Department of the Army awards $96.5M extension for Family of Heavy Tactical Vehicles to Oshkosh Defense
Contract Overview
Contract Amount: $96,519,384 ($96.5M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2021-04-29
End Date: 2023-03-31
Contract Duration: 701 days
Daily Burn Rate: $137.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IV THREE YEAR EXTENSION OY6-OY8 IS A FIRM FIXED PRICE (FFP) TARGET 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 $96.5 million to OSHKOSH DEFENSE LLC for work described as: FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IV THREE YEAR EXTENSION OY6-OY8 IS A FIRM FIXED PRICE (FFP) TARGET SOLE SOURCE, REQUIREMENTS CONTRACT AWARDED TO OSHKOSH DEFENSE, LLC WITH ESTABLISHED RANGE PRICING. Key points: 1. Contract awarded as a sole-source extension, limiting initial competition. 2. Oshkosh Defense, LLC is the sole contractor for this specific vehicle family. 3. The contract is a Firm Fixed Price (FFP) structure, providing cost certainty. 4. This award represents a significant investment in tactical vehicle sustainment. 5. The contract duration is approximately two years, covering FY2021-FY2023. 6. The North American Industry Classification System (NAICS) code is 336212 (Truck Trailer Manufacturing).
Value Assessment
Rating: good
The contract is a sole-source extension, making direct price comparisons difficult. However, the established range pricing suggests an attempt to control costs within a known framework. The firm fixed price nature provides cost certainty for the government. Further analysis would require benchmarking against similar tactical vehicle procurements or sustainment contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source extension to Oshkosh Defense, LLC, the incumbent contractor for the Family of Heavy Tactical Vehicles (FHTV) program. As an extension, it was not competed anew. This approach is often taken for sustainment or follow-on requirements where a specific contractor has unique expertise or existing infrastructure.
Taxpayer Impact: Sole-source awards can limit opportunities for competitive pricing, potentially leading to higher costs for taxpayers compared to a fully competed contract. However, for specialized or existing systems, it may ensure continuity and leverage existing investments.
Public Impact
The U.S. Army benefits from the continued availability of critical heavy tactical vehicles. Services delivered include sustainment and potential modifications for the FHTV fleet. The geographic impact is primarily within the United States, supporting Army operations. Workforce implications include continued employment at Oshkosh Defense facilities in Wisconsin and potentially other supporting suppliers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source nature limits competitive pricing opportunities.
- Reliance on a single contractor for a critical vehicle family.
- Potential for cost creep if range pricing is not rigorously managed.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Extension leverages existing contractor expertise and infrastructure.
- Established range pricing offers some cost control mechanism.
Sector Analysis
The defense industrial base relies heavily on specialized vehicle manufacturers. Oshkosh Defense is a key player in the tactical wheeled vehicle market, producing a range of military trucks. This contract fits within the broader category of defense procurement for ground vehicle sustainment and modernization, a significant segment of the defense sector.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have specific small business subcontracting goals explicitly stated in the provided data. As a sole-source award to a large prime contractor, the direct impact on small businesses is likely through their role as subcontractors to Oshkosh Defense, if applicable.
Oversight & Accountability
The contract is a Firm Fixed Price (FFP) type, which inherently provides a degree of cost control. Oversight would typically be managed by the Department of the Army contracting and program management offices. Transparency is facilitated by contract award databases, though detailed performance metrics may not be publicly available.
Related Government Programs
- Family of Heavy Tactical Vehicles (FHTV)
- Tactical Wheeled Vehicles
- Department of the Army Procurement
- Defense Logistics Agency (DLA) Support
Risk Flags
- Sole-source award may limit competitive pricing.
- Contract is an extension, not a new competition.
Tags
defense, department-of-the-army, tactical-vehicles, oshkosh-defense, sole-source, firm-fixed-price, sustainment, heavy-vehicles, truck-trailer-manufacturing, wisconsin, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $96.5 million to OSHKOSH DEFENSE LLC. FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IV THREE YEAR EXTENSION OY6-OY8 IS A FIRM FIXED PRICE (FFP) TARGET 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 $96.5 million.
What is the period of performance?
Start: 2021-04-29. End: 2023-03-31.
What is the historical spending trend for the Family of Heavy Tactical Vehicles (FHTV) program with Oshkosh Defense?
Historical spending data for the FHTV program prior to this extension would provide crucial context. Analyzing previous contract awards, delivery orders, and total obligated amounts over several years would reveal spending patterns, identify any significant increases or decreases, and help assess the long-term investment in this vehicle family. Without specific historical data points beyond this extension, it's challenging to establish a trend, but the existence of this multi-year extension suggests a sustained need and commitment by the Department of the Army.
How does the pricing structure of this FFP contract compare to industry benchmarks for similar tactical vehicle sustainment?
The contract utilizes a Firm Fixed Price (FFP) structure with established range pricing. To benchmark this, one would need to compare the unit costs or overall sustainment costs against similar contracts awarded to other manufacturers for comparable heavy tactical vehicles. Factors such as vehicle capabilities, age, technological sophistication, and the scope of sustainment services (e.g., maintenance, spare parts, upgrades) would need to be considered. The sole-source nature complicates direct price-to-price comparisons, but analysis of the established price ranges against market data for similar services could indicate value for money.
What are the key performance indicators (KPIs) used to evaluate Oshkosh Defense's performance under this contract?
While the provided data does not detail specific KPIs, typical performance indicators for vehicle sustainment contracts include delivery timeliness, quality of repairs/parts, vehicle availability rates, and adherence to maintenance schedules. The Department of the Army's contracting officer representatives (CORs) and program managers would monitor these metrics. Contract performance evaluations, such as Contractor Performance Assessment Reporting System (CPARS) reports, would offer insights into Oshkosh Defense's track record on this and other contracts, highlighting areas of strength or concern.
What is the potential risk associated with relying on a sole-source provider for critical tactical vehicle sustainment?
The primary risk of a sole-source award for critical sustainment is the potential lack of competitive pressure on pricing and innovation. This can lead to higher costs for the government over time if the contractor does not face market alternatives. Additionally, there's a risk of vendor lock-in, where the government becomes heavily dependent on a single supplier, potentially limiting flexibility in future procurement decisions or technology adoption. Ensuring robust contract management, performance oversight, and potentially exploring future competitive strategies for subsequent contract phases are crucial mitigation steps.
What is the total value of the FHTV program over its entire lifecycle, including this extension?
The provided data indicates this specific extension award is valued at $96,519,384. However, this figure represents only a portion of the FHTV program's total lifecycle cost. The FHTV program has likely encompassed multiple contract phases, including initial production, various modifications, and sustainment efforts over many years. To determine the total lifecycle value, one would need to aggregate all contract awards and obligations related to the FHTV program from its inception through its projected end-of-life, which would require extensive research into historical contract databases and program documentation.
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: FIRM FIXED PRICE (J)
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: $96,519,384
Exercised Options: $96,519,384
Current Obligation: $96,519,384
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: 2021-04-29
Current End Date: 2023-03-31
Potential End Date: 2023-03-31 12:03:00
Last Modified: 2023-07-03
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