DoD Awards Oshkosh Defense $29.5M for Saudi Arabia Truck Trailers, Not Competed
Contract Overview
Contract Amount: $29,494,710 ($29.5M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-15
End Date: 2026-02-17
Contract Duration: 886 days
Daily Burn Rate: $33.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FMS PURCHASE FOR SAUDIA ARABIA CASE NUMBER SR-ZAQ
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $29.5 million to OSHKOSH DEFENSE LLC for work described as: FMS PURCHASE FOR SAUDIA ARABIA CASE NUMBER SR-ZAQ Key points: 1. Significant contract value of $29.5 million for specialized truck trailers. 2. Sole-source award to Oshkosh Defense LLC raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. The sector is truck trailer manufacturing, a niche within defense logistics.
Value Assessment
Rating: questionable
The contract value of $29.5 million for 886 days of performance is substantial. Without competitive data, it's difficult to benchmark pricing effectively against similar contracts, especially given the specialized nature of the equipment.
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. This limits price discovery and potentially leads to less favorable pricing for the government compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these truck trailers, as there was no market pressure to drive down costs.
Public Impact
Foreign military sales can impact domestic defense readiness and resource allocation. Lack of transparency in sole-source contracts can erode public trust. Oversight is crucial to ensure fair pricing and necessity for foreign military sales.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Potential for overpayment
- Foreign military sale implications
Positive Signals
- Specific equipment for allied nation
- Established manufacturer
Sector Analysis
The truck trailer manufacturing sector, particularly for defense applications, is specialized. Benchmarking against commercial contracts is challenging due to unique military specifications and potential foreign military sales premiums.
Small Business Impact
This contract was awarded directly to Oshkosh Defense LLC, a large business. There is no indication of subcontracting opportunities for small businesses within this specific award notice.
Oversight & Accountability
The 'NOT COMPETED' status warrants close oversight to ensure the justification for a sole-source award is valid and that the pricing is reasonable. Transparency in foreign military sales is essential for accountability.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency
- Foreign military sales implications
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 $29.5 million to OSHKOSH DEFENSE LLC. FMS PURCHASE FOR SAUDIA ARABIA CASE NUMBER SR-ZAQ
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 $29.5 million.
What is the period of performance?
Start: 2023-09-15. End: 2026-02-17.
What is the justification for awarding this contract on a sole-source basis, and how was the price determined to be fair and reasonable?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent requirements where only one source can fulfill the need. Price reasonableness is usually determined through cost analysis, comparison to historical data (if available), or market research. For this FMS case, the Army likely conducted an internal review to validate these factors before proceeding without competition.
What are the potential risks associated with procuring defense equipment for foreign military sales through sole-source contracts?
Sole-source contracts for FMS carry risks of inflated pricing due to the absence of competitive pressure, potentially leading to inefficient use of taxpayer funds. There's also a risk of reduced transparency, making it harder to scrutinize costs and ensure the equipment meets genuine security needs. Furthermore, it can limit opportunities for other capable suppliers, including small businesses, to participate in defense contracts.
How does this specific contract contribute to the overall effectiveness of the recipient nation's defense capabilities?
The effectiveness of these truck trailers for Saudi Arabia's defense capabilities depends on their intended role within the Saudi military logistics chain. If they are critical for transporting essential supplies, equipment, or personnel, they directly enhance operational readiness and mobility. The specific type of trailer and its integration with existing platforms would determine its precise contribution to overall effectiveness.
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: $29,494,710
Exercised Options: $29,494,710
Current Obligation: $29,494,710
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: 2023-09-15
Current End Date: 2026-02-17
Potential End Date: 2026-02-17 00:00:00
Last Modified: 2025-07-16
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