DoD Awards $20.7M for 174 M1300 HETS Tractor Mods to Oshkosh Defense
Contract Overview
Contract Amount: $20,738,589 ($20.7M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2022-03-10
End Date: 2026-07-31
Contract Duration: 1,604 days
Daily Burn Rate: $12.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS CONTRACT IS A NON-COMMERCIAL FIRM-FIXED PRICED (FFP) CONTRACT FOR THE PROCUREMENT OF 174 EA M1300 HEAVY EQUIPMENT TRANSPORTER SYSTEM (HETS) TRACTOR MOD B.
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $20.7 million to OSHKOSH DEFENSE LLC for work described as: THIS CONTRACT IS A NON-COMMERCIAL FIRM-FIXED PRICED (FFP) CONTRACT FOR THE PROCUREMENT OF 174 EA M1300 HEAVY EQUIPMENT TRANSPORTER SYSTEM (HETS) TRACTOR MOD B. Key points: 1. Procurement of 174 M1300 HETS Tractor Mod B units. 2. Contract awarded to Oshkosh Defense LLC. 3. Firm-Fixed-Price (FFP) contract type. 4. Significant investment in heavy equipment transport capabilities.
Value Assessment
Rating: good
The contract value of $20.7M for 174 units suggests a per-unit cost of approximately $119,200. This pricing appears reasonable for specialized heavy equipment, but a direct comparison to similar systems or previous procurements would be beneficial for a more definitive assessment.
Cost Per Unit: $119,200
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. While this can expedite procurement, it limits price discovery and potentially leads to higher costs compared to a competitive process. The rationale for sole-sourcing should be clearly documented.
Taxpayer Impact: Taxpayer funds are being used for this procurement. The lack of competition may result in a higher cost than if multiple vendors had bid, impacting the overall value for money.
Public Impact
Enhances military logistics and deployment capabilities. Supports the transportation of heavy combat vehicles. Contributes to the modernization of Army equipment. Potential for long-term sustainment and maintenance needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns without competitive pressure
Positive Signals
- Essential military equipment
- Firm-fixed-price contract limits cost uncertainty for the government
Sector Analysis
This procurement falls within the Defense sector, specifically related to military vehicle manufacturing. Spending benchmarks for similar heavy equipment procurements are difficult to ascertain without specific program details, but large-scale acquisitions of specialized vehicles typically represent significant investments.
Small Business Impact
The contract was awarded to Oshkosh Defense LLC, a large business. There is no indication of subcontracting opportunities for small businesses within the provided data, which could be a missed opportunity for economic inclusion.
Oversight & Accountability
The Department of Defense is responsible for oversight. The firm-fixed-price nature of the contract provides some cost control, but the lack of competition warrants close monitoring to ensure fair pricing and effective use of funds.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for higher costs due to lack of competitive bidding.
- Limited visibility into small business participation.
- Need for strong justification for sole-source procurement.
Tags
truck-trailer-manufacturing, department-of-defense, wi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.7 million to OSHKOSH DEFENSE LLC. THIS CONTRACT IS A NON-COMMERCIAL FIRM-FIXED PRICED (FFP) CONTRACT FOR THE PROCUREMENT OF 174 EA M1300 HEAVY EQUIPMENT TRANSPORTER SYSTEM (HETS) TRACTOR MOD B.
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 $20.7 million.
What is the period of performance?
Start: 2022-03-10. End: 2026-07-31.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one vendor can meet the requirements. To ensure fair and reasonable pricing, the contracting officer would likely conduct market research, analyze historical pricing, and potentially negotiate terms. However, without competition, the government's leverage in price negotiation is reduced, making robust justification and negotiation critical.
How does the unit cost of the M1300 HETS Tractor Mod B compare to similar heavy equipment transport systems procured by other military branches or allied nations?
Benchmarking the unit cost of $119,200 against similar systems requires access to detailed procurement data from other entities. Factors like specific capabilities, technological advancements, quantity ordered, and contract terms can significantly influence pricing. A comprehensive analysis would involve comparing specifications, performance metrics, and total lifecycle costs, which is beyond the scope of the provided data.
What is the expected impact of these 174 M1300 HETS tractor modifications on the Army's overall operational readiness and logistical capabilities?
The procurement of 174 M1300 HETS tractor modifications is expected to significantly enhance the Army's ability to deploy and support heavy combat vehicles. This modernization effort directly addresses logistical bottlenecks, improving operational readiness by ensuring that critical assets can be moved efficiently across various terrains and distances, thereby bolstering overall force projection and sustainment capabilities.
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
Solicitation ID: W56HZV21R0037
Offers Received: 1
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: $20,738,589
Exercised Options: $20,738,589
Current Obligation: $20,738,589
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $9,078,680
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-03-10
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2026-01-12
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