Army awards $70.9M for truck trailer manufacturing, with Oshkosh Corp. as the sole contractor

Contract Overview

Contract Amount: $70,886,309 ($70.9M)

Contractor: Oshkosh Corp

Awarding Agency: Department of Defense

Start Date: 2003-10-22

End Date: 2007-03-31

Contract Duration: 1,256 days

Daily Burn Rate: $56.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200401!000855!2100!W56HZV!TACOM - WARREN !W56HZV04C0016 !A!N! !N! ! !20031022!20040304!006070445!006070445!006070445!N!OSHKOSH TRUCK CORP !2307OREGON STREET !OSHKOSH !WI!54903!60500!139!55!OSHKOSH !WINNEBAGO !WISCONSIN !+000010000000!N!N!000000000000!AC41!RDTE/TANK - AUTOMOTIVE-BASIC RESEARCH !A4B!NON-COMBAT VEHICLES !000 !* !336212!E! !1! ! ! ! ! !99990909!B! ! !N!Z!D!U!J!1!001!N!1A!A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $70.9 million to OSHKOSH CORP for work described as: 200401!000855!2100!W56HZV!TACOM - WARREN !W56HZV04C0016 !A!N! !N! ! !20031022!20040304!006070445!006070445!006070445!N!OSHKOSH TRUCK CORP !2307OREGON STREET !OSHKOSH !WI!54903!60500!139!55!OSHKOSH !WINN… Key points: 1. Contract awarded to a single, established supplier suggests limited market exploration. 2. Fixed-price contract type may offer cost certainty but could limit flexibility for evolving needs. 3. Long contract duration (over 3 years) indicates a sustained requirement for these goods. 4. The award represents a significant investment in specialized vehicle components. 5. Geographic concentration of the contractor in Wisconsin may have local economic implications.

Value Assessment

Rating: fair

The contract value of $70.9 million over approximately 3.5 years averages to about $20.3 million annually. Without specific details on the quantity and type of truck trailers, a direct per-unit cost comparison is difficult. However, the award to a single, known entity like Oshkosh Corp. might indicate a pre-existing relationship or specialized capability. Further benchmarking against similar defense procurements for heavy-duty trailers would be necessary to fully assess value for money.

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 is typically used when only one vendor possesses the necessary unique capabilities, technology, or when urgency precludes a competitive process. The lack of competition means that the government did not benefit from potential price reductions or innovative solutions that might arise from a bidding process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is less pressure on the contractor to offer the most competitive pricing.

Public Impact

The primary beneficiaries are the Department of the Army, ensuring the availability of essential logistical support vehicles. The contract delivers specialized truck trailers crucial for military operations and equipment transport. The geographic impact is concentrated in Wisconsin, where Oshkosh Corp. is headquartered, potentially supporting local jobs and the regional economy. Workforce implications include the potential for sustained employment at Oshkosh Corp. and its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher prices than a competed contract.
Sole-source nature limits opportunities for new or smaller businesses to enter the defense supply chain for this specific need.
Long-term contract duration could pose risks if technology or requirements change significantly.

Positive Signals

Award to an established contractor (Oshkosh Corp.) suggests a high likelihood of meeting technical specifications and delivery schedules.
Firm Fixed Price contract type provides cost predictability for the government.
The contract addresses a critical logistical need for the military.

Sector Analysis

This contract falls within the broader "Truck Trailer Manufacturing" sector, a niche within the larger industrial and defense manufacturing landscape. The market for specialized military trailers is often dominated by a few key players due to stringent performance requirements and existing relationships with defense agencies. Oshkosh Corp. is a well-known entity in this space, often associated with heavy-duty and specialized vehicles for military and commercial applications. Benchmarking would involve comparing this award to other sole-source or competitively awarded contracts for similar military logistical vehicles.

