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
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: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Motor 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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