Army awards Oshkosh Defense $159M for FMTV A2 trucks, with delivery through September 2026

Contract Overview

Contract Amount: $159,024,798 ($159.0M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2023-01-13

End Date: 2026-09-30

Contract Duration: 1,356 days

Daily Burn Rate: $117.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FMTV A2 ORDER

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $159.0 million to OSHKOSH DEFENSE LLC for work described as: FMTV A2 ORDER Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The firm-fixed-price structure shifts cost risk to the contractor. 3. Delivery order for Family of Medium Tactical Vehicles (FMTV) A2, a critical component of military logistics. 4. Contract duration of 1356 days indicates a sustained need for these vehicles. 5. No small business set-aside or subcontracting reported, potentially limiting small business participation. 6. The North American Industry Classification System (NAICS) code 336212 points to truck and trailer manufacturing.

Value Assessment

Rating: good

The total award amount of $159,024,798.34 for FMTV A2 trucks appears to be within a reasonable range for large-scale military vehicle procurement. Benchmarking against historical FMTV procurements or similar tactical vehicle contracts would provide a more precise value-for-money assessment. The firm-fixed-price contract type is generally favorable for the government in stable market conditions, as it caps potential cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing. The government likely received multiple proposals, allowing for selection of the best value offer.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, maximizing the value of taxpayer dollars.

Public Impact

The U.S. Army benefits from the acquisition of essential medium tactical vehicles for logistical support. These vehicles are crucial for transporting personnel, equipment, and supplies across various operational environments. The contract supports manufacturing jobs within the defense industrial base, specifically in Wisconsin where Oshkosh Defense is located. The delivery of FMTV A2 trucks ensures the continued readiness and operational capability of Army units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited small business involvement due to the absence of set-aside provisions.
Reliance on a single large contractor for a significant portion of tactical vehicle production.

Positive Signals

Oshkosh Defense has a strong track record in producing military vehicles, including previous generations of FMTV.
The firm-fixed-price contract provides cost certainty for the government.
The contract is a delivery order against a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, allowing for flexibility in future needs.

Sector Analysis

The defense sector, particularly military vehicle manufacturing, is characterized by high barriers to entry, significant R&D investment, and long-term government contracts. The FMTV A2 program falls under the truck and trailer manufacturing industry (NAICS 336212). Spending in this area is driven by military modernization efforts and the need to replace aging fleets. Comparable spending benchmarks would involve analyzing other large-scale tactical vehicle procurements by the DoD.

Small Business Impact

This contract does not appear to include a small business set-aside. While Oshkosh Defense may utilize small businesses for subcontracting, the absence of specific set-aside requirements means that small businesses did not have a direct competitive advantage in securing this prime contract. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Army Contracting Command, with potential involvement from the Defense Contract Management Agency (DCMA) for quality assurance and delivery monitoring. Inspector General (IG) audits may be conducted periodically to ensure compliance and identify any potential waste, fraud, or abuse. Transparency is facilitated through contract award databases like SAM.gov.

Related Government Programs

Family of Medium Tactical Vehicles (FMTV)
Joint Light Tactical Vehicle (JLTV)
Heavy Expanded Mobility Tactical Truck (HEMTT)

Risk Flags

Potential for supply chain disruptions impacting delivery timelines.
Long-term sustainment and parts availability require ongoing attention.
Dependence on a single prime contractor for a critical vehicle platform.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $159.0 million to OSHKOSH DEFENSE LLC. FMTV A2 ORDER

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 $159.0 million.

What is the period of performance?

Start: 2023-01-13. End: 2026-09-30.

What is Oshkosh Defense's track record with the FMTV program?

Oshkosh Defense has a long-standing relationship with the U.S. Army for the Family of Medium Tactical Vehicles (FMTV) program. They were awarded the original FMTV contract in 2008 and have since produced thousands of vehicles across various configurations. This includes upgrades and enhancements to the FMTV A1 and the newer FMTV A2 variants. Their experience encompasses design, manufacturing, testing, and sustainment of these critical logistics platforms, demonstrating a deep understanding of the program's requirements and the operational needs of the Army. The continued awards for FMTV A2 variants underscore their established position as the primary provider for this vehicle family.

How does the unit cost of the FMTV A2 compare to previous FMTV variants or similar vehicles?

Directly comparing unit costs without detailed specifications and configurations can be challenging. However, the FMTV A2 represents an upgrade over the FMTV A1, incorporating improvements in survivability, payload, and performance. Typically, upgraded versions of military platforms see a moderate increase in unit cost due to enhanced features and technology. Benchmarking against other medium tactical vehicle procurements by different branches of the U.S. military or allied nations would provide a more comprehensive comparison. The firm-fixed-price nature of this delivery order suggests that the price was negotiated and agreed upon, aiming for value within the competitive landscape.

What are the primary risks associated with this contract for the government?

The primary risks for the government in this contract are related to performance and schedule. While Oshkosh Defense has a strong track record, any large-scale manufacturing program carries inherent risks of production delays, quality control issues, or unforeseen supply chain disruptions. The firm-fixed-price contract mitigates financial risk by capping costs, but delays could impact Army readiness. Another potential risk is the long-term sustainment and maintenance of these vehicles, requiring ongoing support and parts availability. Ensuring interoperability with future systems and adapting to evolving battlefield requirements also presents a long-term risk.

How effective is the FMTV A2 in meeting the Army's current and future logistical needs?

The FMTV A2 is designed to meet the evolving logistical needs of the U.S. Army, offering enhanced capabilities over its predecessors. Key improvements include increased payload and troop capacity, better off-road mobility, and enhanced protection features, making it more suitable for contemporary operational environments. Its modular design allows for various configurations, adapting to different mission requirements, from troop transport to cargo hauling and specialized equipment deployment. The program's continuation and upgrades reflect its perceived effectiveness in providing a versatile and reliable platform for tactical logistics, crucial for maintaining force projection and operational sustainment.

What are the historical spending patterns for the FMTV program?

Historical spending on the FMTV program has been substantial, reflecting the Army's consistent need for medium tactical vehicles. The program has seen significant investment over multiple years, with contract awards often issued as delivery orders against an IDIQ contract. Spending fluctuates based on production schedules, modernization requirements, and overall defense budgets. Oshkosh Defense has been the primary recipient of these funds since taking over the program. Analyzing annual spending trends would reveal periods of high procurement activity driven by fleet recapitalization or new program starts, alongside steady-state sustainment funding.

Are there any potential supply chain vulnerabilities for the FMTV A2 production?

Like many complex manufacturing programs, the FMTV A2 production is susceptible to supply chain vulnerabilities. These can include the availability and cost of raw materials (e.g., steel), specialized components (e.g., engines, transmissions, electronics), and the financial health of lower-tier suppliers. Geopolitical events, trade disputes, or global demand surges can disrupt the flow of necessary parts. Oshkosh Defense, as the prime contractor, manages its supply chain, but disruptions at any level can impact production timelines and costs. The government's oversight includes monitoring these supply chain risks, especially for critical components.

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 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: $159,024,798

Exercised Options: $159,024,798

Current Obligation: $159,024,798

Actual Outlays: $7,073,549

Subaward Activity

Number of Subawards: 181

Total Subaward Amount: $14,915,344

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