DoD awards $51.3M for HEMTT A4 B Kits, with no competition
Contract Overview
Contract Amount: $51,307,774 ($51.3M)
Contractor: Oshkosh Corp
Awarding Agency: Department of Defense
Start Date: 2008-05-30
End Date: 2009-05-31
Contract Duration: 366 days
Daily Burn Rate: $140.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROCUREMENT OF 661 EACH HEMTT A4 B KITS UNDER LTAS
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $51.3 million to OSHKOSH CORP for work described as: PROCUREMENT OF 661 EACH HEMTT A4 B KITS UNDER LTAS Key points: 1. High contract value of $51.3M. 2. Sole-source award to Oshkosh Corp. 3. Potential risk due to lack of competition. 4. Fabricated Structural Metal Manufacturing sector.
Value Assessment
Rating: questionable
The contract value is $51.3M for 661 units. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar heavy equipment modification kits.
Cost Per Unit: $77,621
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This limits price discovery and may result in a higher cost to the government than if multiple vendors had bid.
Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as the government may have paid more than necessary for these kits.
Public Impact
Military readiness potentially impacted by availability of specialized vehicle kits. Taxpayer funds allocated to a single supplier without competitive pressure. Oshkosh Corp benefits from a significant sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Awarded to a known entity (Oshkosh Corp)
- Specific product for military application
Sector Analysis
This contract falls under Fabricated Structural Metal Manufacturing, a sector crucial for defense applications. The $51.3M award is substantial within this niche, especially for specialized military vehicle components.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Therefore, there is no direct benefit or analysis regarding small business participation in this specific procurement.
Oversight & Accountability
The sole-source nature of this award warrants oversight to ensure fair pricing and justification for the lack of competition. Accountability rests with the Department of the Army to validate the necessity and cost-effectiveness.
Related Government Programs
- Fabricated Structural Metal Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated costs due to lack of bidding.
- Dependency on a single supplier for critical components.
- Lack of transparency in the procurement process.
Tags
fabricated-structural-metal-manufacturin, department-of-defense, wi, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.3 million to OSHKOSH CORP. PROCUREMENT OF 661 EACH HEMTT A4 B KITS UNDER LTAS
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 $51.3 million.
What is the period of performance?
Start: 2008-05-30. End: 2009-05-31.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves factors such as unique capabilities of the vendor, urgent need, or lack of adequate competition. Without specific documentation, it's presumed the Department of the Army determined Oshkosh Corp was the only viable source or that competition was not feasible or cost-effective at the time of award.
How does the per-unit cost of $77,621 compare to similar military vehicle upgrade kits procured competitively?
Benchmarking the per-unit cost of $77,621 requires access to data on similar HEMTT A4 B kits or comparable military vehicle upgrade packages. Without competitive data points, it's challenging to definitively state if this price represents good value. However, sole-source awards often carry a premium compared to competitively bid items.
What is the long-term impact on military logistics and maintenance if only one supplier provides these critical kits?
A sole-source supplier for critical kits can create long-term risks for military logistics. It can lead to supply chain vulnerabilities, potential price increases over time, and reduced flexibility in sourcing. Dependence on a single vendor may also hinder innovation and the adoption of newer, potentially more cost-effective technologies.
Industry Classification
NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Fabricated Structural Metal Manufacturing
Product/Service Code: METALWORKING MACHINERY
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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $51,307,774
Exercised Options: $51,307,774
Current Obligation: $51,307,774
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2008-05-30
Current End Date: 2009-05-31
Potential End Date: 2009-05-31 00:00:00
Last Modified: 2012-05-04
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