DoD awards $61.6M for OMFV Phase 2 Concept Design, with Oshkosh Defense leading the effort

Contract Overview

Contract Amount: $61,599,999 ($61.6M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2021-07-23

End Date: 2022-12-31

Contract Duration: 526 days

Daily Burn Rate: $117.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: OMFV PHASE 2 CONCEPT DESIGN EFFORT

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $61.6 million to OSHKOSH DEFENSE LLC for work described as: OMFV PHASE 2 CONCEPT DESIGN EFFORT Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Oshkosh Defense, a known entity in military vehicle manufacturing, secured the award. 3. The contract is a definitive contract with a firm fixed price, indicating clear cost expectations. 4. The duration of 526 days suggests a focused, albeit significant, design and concept phase. 5. The award falls under the 'Military Armored Vehicle, Tank, and Tank Component Manufacturing' NAICS code. 6. This award represents a portion of the broader Next Generation Combat Vehicle program.

Value Assessment

Rating: good

The contract value of $61.6 million for a concept design effort appears reasonable given the complexity of developing advanced military vehicles. Benchmarking against similar concept design contracts for major defense platforms would provide further context, but the firm fixed-price nature suggests that the government has negotiated a defined cost for the scope of work. The award to a single contractor, Oshkosh Defense, implies a competitive selection process that likely considered technical merit and proposed cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. The presence of 6 bidders suggests a healthy level of competition for this significant defense contract. This broad competition is generally favorable for price discovery and ensures that the government receives proposals from a range of qualified companies, potentially leading to more innovative solutions and better pricing.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the investment in the Optionally Manned Fighting Vehicle program.

Public Impact

The primary beneficiaries are the U.S. Army, which will receive the concept designs for the next-generation fighting vehicle. The services delivered include conceptualization, design, and potentially early prototyping for a critical armored vehicle. The geographic impact is primarily within the defense industrial base, with potential ripple effects in Wisconsin where Oshkosh Defense is headquartered. Workforce implications include specialized engineering, design, and program management roles within Oshkosh Defense and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if design challenges are underestimated, despite firm fixed-price contract.
Dependence on a single contractor for a critical phase of a major defense program.
Risk of schedule delays if technical hurdles prove more complex than anticipated.
Ensuring adequate technical oversight to validate design choices and prevent scope creep.

Positive Signals

Award to an experienced contractor with a proven track record in military vehicle production.
Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a thorough evaluation of multiple technical and cost proposals.
The contract is part of a larger, strategic modernization effort for the Army's ground combat vehicles.

Sector Analysis

The defense sector, specifically armored vehicle manufacturing, is characterized by high barriers to entry, significant R&D investment, and long product lifecycles. This contract fits within the broader trend of military modernization, focusing on replacing aging platforms with more capable, technologically advanced systems. The market size for such specialized vehicles is substantial, driven by global defense spending. Comparable spending benchmarks would involve looking at other major platform development contracts within the Department of Defense.

Small Business Impact

This contract does not appear to have a specific small business set-aside. However, Oshkosh Defense, as a prime contractor on a large defense award, is likely to engage small businesses for subcontracting opportunities, particularly in specialized component manufacturing or support services. The extent of small business participation will depend on Oshkosh's subcontracting plan and the availability of qualified small business vendors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specific design concepts. Transparency is generally maintained through contract award announcements and public contract databases, though detailed design specifications are typically classified. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Next Generation Combat Vehicle (NGCV) Program
Armored Multi-Purpose Vehicle (AMPV)
Stryker Family of Vehicles
Bradley Fighting Vehicle Modernization

Risk Flags

Potential for schedule slippage
Cost growth risk
Technical complexity challenges
Dependence on single source for critical design phase

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.6 million to OSHKOSH DEFENSE LLC. OMFV PHASE 2 CONCEPT DESIGN EFFORT

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 $61.6 million.

What is the period of performance?

Start: 2021-07-23. End: 2022-12-31.

What is Oshkosh Defense's track record with similar large-scale military vehicle development contracts?

Oshkosh Defense has a substantial track record in developing and producing military vehicles. They are the prime contractor for the Family of Heavy Tactical Vehicles (FHTV) and the Armored Multi-Purpose Vehicle (AMPV) for the U.S. Army. Their experience includes integrating advanced technologies, meeting stringent survivability requirements, and managing large-scale production. This background suggests they possess the necessary expertise and infrastructure to handle the OMFV Phase 2 concept design effort, although the OMFV represents a new platform with distinct requirements compared to their current major programs.

How does the $61.6 million award compare to the total estimated cost for the OMFV program?

The $61.6 million awarded for the OMFV Phase 2 Concept Design Effort represents an initial investment in the program's foundational stages. The overall cost for the OMFV program, encompassing development, testing, and procurement of a significant number of vehicles, is expected to be in the billions of dollars. This initial award is a fraction of the total program cost, focused solely on the conceptualization and design phase. Subsequent phases, including prototyping, testing, and full-rate production, will involve substantially larger financial commitments.

What are the primary technical risks associated with the OMFV Phase 2 concept design?

Key technical risks for the OMFV Phase 2 concept design include integrating advanced technologies such as autonomous capabilities, advanced sensor suites, and potentially novel propulsion systems. Ensuring the vehicle meets stringent requirements for protection, lethality, and mobility while remaining optionally manned presents significant engineering challenges. Furthermore, achieving a balance between cutting-edge features and manufacturability, maintainability, and cost-effectiveness is a critical risk area. The design must also be adaptable to future upgrades and evolving battlefield threats.

What is the significance of the 'optional manning' feature for the OMFV program?

The 'optionally manned' feature is a critical innovation for the OMFV program, aiming to provide flexibility and reduce soldier risk. It allows the vehicle to operate with a reduced or potentially zero-person crew, leveraging advanced automation and remote operation capabilities. This can enhance survivability by removing personnel from direct combat exposure, enable operations in hazardous environments, and potentially reduce logistical burdens associated with crew support. The concept design phase is crucial for defining how this optional manning capability will be technically realized and integrated.

How has spending on armored vehicle development and procurement evolved within the DoD in recent years?

Spending on armored vehicle development and procurement within the DoD has seen significant fluctuations, often driven by strategic priorities and technological advancements. Following periods of intense operational use in Iraq and Afghanistan, there has been a renewed focus on modernizing legacy fleets and developing next-generation platforms capable of countering peer adversaries. Programs like the OMFV, AMPV, and upgrades to existing platforms like the Abrams tank reflect this shift. While specific dollar amounts vary annually, the overall trend indicates sustained investment in maintaining and enhancing ground combat vehicle capabilities, with a growing emphasis on networked warfare and advanced protection.

What is the role of the NAICS code 336992 in understanding this contract's context?

The North American Industry Classification System (NAICS) code 336992, 'Military Armored Vehicle, Tank, and Tank Component Manufacturing,' precisely categorizes the industrial sector to which this contract belongs. It signifies that the work involves the manufacturing or development of specialized military vehicles designed for combat, including tanks and armored personnel carriers. This classification helps in benchmarking the contract against similar activities within the defense manufacturing industry, understanding the supply chain involved, and identifying the primary industry players.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W56HZV20R0142

Offers Received: 6

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: $61,599,999

Exercised Options: $61,599,999

Current Obligation: $61,599,999

Subaward Activity

Number of Subawards: 44

Total Subaward Amount: $47,557,196

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline