DoD Awards $15.4M Task Order for Spall Liner Work to Oshkosh Defense
Contract Overview
Contract Amount: $15,441,288 ($15.4M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2021-12-03
End Date: 2027-10-30
Contract Duration: 2,157 days
Daily Burn Rate: $7.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TASK ORDER FOR THE SPALL LINER WORK DIRECTIVE.
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $15.4 million to OSHKOSH DEFENSE LLC for work described as: TASK ORDER FOR THE SPALL LINER WORK DIRECTIVE. Key points: 1. Significant award for armored vehicle components. 2. Oshkosh Defense is a major player in military vehicle manufacturing. 3. Potential for cost overruns given Cost Plus Fixed Fee contract type. 4. Spending aligns with the Defense sector's needs for vehicle upgrades.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type introduces risk for cost escalation. Benchmarking against similar armored vehicle component contracts is difficult without detailed cost breakdowns, but the award value appears substantial for a single task order.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific price discovery mechanisms within the Cost Plus Fixed Fee structure warrant scrutiny to ensure fair pricing.
Taxpayer Impact: Taxpayer funds are being used for critical military hardware. While competition is present, the contract type necessitates careful oversight to prevent excessive costs.
Public Impact
Enhances survivability of military vehicles. Supports domestic manufacturing and defense industrial base. Contributes to modernization of Army's armored fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type.
- Long performance period (2027).
Positive Signals
- Full and open competition.
- Award to established defense contractor.
Sector Analysis
This spending falls within the Defense sector, specifically related to military vehicle manufacturing. Benchmarks for similar task orders can vary widely based on vehicle type and specific component requirements.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this particular task order. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The Department of the Army awarded this task order. Oversight will be crucial to monitor costs and performance under the Cost Plus Fixed Fee structure, ensuring accountability for taxpayer funds.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Long performance period increases exposure to changing requirements or economic conditions.
- Lack of specific small business participation noted.
- Potential for scope creep given the nature of defense contracts.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, wi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.4 million to OSHKOSH DEFENSE LLC. TASK ORDER FOR THE SPALL LINER WORK DIRECTIVE.
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 $15.4 million.
What is the period of performance?
Start: 2021-12-03. End: 2027-10-30.
What is the projected profit margin for Oshkosh Defense under this Cost Plus Fixed Fee contract, and how does it compare to industry standards for similar defense contracts?
The profit margin for a Cost Plus Fixed Fee (CPFF) contract is determined by the 'fixed fee' component, which is negotiated upfront. Without access to the specific fee negotiated in this task order, it's impossible to provide an exact percentage. However, CPFF contracts typically aim to provide a reasonable profit while incentivizing the contractor to control costs. Industry standards for profit margins in defense contracting can vary but often fall within a range of 7-15%, depending on the complexity, risk, and strategic importance of the project.
What specific risks are associated with the 'spall liner' component, and how does this task order address those risks to ensure mission effectiveness?
Spall liners are critical safety components designed to contain fragments from incoming projectiles or explosions, protecting personnel inside armored vehicles. Risks associated with spall liners include material degradation over time, improper installation leading to reduced effectiveness, and potential for delamination or failure under extreme stress. This task order likely specifies stringent material requirements, testing protocols, and quality assurance measures to mitigate these risks and ensure the liners perform as intended, thereby enhancing crew survivability and overall mission effectiveness.
Given the 2027 end date, what is the long-term strategy for armored vehicle survivability, and how does this specific task order fit into that broader plan?
This task order represents a tactical step in the Department of Defense's broader strategy to maintain and enhance the survivability of its armored vehicle fleet. The long-term strategy likely involves continuous research and development into advanced armor materials, integrated protection systems, and modular upgrades. This specific award ensures the current fleet is equipped with necessary spall liners, addressing immediate needs while potentially informing future requirements for next-generation vehicles or upgrades based on performance data and evolving threats.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS FIXED FEE (U)
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: $15,441,288
Exercised Options: $15,441,288
Current Obligation: $15,441,288
Subaward Activity
Number of Subawards: 167
Total Subaward Amount: $110,099,139
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV21D0017
IDV Type: IDC
Timeline
Start Date: 2021-12-03
Current End Date: 2027-10-30
Potential End Date: 2027-10-30 12:10:00
Last Modified: 2025-09-23
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