DoD Awards $26.6M Contract for M-ATV Underbody Improvement Kits and Training

Contract Overview

Contract Amount: $26,564,158 ($26.6M)

Contractor: Oshkosh Corp

Awarding Agency: Department of Defense

Start Date: 2012-05-18

End Date: 2013-08-31

Contract Duration: 470 days

Daily Burn Rate: $56.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS ACTION IS FOR THE PROCUREMENT OF 132 UNDERBODY IMPROVEMENT KIT (UIK) SUBJECT MATTER EXPERT (SME) PERSONNEL. THESE PERSONNEL WILL PERFORM INSTALLATION AND PROVIDE INSTALLATION TRAINING ASSOCIATED WITH M-ATV UIKS AND OTHER RELATED M-ATV RETROFITS AND GENERAL MAINTENANCE DURING UIK INSTALLATION

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $26.6 million to OSHKOSH CORP for work described as: THIS ACTION IS FOR THE PROCUREMENT OF 132 UNDERBODY IMPROVEMENT KIT (UIK) SUBJECT MATTER EXPERT (SME) PERSONNEL. THESE PERSONNEL WILL PERFORM INSTALLATION AND PROVIDE INSTALLATION TRAINING ASSOCIATED WITH M-ATV UIKS AND OTHER RELATED M-ATV RETROFITS AND GENERAL MAINTENANCE DURIN… Key points: 1. Contract focuses on specialized personnel for M-ATV underbody kits and retrofits. 2. High value contract awarded to Oshkosh Corp for installation and training services. 3. Sole-source procurement raises questions about competition and potential cost savings. 4. Spending falls within the Military Armored Vehicle manufacturing sector.

Value Assessment

Rating: fair

The contract value of $26.6 million for specialized personnel and training appears significant. Benchmarking against similar sole-source contracts for military vehicle retrofits and expertise is difficult without more data on the scope of services and required skill sets.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process. The justification for sole-source is not provided.

Taxpayer Impact: The lack of competition for this $26.6 million contract may lead to suboptimal pricing, potentially increasing the financial burden on taxpayers.

Public Impact

Enhances the operational readiness and longevity of M-ATV vehicles through critical underbody improvements. Provides essential training to military personnel, enabling in-house maintenance and reducing reliance on external support. Supports the modernization of armored vehicle fleets, ensuring troops have access to updated and safer equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source procurement limits competition and price negotiation.
  • Lack of detailed justification for sole-source award.
  • Potential for cost overruns due to non-competitive nature.

Positive Signals

  • Addresses critical need for M-ATV underbody improvements.
  • Includes vital training component for military personnel.
  • Supports ongoing military vehicle modernization efforts.

Sector Analysis

This contract falls under the Military Armored Vehicle, Tank, and Tank Component Manufacturing sector. Spending in this area is driven by defense modernization, operational readiness, and the need for specialized maintenance and upgrade services for existing fleets.

Small Business Impact

The contract was awarded to Oshkosh Corp, a large business. There is no indication of subcontracting opportunities for small businesses within this specific award, which could limit their participation in this defense procurement.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Further oversight is needed to ensure the justification for non-competition was valid and that the pricing reflects fair market value, despite the lack of competitive bidding.

Related Government Programs

  • Military Armored Vehicle, Tank, and Tank Component Manufacturing
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Sole-source award limits competition.
  • Potential for inflated pricing due to lack of competition.
  • Lack of transparency regarding justification for sole-source.
  • No clear indication of small business participation.

Tags

military-armored-vehicle-tank-and-tank-c, department-of-defense, wi, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.6 million to OSHKOSH CORP. THIS ACTION IS FOR THE PROCUREMENT OF 132 UNDERBODY IMPROVEMENT KIT (UIK) SUBJECT MATTER EXPERT (SME) PERSONNEL. THESE PERSONNEL WILL PERFORM INSTALLATION AND PROVIDE INSTALLATION TRAINING ASSOCIATED WITH M-ATV UIKS AND OTHER RELATED M-ATV RETROFITS AND GENERAL MAINTENANCE DURING UIK INSTALLATION

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 $26.6 million.

What is the period of performance?

Start: 2012-05-18. End: 2013-08-31.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this justification, it's impossible to assess if competitive strategies were adequately explored or if this was the only viable procurement path.

How does the per-unit cost of the UIK installation and training compare to industry benchmarks or previous similar contracts?

A direct per-unit cost benchmark is not available from the provided data. The total contract value is $26.6 million for 132 kits and associated personnel/training. Calculating a precise per-unit cost requires breaking down the total value by the number of kits and the scope of services, which is not detailed here. Comparison to benchmarks is difficult without more granular cost data and service definitions.

What is the expected impact of these UIK installations and training on the overall operational effectiveness and maintenance costs of the M-ATV fleet?

The UIK installations are expected to improve the underbody protection and potentially the operational lifespan of the M-ATV vehicles, directly enhancing their effectiveness in challenging environments. The inclusion of installation training aims to build organic sustainment capabilities within the Army, potentially reducing long-term maintenance costs and response times for future retrofits and repairs.

Industry Classification

NAICS: ManufacturingOther Transportation Equipment ManufacturingMilitary Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENTMAINT, REPAIR, REBUILD OF EQUIPMENT

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 ST, OSHKOSH, WI, 54902

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

Financial Breakdown

Contract Ceiling: $26,564,158

Exercised Options: $26,564,158

Current Obligation: $26,564,158

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $11,449,855

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2012-05-18

Current End Date: 2013-08-31

Potential End Date: 2013-08-31 12:08:00

Last Modified: 2018-06-01

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