Army awards $31M for medium equipment trailer delivery, with Oshkosh Defense LLC as the contractor

Contract Overview

Contract Amount: $31,078,248 ($31.1M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2024-05-28

End Date: 2025-12-31

Contract Duration: 582 days

Daily Burn Rate: $53.4K/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 FOR LRIP TRAILERS AND FRET.

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $31.1 million to OSHKOSH DEFENSE LLC for work described as: MEDIUM EQUIPMENT TRAILER DELIVERY ORDER FOR LRIP TRAILERS AND FRET. Key points: 1. Value for money assessed through comparison with similar contracts and market rates. 2. Competition dynamics indicate a full and open process after source exclusion. 3. Risk indicators will be evaluated based on contractor performance and delivery timelines. 4. Performance context is a delivery order for LRIP trailers and FRET. 5. Sector positioning within Truck Trailer Manufacturing (NAICS 336212).

Value Assessment

Rating: fair

The contract value of $31,078,248.11 for medium equipment trailer delivery appears to be within a reasonable range for specialized military equipment. Benchmarking against similar contracts for heavy-duty trailers and logistical support vehicles is necessary for a definitive value assessment. The pricing structure, a fixed price with economic price adjustment, aims to mitigate risks associated with fluctuating material costs, which is common in long-term defense contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while the competition was intended to be broad, specific sources may have been excluded for technical or programmatic reasons prior to the main solicitation. The number of bidders is not specified, but the 'exclusion of sources' clause implies a potentially narrowed field compared to a truly unrestricted full and open competition. This could impact price discovery if fewer qualified vendors were able to participate.

Taxpayer Impact: Taxpayers benefit from a competitive process, even with source exclusions, as it aims to secure the best value. However, the exclusion of certain sources warrants scrutiny to ensure it was justified and did not unduly limit competition, potentially leading to higher costs than a fully open bid.

Public Impact

The primary beneficiaries are the Department of the Army, receiving critical logistical support equipment. Services delivered include the manufacturing and delivery of medium equipment trailers (LRIP trailers and FRET). Geographic impact is primarily within the United States, with potential deployment to operational theaters. Workforce implications include jobs in manufacturing, logistics, and defense contracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to economic price adjustment clause if market prices rise significantly.
Dependence on a single contractor (Oshkosh Defense LLC) for this specific delivery order.
Risks associated with the 'exclusion of sources' if not fully justified, potentially limiting competitive pricing.
Delivery timelines and potential delays impacting Army readiness.

Positive Signals

Oshkosh Defense LLC is an established defense contractor with experience in similar equipment.
Fixed Price with Economic Price Adjustment (FP-EPA) contract type can protect against inflation.
The contract is a delivery order against a larger contract vehicle, suggesting prior vetting.
The Army's requirement for specialized trailers indicates a critical operational need.

Sector Analysis

The Truck Trailer Manufacturing sector (NAICS 336212) is a specialized segment of the broader manufacturing industry. This contract falls within the defense sub-sector, focusing on highly durable and specialized trailers designed for military logistics. The market for military trailers is often characterized by long-standing relationships between government agencies and a limited number of experienced manufacturers capable of meeting stringent specifications. Comparable spending benchmarks would involve analyzing other Department of Defense contracts for similar heavy-duty or specialized transport equipment.

Small Business Impact

There is no explicit indication of a small business set-aside for this contract, and the prime contractor, Oshkosh Defense LLC, is a large business. Analysis of subcontracting opportunities for small businesses would be crucial. Large defense contracts often include provisions for small business subcontracting, which can provide significant opportunities for smaller firms in manufacturing, parts supply, and specialized services. The impact on the small business ecosystem depends on the extent to which these subcontracting goals are met and monitored.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Army's contracting and program management offices. Accountability measures would include performance metrics, delivery schedules, and quality control standards outlined in the contract. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Logistics Support Contracts
Army Vehicle Procurement Programs
Tactical Wheeled Vehicle Programs
Heavy Equipment Transport Systems

Risk Flags

Potential for limited competition due to source exclusion.
Economic Price Adjustment clause introduces cost escalation risk.
Dependence on contractor performance for timely delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.1 million to OSHKOSH DEFENSE LLC. MEDIUM EQUIPMENT TRAILER DELIVERY ORDER FOR LRIP TRAILERS AND FRET.

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 $31.1 million.

What is the period of performance?

Start: 2024-05-28. End: 2025-12-31.

What is Oshkosh Defense LLC's track record with similar military trailer contracts?

Oshkosh Defense LLC has a significant track record in producing military vehicles and trailers. They are well-known for their Joint Light Tactical Vehicle (JLTV) and Heavy Expanded Mobility Tactical Truck (HEMTT) programs, which often involve integrated trailer systems. Their experience extends to various logistical support vehicles for the U.S. military and allied nations. While specific data on 'medium equipment trailer delivery orders' for LRIP trailers and FRET is not detailed in this summary, their broader portfolio suggests a strong capability. Past performance reviews and contract awards databases would provide more granular detail on their success rates, on-time delivery performance, and quality metrics for similar equipment.

How does the pricing of this contract compare to similar procurements for military trailers?

A precise comparison of pricing requires access to detailed cost breakdowns and data from comparable contracts, which is not fully available here. However, the contract value of approximately $31 million for an unspecified quantity of 'medium equipment trailers' suggests a substantial per-unit cost, typical for specialized military hardware. Factors influencing this include advanced materials, specific performance requirements (e.g., load capacity, off-road capability, environmental resistance), and the inclusion of economic price adjustments. Benchmarking against other recent Army or DoD contracts for similar classes of trailers, considering quantity, specifications, and contract type (e.g., fixed-price vs. cost-plus), would be necessary to determine if this represents good value for money.

What are the primary risks associated with this contract and how are they being mitigated?

Key risks include potential delivery delays impacting Army operational readiness, cost overruns due to the economic price adjustment (EPA) clause if material costs escalate unexpectedly, and performance issues if the trailers do not meet stringent military specifications. Mitigation strategies involve the EPA clause itself, which aims to manage inflation risk for both parties. The contract likely includes performance standards, quality assurance checkpoints, and defined delivery schedules with potential penalties for non-compliance. The 'exclusion of sources' aspect also presents a risk if it unduly limited competition, potentially leading to less favorable pricing. The Army's oversight and contractor's established experience are intended to mitigate these risks.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring value for taxpayers?

This competition method aims to balance broad market access with specific programmatic needs. By excluding certain sources upfront, the government can focus its solicitation on vendors demonstrably capable of meeting unique technical or security requirements, potentially streamlining the evaluation process. However, if the exclusions are not well-justified or overly restrictive, it can limit the number of potential bidders, thereby reducing competitive pressure and potentially increasing costs for taxpayers. The effectiveness hinges on the transparency and validity of the exclusion criteria. A thorough review of the justification for excluding sources is crucial to assess if taxpayer value was maximized or compromised.

What is the historical spending trend for medium equipment trailers within the Department of Defense?

Historical spending on medium equipment trailers within the DoD is likely integrated within broader logistics and vehicle procurement budgets. Specific line items for 'medium equipment trailers' may fluctuate based on modernization cycles, operational tempo, and strategic equipment needs. Analyzing spending trends would require examining multi-year procurement data for similar trailer classes across different branches of the military. Factors such as the introduction of new vehicle platforms requiring specific trailer types, upgrades to existing fleets, and the phasing out of older equipment would influence these trends. Overall defense spending priorities and budget allocations significantly shape the historical expenditure patterns for such equipment.

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: $31,078,248

Exercised Options: $31,078,248

Current Obligation: $31,078,248

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