Small Business Impact

The contract was awarded to Oshkosh Corp., a large business, and there is no indication of a small business set-aside. Furthermore, the sole-source nature of the award limits opportunities for small businesses to participate directly as prime contractors. While Oshkosh Corp. may engage small businesses as subcontractors, the primary award does not directly benefit the small business ecosystem through set-aside provisions.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance standards, delivery schedules, and quality control requirements. Transparency is generally facilitated through contract award databases like FPDS, though detailed justifications for sole-source awards may have varying levels of public disclosure. Inspector General (IG) jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Tactical Wheeled Vehicles
Logistics Support Vehicles
Military Truck Production
Defense Vehicle Manufacturing
Heavy Equipment Transport

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited public information on specific trailer types and quantities.
Potential for cost overruns if requirements evolve and contract is inflexible.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $70.9 million to OSHKOSH CORP. 200401!000855!2100!W56HZV!TACOM - WARREN !W56HZV04C0016 !A!N! !N! ! !20031022!20040304!006070445!006070445!006070445!N!OSHKOSH TRUCK CORP !2307OREGON STREET !OSHKOSH !WI!54903!60500!139!55!OSHKOSH !WINNEBAGO !WISCONSIN !+000010000000!N!N!000000000000!AC41!RDTE/TANK - AUTOMOTIVE-BASIC RESEARCH !A4B!NON-COMBAT VEHICLES !000 !* !336212!E! !1! ! ! ! ! !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 Army).

What is the total obligated amount?

The obligated amount is $70.9 million.

What is the period of performance?

Start: 2003-10-22. End: 2007-03-31.

What specific types and quantities of truck trailers are being procured under this contract?

The provided data indicates the contract is for "Truck Trailer Manufacturing" (NAICS 336212) awarded to Oshkosh Corp. However, the specific details regarding the exact types, models, and quantities of truck trailers are not present in the abbreviated data. This information is crucial for a granular analysis of the contract's scope and value. Typically, such details would be found in the contract's statement of work or associated documentation. Without this, assessing the unit cost or the appropriateness of the total award value becomes more challenging, relying instead on broader industry benchmarks for similar military logistical assets.

What is the historical spending pattern with Oshkosh Corp. for similar truck trailers by the Department of the Army?

The provided data focuses on a single contract award (W56HZV-04-C-0016) valued at $70.9 million, spanning from October 2003 to March 2007. To understand historical spending patterns, a broader dataset encompassing prior and subsequent contracts with Oshkosh Corp. for truck trailers or related components by the Department of the Army would be necessary. This would allow for an analysis of trends in contract values, durations, and types (e.g., sole-source vs. competitive). Without this historical context, it's difficult to determine if this $70.9 million award represents a typical, increased, or decreased level of investment for this specific requirement over time.

What justification was provided for awarding this contract on a sole-source basis?

The data explicitly states the contract type as 'NOT COMPETED' (CT: 'N'), indicating a sole-source or limited competition award. The specific justification for this sole-source determination is not included in the abbreviated data. Typically, sole-source procurements require a formal justification document (e.g., Justification and Approval - J&A) outlining why full and open competition is not feasible. Reasons often include unique capabilities, proprietary technology, urgent and compelling needs, or lack of adequate competition. Accessing the full contract file or agency procurement records would be necessary to review the official justification.

How does the average annual value of this contract compare to other similar military trailer procurements?

This contract's average annual value is approximately $20.3 million ($70.9M / ~3.5 years). To benchmark this against similar procurements, one would need to identify comparable contracts for military truck trailers or related logistical vehicles awarded by the Department of Defense or other military branches. Key comparison points would include the type and quantity of trailers, technical specifications, contract type, and the awarding agency. Without access to a broader database of defense contract awards for similar items, it is difficult to definitively state whether $20.3 million annually is high, low, or average for this category of equipment.

What are the performance metrics and key performance indicators (KPIs) associated with this contract?

The provided abbreviated data does not contain specific details about the performance metrics or Key Performance Indicators (KPIs) for this contract. These are typically outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). They would define the standards the contractor must meet, such as delivery timelines, quality defect rates, reliability, and maintainability. Oversight agencies and contracting officers use these KPIs to monitor contractor performance and ensure the government receives the intended value. Without this information, a performance assessment is limited to general assumptions based on the contractor's reputation and contract type.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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

Financial Breakdown

Contract Ceiling: $9,433,606

Exercised Options: $9,433,606

Current Obligation: $70,886,309

Timeline