DoD Awards Oshkosh Defense $370M for Heavy Tactical Vehicle Extension
Contract Overview
Contract Amount: $37,032,800 ($37.0M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2021-08-19
End Date: 2024-05-31
Contract Duration: 1,016 days
Daily Burn Rate: $36.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IV THREE YEAR EXTENSION (OY6-OY8) IS A FIRM-FIXED-PRICE (FFP) TARGET SOLE SOURCE, REQUIREMENTS CONTRACT AWARDED TO OSHKOSH DEFENSE, LLC WITH ESTABLISHED RANGE PRICING.
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $37.0 million to OSHKOSH DEFENSE LLC for work described as: FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IV THREE YEAR EXTENSION (OY6-OY8) IS A FIRM-FIXED-PRICE (FFP) TARGET SOLE SOURCE, REQUIREMENTS CONTRACT AWARDED TO OSHKOSH DEFENSE, LLC WITH ESTABLISHED RANGE PRICING. Key points: 1. Contract awarded to Oshkosh Defense, LLC for Family of Heavy Tactical Vehicles (FHTV) IV. 2. This is a sole source, requirements contract with established range pricing. 3. The contract covers three years of production (OY6-OY8). 4. The total value is approximately $370.3 million. 5. The contract is Firm-Fixed-Price (FFP).
Value Assessment
Rating: fair
The contract utilizes established range pricing, which provides some cost control. However, as a sole source award, the government's ability to negotiate the best possible price is limited compared to a competitive environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed and was awarded as a sole source to Oshkosh Defense, LLC. This limits price discovery and potentially increases costs for taxpayers as competition is absent.
Taxpayer Impact: The sole-source nature of this award may result in higher costs for taxpayers due to the lack of competitive bidding.
Public Impact
Ensures continued supply of critical heavy tactical vehicles for the Department of the Army. Supports military readiness and operational capabilities. Maintains a specific vehicle platform, potentially simplifying logistics and maintenance. Impacts Oshkosh Defense's revenue and operational capacity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole source award limits competition and price negotiation.
- Potential for higher costs due to lack of competition.
- Long-term reliance on a single supplier.
Positive Signals
- Established range pricing provides some cost visibility.
- Ensures continued supply of essential equipment.
- Firm-Fixed-Price contract shifts some risk to the contractor.
Sector Analysis
The Department of Defense is a major consumer of heavy vehicles. Spending benchmarks for similar tactical vehicle contracts can vary widely based on specific requirements, quantities, and contract types. This FFP contract for a sole-source extension suggests a focus on continuity of supply for an existing platform.
Small Business Impact
There is no indication in the provided data that small businesses are involved in this specific contract award. Further analysis would be needed to determine if Oshkosh Defense utilizes small business subcontractors.
Oversight & Accountability
The contract utilizes established range pricing, which offers a degree of oversight on cost. However, the sole-source nature limits the effectiveness of competitive oversight mechanisms. Further review of delivery orders and performance would be necessary.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole Source Award
- Lack of Competition
- Potential for Cost Overruns
- Limited Price Discovery
- Risk of Technological Obsolescence
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 $37.0 million to OSHKOSH DEFENSE LLC. FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IV THREE YEAR EXTENSION (OY6-OY8) IS A FIRM-FIXED-PRICE (FFP) TARGET SOLE SOURCE, REQUIREMENTS CONTRACT AWARDED TO OSHKOSH DEFENSE, LLC WITH ESTABLISHED RANGE PRICING.
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 $37.0 million.
What is the period of performance?
Start: 2021-08-19. End: 2024-05-31.
What is the historical performance of Oshkosh Defense on previous FHTV contracts, and how does it inform the current pricing?
Historical performance data on previous FHTV contracts is crucial for assessing the fairness of the established range pricing. If Oshkosh has consistently met or exceeded performance expectations and delivered within or below previous price ranges, it strengthens the justification for the current award. Conversely, any past performance issues or cost overruns would raise concerns about the current pricing's value and the contractor's reliability.
What are the specific risks associated with extending a sole-source contract for heavy tactical vehicles, particularly regarding technological obsolescence or emerging threats?
Extending a sole-source contract for heavy tactical vehicles carries risks of technological obsolescence if the platform does not evolve with emerging threats or advancements. The lack of competition can also stifle innovation from other potential suppliers. The government might be locked into a platform that becomes less effective or more costly to maintain over time compared to newer, potentially more capable alternatives that could have emerged in a competitive environment.
How effectively does the established range pricing mechanism ensure value for money in this sole-source, firm-fixed-price contract?
The established range pricing offers a baseline for cost control, but its effectiveness in ensuring value for money is inherently limited by the absence of competition. While it prevents prices from exceeding the upper range, it doesn't guarantee the government is receiving the lowest possible price achievable through a competitive bidding process. The government's ability to negotiate favorable terms within that range is paramount.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Oshkosh Corporation
Address: 2307 OREGON ST, OSHKOSH, WI, 54903
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: $37,032,800
Exercised Options: $37,032,800
Current Obligation: $37,032,800
Subaward Activity
Number of Subawards: 43
Total Subaward Amount: $3,033,524
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV15D0031
IDV Type: IDC
Timeline
Start Date: 2021-08-19
Current End Date: 2024-05-31
Potential End Date: 2024-05-31 12:05:00
Last Modified: 2024-08-14
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