DoD awards $31.5M for truck kits, with Oshkosh Defense securing the contract

Contract Overview

Contract Amount: $31,473,916 ($31.5M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2021-07-30

End Date: 2024-06-30

Contract Duration: 1,066 days

Daily Burn Rate: $29.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 447 UNDER ARMOR KITS (C-KITS) FOR A2 TRUCKS.

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $31.5 million to OSHKOSH DEFENSE LLC for work described as: 447 UNDER ARMOR KITS (C-KITS) FOR A2 TRUCKS. Key points: 1. The contract value represents a significant investment in tactical vehicle sustainment. 2. Full and open competition suggests a robust market for these specialized kits. 3. The fixed-price nature of the contract aims to control costs and manage risk. 4. The duration of the contract indicates a long-term need for these components. 5. The award falls within the truck and trailer manufacturing sector, supporting military logistics.

Value Assessment

Rating: good

The contract value of $31.5 million for 447 C-KITS appears reasonable given the specialized nature of military vehicle components. Benchmarking against similar complex military vehicle upgrade contracts suggests that pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, indicating good value for money if performance targets are met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages innovation. The open competition suggests that the market has sufficient capacity and interest to supply these specialized kits.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified contractors, maximizing the use of public funds.

Public Impact

The primary beneficiaries are the U.S. Army units requiring enhanced A2 trucks for operational readiness. The contract delivers essential C-KITS (Container Kits) to upgrade existing truck platforms. The geographic impact is national, supporting Army logistics across various installations. Workforce implications include potential sustainment and manufacturing jobs related to the production and integration of these kits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during integration.
Dependence on a single contractor for a critical component could pose supply chain risks.
Ensuring timely delivery to meet operational demands is crucial.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a healthy market and potential for competitive pricing.
Long contract duration allows for stable production and potential economies of scale.

Sector Analysis

This contract falls within the broader defense industrial base, specifically supporting tactical vehicle manufacturing and sustainment. The North American Industry Classification System (NAICS) code 336212 (Truck Trailer Manufacturing) indicates a focus on vehicle components. Spending in this area is critical for maintaining the operational readiness of military fleets, with comparable contracts often involving significant investments in vehicle upgrades and modernization.

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. This suggests that the primary award went to a large business. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors for Oshkosh Defense.

Oversight & Accountability

The Department of the Army, as the procuring agency, is responsible for oversight. The firm fixed-price contract type provides a degree of financial oversight by capping costs. Transparency would be enhanced by public reporting on performance metrics and any modifications to the contract. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Tactical Vehicle Modernization Programs
Army Logistics Support Contracts
Military Truck and Trailer Procurement
Defense Vehicle Component Upgrades

Risk Flags

Potential for schedule delays
Risk of cost growth if scope changes
Supply chain dependencies

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.5 million to OSHKOSH DEFENSE LLC. 447 UNDER ARMOR KITS (C-KITS) FOR 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 $31.5 million.

What is the period of performance?

Start: 2021-07-30. End: 2024-06-30.

What is the specific function and technical advantage of the C-KITS for A2 trucks?

The C-KITS (Container Kits) for A2 trucks are designed to enhance the functionality and survivability of the existing Army A2 vehicle fleet. While specific technical details are often proprietary, these kits typically involve upgrades to the vehicle's protection, power generation, communication systems, or payload capacity. The primary advantage is extending the service life and improving the operational effectiveness of these trucks without requiring a complete platform replacement. This allows the Army to leverage its existing investments while incorporating modern capabilities necessary for current and future operational environments, potentially including improved blast resistance, enhanced situational awareness, or greater logistical support capabilities.

How does the unit cost of these C-KITS compare to similar upgrades on other military vehicles?

Without specific unit cost data (only the total award and quantity are provided), a direct comparison is challenging. However, the total award of $31,473,916 for 447 kits yields an approximate unit price of $70,411. This figure needs to be benchmarked against the complexity and scope of the C-KITS. If these kits involve significant electronic components, advanced materials, or substantial structural modifications, this price could be competitive. Conversely, if they are primarily mechanical or simpler add-ons, it might be on the higher side. Comparisons would ideally be made with contracts for similar upgrade packages on vehicles of comparable size and mission profile within the DoD.

What are the key performance indicators (KPIs) for this contract, and how is Oshkosh Defense's performance being monitored?

Key performance indicators for this contract would likely include on-time delivery of kits, adherence to quality specifications, and successful integration testing (if applicable). The Department of the Army's contracting officer and technical representatives are responsible for monitoring Oshkosh Defense's performance. This typically involves regular progress meetings, review of delivery schedules, inspection of delivered goods, and assessment against the contract's technical requirements. Performance metrics are crucial for ensuring the government receives the intended value and that the upgrades meet operational needs. Failure to meet KPIs could result in penalties or corrective actions as stipulated in the contract.

What is Oshkosh Defense's track record with similar military vehicle upgrade contracts?

Oshkosh Defense has a substantial track record with the U.S. military, particularly in the area of tactical wheeled vehicles. They are well-known for producing the Joint Light Tactical Vehicle (JLTV) and have been involved in numerous sustainment, upgrade, and production contracts for various Army and Marine Corps vehicle platforms. Their experience includes delivering complex systems, managing large-scale production, and integrating advanced technologies. This history suggests a strong capability to execute contracts like the C-KITS for A2 trucks, although specific performance on past, directly comparable upgrade programs would offer a more precise assessment.

What is the historical spending trend for A2 truck sustainment and upgrades within the Department of the Army?

Historical spending on the sustainment and upgrades of the Army's A2 truck fleet would likely show a consistent, albeit potentially decreasing, trend as newer vehicle platforms like the JLTV become more prevalent. Early in the A2's lifecycle, spending would have focused on initial fielding and operational support. As the fleet ages, sustainment costs, including parts, maintenance, and targeted upgrades like these C-KITS, become more significant to maintain readiness. However, overall investment may shift towards newer platforms over time. Analyzing specific budget lines for A2 sustainment over the past decade would reveal the scale and frequency of such upgrade initiatives.

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 Corp

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: $31,473,916

Exercised Options: $31,473,916

Current Obligation: $31,473,916

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