DoD Awards Oshkosh Corp $2.19 Billion for Family of Heavy Tactical Vehicles

Contract Overview

Contract Amount: $2,192,179,899 ($2.2B)

Contractor: Oshkosh Corp

Awarding Agency: Department of Defense

Start Date: 2007-02-22

End Date: 2014-06-30

Contract Duration: 2,685 days

Daily Burn Rate: $816.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AWARD OF THE FAMILY OF HEAVY TACTICAL VEHICLES WHICH INCLUDE HEMTT VARIANTS, PLS,ANCILLARY EQUIPMENT AND FRET ASSOCIATED WITH NEW VEHICLES AND WINCHES

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $2.19 billion to OSHKOSH CORP for work described as: AWARD OF THE FAMILY OF HEAVY TACTICAL VEHICLES WHICH INCLUDE HEMTT VARIANTS, PLS,ANCILLARY EQUIPMENT AND FRET ASSOCIATED WITH NEW VEHICLES AND WINCHES Key points: 1. Significant award to Oshkosh Corp for essential heavy tactical vehicles. 2. Limited competition due to the nature of specialized military equipment. 3. Potential risks include long-term sustainment costs and technological obsolescence. 4. Spending falls within the broad 'Defense' sector, specifically vehicle manufacturing.

Value Assessment

Rating: good

The contract value of $2.19 billion over its duration appears substantial for specialized heavy tactical vehicles. Benchmarking against similar large-scale military vehicle procurements would be necessary for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This approach may limit price discovery and potentially lead to higher costs compared to a fully competitive process.

Taxpayer Impact: Taxpayer funds are allocated for critical defense equipment, with the cost influenced by the non-competitive nature of the award.

Public Impact

Ensures operational readiness for the Army with essential heavy tactical vehicles. Supports a major defense contractor and its supply chain. Long-term implications for military logistics and equipment modernization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Non-competitive award
  • Long contract duration
  • Potential for cost overruns

Positive Signals

  • Essential military capability
  • Supports domestic manufacturing

Sector Analysis

This award falls under the defense sector, specifically the manufacturing of heavy tactical vehicles. Spending benchmarks for similar large-scale military vehicle contracts are difficult to ascertain publicly but are typically in the billions.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as Oshkosh Corp is a large prime contractor. Subcontracting opportunities for small businesses may exist but are not detailed here.

Oversight & Accountability

The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve program management reviews and contract performance monitoring.

Related Government Programs

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

Risk Flags

  • Sole-source award limits price competition.
  • Long contract duration (2007-2014) may lead to cost escalation.
  • Dependence on a single supplier for critical assets.
  • Potential for technological obsolescence over the vehicle's lifespan.

Tags

motor-vehicle-body-manufacturing, department-of-defense, wi, definitive-contract, billion-dollar

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.19 billion to OSHKOSH CORP. AWARD OF THE FAMILY OF HEAVY TACTICAL VEHICLES WHICH INCLUDE HEMTT VARIANTS, PLS,ANCILLARY EQUIPMENT AND FRET ASSOCIATED WITH NEW VEHICLES AND WINCHES

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 $2.19 billion.

What is the period of performance?

Start: 2007-02-22. End: 2014-06-30.

What is the total cost of ownership for these vehicles over their lifecycle, including maintenance and upgrades?

The total cost of ownership is not fully captured by the initial award value. It would encompass sustainment, spare parts, fuel, training, and potential upgrades or modifications throughout the vehicles' operational lifespan. Estimating this requires detailed lifecycle cost analysis beyond the procurement contract.

Were there any viable alternative solutions or technologies considered during the non-competitive award process?

Given the 'NOT COMPETED' status, it suggests that either a sole-source justification was made, or alternatives were deemed unsuitable or unavailable at the time of award. A thorough review would be needed to confirm if market research was conducted to ensure no viable competitive options existed.

How does the performance and reliability of these vehicles compare to previous generations or commercial equivalents?

Performance and reliability data are crucial for assessing long-term value. While specific metrics aren't provided, the continued award and use by the Army imply a level of satisfaction. Comparative analysis against older models and commercial benchmarks would highlight improvements or areas needing attention.

Industry Classification

NAICS: ManufacturingMotor Vehicle Body and Trailer ManufacturingMotor Vehicle Body Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W56HZV06R0941

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2307 OREGON ST, OSHKOSH, WI, 54902

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $2,192,179,899

Exercised Options: $2,192,179,899

Current Obligation: $2,192,179,899

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2007-02-22

Current End Date: 2014-06-30

Potential End Date: 2014-06-30 00:00:00

Last Modified: 2021-02-24

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