DoD Awards Oshkosh $1.46 Billion for Family of Heavy Tactical Vehicles IV
Contract Overview
Contract Amount: $145,605,062 ($145.6M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2024-06-05
End Date: 2026-02-17
Contract Duration: 622 days
Daily Burn Rate: $234.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IV IS AN EIGHT-YEAR, FIXED PRICE INCENTIVE FIRM (FPIF) (OY1-OY5) AND FIRM FIXED-PRICE (FFP) (OY6-OY8) SOLE SOURCE, REQUIREMENTS CONTRACT AWARDED TO OSHKOSH
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $145.6 million to OSHKOSH DEFENSE LLC for work described as: FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IV IS AN EIGHT-YEAR, FIXED PRICE INCENTIVE FIRM (FPIF) (OY1-OY5) AND FIRM FIXED-PRICE (FFP) (OY6-OY8) SOLE SOURCE, REQUIREMENTS CONTRACT AWARDED TO OSHKOSH Key points: 1. Contract awarded to Oshkosh Defense LLC for heavy tactical vehicles. 2. The contract has a base period and option periods with mixed pricing structures. 3. Sole source award indicates limited competition for this specific vehicle family. 4. The contract supports the Department of the Army's tactical vehicle needs.
Value Assessment
Rating: fair
The contract utilizes a mix of Fixed Price Incentive Firm (FPIF) and Firm Fixed Price (FFP) structures across its duration. This can offer some cost control but may limit upside for the government if costs escalate significantly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole source, meaning it was not competed. This limits price discovery and potentially leads to higher costs for the government compared to a competitive process.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the lack of competition.
Public Impact
Ensures continued availability of critical heavy tactical vehicles for Army operations. Supports a key defense contractor, potentially impacting jobs and the defense industrial base. The long-term nature of the contract provides stability for both the government and the contractor. Potential for cost overruns exists due to the FPIF structure and sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- FPIF contract structure may not fully protect against cost increases.
- Long contract duration could lead to evolving requirements not fully captured in initial pricing.
Positive Signals
- Addresses a critical need for heavy tactical vehicles.
- Oshkosh Defense is an established provider with relevant experience.
- Contract provides a clear path for vehicle acquisition over several years.
Sector Analysis
This contract falls within the Truck Trailer Manufacturing sector, specifically for heavy tactical vehicles. Spending in this area is critical for military readiness and logistics, with benchmarks often driven by specific vehicle capabilities and defense budgets.
Small Business Impact
The data indicates this contract was awarded directly to Oshkosh Defense LLC and does not mention any subcontracting requirements for small businesses. Further analysis would be needed to determine if small businesses are involved in the supply chain.
Oversight & Accountability
As a sole-source award, oversight will be crucial to ensure fair pricing and adherence to contract terms. The Department of Defense and Department of the Army will need to monitor performance and costs closely throughout the contract's life.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- FPIF structure carries cost escalation risk.
- Contract duration may outpace technological advancements.
- Lack of small business participation noted in award data.
Tags
truck-trailer-manufacturing, department-of-defense, wi, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $145.6 million to OSHKOSH DEFENSE LLC. FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IV IS AN EIGHT-YEAR, FIXED PRICE INCENTIVE FIRM (FPIF) (OY1-OY5) AND FIRM FIXED-PRICE (FFP) (OY6-OY8) SOLE SOURCE, REQUIREMENTS CONTRACT AWARDED TO OSHKOSH
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 $145.6 million.
What is the period of performance?
Start: 2024-06-05. End: 2026-02-17.
What is the justification for the sole-source award of the Family of Heavy Tactical Vehicle (FHTV) IV contract?
Sole-source awards are typically justified when only one responsible source is available or capable of meeting the government's needs. This could be due to unique capabilities, proprietary technology, or specific existing infrastructure. A thorough review of the justification documentation is necessary to understand the specific reasons why this contract was not competed.
How will the FPIF pricing structure be managed to mitigate risk for the government?
The FPIF structure includes a target cost, target profit, and a ceiling price, with cost sharing between the government and contractor above the target cost. Effective management requires robust cost monitoring, clear performance metrics, and strong negotiation during the incentive phases to ensure the contractor remains incentivized to control costs and achieve efficiencies.
What is the potential impact of the 2026 end date on future vehicle acquisition needs?
The 2026 end date suggests a need for planning future vehicle acquisition well in advance. The Army will need to assess evolving operational requirements and technological advancements to determine if follow-on contracts are necessary, and whether they should be competed or awarded under different circumstances to ensure continued modernization and readiness.
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: $145,605,062
Exercised Options: $145,605,062
Current Obligation: $145,605,062
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: 2024-06-05
Current End Date: 2026-02-17
Potential End Date: 2026-02-17 00:00:00
Last Modified: 2024-07-10
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