Army Awards $14.36M for Medium Equipment Trailer Delivery to Oshkosh Defense
Contract Overview
Contract Amount: $14,361,343 ($14.4M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2023-12-07
End Date: 2026-06-30
Contract Duration: 936 days
Daily Burn Rate: $15.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: MEDIUM EQUIPMENT TRAILER DELIVERY ORDER
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $14.4 million to OSHKOSH DEFENSE LLC for work described as: MEDIUM EQUIPMENT TRAILER DELIVERY ORDER Key points: 1. The contract value is $14.36 million for medium equipment trailer delivery. 2. Oshkosh Defense LLC is the sole awardee. 3. The contract was awarded under Full and Open Competition After Exclusion of Sources. 4. The period of performance spans from December 2023 to June 2026.
Value Assessment
Rating: good
The contract value of $14.36 million appears reasonable for specialized trailer manufacturing. Benchmarking against similar large-scale equipment trailer contracts would provide further pricing context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a specific reason for excluding other potential bidders. This method may limit price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for the acquisition of essential military equipment, with the specific competition method potentially impacting the final price paid.
Public Impact
Ensures the Department of the Army receives necessary medium equipment trailers for logistical support. Supports a key defense contractor, potentially impacting employment and industry capacity. The procurement process, while competitive, involved exclusion of sources, warranting scrutiny for fairness and optimal pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Exclusion of sources in competition
- Fixed Price with Economic Price Adjustment (EPA) can lead to cost overruns if not managed carefully.
Positive Signals
- Awarded to a known defense contractor
- Clear period of performance
Sector Analysis
This procurement falls within the defense sector, specifically related to military logistics and equipment manufacturing. Spending benchmarks for similar trailer acquisitions would be relevant for assessing value.
Small Business Impact
This award does not appear to directly benefit small businesses, as it was awarded to Oshkosh Defense LLC, a large corporation. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses.
Oversight & Accountability
The contract's oversight will involve monitoring delivery schedules, quality of trailers, and adherence to the economic price adjustment clauses. The 'Exclusion of Sources' aspect may require additional justification and review.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for increased costs due to EPA
- Limited competition due to exclusion of sources
- Lack of transparency on exclusion justification
- No direct small business participation noted
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 $14.4 million to OSHKOSH DEFENSE LLC. MEDIUM EQUIPMENT TRAILER DELIVERY ORDER
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 $14.4 million.
What is the period of performance?
Start: 2023-12-07. End: 2026-06-30.
What was the specific justification for excluding other sources in this full and open competition?
The justification for excluding other sources under a 'Full and Open Competition After Exclusion of Sources' award typically relates to unique capabilities, proprietary technology, or specific security requirements that only one or a limited number of contractors can meet. Detailed documentation from the agency would be necessary to understand the precise rationale in this case.
How will the economic price adjustment clause be managed to mitigate potential cost increases?
Effective management of the economic price adjustment (EPA) clause involves establishing clear baseline indices for labor and material costs and setting reasonable caps on the adjustment percentage. Regular monitoring of market fluctuations against these benchmarks, coupled with transparent reporting and negotiation, is crucial to control potential cost escalations and protect taxpayer interests.
What is the expected impact of these trailers on the Army's operational readiness and logistical capabilities?
These medium equipment trailers are expected to significantly enhance the Army's operational readiness by providing robust and reliable platforms for transporting essential equipment, supplies, and vehicles across various terrains and operational environments. Their delivery will bolster logistical capabilities, ensuring that forces have the necessary resources to maintain mission effectiveness and respond to diverse challenges.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
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: $14,361,343
Exercised Options: $14,361,343
Current Obligation: $14,361,343
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $27,901,956
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV24D0001
IDV Type: IDC
Timeline
Start Date: 2023-12-07
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 12:06:00
Last Modified: 2025-09-18
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