DoD Orders 117 FMTV A2 Trucks for $40.5M from Oshkosh Defense
Contract Overview
Contract Amount: $40,486,247 ($40.5M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2021-04-08
End Date: 2025-03-31
Contract Duration: 1,453 days
Daily Burn Rate: $27.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ORDER FOR 117 FMTV A2 TRUCKS.
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $40.5 million to OSHKOSH DEFENSE LLC for work described as: ORDER FOR 117 FMTV A2 TRUCKS. Key points: 1. Significant investment in tactical vehicle fleet modernization. 2. Oshkosh Defense holds a strong position in the tactical wheeled vehicle market. 3. Potential for cost overruns or schedule delays in a multi-year contract. 4. Spending aligns with defense sector priorities for logistics and mobility.
Value Assessment
Rating: good
The contract value of $40.5M for 117 trucks appears reasonable given the specialized nature of military vehicles. Benchmarking against similar large-scale military truck procurements would provide further context.
Cost Per Unit: $346,036
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that should drive favorable pricing. The firm-fixed-price structure further enhances price certainty.
Taxpayer Impact: Taxpayer funds are being used to enhance military operational readiness and equipment modernization.
Public Impact
Enhances the Army's logistical capabilities and troop transport efficiency. Supports domestic manufacturing and jobs within the defense industrial base. Ensures the availability of modern, reliable vehicles for military operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep or change orders impacting final cost.
- Long contract duration increases exposure to economic fluctuations.
- Dependence on a single supplier for a critical component.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost certainty.
- Modernization of essential military equipment.
Sector Analysis
This procurement falls within the Defense sector, specifically focusing on tactical wheeled vehicles. Spending benchmarks for similar vehicle procurements vary widely based on type and quantity, but this order represents a substantial investment in fleet modernization.
Small Business Impact
While Oshkosh Defense is a large prime contractor, the contract may involve subcontracting opportunities for small businesses in the supply chain for components and services.
Oversight & Accountability
The Department of the Army's contracting oversight will be crucial to ensure adherence to contract terms, manage performance, and control costs throughout the delivery period.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration.
- Dependence on a single manufacturer.
- Potential for supply chain disruptions.
- Risk of cost escalation through change orders.
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 $40.5 million to OSHKOSH DEFENSE LLC. ORDER FOR 117 FMTV A2 TRUCKS.
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 $40.5 million.
What is the period of performance?
Start: 2021-04-08. End: 2025-03-31.
What is the specific operational advantage gained by procuring the FMTV A2 variant over previous models?
The FMTV A2 variant typically offers enhanced survivability features, improved payload capacity, and greater mobility over diverse terrains compared to older models. These upgrades are critical for supporting modern combat operations and ensuring troop safety in challenging environments, directly contributing to the Army's overall operational effectiveness and readiness.
What are the primary risks associated with a multi-year firm-fixed-price contract for specialized military vehicles?
Key risks include potential cost increases due to unforeseen material shortages or labor cost escalations, which the contractor may seek to mitigate through change orders. Schedule delays are also a concern, stemming from production issues or supply chain disruptions. The government bears the risk of the contractor not meeting performance specifications if quality control is insufficient.
How does this investment in FMTV A2 trucks contribute to the overall effectiveness of military logistics?
The FMTV A2 trucks are designed to be highly versatile and capable of operating in demanding conditions, significantly improving the Army's ability to transport personnel, equipment, and supplies. Their enhanced durability and mobility reduce logistical bottlenecks and ensure that critical resources reach operational units efficiently, thereby bolstering mission success and troop support.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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: $40,486,247
Exercised Options: $40,486,247
Current Obligation: $40,486,247
Subaward Activity
Number of Subawards: 241
Total Subaward Amount: $23,721,067
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV18D0010
IDV Type: IDC
Timeline
Start Date: 2021-04-08
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 12:03:00
Last Modified: 2025-11-25
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