DoD awards Oshkosh Defense $174M for 541 FMTV trucks, with delivery through October 2025

Contract Overview

Contract Amount: $174,135,090 ($174.1M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2021-07-20

End Date: 2025-10-31

Contract Duration: 1,564 days

Daily Burn Rate: $111.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ORDER OF 541 A2 FMTV TRUCKS.

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $174.1 million to OSHKOSH DEFENSE LLC for work described as: ORDER OF 541 A2 FMTV TRUCKS. 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 delivery timelines and potential supply chain disruptions. 4. Performance context relies on successful delivery of previous FMTV orders. 5. Sector positioning within the defense industrial base for tactical wheeled vehicles.

Value Assessment

Rating: good

The contract value of $174.1 million for 541 FMTV trucks suggests a per-unit cost of approximately $321,876. This price point needs to be benchmarked against historical FMTV procurements and similar tactical vehicle contracts to fully assess value. Given the firm-fixed-price nature, the government has locked in costs, but the overall value depends on the final delivered quality and adherence to specifications.

Cost Per Unit: Approximately $321,876 per truck (estimated).

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting multiple bidders were invited to submit proposals. The specific number of bidders is not provided, but this approach generally fosters price discovery and encourages competitive pricing. The use of full and open competition is a positive indicator for achieving a fair market price.

Taxpayer Impact: Full and open competition is expected to yield better pricing for taxpayers by leveraging market forces and encouraging multiple suppliers to offer their best terms.

Public Impact

The U.S. Army benefits from the acquisition of essential tactical vehicles for troop mobility and logistics. Services delivered include the manufacturing and delivery of 541 Family of Medium Tactical Vehicles (FMTV). Geographic impact is primarily within the United States, where the trucks will be manufactured and potentially deployed. Workforce implications include jobs at Oshkosh Defense and its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delivery delays impacting operational readiness.
Supply chain vulnerabilities for specialized components could affect production timelines.
Long-term sustainment and maintenance costs for the FMTV fleet are not detailed in this award.

Positive Signals

Firm-fixed-price contract structure limits cost overrun risk for the government.
Award to an established manufacturer with a track record in tactical vehicles.
Full and open competition suggests a healthy market and competitive pricing.

Sector Analysis

The defense industrial base for tactical wheeled vehicles is a critical component of military readiness. Oshkosh Defense is a major player in this sector, known for producing a range of military trucks. This contract fits within the broader category of tactical vehicle procurement, which is a recurring need for the U.S. military. Spending in this area is influenced by global security environments and modernization efforts.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Oshkosh Defense is a large prime contractor, there may be subcontracting opportunities for small businesses within its supply chain. The extent of small business participation would depend on Oshkosh's subcontracting plan and adherence to federal small business utilization goals.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting command and potentially the Department of Defense's Inspector General. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified vehicles. Transparency is facilitated through contract award databases, though detailed performance metrics are often not publicly disclosed.

Related Government Programs

Family of Medium Tactical Vehicles (FMTV) Program
Tactical Wheeled Vehicle Fleet Modernization
U.S. Army Logistics Support Vehicles
Defense Contract Awards

Risk Flags

Potential for delivery delays
Supply chain vulnerability
Long-term sustainment costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $174.1 million to OSHKOSH DEFENSE LLC. ORDER OF 541 A2 FMTV 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 $174.1 million.

What is the period of performance?

Start: 2021-07-20. End: 2025-10-31.

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

Oshkosh Defense has a significant track record with the FMTV program, having been awarded previous contracts for its production and sustainment. They took over production from BAE Systems Land & Armaments. Their experience includes delivering thousands of FMTV trucks to the U.S. Army and other allied nations. This continuity suggests a level of familiarity and established processes for manufacturing and delivering these vehicles, which can be a positive indicator for contract performance. However, past performance is not a guarantee of future success, and ongoing monitoring of delivery schedules and quality remains crucial.

How does the per-unit cost of these FMTV trucks compare to previous procurements?

The estimated per-unit cost of approximately $321,876 for these FMTV trucks needs to be compared against historical data for the FMTV program. Factors such as inflation, specific configurations of the trucks ordered (e.g., cargo, troop transport, specialized variants), and the scale of the order can influence per-unit pricing. Without direct comparative data for similar configurations and quantities from recent procurements, it's challenging to definitively state if this represents a better or worse value. However, the firm-fixed-price nature and full and open competition suggest an effort to control costs.

What are the primary risks associated with this contract award?

The primary risks associated with this contract include potential delivery delays, which could impact the Army's operational readiness and deployment schedules. Supply chain disruptions for critical components, especially in the current global economic climate, pose another significant risk that could affect production timelines. Furthermore, ensuring the long-term reliability and maintainability of the delivered vehicles is a performance risk. The firm-fixed-price contract mitigates financial risk for the government regarding cost overruns, but performance and schedule risks remain.

How effective is the full and open competition in ensuring value for taxpayers?

Full and open competition is generally considered the most effective method for ensuring value for taxpayers in federal procurement. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. This process allows the government to solicit proposals from multiple qualified contractors, compare their technical capabilities and pricing, and select the best overall value. The presence of multiple bidders typically leads to more favorable terms and pricing than sole-source or limited competition scenarios, thereby maximizing the return on taxpayer investment.

What is the historical spending trend for FMTV trucks by the Department of the Army?

The Department of the Army has consistently procured Family of Medium Tactical Vehicles (FMTV) over many years as part of its strategy to maintain a modern and capable tactical wheeled vehicle fleet. Spending on FMTV trucks has varied annually based on program requirements, budget allocations, and the phasing of production contracts. Historically, the Army has awarded multi-year contracts and individual delivery orders to ensure a steady supply of these essential vehicles. Total spending can reach hundreds of millions of dollars over the life cycle of the program, reflecting the significant investment required to equip and sustain the force.

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: $174,135,090

Exercised Options: $174,135,090

Current Obligation: $174,135,090

Subaward Activity

Number of Subawards: 180

Total Subaward Amount: $9,463,776

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