DOD Awards $176.5M for 8 Oshkosh Trucks to Israel, Sole-Source Contract

Contract Overview

Contract Amount: $176,561,027 ($176.6M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2024-10-15

End Date: 2026-04-30

Contract Duration: 562 days

Daily Burn Rate: $314.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8 TONN TRUCKS FOR ISRAEL, FMS CASE NO: IS-ZZC

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $176.6 million to OSHKOSH DEFENSE LLC for work described as: 8 TONN TRUCKS FOR ISRAEL, FMS CASE NO: IS-ZZC Key points: 1. Significant investment in heavy-duty truck manufacturing for foreign military sales. 2. Sole-source award to Oshkosh Defense LLC raises questions about price discovery. 3. Long-term contract (562 days) with a firm fixed price structure. 4. Potential for taxpayer impact due to lack of competitive bidding.

Value Assessment

Rating: questionable

The contract value of $176.5 million for 8 trucks is high. Without competitive bidding, it's difficult to assess if this price is fair compared to similar government or commercial contracts for heavy-duty trucks.

Cost Per Unit: $22,069,528.39

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating no competition. This limits price discovery and potentially leads to higher costs for the government and taxpayers.

Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the best possible price for these trucks.

Public Impact

Supports U.S. foreign military sales objectives. Ensures delivery of critical equipment to an allied nation. Impacts the heavy-duty truck manufacturing sector. Potential for increased defense spending without competitive justification.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High per-unit cost

Positive Signals

Supports allied nation
Firm fixed price contract

Sector Analysis

This contract falls under the Heavy Duty Truck Manufacturing sector. Spending in this sector can vary widely based on defense needs and foreign military sales programs. Benchmarks are difficult without specific comparisons.

Small Business Impact

The awardee, Oshkosh Defense LLC, is a large business. There is no indication of small business participation in this specific contract, which could be an area for future consideration.

Oversight & Accountability

As a sole-source award for a significant amount, this contract warrants close oversight to ensure the pricing is justified and the delivery meets all requirements. The FMS case number suggests established procedures are in place.

Related Government Programs

Heavy Duty Truck Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source procurement
Potential for overpricing
Lack of transparency in justification
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $176.6 million to OSHKOSH DEFENSE LLC. 8 TONN TRUCKS FOR ISRAEL, FMS CASE NO: IS-ZZC

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 $176.6 million.

What is the period of performance?

Start: 2024-10-15. End: 2026-04-30.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further details, it's unclear why competition was bypassed. Exploring competitive options, even with limited sources, could have potentially yielded better pricing and ensured fair market value.

How does the per-unit cost of these trucks compare to similar vehicles procured competitively by the U.S. military or other allies?

The per-unit cost of approximately $22.1 million is substantial. A direct comparison to competitively procured, similar heavy-duty trucks is essential to determine if this price represents fair market value. Differences in specifications, technology, and support packages would need to be accounted for in any such analysis.

What is the long-term strategic value and operational necessity of these specific trucks for the recipient nation?

The strategic value and operational necessity are key factors in justifying significant defense expenditures, especially under FMS. Understanding how these 8 trucks fit into Israel's broader defense strategy and operational requirements helps contextualize the investment. This information is crucial for assessing the overall effectiveness of the spending.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Manufacturing › Heavy Duty Truck Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

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, 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: $176,561,027

Exercised Options: $176,561,027

Current Obligation: $176,561,027

Subaward Activity

Number of Subawards: 61

Total Subaward Amount: $5,734,598

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV20D0009

IDV Type: IDC

Timeline