DOD Awards $61.9M for M984A4S Truck Trailers to Oshkosh Defense, Sole-Source Contract
Contract Overview
Contract Amount: $61,925,696 ($61.9M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2024-02-15
End Date: 2026-01-31
Contract Duration: 716 days
Daily Burn Rate: $86.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TRANCHE 15 M984A4S
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54903
Plain-Language Summary
Department of Defense obligated $61.9 million to OSHKOSH DEFENSE LLC for work described as: TRANCHE 15 M984A4S Key points: 1. Significant award value of $61.9 million for specialized military vehicles. 2. Sole-source award to Oshkosh Defense LLC raises questions about competition. 3. Contract duration of 716 days suggests a substantial production or delivery timeline. 4. The truck trailer manufacturing sector is critical for military logistics and readiness.
Value Assessment
Rating: questionable
The award value of $61.9 million for M984A4S truck trailers needs comparison to similar military vehicle contracts. Without competitive bidding, it's difficult to assess if this price represents fair market value.
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 higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the best possible price for these essential military assets.
Public Impact
Ensures continued supply of critical M984A4S truck trailers for Army operations. Supports Oshkosh Defense LLC, a major defense contractor, and its workforce. Potential for increased costs due to the absence of competitive bidding. Highlights reliance on specific contractors for specialized military equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of transparency in pricing due to no-bid contract.
- Potential for cost overruns without competitive pressure.
Positive Signals
- Ensures delivery of critical military equipment.
- Supports established defense contractor.
Sector Analysis
The Department of Defense frequently procures specialized vehicles and trailers. Spending in this area is driven by operational needs and technological advancements, with benchmarks varying widely based on vehicle type and complexity.
Small Business Impact
This award went to Oshkosh Defense LLC, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within this specific award data.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained the best value. Further oversight may be needed to confirm the justification for not competing the contract.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in price justification
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 $61.9 million to OSHKOSH DEFENSE LLC. TRANCHE 15 M984A4S
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 $61.9 million.
What is the period of performance?
Start: 2024-02-15. End: 2026-01-31.
What is the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The provided data indicates the contract was 'NOT COMPETED.' A sole-source award typically requires a documented justification, such as the unique capabilities of a specific contractor or the urgency of the requirement. Without this justification, it's difficult to assess if alternative solutions were explored or if this was the only viable option.
How does the awarded price compare to historical pricing for similar M984A4S truck trailers or comparable military vehicles?
The award value is $61.9 million. Benchmarking this against previous procurements of the same or similar vehicles is crucial for assessing value. Given the sole-source nature, a detailed cost analysis by the agency would be essential to ensure the price is reasonable and reflects fair market value.
What are the potential risks associated with relying on a single supplier for this critical military equipment over the contract duration?
Sole-sourcing creates a dependency on Oshkosh Defense LLC, potentially limiting flexibility and increasing vulnerability to supply chain disruptions or price increases. It also removes the incentive for the contractor to innovate or offer cost efficiencies driven by competitive market pressures.
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: $61,925,696
Exercised Options: $61,925,696
Current Obligation: $61,925,696
Subaward Activity
Number of Subawards: 223
Total Subaward Amount: $15,254,142
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: 2024-02-15
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 12:01:00
Last Modified: 2025-12-04
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