DoD Awards $62.2M for FMTV Underbody Armor Kits to Oshkosh Defense, No Competition
Contract Overview
Contract Amount: $62,241,787 ($62.2M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2021-02-05
End Date: 2024-01-31
Contract Duration: 1,090 days
Daily Burn Rate: $57.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FAMILY OF MEDIUM TACTICAL VEHICLES (FMTV) UNDERBODY ARMOR KITS (UAKS) UPGRADE KITS
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $62.2 million to OSHKOSH DEFENSE LLC for work described as: FAMILY OF MEDIUM TACTICAL VEHICLES (FMTV) UNDERBODY ARMOR KITS (UAKS) UPGRADE KITS Key points: 1. Significant award of $62.2M for critical vehicle upgrades. 2. Sole-source award to Oshkosh Defense raises competition concerns. 3. Potential risk associated with single supplier for essential armor. 4. Spending falls within the Defense sector, specifically armored vehicles.
Value Assessment
Rating: fair
The contract value of $62.2M for upgrade kits appears substantial. Without competitive bids, it's difficult to benchmark pricing against similar contracts or market rates, suggesting potential for overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Oshkosh Defense. This lack of competition limits price discovery and may result in higher costs for the government.
Taxpayer Impact: The absence of competition for these essential armor kits could lead to taxpayers bearing a higher cost than if the contract had been competitively bid.
Public Impact
Enhances survivability for soldiers operating FMTV vehicles. Ensures continued operational readiness for Army ground forces. Supports the modernization of tactical vehicle fleets. Potential for increased costs due to lack of competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Lack of transparency in pricing due to no-bid.
- Potential for cost overruns without market checks.
Positive Signals
- Addresses critical soldier protection needs.
- Supports established defense contractor.
- Ensures timely delivery of essential upgrades.
Sector Analysis
The Department of Defense frequently procures armored vehicle components. Spending benchmarks for such specialized manufacturing can vary widely based on technology and quantity, but sole-source awards often exceed competitive pricing.
Small Business Impact
This contract was awarded to Oshkosh Defense LLC, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, limiting their participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is fair and reasonable. Robust justification for the lack of competition should be readily available.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of Competition
- Potential for Overpricing
- Limited Transparency
- No Small Business Participation Indicated
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 $62.2 million to OSHKOSH DEFENSE LLC. FAMILY OF MEDIUM TACTICAL VEHICLES (FMTV) UNDERBODY ARMOR KITS (UAKS) UPGRADE KITS
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 $62.2 million.
What is the period of performance?
Start: 2021-02-05. End: 2024-01-31.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure a fair and reasonable price without competition?
The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. Agencies must still conduct price analysis, often using historical data or independent cost estimates, to validate the reasonableness of the price. Without this information publicly available, it's difficult to assess the thoroughness of the price discovery process.
How does the cost of these upgrade kits compare to similar armor solutions or previous purchases, especially considering the lack of competitive bidding?
Benchmarking the cost is challenging due to the sole-source nature of this award. Without competitive bids, there's no market validation of the price. Comparisons would rely on historical data for the same kits, pricing for similar but not identical armor solutions from other vendors, or internal cost estimates, all of which may not fully reflect true market value.
What is the long-term strategy for procuring these armor kits, and will future procurements be competed to ensure better value for taxpayers?
The long-term strategy is unclear from this award alone. Agencies often aim to compete future requirements once alternatives are developed or market conditions change. However, if Oshkosh Defense holds unique intellectual property or the technology is highly specialized, future competition might remain limited, necessitating ongoing price vigilance.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56HZV20R0248
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: $62,241,787
Exercised Options: $62,241,787
Current Obligation: $62,241,787
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-02-05
Current End Date: 2024-01-31
Potential End Date: 2024-01-31 12:01:00
Last Modified: 2024-06-10
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