DoD Awards $27.1M for Modified Medium Tactical Vehicles to Oshkosh Defense, Limited Competition
Contract Overview
Contract Amount: $27,117,345 ($27.1M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2019-10-18
End Date: 2023-01-31
Contract Duration: 1,201 days
Daily Burn Rate: $22.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FOREIGN MILITARY SALES (FMS) IN SUPPORT OF ISRAEL DEFENSE FORCE. MODIFIED 8 TONNE MEDIUM TACTICAL VEHICLES, ASSOCIATED PROVISIONING PARTS, AND TRAINING SUPPORT.
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $27.1 million to OSHKOSH DEFENSE LLC for work described as: FOREIGN MILITARY SALES (FMS) IN SUPPORT OF ISRAEL DEFENSE FORCE. MODIFIED 8 TONNE MEDIUM TACTICAL VEHICLES, ASSOCIATED PROVISIONING PARTS, AND TRAINING SUPPORT. Key points: 1. Significant award for specialized military vehicles and support services. 2. Oshkosh Defense LLC is the sole awardee, raising competition concerns. 3. Contract duration of 1201 days indicates a long-term need. 4. Heavy Duty Truck Manufacturing sector, with potential for specialized defense applications.
Value Assessment
Rating: fair
The award value of $27.1M for modified vehicles and support appears substantial. Benchmarking against similar specialized military vehicle contracts is difficult without more detailed specifications, but the lack of competition suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection. This approach may be justified by unique requirements or existing platform integration, but it limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: Limited competition may result in higher costs than a fully competitive process, impacting taxpayer value.
Public Impact
Enhances Israel's defense capabilities with modified tactical vehicles. Supports military readiness through specialized equipment and training. Potential for follow-on contracts for sustainment and upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of detailed cost breakdowns
- Potential for sole-source justification issues
Positive Signals
- Supports a key ally's defense needs
- Utilizes established defense contractor
- Long-term contract provides stability
Sector Analysis
This contract falls within the defense sector, specifically focusing on tactical vehicle modification and support. Spending in this area is driven by military modernization and operational requirements, with benchmarks often set by similar sole-source or limited-competition awards for specialized equipment.
Small Business Impact
The awardee, Oshkosh Defense LLC, is a large business. There is no indication of small business participation in this specific contract, which is common for large, specialized defense procurements.
Oversight & Accountability
The Department of the Army, under the Department of Defense, managed this award. Oversight would focus on contract performance, delivery schedules, and adherence to the firm fixed price terms. Transparency regarding the justification for limited competition is crucial.
Related Government Programs
- Heavy Duty Truck Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition raises concerns about price reasonableness.
- Lack of detailed cost breakdown hinders value assessment.
- Potential for cost overruns if modifications are complex.
- Reliance on a single source for critical defense equipment.
Tags
heavy-duty-truck-manufacturing, department-of-defense, wi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.1 million to OSHKOSH DEFENSE LLC. FOREIGN MILITARY SALES (FMS) IN SUPPORT OF ISRAEL DEFENSE FORCE. MODIFIED 8 TONNE MEDIUM TACTICAL VEHICLES, ASSOCIATED PROVISIONING PARTS, AND TRAINING SUPPORT.
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 $27.1 million.
What is the period of performance?
Start: 2019-10-18. End: 2023-01-31.
What specific modifications were made to the 8-tonne medium tactical vehicles, and how do these justify the limited competition and cost?
The specific modifications are not detailed in the provided data. However, specialized modifications for military applications often involve unique engineering, integration of sensitive equipment, and adherence to stringent defense standards. These factors can necessitate a limited competition approach if only one contractor possesses the requisite expertise or if the modifications are tied to existing, proprietary platforms. A thorough justification would need to detail the technical requirements and why alternative solutions or contractors are not feasible.
What is the benchmarked cost per vehicle, and how does it compare to similar platforms, considering the modifications?
A precise per-unit cost benchmark is not available without knowing the exact number of vehicles procured and the breakdown of costs between vehicles, parts, and training. The total award is $27.1M over 1201 days. If we assume a significant portion is for vehicles, the cost per unit could be substantial, especially with specialized modifications. Without comparable data on similarly modified tactical vehicles procured under competitive bids, it's difficult to definitively assess value for money.
What are the long-term implications for Israel's defense capabilities and US taxpayer investment?
This award directly enhances Israel's tactical mobility and operational capacity, supporting its defense posture. For US taxpayers, the investment funds the production and modification of military equipment. The long-term implications depend on the effectiveness of the vehicles in their intended roles and the efficiency of the procurement process. Ensuring fair pricing and exploring future competitive opportunities for sustainment or upgrades will be key to maximizing taxpayer value.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Manufacturing › Heavy Duty Truck Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56HZV17R0245
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Oshkosh Corp
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: $27,117,345
Exercised Options: $27,117,345
Current Obligation: $27,117,345
Subaward Activity
Number of Subawards: 131
Total Subaward Amount: $18,157,183
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV20D0009
IDV Type: IDC
Timeline
Start Date: 2019-10-18
Current End Date: 2023-01-31
Potential End Date: 2023-01-31 12:01:00
Last Modified: 2023-01-18
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