DoD Awards Oshkosh Defense $373M for Heavy Tactical Vehicles Under Sole Source Contract
Contract Overview
Contract Amount: $37,306,706 ($37.3M)
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: $60.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IS AN NINE-YEAR FIXED-PRICE INCENTIVE FIRM (FPIF) (OY1-OY5) AND FIRM FIXED-PRICE (FFP) (OY6-OY9) SOLE SOURCE, REQUIREMENTS CONTRACT AWARDED TO OSHKOSH DEFENSE, LLC WITH ESTABLISHED RANGE PRICING.
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $37.3 million to OSHKOSH DEFENSE LLC for work described as: FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IS AN NINE-YEAR FIXED-PRICE INCENTIVE FIRM (FPIF) (OY1-OY5) AND FIRM FIXED-PRICE (FFP) (OY6-OY9) SOLE SOURCE, REQUIREMENTS CONTRACT AWARDED TO OSHKOSH DEFENSE, LLC WITH ESTABLISHED RANGE PRICING. Key points: 1. Contract awarded to Oshkosh Defense, LLC for Family of Heavy Tactical Vehicles (FHTV). 2. Contract type includes Fixed-Price Incentive Firm (FPIF) and Firm Fixed-Price (FFP) elements. 3. Sole source award indicates limited competition, potentially impacting price discovery. 4. Spending is within the Truck Trailer Manufacturing sector (NAICS 336212).
Value Assessment
Rating: fair
The contract utilizes established range pricing, which can provide some cost control. However, as a sole source award, direct price comparisons are limited, making a definitive value assessment challenging without further data on price reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, being awarded directly to Oshkosh Defense, LLC. Sole-source awards limit competitive pressure, which can lead to higher prices than if multiple vendors were considered. Price discovery relies heavily on the established range pricing and negotiation with the single awarded vendor.
Taxpayer Impact: Taxpayer funds are committed to a single vendor without competitive bidding, potentially leading to less cost-effective procurement.
Public Impact
Military readiness and operational capability are supported by the acquisition of heavy tactical vehicles. The duration of the contract (9 years) suggests a long-term need for these vehicles. Dependence on a single supplier for critical military equipment poses a potential supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole source award limits competition
- Potential for higher costs due to lack of competition
- Long-term contract duration may lock in pricing
Positive Signals
- Established range pricing provides some cost control
- Addresses critical military vehicle needs
Sector Analysis
The Department of Defense is a significant consumer of products within the Truck Trailer Manufacturing sector. Spending benchmarks for similar heavy tactical vehicle contracts would be necessary for a more precise comparison, but this award represents a substantial investment.
Small Business Impact
The data does not indicate any specific provisions or considerations for small business participation in this sole-source contract. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The contract's sole-source nature warrants close oversight to ensure fair pricing and performance. The Department of the Army's contracting activity should monitor adherence to the established range pricing and delivery schedules.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole source award limits competitive pricing
- Potential for cost overruns if target costs are exceeded (FPIF)
- Long-term contract dependency on a single supplier
- Lack of transparency on price reasonableness without competition
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 $37.3 million to OSHKOSH DEFENSE LLC. FAMILY OF HEAVY TACTICAL VEHICLE (FHTV) IS AN NINE-YEAR FIXED-PRICE INCENTIVE FIRM (FPIF) (OY1-OY5) AND FIRM FIXED-PRICE (FFP) (OY6-OY9) SOLE SOURCE, REQUIREMENTS CONTRACT AWARDED TO OSHKOSH DEFENSE, LLC WITH ESTABLISHED RANGE PRICING.
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 $37.3 million.
What is the period of performance?
Start: 2024-06-05. End: 2026-02-17.
What is the justification for the sole-source award, and were alternative procurement methods considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or a lack of adequate competition. Without specific details on the justification, it's difficult to assess if alternative methods were thoroughly explored. Understanding this rationale is crucial for evaluating the necessity of foregoing a competitive process and its potential impact on cost.
How does the established range pricing compare to market benchmarks for similar heavy tactical vehicles?
Assessing the 'fairness' of the established range pricing requires comparison against market data for comparable heavy tactical vehicles. If Oshkosh's pricing falls at the higher end of the range, or exceeds benchmarks for similar capabilities, it could indicate a suboptimal value for taxpayers. Independent cost analysis and market research are vital to validate price reasonableness.
What are the performance metrics and penalties associated with the FPIF and FFP contract types to ensure effective delivery?
The Firm Fixed-Price Incentive Firm (FPIF) and Firm Fixed-Price (FFP) structures aim to share risk and reward performance. For FPIF, there are target costs, target profits, and share ratios, with adjustments based on actual costs. FFP provides cost certainty but less flexibility. Clear performance metrics, delivery schedules, and robust penalty clauses are essential to ensure Oshkosh Defense meets its obligations effectively and taxpayers receive good value.
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: $37,306,706
Exercised Options: $37,306,706
Current Obligation: $37,306,706
Subaward Activity
Number of Subawards: 612
Total Subaward Amount: $63,104,806
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: 2025-08-04
More Contracts from Oshkosh Defense LLC
- THE Contract Includes Firm Fixed Price (FFP) Contact Line Item Numbers (clin) for Vehicles, Trailers, Kits (packaged and Installed), Test Hardware and Support, Vehicle Refurbishment, Systems Engineering/ Program Management (sepm), Storage and Maintenance of Vehicles, Vehicle Refurbishment, Integrated Product Support (IPS), and a Technical Data Package (TDP). the Contract Also Includes Cost Plus Fixed FEE (cpff) Clins for System Technical Support (STS), Total Package Fielding (TPF), and Interim Contractor Support (ICS). the Contract Contains Provisions for an Economic Price Adjustment (EPA) for Material Fluctuations for the Vehicles Procured in Option Periods SIX, Seven, and Eight — $6.1B (Department of Defense)
- Purchase Mrap Atvs, Including Associated Parts and Field Support — $3.5B (Department of Defense)
- Contract W56hzv-20-C-0050 IS Issued to Provide Continuation of Contract W56hzv-15-C-0095 — $2.1B (Department of Defense)
- Adding 2,634 Each Family of Medium Tactical Vehicles (fmtv), Ordering Year (OY) 02 Program Support, and Fret to Contract W56hzv-09-D-0159 — $1.9B (Department of Defense)
- Adding 1,941 Each Family of Medium Tactical Vehicles (fmtv) and Fret for Army National Guard Requirements — $1.6B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)