Army awards $58.4M for EHETS trailers, with Oshkosh Defense securing the contract

Contract Overview

Contract Amount: $58,358,591 ($58.4M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2023-06-29

End Date: 2025-12-31

Contract Duration: 916 days

Daily Burn Rate: $63.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FIVE-YEAR REQUIREMENTS CONTRACT FOR AN ESTIMATED QUANTITY OF 466 EHETS TRAILERS, CONDUCT PROGRAMMATIC MEETINGS, PROVIDE FSR SUPPORT FOR PVT/OT, AND DATA DELIVERABLES. SECOND DO WILL PROCURE 116 EA EHETS PRODUCTION TRAILERS AND FRET.

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $58.4 million to OSHKOSH DEFENSE LLC for work described as: FIVE-YEAR REQUIREMENTS CONTRACT FOR AN ESTIMATED QUANTITY OF 466 EHETS TRAILERS, CONDUCT PROGRAMMATIC MEETINGS, PROVIDE FSR SUPPORT FOR PVT/OT, AND DATA DELIVERABLES. SECOND DO WILL PROCURE 116 EA EHETS PRODUCTION TRAILERS AND FRET. Key points: 1. Contract focuses on providing specialized trailers and related support services. 2. The award is part of a larger five-year requirements contract. 3. Competition was full and open, suggesting a competitive bidding process. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. Oshkosh Defense LLC is the awarded contractor. 6. The contract duration extends through December 2025. 7. This award is for production trailers and related funding.

Value Assessment

Rating: good

The contract value of $58.4 million for an estimated quantity of trailers and support services appears reasonable given the specialized nature of the equipment. Benchmarking against similar defense vehicle contracts is challenging without more specific technical details, but the firm-fixed-price structure provides cost certainty. The contract's focus on production trailers and programmatic support suggests a need for reliable, high-quality equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive pricing. The specific number of bidders is not provided, but the designation suggests a robust selection process.

Taxpayer Impact: Full and open competition typically leads to better value for taxpayers by driving down prices through market forces.

Public Impact

The U.S. Army benefits from the acquisition of specialized EHETS trailers. Services include programmatic meetings, FSR support, and data deliverables. The geographic impact is primarily within the U.S. Army's operational theaters. Workforce implications include manufacturing and support roles at Oshkosh Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if estimated quantities are exceeded without adjustments.
Dependence on a single contractor for specialized trailer production could pose supply chain risks.
Ensuring timely delivery of production trailers is critical for Army readiness.

Positive Signals

Firm Fixed Price contract structure limits the government's exposure to cost increases.
Full and open competition suggests a competitive market for these specialized trailers.
The contract is part of a larger requirements vehicle, indicating ongoing need and potential for future orders.

Sector Analysis

The defense sector, particularly ground vehicle manufacturing, is characterized by high technical requirements and significant government investment. Contracts for specialized trailers like the EHETS fall within the broader truck and trailer manufacturing industry (NAICS 336212). The market is often dominated by a few key players with the capability to meet stringent military specifications. Spending in this area is driven by modernization efforts and operational demands within the armed forces.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this specific award (sb: false). However, the prime contractor, Oshkosh Defense LLC, may engage small businesses for subcontracting opportunities to fulfill parts of the contract. Analysis of subcontracting plans would be necessary to determine the extent of small business involvement and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods and services. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Tactical Wheeled Vehicles
Logistics Support Vehicles
Army Equipment Modernization Programs
Defense Logistics Agency Contracts

Risk Flags

Potential supply chain dependencies for specialized components.
Ensuring timely delivery to meet Army operational requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.4 million to OSHKOSH DEFENSE LLC. FIVE-YEAR REQUIREMENTS CONTRACT FOR AN ESTIMATED QUANTITY OF 466 EHETS TRAILERS, CONDUCT PROGRAMMATIC MEETINGS, PROVIDE FSR SUPPORT FOR PVT/OT, AND DATA DELIVERABLES. SECOND DO WILL PROCURE 116 EA EHETS PRODUCTION TRAILERS AND FRET.

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 $58.4 million.

What is the period of performance?

Start: 2023-06-29. End: 2025-12-31.

What is the historical spending pattern for EHETS trailers or similar specialized trailers by the Department of Defense?

