Army awards $86.7M for 170 semitrailers and logistics support to Oshkosh Defense LLC

Contract Overview

Contract Amount: $86,720,371 ($86.7M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2019-05-24

End Date: 2023-06-25

Contract Duration: 1,493 days

Daily Burn Rate: $58.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS CONTRACT IS FOR THE PROCUREMENT OF 170 EACH MPL2-95 SEMITRAILERS, ASSOCIATED SPARE PARTS, KITS, AND CONTRACTOR LOGISTICS SUPPORT (CLS).

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $86.7 million to OSHKOSH DEFENSE LLC for work described as: THIS CONTRACT IS FOR THE PROCUREMENT OF 170 EACH MPL2-95 SEMITRAILERS, ASSOCIATED SPARE PARTS, KITS, AND CONTRACTOR LOGISTICS SUPPORT (CLS). Key points: 1. Contract awarded for specialized semitrailers and associated logistics, indicating a need for robust transportation assets. 2. The firm-fixed-price contract structure aims to control costs for the Department of the Army. 3. Logistics support included suggests a focus on long-term operational readiness and maintenance. 4. The procurement falls under the Truck Trailer Manufacturing industry, highlighting a specific niche within defense logistics. 5. A single award suggests potential limitations in market competition or a highly specialized requirement.

Value Assessment

Rating: fair

The total contract value of $86.7 million for 170 semitrailers and associated support appears substantial. Benchmarking against similar specialized trailer procurements is difficult without more detailed specifications. However, the inclusion of contractor logistics support (CLS) often adds significant cost but can enhance readiness. The firm-fixed-price nature provides cost certainty for the government, but the absence of competition may have led to a higher price than could have been achieved otherwise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, technology, or when urgency dictates a rapid award. The lack of competition means the government did not benefit from price discovery through a bidding process, potentially leading to a higher cost than if multiple offers had been considered.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without competing offers, it's harder to ensure the government received the best possible price for these specialized semitrailers and support services.

Public Impact

The primary beneficiaries are the Department of the Army, which receives critical transportation assets for its operations. The contract delivers 170 specialized semitrailers, essential for moving equipment and supplies. Associated spare parts and contractor logistics support ensure the operational readiness and longevity of the equipment. The geographic impact is likely concentrated where Army units requiring these trailers are stationed, primarily within the United States. Workforce implications may include jobs at Oshkosh Defense LLC and its subcontractors involved in manufacturing and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of open competition raises questions about whether the best value was achieved.
Contract duration of nearly 5 years (1493 days) requires sustained oversight to ensure performance.
Specific details on the 'associated spare parts' and 'contractor logistics support' are not fully elaborated, making precise value assessment challenging.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Inclusion of contractor logistics support suggests a commitment to maintaining operational readiness.
Award to Oshkosh Defense LLC, a known defense contractor, may indicate a reliance on established capabilities.
The procurement addresses a specific, likely critical, transportation need for the Army.

Sector Analysis

This contract falls within the Truck Trailer Manufacturing sector (NAICS 336212). This industry produces a wide range of trailers, including specialized military variants. The market for defense-related transportation equipment is often characterized by high technical requirements and long procurement cycles. Spending in this area is driven by military readiness needs, equipment modernization, and operational deployments. Comparable spending benchmarks are difficult to establish without knowing the exact specifications and capabilities of these MPL2-95 semitrailers.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Oshkosh Defense LLC is a large defense contractor. While there is no direct small business set-aside, there is potential for subcontracting opportunities to small businesses within the manufacturing and logistics support aspects of this contract. However, the extent of these opportunities is not detailed in the provided information.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Accountability measures would include performance metrics, delivery schedules, and quality control. Transparency is generally maintained through contract award databases, though specific performance details may be limited. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Vehicle Procurement
Tactical Logistics Support
Heavy Equipment Transport
Defense Supply Chain Management
Army Equipment Modernization

Risk Flags

Sole-source award may result in higher costs.
Limited public information on specific trailer capabilities.
Contract duration requires sustained performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $86.7 million to OSHKOSH DEFENSE LLC. THIS CONTRACT IS FOR THE PROCUREMENT OF 170 EACH MPL2-95 SEMITRAILERS, ASSOCIATED SPARE PARTS, KITS, AND CONTRACTOR LOGISTICS SUPPORT (CLS).

