DoD's JLTV EMD Phase Awarded to Oshkosh Defense for $56.9M, Highlighting Military Vehicle Modernization Efforts

Contract Overview

Contract Amount: $56,864,451 ($56.9M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2012-08-22

End Date: 2015-09-30

Contract Duration: 1,134 days

Daily Burn Rate: $50.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: JOINT LIGHT TACTICAL VEHICLE (JLTV) - ENGINEERING MANUFACTURING AND DEVELOPMENT (EMD) PHASE

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54903, UNITED STATES OF AMERICA

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $56.9 million to OSHKOSH DEFENSE LLC for work described as: JOINT LIGHT TACTICAL VEHICLE (JLTV) - ENGINEERING MANUFACTURING AND DEVELOPMENT (EMD) PHASE Key points: 1. The Engineering, Manufacturing, and Development (EMD) phase of the Joint Light Tactical Vehicle (JLTV) program represents a critical investment in modernizing military ground vehicles. 2. Oshkosh Defense secured this significant contract, indicating a competitive process for a high-stakes defense acquisition. 3. The firm-fixed-price contract structure suggests a defined scope and cost control measures were in place. 4. This award is a key step in the broader JLTV program, aimed at replacing aging vehicle fleets with more capable platforms. 5. The EMD phase focuses on refining the design and production processes before potential full-rate manufacturing. 6. The substantial value of this EMD contract underscores the complexity and technological requirements of advanced military vehicles.

Value Assessment

Rating: good

The $56.9 million award for the JLTV EMD phase appears reasonable given the developmental nature and complexity of engineering a new military vehicle platform. Benchmarking against similar EMD contracts for major defense systems, which often run into tens or hundreds of millions, suggests this falls within an expected range. The firm-fixed-price structure also implies a degree of cost certainty for the government, though the true value-for-money will be realized in subsequent production phases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable contractors had the opportunity to bid. With seven bidders participating, the competition level was robust, which typically drives innovation and competitive pricing. This broad participation suggests the Army sought the best technical solutions and value from across the industry for this critical vehicle program.

Taxpayer Impact: A full and open competition for a program of this magnitude is beneficial for taxpayers as it increases the likelihood of securing a cost-effective solution and encourages industry to invest in developing capabilities that meet stringent military requirements.

Public Impact

The primary beneficiaries are the U.S. Army and Marine Corps, who will eventually receive the JLTVs to enhance their tactical mobility and survivability. This contract funds the critical engineering, manufacturing, and development work necessary to finalize the JLTV design and production readiness. The geographic impact is primarily centered around Oshkosh, Wisconsin, where the contractor is based, potentially supporting local jobs and the defense manufacturing ecosystem. Successful completion of the EMD phase will have significant workforce implications, requiring skilled engineers, technicians, and manufacturing personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in subsequent production phases if EMD phase does not fully de-risk the design and manufacturing processes.
Dependence on a single contractor (Oshkosh Defense) for this critical EMD phase could pose a risk if performance issues arise.
The long-term sustainment and maintenance costs of the JLTV platform are not fully captured in this EMD award and require separate analysis.

Positive Signals

Awarded under full and open competition, suggesting a competitive environment that should yield a well-vetted solution.
Firm-fixed-price contract type provides cost certainty for the government during this developmental phase.
Oshkosh Defense has a strong track record in producing military vehicles, indicating a high likelihood of successful execution.
The EMD phase is designed to mature the design and manufacturing, reducing risks for future production.

Sector Analysis

The Joint Light Tactical Vehicle (JLTV) program falls within the broader defense manufacturing sector, specifically focusing on armored vehicle production. This sector is characterized by high technological barriers to entry, significant R&D investment, and long procurement cycles. The market size for tactical vehicles is substantial, driven by ongoing military modernization efforts globally. This contract represents a key developmental milestone for a platform intended to replace legacy vehicles like the Humvee, positioning Oshkosh Defense as a primary supplier for this next-generation capability.

Small Business Impact

This specific contract for the JLTV EMD phase was awarded to Oshkosh Defense LLC and does not appear to have a specific small business set-aside component. However, as a prime contractor on a major defense program, Oshkosh Defense is likely to engage small businesses as subcontractors for various components and services. The extent of small business participation will depend on Oshkosh's subcontracting plan and the specific needs of the EMD phase, potentially offering opportunities within the small business defense supply chain.

Oversight & Accountability

Oversight for this Department of Defense contract would typically involve the Defense Contract Management Agency (DCMA) for day-to-day contract administration and potentially the Department of the Army's program executive office for the JLTV. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified engineering and development milestones. Transparency is generally maintained through contract award announcements and program reporting, though detailed technical specifications and developmental progress may be considered sensitive.