Analyzing historical spending for EHETS trailers or comparable specialized military trailers requires access to detailed procurement data over multiple fiscal years. Typically, such spending fluctuates based on Army modernization priorities, operational tempo, and budget allocations. For instance, if the Army is undergoing a significant equipment refresh or deploying new operational concepts requiring enhanced mobility, spending on specialized trailers could increase. Conversely, periods of budget constraint or focus on other modernization areas might see reduced procurement. Without specific historical data for EHETS, one could benchmark against programs like the Family of Medium Tactical Vehicles (FMTV) or other trailer systems to understand typical contract values, quantities, and award frequencies within the ground vehicle segment of the defense budget. This context helps assess if the current $58.4 million award represents a typical investment or a significant deviation.

How does the per-unit cost of these EHETS trailers compare to similar commercial or military trailers?

Determining the precise per-unit cost of the EHETS trailers is not directly possible from the provided data, as the $58.4 million covers an estimated quantity and includes programmatic support, not just trailer production. However, if we were to estimate a per-unit cost by dividing the total award by the estimated quantity of 116 production trailers (excluding the initial 466 'ehets' which might be a different configuration or phase), it would yield a figure. This figure would need to be compared against commercial heavy-duty trailers or other military-specific trailer systems. Military-grade equipment often carries a premium due to stringent durability, environmental resistance (e.g., NBC protection, extreme temperature operation), and specialized integration requirements (e.g., communication, power). Therefore, a direct comparison to commercial trailers might show a higher cost, but this is often justified by the enhanced capabilities and survivability needed in military operational environments. Benchmarking against other military trailer programs would provide a more relevant comparison.

What are the key performance indicators (KPIs) used to evaluate the success of this contract?

Key performance indicators (KPIs) for this contract would likely focus on several critical areas. Firstly, delivery performance is paramount: meeting the specified delivery schedules for the production trailers and ensuring all contractual deliverables (programmatic meetings, FSR support, data) are provided on time and to the required standard. Quality assurance is another major KPI, ensuring the trailers meet all technical specifications, performance requirements, and are free from defects. Contractor performance, including responsiveness to Army requests, effective problem resolution, and adherence to contract terms, would also be monitored. Financial performance, particularly within the firm-fixed-price structure, involves ensuring costs remain within the awarded amount and that the contractor manages its expenses effectively. Finally, operational readiness and user feedback from the Army units receiving the trailers would serve as crucial indicators of the contract's ultimate success in meeting the warfighter's needs.

What is Oshkosh Defense LLC's track record with similar military vehicle or trailer contracts?

Oshkosh Defense LLC has a substantial and well-established track record with the U.S. military, particularly in the production of tactical wheeled vehicles. They are widely known for manufacturing the Family of Medium Tactical Vehicles (FMTV), the Joint Light Tactical Vehicle (JLTV), and various heavy equipment transporters. Their experience encompasses large-scale production, integration of complex systems, and meeting rigorous military specifications for durability, mobility, and survivability across diverse operating environments. While specific details on their history with EHETS trailers are not provided here, their extensive background in producing military ground vehicles suggests a strong capability to deliver on this contract. Past performance evaluations and contract awards from the Department of Defense would offer further insight into their reliability, quality, and ability to manage complex defense manufacturing programs.

Are there any identified risks associated with the technology or supply chain for these EHETS trailers?

Risks associated with the technology and supply chain for EHETS trailers could exist, although the provided data does not explicitly detail them. Technologically, the risk might involve the integration of specialized systems within the trailers, ensuring compatibility with existing Army platforms, and the reliability of advanced components under demanding field conditions. Supply chain risks are common in defense contracting; these could include reliance on sole-source or limited-source suppliers for critical components, potential disruptions due to geopolitical events or natural disasters affecting key manufacturers, and the availability of raw materials. Given Oshkosh Defense's experience, they likely have mitigation strategies in place, but ongoing monitoring of their supply chain partners and technological advancements is crucial. The firm-fixed-price nature of the contract places the burden of managing these risks primarily on the contractor.

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: $58,358,591

Exercised Options: $58,358,591

Current Obligation: $58,358,591

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $431,323

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV22D0092

IDV Type: IDC

Timeline