Geographic impact is primarily within the defense supply chain, supporting military readiness. Workforce implications are within the manufacturing sector, supporting jobs in component production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruption if the sole awardee faces production issues.
Limited visibility into the specific performance metrics of the awarded components.
Dependence on a single contractor for critical vehicle parts could impact future competition.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract provides cost certainty for the government.
Oshkosh Defense is a known entity in the defense vehicle manufacturing sector.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on components for military vehicles. The market for such specialized parts is often dominated by a few key players due to high barriers to entry, including technical expertise, security clearances, and established relationships with defense agencies. Comparable spending benchmarks would typically be found within the broader category of vehicle parts and maintenance for military applications, which can run into billions of dollars annually across all branches of the military.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' field is false and the contract type is not a small business set-aside. There is no explicit information on subcontracting plans for small businesses within this award. This suggests that the primary contractor, Oshkosh Defense, likely handles the majority of the work or subcontracts to larger, non-small businesses, potentially limiting opportunities for the small business ecosystem in this particular procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), ensuring compliance with contract terms and financial accountability. Transparency is facilitated through contract databases like FPDS. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse were suspected. The firm-fixed-price nature of the contract provides a degree of accountability by fixing the government's cost.

Related Government Programs

Military Vehicle Procurement
Defense Logistics Support
Vehicle Component Manufacturing
Heavy Equipment Manufacturing
Defense Supply Chain Management

Risk Flags

Single-source dependency risk for critical components.
Potential for price escalation in future procurements.
Limited visibility into specific performance metrics of awarded components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.0 million to OSHKOSH DEFENSE LLC. ENGINE, DIESEL; TRANSMISSION; TRANSFER CASE; WHEEL ASSY; GENERATOR; TURBOCHARGER

Who is the contractor on this award?

The obligated recipient is OSHKOSH DEFENSE LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $18.0 million.

What is the period of performance?

Start: 2009-12-23. End: 2010-10-29.

What is the historical spending pattern for similar vehicle components by the Defense Logistics Agency?

Analyzing historical spending patterns for similar vehicle components by the Defense Logistics Agency (DLA) requires accessing detailed procurement data over several fiscal years. While this specific contract is for $18 million, the DLA procures a vast array of vehicle parts and systems. Past awards for engines, transmissions, and other major components can range from hundreds of thousands to tens of millions of dollars per contract, depending on the vehicle type, quantity, and complexity. Trends might show an increasing reliance on specific suppliers for specialized parts, or shifts in procurement strategies towards longer-term sustainment contracts. Without access to a comprehensive historical database filtered by component type and DLA, a precise historical spending pattern cannot be definitively established for this specific category.

How does the unit cost of these components compare to commercial off-the-shelf (COTS) equivalents?

Comparing the unit cost of military-specific vehicle components to Commercial Off-The-Shelf (COTS) equivalents is often difficult due to significant differences in specifications, durability requirements, and production volumes. Military components typically undergo rigorous testing, must meet stringent military standards (e.g., MIL-SPEC), and are often designed for extreme operating conditions, which drives up costs. COTS parts, while potentially similar in function, may not meet these demanding requirements. Furthermore, defense procurement often involves smaller production runs compared to mass-market COTS items, leading to higher per-unit manufacturing costs. Therefore, a direct price-per-unit comparison is usually not apples-to-apples; military components are generally expected to be more expensive due to their specialized nature and performance demands.

What is Oshkosh Defense LLC's track record with similar defense contracts?

Oshkosh Defense LLC has a substantial track record with the Department of Defense, particularly in the manufacturing and sustainment of tactical wheeled vehicles. They are well-known for producing vehicles such as the Family of Medium Tactical Vehicles (FMTV), the Joint Light Tactical Vehicle (JLTV), and various heavy equipment transporters. Their history includes numerous contracts for vehicle production, upgrades, and component supply. While this specific contract for $18 million focuses on components, it aligns with their core business. Their performance history on previous large-scale contracts would be a key factor in their selection for this award, suggesting a demonstrated capability to meet defense requirements, though specific performance metrics for this particular component award would require further investigation.

What are the potential risks associated with relying on a single supplier for these critical vehicle components?

Relying on a single supplier for critical vehicle components introduces several potential risks. Firstly, there's a risk of supply chain disruption; if the sole supplier experiences production issues, natural disasters, labor strikes, or financial instability, the delivery of essential parts could be halted, impacting military readiness. Secondly, it can lead to reduced price competition over time, potentially resulting in higher costs for the government in future procurements or contract extensions. Thirdly, the government may have less leverage in negotiating terms or demanding improvements if there are no alternative suppliers readily available. Lastly, technological obsolescence could become an issue if the sole supplier is slow to innovate or adapt to new requirements.

How does this contract align with the broader strategic goals of the Defense Logistics Agency?

This contract aligns with the Defense Logistics Agency's (DLA) core mission of providing logistics, acquisition, and sustainment support to the armed forces. By ensuring the availability of critical vehicle components, the DLA directly contributes to maintaining the operational readiness and effectiveness of military vehicles. This procurement supports the DLA's role in managing the defense supply chain, ensuring that necessary parts are available when and where needed to keep equipment functioning. It reflects a strategic focus on sustainment and readiness, which are fundamental to the DLA's mandate of supporting military operations globally.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $18,003,422

Exercised Options: $18,003,422

Current Obligation: $18,003,422

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV09D0111

IDV Type: IDC

Timeline