DoD Awards $594M Oshkosh FHTV IV Contract, Lacking Competition
Contract Overview
Contract Amount: $59,360,095 ($59.4M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2022-05-26
End Date: 2025-01-31
Contract Duration: 981 days
Daily Burn Rate: $60.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IV IS AN EIGHT-YEAR, FIXED-PRICE INCENTIVE FIRM (FPIF) (OY1-OY5) AND FIRM FIXED-PRICE (FFP) (OY6-OY8) SOLE SOURCE, REQUIREMENTS CONTRACT AWARDED TO OSHKOSH DEFENSE, LLC WITH ESTABLISHED RANGE PRICING.
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54903
Plain-Language Summary
Department of Defense obligated $59.4 million to OSHKOSH DEFENSE LLC for work described as: FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IV IS AN EIGHT-YEAR, FIXED-PRICE INCENTIVE FIRM (FPIF) (OY1-OY5) AND FIRM FIXED-PRICE (FFP) (OY6-OY8) SOLE SOURCE, REQUIREMENTS CONTRACT AWARDED TO OSHKOSH DEFENSE, LLC WITH ESTABLISHED RANGE PRICING. Key points: 1. Contract awarded to Oshkosh Defense for Heavy Tactical Vehicles. 2. Significant value of $593.6 million over 8 years. 3. Sole-source nature raises concerns about price discovery and competition. 4. Sector is Defense, specifically Truck Trailer Manufacturing.
Value Assessment
Rating: questionable
The contract uses a mix of FPIF and FFP terms with established range pricing. Without competitive bidding, it's difficult to assess if the pricing is optimal or reflects market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed and was awarded sole-source to Oshkosh Defense. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in higher costs for the Department of Defense, impacting taxpayer funds.
Public Impact
Ensures continued supply of critical heavy tactical vehicles for the Army. Potential for higher costs due to sole-source award. Supports a key defense contractor, Oshkosh Defense. Limited transparency on pricing due to lack of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Ensures critical equipment for the military
- Established range pricing may offer some cost control
Sector Analysis
This contract falls within the Defense sector, specifically for the manufacturing of heavy tactical vehicles. Spending benchmarks in this area are often high due to specialized requirements and limited suppliers.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost overruns. The use of range pricing is a mitigating factor but requires monitoring.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for price escalation
- Limited transparency on cost justification
- Reliance on a single supplier
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 $59.4 million to OSHKOSH DEFENSE LLC. FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IV IS AN EIGHT-YEAR, FIXED-PRICE INCENTIVE FIRM (FPIF) (OY1-OY5) AND FIRM FIXED-PRICE (FFP) (OY6-OY8) 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 $59.4 million.
What is the period of performance?
Start: 2022-05-26. End: 2025-01-31.
What is the justification for the sole-source award of the FHTV IV contract?
The provided data states the contract was a sole-source, requirements contract. A detailed justification would typically be documented by the agency, outlining reasons such as unique capabilities, existing infrastructure, or lack of viable alternatives. Without this documentation, the rationale for not competing the award remains unclear.
How does the established range pricing mitigate the risks associated with a sole-source award?
Established range pricing sets upper and lower limits for costs, providing some control over expenditures compared to an unconstrained sole-source contract. However, the effectiveness depends on how aggressively the range was negotiated and whether it truly reflects market value. Continuous monitoring is crucial to ensure costs remain within acceptable bounds.
What is the potential long-term impact on the Army's vehicle fleet readiness due to this contract structure?
While the contract ensures a supply of FHTV IV vehicles, the lack of competition could lead to higher unit costs, potentially limiting the number of vehicles procured within budget. This could impact fleet modernization timelines or overall readiness if funding is constrained by elevated prices.
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: $59,360,095
Exercised Options: $59,360,095
Current Obligation: $59,360,095
Subaward Activity
Number of Subawards: 265
Total Subaward Amount: $20,876,492
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: 2022-05-26
Current End Date: 2025-01-31
Potential End Date: 2025-01-31 12:01:00
Last Modified: 2025-05-02
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