DoD Awards $1.25B Oshkosh Defense Contract for Heavy Tactical Vehicles, Sole-Sourced
Contract Overview
Contract Amount: $125,290,218 ($125.3M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2023-04-04
End Date: 2025-01-31
Contract Duration: 668 days
Daily Burn Rate: $187.6K/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, 54902
Plain-Language Summary
Department of Defense obligated $125.3 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. Sole-source award to Oshkosh Defense LLC for Family of Heavy Tactical Vehicles (FHTV) IV. 2. Contract includes both Fixed-Price Incentive Firm (FPIF) and Firm Fixed-Price (FFP) elements. 3. Established range pricing is a key feature of this requirements contract. 4. No small business participation noted in the provided data.
Value Assessment
Rating: fair
The contract utilizes a mix of FPIF and FFP pricing structures, with established range pricing. This approach aims to balance cost control with contractor incentives, but the sole-source nature limits direct price comparison.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Oshkosh Defense LLC. The lack of competition limits price discovery and may result in higher costs than a competitive process.
Taxpayer Impact: The sole-source nature of this large contract raises concerns about potential overspending by taxpayers due to the absence of competitive bidding.
Public Impact
Ensures continued supply of critical heavy tactical vehicles for military operations. Supports a single, established manufacturer, potentially leading to streamlined logistics and maintenance. Lack of competition may impact long-term cost-effectiveness for the Department of Defense. Limited transparency on pricing due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for higher costs
Positive Signals
- Established range pricing
- Familiarity with existing platform
Sector Analysis
The defense sector heavily relies on specialized vehicle manufacturers like Oshkosh Defense. Spending benchmarks for similar tactical vehicle contracts can vary widely based on specific requirements and technological advancements.
Small Business Impact
The data indicates that this contract was not awarded to small businesses. There is no indication of subcontracting opportunities for small businesses within this sole-source award.
Oversight & Accountability
The contract's sole-source nature warrants close oversight to ensure fair pricing and adherence to the established range pricing. The Department of Defense should monitor performance and costs diligently.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for cost overruns if range pricing is not effectively managed.
- Lack of small business participation.
- Contract duration extends over multiple fiscal years, increasing long-term cost exposure.
Tags
truck-trailer-manufacturing, department-of-defense, wi, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $125.3 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 $125.3 million.
What is the period of performance?
Start: 2023-04-04. End: 2025-01-31.
What is the rationale behind the sole-source justification for this significant tactical vehicle contract?
Sole-source justifications typically arise when a specific vendor possesses unique capabilities, proprietary technology, or when urgency dictates leveraging an existing, proven platform. For the FHTV IV, it's likely tied to Oshkosh Defense's established role in producing previous generations of these vehicles, ensuring interoperability and minimizing training/logistical disruptions.
How does the established range pricing mitigate the risks associated with a sole-source award?
Established range pricing sets upper and lower bounds for costs, providing a framework for negotiation and cost control even without direct competition. It incentivizes the contractor to operate within these limits while allowing for adjustments based on performance and market conditions. This mechanism aims to provide some cost predictability and accountability.
What is the potential long-term impact on military readiness if this sole-source contract leads to significantly higher costs?
Sustained higher costs due to a lack of competition could strain the defense budget, potentially diverting funds from other critical readiness initiatives or procurement programs. This could indirectly impact overall military effectiveness by limiting the acquisition of other necessary equipment or reducing the quantity of vehicles procured within a given budget.
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: $125,290,218
Exercised Options: $125,290,218
Current Obligation: $125,290,218
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: 2023-04-04
Current End Date: 2025-01-31
Potential End Date: 2025-01-31 12:01:00
Last Modified: 2024-11-05
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