DoD awards $27.5M for FMTV protection kits, with Oshkosh Defense securing the contract

Contract Overview

Contract Amount: $27,550,919 ($27.6M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-15

End Date: 2026-03-30

Contract Duration: 927 days

Daily Burn Rate: $29.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FAMILY OF MEDIUM TACTICAL VEHICLES (FMTV) PROTECTION KITS CONSISTING OF B-KIT (58 OR 78 GALLON CONFIGURATION).

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $27.6 million to OSHKOSH DEFENSE LLC for work described as: FAMILY OF MEDIUM TACTICAL VEHICLES (FMTV) PROTECTION KITS CONSISTING OF B-KIT (58 OR 78 GALLON CONFIGURATION). Key points: 1. Value-for-money assessment pending detailed cost analysis against similar protection kits. 2. Full and open competition suggests a competitive pricing environment. 3. Risk indicators include potential for cost overruns and delivery delays in complex military procurements. 4. Performance context relies on Oshkosh Defense's established role in military vehicle manufacturing. 5. Sector positioning within military vehicle component manufacturing is strong for the incumbent.

Value Assessment

Rating: fair

The contract value of $27.5 million for FMTV protection kits requires further benchmarking against similar vehicle upgrade contracts. Without specific details on the kits' capabilities and the number of units procured, a precise value-for-money assessment is challenging. However, the firm fixed-price contract type offers some cost certainty. Comparisons to previous FMTV protection kit procurements or similar armored vehicle add-on systems would provide better insight into whether this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive pricing. The Department of the Army's approach suggests a desire to obtain the best value through a broad solicitation.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the protection kits at the most favorable price point, reducing the risk of overpayment.

Public Impact

The primary beneficiaries are U.S. Army personnel who will receive enhanced protection for their Family of Medium Tactical Vehicles (FMTV). The contract delivers crucial B-kit protection (58 or 78-gallon configurations) to upgrade existing FMTV platforms. Geographic impact is national, supporting Army readiness across various operational theaters. Workforce implications may include sustained employment at Oshkosh Defense and its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if additional protection requirements emerge beyond the B-kit.
Dependence on a single contractor for specialized protection kits could pose supply chain risks.
Delivery timelines may be impacted by unforeseen production challenges or global supply chain disruptions.

Positive Signals

Firm fixed-price contract type limits the government's exposure to cost overruns.
Oshkosh Defense's established expertise in military vehicle manufacturing suggests a lower technical risk.
Full and open competition indicates a robust market engagement process.

Sector Analysis

This contract falls within the defense industrial base, specifically the manufacturing of military vehicle components. The market for armored vehicle protection systems is specialized, driven by evolving threats and military requirements. Oshkosh Defense is a significant player in this sector, particularly with its long-standing relationship with the Army for FMTV production. Spending benchmarks for similar vehicle upgrade packages would provide further context.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Oshkosh Defense, as the prime contractor, may engage small businesses for subcontracting opportunities related to component manufacturing or specialized services. However, the primary award does not directly benefit small businesses through a set-aside mechanism.

Oversight & Accountability

Oversight will likely be managed by the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms and delivery schedules. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction may apply in cases of fraud or significant mismanagement.

Related Government Programs

Family of Medium Tactical Vehicles (FMTV) Production
Military Vehicle Armor and Protection Systems
Tactical Wheeled Vehicle Fleet Modernization
Department of Defense Vehicle Procurement

Risk Flags

Potential for delivery delays
Supply chain vulnerability for specialized components
Ensuring long-term effectiveness against evolving threats

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.6 million to OSHKOSH DEFENSE LLC. FAMILY OF MEDIUM TACTICAL VEHICLES (FMTV) PROTECTION KITS CONSISTING OF B-KIT (58 OR 78 GALLON CONFIGURATION).

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 $27.6 million.

What is the period of performance?

Start: 2023-09-15. End: 2026-03-30.

What is Oshkosh Defense's track record with FMTV protection kits and similar armored vehicle upgrades?

Oshkosh Defense has a long-standing relationship with the U.S. Army, being the primary manufacturer of the Family of Medium Tactical Vehicles (FMTV). This includes previous generations and upgrades of the FMTV platform. Their experience extends to integrating various mission kits and protection systems onto these vehicles. While specific data on past protection kit contracts for FMTVs isn't detailed here, Oshkosh's incumbency and extensive history with the platform suggest a strong track record and deep understanding of the vehicle's requirements and integration challenges. Their performance on prior FMTV contracts, including delivery schedules and quality, would be a key indicator of future success.

How does the $27.5 million contract value compare to historical spending on FMTV protection kits?

Direct historical spending comparisons for this specific 'B-kit' protection for FMTVs are not readily available in the provided data. The total contract value of $27.5 million represents a significant investment in enhancing vehicle survivability. To benchmark this effectively, one would need to analyze previous delivery orders or contracts for similar protection upgrades on FMTVs or comparable tactical vehicles. Factors such as the number of kits procured, the specific protection level offered (e.g., blast resistance, ballistic protection), and the configuration (58 or 78-gallon) significantly influence cost. Without this granular historical data, it's difficult to definitively state if $27.5 million is high or low relative to past spending, but it indicates a substantial commitment to upgrading the fleet's protection.

What are the primary risks associated with this contract for the Department of Defense?

The primary risks for the Department of Defense (DoD) in this contract include potential delivery delays, cost overruns (though mitigated by the firm fixed-price structure), and ensuring the protection kits meet or exceed specified performance requirements under real-world combat conditions. Given that Oshkosh Defense is the incumbent manufacturer of the FMTV, technical integration risks are likely lower. However, supply chain disruptions for specialized materials or components could impact production timelines. Furthermore, the effectiveness of the protection kits themselves against evolving threats is an ongoing consideration. Ensuring adequate quality control throughout the manufacturing process is also critical to guarantee the safety and survivability of personnel.

How effective are FMTV protection kits likely to be in enhancing soldier survivability?

FMTV protection kits, particularly the 'B-kit' mentioned, are designed to significantly enhance soldier survivability against specific threats such as improvised explosive devices (IEDs) and ballistic impacts. These kits typically involve adding armored plating, spall liners, and potentially blast-resistant seating configurations. The 58 or 78-gallon configurations likely refer to fuel tank protection or integrated armor solutions. While these kits are crucial upgrades, their effectiveness is contingent on the specific threat environment, the thoroughness of the design and testing, and proper installation. They are part of a layered defense strategy and are generally considered vital for protecting personnel in medium tactical vehicles operating in hazardous areas.

What is the historical spending trend for military vehicle protection systems by the Department of the Army?

The Department of the Army has consistently allocated substantial funding towards enhancing the survivability of its vehicle fleets, including tactical vehicles like the FMTV. Historical spending trends show a continuous investment in armor upgrades, mine-resistant ambush-protected (MRAP) vehicles, and other force protection measures, particularly following experiences in Iraq and Afghanistan. This spending is driven by the need to counter evolving threats such as IEDs and advanced anti-armor weaponry. While specific figures for FMTV protection kits alone fluctuate based on fleet modernization cycles and threat assessments, the overall trend indicates sustained and significant budgetary focus on vehicle protection systems across various platforms within the Army's inventory.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: VEHICULAR EQUIPMENT COMPONENTS

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: $49,227,509

Exercised Options: $27,550,919

Current Obligation: $27,550,919

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $2,809,943

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV23D0077

IDV Type: IDC

Timeline