DoD awards Oshkosh Defense $22.8M for 7 FMTV trucks, with delivery extending to 2026

Contract Overview

Contract Amount: $22,776,375 ($22.8M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2021-07-30

End Date: 2026-01-31

Contract Duration: 1,646 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ORDER FOR 7 FMTV TRUCKS IFMC

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $22.8 million to OSHKOSH DEFENSE LLC for work described as: ORDER FOR 7 FMTV TRUCKS IFMC Key points: 1. Value for money assessed through competitive bidding process. 2. Competition dynamics indicate a robust market for tactical vehicle manufacturing. 3. Risk indicators include contract duration and potential for scope creep. 4. Performance context relies on timely delivery and vehicle reliability. 5. Sector positioning places this within the broader defense logistics and equipment market.

Value Assessment

Rating: good

The contract value of $22.8 million for 7 FMTV trucks suggests a per-unit cost of approximately $3.25 million. This figure needs to be benchmarked against similar procurements of tactical vehicles to fully assess value. Given the specialized nature of military vehicles, direct comparisons to commercial trucks are not appropriate. The firm-fixed-price structure helps control costs, but the overall value is contingent on the performance and longevity of the delivered vehicles.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple capable vendors were invited to bid. The specific number of bidders is not provided, but the designation implies a competitive environment. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages innovation among defense contractors.

Public Impact

The U.S. Department of the Army is the primary beneficiary, receiving essential tactical vehicles. The services delivered include the manufacturing and delivery of Family of Medium Tactical Vehicles (FMTV). The geographic impact is primarily within the United States, where the vehicles will be manufactured and potentially deployed. Workforce implications include jobs in manufacturing, engineering, and logistics at Oshkosh Defense and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delivery delays given the multi-year performance period.
Ensuring the FMTV trucks meet all stringent military specifications and performance requirements.
Managing potential cost overruns if unforeseen issues arise during production, despite the fixed-price nature.

Positive Signals

Awarded through full and open competition, indicating a healthy market.
Firm-fixed-price contract type provides cost certainty for the government.
Long-term delivery schedule allows for planned integration into Army logistics.

Sector Analysis

The defense logistics and transportation sector is critical for military operations, encompassing the procurement of a wide range of vehicles. This contract for FMTV trucks falls within the tactical wheeled vehicle segment. Spending in this area is substantial, driven by the need to maintain and modernize aging fleets and adapt to evolving battlefield requirements. Comparable spending benchmarks would involve analyzing other large-scale tactical vehicle procurements by the DoD.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Oshkosh Defense, as the prime contractor, is a large business. The contract does not explicitly mention subcontracting goals for small businesses, though large defense contracts often include such requirements as part of broader socioeconomic goals. The direct impact on the small business ecosystem is likely minimal unless specific subcontracting opportunities are mandated.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods by a certain date. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance.

Related Government Programs

Family of Medium Tactical Vehicles (FMTV) Program
Tactical Wheeled Vehicle Fleet Modernization
Department of Defense Vehicle Procurement
Logistics and Support Vehicle Contracts

Risk Flags

Long contract performance period
Potential for supply chain disruptions
Dependence on specific manufacturer capabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.8 million to OSHKOSH DEFENSE LLC. ORDER FOR 7 FMTV TRUCKS IFMC

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 $22.8 million.

What is the period of performance?

Start: 2021-07-30. End: 2026-01-31.

What is Oshkosh Defense's track record with the FMTV program?

Oshkosh Defense has a significant history with the FMTV program, having been awarded previous contracts for its production and sustainment. They are the incumbent manufacturer and have delivered thousands of FMTV trucks to the U.S. Army and other military branches. Their experience includes managing production lines, incorporating design improvements, and ensuring vehicles meet rigorous military standards. This long-standing relationship suggests a deep understanding of the program's requirements and a proven capability to produce these specialized vehicles, which is a positive indicator for the current contract's successful execution.

How does the per-unit cost compare to previous FMTV orders?

Without access to historical pricing data for specific FMTV variants within this order, a precise per-unit cost comparison is challenging. However, the approximate $3.25 million per truck derived from this award needs to be contextualized. Factors such as inflation, specific configurations ordered (e.g., cargo, troop transport, specialized variants), and the overall quantity can significantly influence per-unit pricing. It is crucial to compare this figure against similar FMTV delivery orders awarded under comparable contract types and economic conditions to determine if it represents good value for money.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential delivery delays, given the performance period extending to January 2026. Ensuring the vehicles meet all stringent military specifications and performance requirements is another key risk, as deviations could lead to costly rework or rejection. Furthermore, while the firm-fixed-price structure aims to control costs, unforeseen production challenges or supply chain disruptions could still impact the contractor's profitability and potentially lead to requests for contract modifications or delays. The long duration also increases exposure to economic fluctuations.

How effective is the FMTV platform in supporting military operations?

The FMTV platform is designed to be a versatile and reliable workhorse for military logistics, capable of transporting personnel and cargo across various terrains. Its effectiveness is demonstrated by its widespread adoption and continued procurement by the U.S. military and allied nations. The platform's modular design allows for different configurations, enhancing its adaptability to diverse operational needs. Its proven performance in numerous deployments suggests it is a highly effective component of military logistical support, contributing significantly to operational readiness and sustainment.

What has been the historical spending trend for FMTV procurements?

Historical spending on the FMTV program has been substantial, reflecting its critical role in the U.S. Army's tactical wheeled vehicle fleet. Annual spending has fluctuated based on modernization cycles, fleet size requirements, and budget allocations. Over the years, billions of dollars have been invested in the procurement, sustainment, and upgrade of FMTV vehicles. This consistent, significant investment underscores the program's importance and the ongoing demand for these tactical vehicles, indicating a stable, albeit cyclical, spending pattern.

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: $22,776,375

Exercised Options: $22,776,375

Current Obligation: $22,776,375

Subaward Activity

Number of Subawards: 259

Total Subaward Amount: $18,389,640

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