DoD Awards Oshkosh Defense $2.6B for Heavy Tactical Vehicles Over 9 Years
Contract Overview
Contract Amount: $26,226,984 ($26.2M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2023-06-07
End Date: 2025-12-31
Contract Duration: 938 days
Daily Burn Rate: $28.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IS AN NINE-YEAR FIXED-PRICE INCENTIVE FIRM (FPIF) (OY1-OY5) AND FIRM FIXED-PRICE (FFP) (OY6-OY9) 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 $26.2 million to OSHKOSH DEFENSE LLC for work described as: FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IS AN NINE-YEAR FIXED-PRICE INCENTIVE FIRM (FPIF) (OY1-OY5) AND FIRM FIXED-PRICE (FFP) (OY6-OY9) 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). 2. Contract includes both Fixed-Price Incentive Firm (FPIF) and Firm Fixed-Price (FFP) elements. 3. Sole source award raises questions about price discovery and potential for overpayment. 4. Spending spans multiple fiscal years, impacting long-term budget planning.
Value Assessment
Rating: questionable
The contract utilizes established range pricing, which can provide some cost control. However, as a sole source, the government lacks direct price comparison to ensure optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This is a sole source award, meaning competition was not sought. This limits the government's ability to leverage market forces for better pricing and terms.
Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a competitively bid contract.
Public Impact
Ensures continued availability of critical heavy tactical vehicles for military operations. Supports a significant defense contractor and its supply chain. Potential for cost overruns due to sole-source nature requires vigilant oversight. Long-term contract duration impacts budget predictability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole Source
- Lack of Competition
- Long Contract Duration
Positive Signals
- Established Range Pricing
- Critical Defense Capability
Sector Analysis
This contract falls within the Defense sector, specifically for tactical vehicle manufacturing. Spending benchmarks for similar large-scale vehicle procurements vary widely based on quantity, complexity, and competition.
Small Business Impact
No information is provided regarding small business participation in this contract. As a sole source award to a large prime contractor, opportunities for small businesses may be limited unless subcontracting plans are robust.
Oversight & Accountability
The fixed-price incentive and firm fixed-price structures require careful monitoring of performance and costs. Oversight should focus on ensuring adherence to established pricing ranges and delivery schedules.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding may lead to inflated prices.
- Sole-source nature limits negotiation leverage for the government.
- Long contract duration increases exposure to market volatility and changing requirements.
- Potential for cost overruns if incentive structure is not effectively managed.
- Reliance on a single supplier could create supply chain risks.
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 $26.2 million to OSHKOSH DEFENSE LLC. FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IS AN NINE-YEAR FIXED-PRICE INCENTIVE FIRM (FPIF) (OY1-OY5) AND FIRM FIXED-PRICE (FFP) (OY6-OY9) 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 $26.2 million.
What is the period of performance?
Start: 2023-06-07. End: 2025-12-31.
What is the historical cost performance of Oshkosh Defense on similar sole-source FHTV contracts?
Analyzing historical cost data from previous Oshkosh Defense contracts for FHTV or similar vehicles, especially those awarded sole-source, is crucial. This would help establish a baseline for 'fair and reasonable' pricing and identify any trends in cost overruns or savings. Understanding past performance can inform negotiations and oversight for the current contract, mitigating risks associated with the lack of upfront competition.
How does the established range pricing compare to market benchmarks for comparable tactical vehicles?
The government should benchmark the established range pricing against publicly available data or internal analyses of similar heavy tactical vehicles procured through competitive means. This comparison will reveal if the sole-source pricing is indeed competitive. If the range is significantly higher than market benchmarks, it indicates a potential for taxpayer overpayment and warrants further investigation into the justification for the sole-source award and pricing structure.
What are the specific performance metrics and incentives tied to the FPIF portion of the contract?
Understanding the specific performance metrics and the incentive structure within the Firm-Fixed-Price Incentive (FPIF) component is vital. This includes knowing the target cost, ceiling price, and the sharing ratio between the government and Oshkosh Defense. Clear, measurable, and relevant performance goals are essential to ensure the incentive effectively drives desired outcomes and cost efficiencies, rather than simply adding complexity without tangible benefits.
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: $26,226,984
Exercised Options: $26,226,984
Current Obligation: $26,226,984
Actual Outlays: $3,275,790
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: 2023-06-07
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 12:12:00
Last Modified: 2025-08-04
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