DoD Awards $76.5M for Heavy Duty Trucks, Extending Delivery by 1698 Days
Contract Overview
Contract Amount: $76,516,454 ($76.5M)
Contractor: Oshkosh Corp
Awarding Agency: Department of Defense
Start Date: 2007-09-21
End Date: 2012-05-15
Contract Duration: 1,698 days
Daily Burn Rate: $45.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY DATE EXTENSION
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $76.5 million to OSHKOSH CORP for work described as: DELIVERY DATE EXTENSION Key points: 1. Significant contract value of $76.5M. 2. No competition was utilized for this award. 3. Potential risks associated with delivery date extensions. 4. Spending falls within the Heavy Duty Truck Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $76.5M for heavy-duty trucks appears substantial. Without specific unit counts or detailed specifications, a direct per-unit cost comparison is difficult. However, the significant delivery extension suggests potential cost impacts not immediately apparent.
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 lack of competition may have limited price discovery and potentially led to a higher price than if multiple vendors had bid.
Taxpayer Impact: The absence of competition raises concerns about taxpayer value. Without competitive pressure, the government may not have secured the best possible price for these heavy-duty trucks.
Public Impact
Military readiness may be impacted by delivery delays. Taxpayer funds are committed to a significant truck procurement. The long duration of the contract and extensions warrant scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Delivery Date Extension
- Lack of Competition
Positive Signals
- Firm Fixed Price contract type
Sector Analysis
This contract falls under Heavy Duty Truck Manufacturing, a critical sector for military logistics and operations. Spending benchmarks for similar large-scale truck procurements would be useful for context, but are not readily available.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.
Oversight & Accountability
The significant delivery date extension suggests a need for robust oversight to ensure timely delivery and manage any associated cost overruns. Accountability for the delays and their impact on military operations is crucial.
Related Government Programs
- Heavy Duty Truck Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Significant delivery date extension
- Potential for cost overruns due to delays
- Unclear impact on operational readiness
Tags
heavy-duty-truck-manufacturing, department-of-defense, wi, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $76.5 million to OSHKOSH CORP. DELIVERY DATE EXTENSION
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 $76.5 million.
What is the period of performance?
Start: 2007-09-21. End: 2012-05-15.
What was the primary reason for the extensive 1698-day delivery date extension on this $76.5M heavy-duty truck contract?
The primary reason for the extensive delivery date extension is not explicitly stated in the provided data. Such delays can stem from various factors including production challenges, supply chain disruptions, changes in military requirements, or contractor-related issues. A thorough review of contract modifications and associated documentation would be necessary to pinpoint the exact cause and assess its justification.
Given the sole-source nature of this award, how can the Department of Defense ensure it received fair market value for the heavy-duty trucks?
To ensure fair market value in a sole-source scenario, the Department of Defense typically relies on robust price analysis techniques. This involves comparing the proposed price to historical prices for similar items, using cost-plus-incentive-fee structures where appropriate, and potentially engaging independent cost estimators. Documenting the justification for sole-source and demonstrating thorough price analysis are key to accountability.
What is the potential impact of this contract's long duration and delivery extensions on the Army's operational readiness and budget?
The long duration and delivery extensions of this contract could negatively impact operational readiness if the trucks are critical for current or future missions. Budget-wise, extended timelines can lead to increased costs due to inflation, potential rework, and the need for interim solutions. It also ties up significant capital for a prolonged period, potentially affecting the allocation of funds to other urgent needs.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Manufacturing › Heavy Duty Truck Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
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: 2307 OREGON STREET, OSHKOSH, WI, 06
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $76,516,454
Exercised Options: $76,516,454
Current Obligation: $76,516,454
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2007-09-21
Current End Date: 2012-05-15
Potential End Date: 2012-05-15 00:00:00
Last Modified: 2013-05-20
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