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 $86.7 million.

What is the period of performance?

Start: 2019-05-24. End: 2023-06-25.

What is the specific capability and intended use of the MPL2-95 semitrailers?

The provided data does not detail the specific capabilities or intended use of the MPL2-95 semitrailers beyond their classification as semitrailers. However, given the award to the Department of the Army and the contractor Oshkosh Defense LLC (known for military vehicles), it is highly probable these are specialized tactical trailers designed for military operations. This could include transporting heavy equipment, modular systems, or other mission-critical assets in potentially austere or combat environments. The 'MPL2-95' designation likely refers to a specific model or series with unique design features, load capacities, and ruggedization standards tailored for military requirements, distinguishing them from commercial semitrailers.

Why was this contract awarded on a sole-source basis instead of being competed?

The contract was awarded on a sole-source basis, as indicated by 'ct: NOT COMPETED'. This typically occurs when the government determines that only one responsible source is capable of providing the required goods or services. Reasons can include unique proprietary technology, urgent and compelling needs where competition is impractical, or if the requirement is a follow-on to a previous sole-source award where the original contractor holds essential intellectual property or specialized knowledge. Without further documentation, the specific justification for this sole-source award remains undisclosed, but it implies a belief by the Army that Oshkosh Defense LLC was the only viable option at the time of procurement.

How does the $86.7 million contract value compare to similar procurements of specialized military trailers?

Direct comparison of the $86.7 million contract value for 170 semitrailers is challenging without detailed specifications of the MPL2-95 model and its associated logistics support. Specialized military trailers often incorporate advanced materials, ruggedized designs, and specific payload capabilities that significantly increase their cost compared to commercial counterparts. The inclusion of Contractor Logistics Support (CLS) also adds a substantial cost component, covering maintenance, spare parts, and technical assistance over the contract period. While the total value is significant, it reflects the specialized nature of the equipment and the comprehensive support package required for military readiness, rather than a simple per-unit trailer cost.

What are the potential risks associated with a sole-source contract of this magnitude?

Sole-source contracts, especially those of significant value like $86.7 million, carry inherent risks. The primary risk is the potential for inflated pricing due to the lack of competitive pressure, meaning the government may not achieve the best possible value. There's also a risk of reduced innovation, as the sole provider may have less incentive to improve products or services. Furthermore, reliance on a single supplier can create supply chain vulnerabilities if that contractor faces production issues or financial instability. Effective oversight and robust negotiation are crucial to mitigate these risks, ensuring the government receives fair pricing and adequate performance despite the absence of competition.

What is Oshkosh Defense LLC's track record with the Department of the Army for similar procurements?

Oshkosh Defense LLC has a well-established and extensive track record with the Department of the Army, particularly in providing tactical wheeled vehicles and related support. They are known for producing the Family of Medium Tactical Vehicles (FMTV), Joint Light Tactical Vehicles (JLTV), and various heavy equipment transporters. Their experience includes manufacturing, integration, and providing long-term logistics support for complex military systems. This history suggests a deep understanding of Army requirements, operational environments, and sustainment needs, making them a logical choice for specialized equipment like semitrailers, even in a sole-source context.

What is the expected duration and performance period for the Contractor Logistics Support (CLS)?

The contract has a duration of 1493 days, which is approximately 4 years and 1 month. This duration likely encompasses both the delivery of the 170 semitrailers and the provision of associated spare parts and Contractor Logistics Support (CLS). The CLS component is critical for ensuring the operational readiness and maintainability of the semitrailers throughout their service life within this contract period. It typically includes services such as maintenance, repair, technical support, and potentially training, ensuring the equipment remains functional and supported by the original manufacturer's expertise.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer 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

Parent Company: Oshkosh Corporation

Address: 2307 OREGON ST, OSHKOSH, WI, 54902

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $87,304,808

Exercised Options: $86,720,371

Current Obligation: $86,720,371

Actual Outlays: $10,698,133

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $52,481,715

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline