Department of Defense awards $362M for Stryker 30mm ECP weapon system upgrades, focusing on production and manuals

Contract Overview

Contract Amount: $361,964,069 ($362.0M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2021-06-03

End Date: 2027-01-31

Contract Duration: 2,068 days

Daily Burn Rate: $175.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: STRYKER 30MM ECP MEDIUM CALIBER WEAPON SYSTEM UPGRADE FIRST D.O. FOR PRODUCTION AND MANUALS.

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $362.0 million to OSHKOSH DEFENSE LLC for work described as: STRYKER 30MM ECP MEDIUM CALIBER WEAPON SYSTEM UPGRADE FIRST D.O. FOR PRODUCTION AND MANUALS. Key points: 1. The contract value represents a significant investment in modernizing armored vehicle capabilities. 2. Competition dynamics for this type of specialized defense equipment can be limited due to high technical barriers. 3. Performance risks may include production timelines, integration challenges, and ensuring system reliability in operational environments. 4. This award is part of a broader effort to enhance the combat effectiveness of the Stryker fleet. 5. The contract positions Oshkosh Defense as a key supplier for critical Army vehicle upgrades.

Value Assessment

Rating: good

The total contract value of approximately $362 million for the Stryker 30mm ECP upgrade appears reasonable given the scope of production and manual development for a complex military system. Benchmarking against similar large-scale vehicle modernization programs suggests that costs are generally in line with industry expectations for specialized defense manufacturing. The firm-fixed-price nature of the contract provides cost certainty for the government, although it places the financial risk on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. While specific details on the number of bidders are not provided, this approach generally fosters competitive pricing and encourages innovation. The government's ability to select the best value from a range of offers is enhanced through this method.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures the government receives the most advantageous terms and pricing for its investments in critical defense systems.

Public Impact

The primary beneficiaries are the U.S. Army soldiers who will operate the upgraded Stryker vehicles, enhancing their survivability and combat effectiveness. The contract delivers upgraded medium caliber weapon systems and essential operational manuals for the Stryker infantry carrier vehicle. The geographic impact is primarily centered around the contractor's facilities in Wisconsin, with potential downstream effects on supplier locations. Workforce implications include skilled manufacturing jobs in engineering, production, and technical writing within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for production delays impacting fielding schedules.
Ensuring seamless integration of the new weapon system with existing Stryker platforms.
Maintaining system reliability and performance under diverse operational conditions.
Managing supply chain risks for specialized components.

Positive Signals

Awarded under firm-fixed-price terms, providing cost predictability.
Contractor has a track record in defense vehicle manufacturing.
Full and open competition suggests a robust selection process.
Focus on production and manuals indicates a comprehensive approach to system deployment.

Sector Analysis

This contract falls within the broader defense manufacturing sector, specifically focusing on armored vehicle components and upgrades. The market for military vehicle modernization is characterized by high barriers to entry, significant R&D investment, and long-term government procurement cycles. Comparable spending benchmarks would involve other major platform upgrades for vehicles like the Abrams tank or Bradley Fighting Vehicle, where modernization efforts often run into hundreds of millions of dollars.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large prime contract awarded to Oshkosh Defense, the primary impact on small businesses would be through potential subcontracting opportunities if they are part of Oshkosh's supply chain. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army Contracting Command and the Defense Contract Management Agency (DCMA). Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods and services. Transparency is facilitated through contract award announcements and reporting requirements, though detailed operational oversight specifics are typically internal.

Related Government Programs

Stryker Brigade Combat Team Modernization
Armored Vehicle Production
Weapon System Development
Defense Procurement
Military Vehicle Upgrades

Risk Flags

Production Schedule Risk
System Integration Complexity
Supply Chain Vulnerability
Technical Performance Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $362.0 million to OSHKOSH DEFENSE LLC. STRYKER 30MM ECP MEDIUM CALIBER WEAPON SYSTEM UPGRADE FIRST D.O. FOR PRODUCTION AND MANUALS.

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 $362.0 million.

What is the period of performance?

Start: 2021-06-03. End: 2027-01-31.

What is Oshkosh Defense's track record with the Stryker program and similar vehicle upgrades?

Oshkosh Defense has a significant history with the Stryker program, having been involved in various upgrades and sustainment efforts. The company is a major player in the defense vehicle manufacturing sector, known for producing a range of tactical wheeled vehicles and armored platforms. Their experience extends to integrating complex systems and ensuring operational readiness for military fleets. This specific contract for the 30mm ECP upgrade builds upon their established relationship with the Army and their demonstrated capabilities in delivering advanced vehicle solutions. Past performance on similar large-scale production and upgrade contracts would be a key factor in their selection for this award, suggesting a level of confidence in their ability to meet the program's technical and schedule requirements.

How does the cost of this Stryker upgrade compare to previous modernization efforts or similar vehicle programs?

The total contract value of approximately $362 million for the Stryker 30mm ECP upgrade is substantial, reflecting the complexity and scope of integrating a new medium caliber weapon system and associated production. Direct comparisons to specific prior Stryker upgrades can be challenging due to varying scopes and economic conditions over time. However, when benchmarked against other major armored vehicle modernization programs within the Department of Defense, such as upgrades to the Bradley Fighting Vehicle or Abrams tank, the cost appears to be within a comparable range for significant platform enhancements. The firm-fixed-price nature of this award provides a degree of cost certainty, but the ultimate value-for-money will depend on the successful delivery of the specified capabilities and adherence to production schedules without significant cost overruns borne by the government.

What are the primary risks associated with the production and manual development for the Stryker 30mm ECP?

The primary risks associated with this contract revolve around production execution and system integration. For production, potential risks include supply chain disruptions for critical components, manufacturing defects, and challenges in scaling up production to meet demand, which could lead to schedule delays. Integrating the new 30mm ECP weapon system onto the existing Stryker platform presents technical risks, such as ensuring compatibility, reliability, and performance under various combat conditions. Furthermore, the development and accuracy of the operational and maintenance manuals are crucial for effective system use and sustainment; any deficiencies here could impact soldier training and field repairs. The firm-fixed-price contract structure places the financial risk of these production and integration challenges primarily on Oshkosh Defense, but schedule delays can still impact the Army's operational readiness.

What is the expected impact of this contract on the Army's operational capabilities and the Stryker fleet's effectiveness?

This contract is expected to significantly enhance the operational capabilities of the U.S. Army's Stryker fleet by upgrading its primary armament. The 30mm ECP (Enhanced Combat Power) system provides increased lethality and effectiveness against a wider range of threats compared to the current armament. This upgrade is crucial for maintaining the Stryker's relevance in contemporary and future combat environments, particularly against armored threats and fortified positions. By improving the firepower of these versatile vehicles, the Army enhances the survivability of its Stryker-equipped units and their ability to conduct decisive operations. The focus on production and manuals ensures that the upgraded systems can be fielded efficiently and operated effectively by soldiers.

How has spending on the Stryker program evolved over recent years, and what does this award signify?

Spending on the Stryker program has been consistent over recent years, reflecting its status as a cornerstone platform for the Army's Stryker Brigade Combat Teams. While specific annual spending figures fluctuate based on modernization phases, sustainment needs, and new capability insertions, the program represents a sustained investment. This $362 million award for the 30mm ECP upgrade signifies a critical modernization phase, moving beyond incremental improvements to a more substantial enhancement of the vehicle's core combat power. It indicates the Army's commitment to ensuring the Stryker remains a relevant and potent asset, adapting to evolving threats by significantly boosting its offensive capabilities. This type of investment is typical for major platforms undergoing significant capability enhancements.

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: 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: $361,964,069

Exercised Options: $361,964,069

Current Obligation: $361,964,069

Subaward Activity

Number of Subawards: 65

Total Subaward Amount: $34,042,818

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV21D0017

IDV Type: IDC

Timeline