Army awards $45.5M FHTV IV contract to Oshkosh Defense via sole source, FPIF terms
Contract Overview
Contract Amount: $45,526,099 ($45.5M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2020-03-27
End Date: 2022-08-31
Contract Duration: 887 days
Daily Burn Rate: $51.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IV IS A FIXED-PRICE- INCENTIVE-FIRM TARGET (FPIF) SOLE SOURCE, REQUIREMENTS CONTRACT AWARDED TO OSHKOSH DEFENSE, LLC WITH ESTABLISHED RANGE PRICING.
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $45.5 million to OSHKOSH DEFENSE LLC for work described as: FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IV IS A FIXED-PRICE- INCENTIVE-FIRM TARGET (FPIF) SOLE SOURCE, REQUIREMENTS CONTRACT AWARDED TO OSHKOSH DEFENSE, LLC WITH ESTABLISHED RANGE PRICING. Key points: 1. Oshkosh Defense holds sole-source contract for Family of Heavy Tactical Vehicles (FHTV) IV. 2. Contract type is Fixed-Price Incentive (FPIF) with established range pricing. 3. Awarded by the Department of the Army, supporting tactical vehicle needs. 4. No small business participation noted in this specific award.
Value Assessment
Rating: fair
The FPIF contract structure with range pricing aims to balance cost control with contractor incentive. However, without competitive benchmarking, assessing true value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, limiting price discovery and potentially leading to higher costs than a competitive process might yield. The sole-source nature necessitates careful oversight of pricing.
Taxpayer Impact: Taxpayer funds are committed without the benefit of competitive bidding, increasing the risk of overpayment.
Public Impact
Ensures continued availability of critical heavy tactical vehicles for military operations. Supports a specific defense contractor, potentially impacting industry concentration. FPIF contract type requires careful monitoring to ensure cost targets are met. Lack of competition raises questions about long-term cost-effectiveness for taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- FPIF contract type requires close monitoring
Positive Signals
- Addresses critical military vehicle needs
- Established range pricing mechanism
Sector Analysis
The Truck Trailer Manufacturing sector (NAICS 336212) is crucial for defense logistics. Spending benchmarks are difficult to establish for specialized, sole-source tactical vehicles like the FHTV IV.
Small Business Impact
This specific award to Oshkosh Defense did not include small business participation. Future contracts or subcontracts may offer opportunities, but this award itself does not benefit small businesses.
Oversight & Accountability
The FPIF contract structure requires diligent oversight to ensure Oshkosh Defense meets cost and performance targets. The sole-source nature amplifies the need for robust government monitoring of expenditures.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for higher costs due to lack of competition.
- FPIF contract requires close monitoring for cost control.
- No small business participation in this award.
- Reliance on a single supplier for critical assets.
Tags
truck-trailer-manufacturing, department-of-defense, wi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.5 million to OSHKOSH DEFENSE LLC. FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IV IS A FIXED-PRICE- INCENTIVE-FIRM TARGET (FPIF) SOLE SOURCE, REQUIREMENTS CONTRACT AWARDED TO OSHKOSH DEFENSE, LLC WITH ESTABLISHED RANGE PRICING.
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 $45.5 million.
What is the period of performance?
Start: 2020-03-27. End: 2022-08-31.
What is the historical cost performance of Oshkosh Defense on similar FPIF sole-source contracts, and how does it compare to industry averages for tactical vehicle production?
Historical cost performance data for Oshkosh Defense on comparable FPIF sole-source contracts is essential for a thorough value assessment. Without this data, it's difficult to determine if the current pricing is reasonable or if taxpayers are incurring a premium due to the lack of competition. Benchmarking against industry averages for similar tactical vehicle production would provide further context.
What are the specific risks associated with the FPIF contract type in this sole-source context, particularly regarding cost overruns and the government's ability to control them?
The primary risk with FPIF in a sole-source environment is that the incentive structure might not be sufficient to drive down costs if the government lacks strong leverage. Cost overruns are a significant concern, as the government may end up paying more than anticipated if the target cost is exceeded. Robust government oversight and clear definition of cost-sharing parameters are critical to mitigate these risks.
How effectively does this sole-source award ensure the long-term availability and technological relevance of heavy tactical vehicles for the Department of the Army?
While this award ensures immediate availability, the sole-source nature raises questions about long-term effectiveness and technological advancement. Without competitive pressure, there's a risk that innovation might be slower compared to a market with multiple suppliers. The Army must ensure robust requirements definition and potentially explore future competitive strategies to maintain technological relevance.
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
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Oshkosh Corp
Address: 2307 OREGON ST, OSHKOSH, WI, 54903
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: $45,526,099
Exercised Options: $45,526,099
Current Obligation: $45,526,099
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV15D0031
IDV Type: IDC
Timeline
Start Date: 2020-03-27
Current End Date: 2022-08-31
Potential End Date: 2022-08-31 12:08:00
Last Modified: 2022-07-19
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