Related Government Programs

Family of Medium Tactical Vehicles (FMTV)
Humvee Replacement Program
Mine-Resistant Ambush Protected (MRAP) Vehicles
Light Tactical All-Wheel Drive Vehicle (LTAV)

Risk Flags

Developmental Risk
Cost Overrun Potential
Schedule Slippage Risk
Technical Performance Uncertainty
Long-Term Sustainment Costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.9 million to OSHKOSH DEFENSE LLC. JOINT LIGHT TACTICAL VEHICLE (JLTV) - ENGINEERING MANUFACTURING AND DEVELOPMENT (EMD) PHASE

Who is the contractor on this award?

The obligated recipient is OSHKOSH DEFENSE LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $56.9 million.

What is the period of performance?

Start: 2012-08-22. End: 2015-09-30.

What is Oshkosh Defense's track record with similar large-scale military vehicle development contracts?

Oshkosh Defense has a substantial and generally positive track record in developing and producing military vehicles. They are well-known for their Family of Medium Tactical Vehicles (FMTV) program, which involved extensive production and upgrades over many years. Additionally, Oshkosh was a significant producer of Mine-Resistant Ambush Protected (MRAP) vehicles during the height of the conflicts in Iraq and Afghanistan. Their experience includes integrating complex systems, meeting stringent survivability requirements, and managing large-scale manufacturing. This history suggests a strong capability to handle the technical and logistical challenges of the JLTV EMD phase, although each program presents unique requirements and risks.

How does the $56.9 million EMD cost compare to other major defense system development programs?

The $56.9 million awarded for the JLTV EMD phase appears to be a reasonable investment for the development of a new, highly complex military vehicle platform. To provide context, EMD phases for major defense systems can range significantly. For instance, the development of new fighter jets or naval vessels can cost billions. However, for ground vehicles, EMD phases for platforms like the Abrams tank upgrades or the Stryker vehicle family development likely involved tens to hundreds of millions of dollars. Given the JLTV's advanced protection, mobility, and mission system requirements, $56.9 million for its EMD phase seems proportionate, especially when considering it's a precursor to potentially much larger production contracts.

What are the primary technical and programmatic risks associated with the JLTV EMD phase?

The primary technical risks for the JLTV EMD phase revolve around integrating advanced armor, sophisticated suspension systems for off-road mobility, and modern communication/mission equipment while meeting stringent weight targets. Ensuring reliability and maintainability in diverse operational environments is also a key challenge. Programmatic risks include potential schedule delays due to design challenges or testing failures, and cost growth if unforeseen issues arise during development. Furthermore, ensuring the vehicle meets the evolving threat landscape and future operational requirements adds a layer of uncertainty. The success of the EMD phase is critical to mitigating these risks before full-rate production.

What is the expected effectiveness and performance improvement the JLTV aims to deliver over legacy vehicles?

The JLTV is designed to offer a significant leap in capability over the legacy High Mobility Multipurpose Wheeled Vehicle (HMMWV). Key improvements include substantially enhanced protection against ballistic threats, mines, and IEDs, which was a major deficiency of the HMMWV in recent conflicts. The JLTV also aims for superior off-road mobility, better fuel efficiency, and improved payload capacity. It is designed to be more transportable by air (e.g., within a CH-47 Chinook or CH-53 helicopter) and more logistically supportable. The goal is to provide protected mobility that bridges the gap between the lightly armored HMMWV and the much heavier MRAP vehicles, offering a versatile platform for various combat and support roles.

What has been the historical spending trend for tactical vehicle programs within the Department of Defense?

Historical spending on tactical vehicle programs within the DoD has been substantial and cyclical, often driven by wartime needs and modernization initiatives. During periods of intense conflict, such as in Iraq and Afghanistan, spending on vehicles like the HMMWV, MRAPs, and various medium tactical trucks surged dramatically to meet immediate operational demands. Post-conflict, spending typically shifts towards modernization, sustainment, and the development of next-generation platforms like the JLTV. This transition involves significant R&D investment followed by large-scale procurement contracts. The overall trend reflects a continuous effort to balance current operational readiness with future capability development, often involving multi-billion dollar programs over many years.

How does the JLTV EMD contract fit into the broader strategy of military vehicle modernization?

The JLTV EMD contract is a cornerstone of the DoD's broader strategy to modernize its tactical wheeled vehicle fleet. For decades, the HMMWV served as the backbone, but its limitations in protection and payload became apparent. The JLTV program aims to address these shortcomings by providing a more survivable, capable, and versatile platform. It represents a strategic shift towards vehicles designed from the outset with modern threats and operational concepts in mind. This EMD phase is crucial for validating the design, manufacturing processes, and performance characteristics before committing to the large-scale production necessary to replace thousands of aging HMMWVs across the Army and Marine Corps, thereby enhancing overall force protection and mission effectiveness.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Oshkosh Corp (UEI: 006070445)

Address: 2307 OREGON ST, OSHKOSH, WI, 54903

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $61,543,130

Exercised Options: $61,019,296

Current Obligation: $56,864,451

Contract Characteristics

Cost or Pricing Data: NO

Timeline