Army Awards Oshkosh Defense $26.8M for FMTV A2 Fielding, Completing Total Package
Contract Overview
Contract Amount: $26,855,890 ($26.9M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2024-11-08
End Date: 2026-12-31
Contract Duration: 783 days
Daily Burn Rate: $34.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: FMTV A2 TOTAL PACKAGE FIELDING
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $26.9 million to OSHKOSH DEFENSE LLC for work described as: FMTV A2 TOTAL PACKAGE FIELDING Key points: 1. The contract is for the total package fielding of FMTV A2 vehicles. 2. Oshkosh Defense LLC is the sole awardee, indicating a specific capability or existing relationship. 3. The contract value is substantial at $26.8 million. 4. The sector is primarily Defense, specifically truck and trailer manufacturing. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.
Value Assessment
Rating: good
The Cost Plus Fixed Fee contract type requires careful monitoring to ensure costs remain within reasonable bounds. Benchmarking against similar vehicle procurement contracts would be beneficial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although the award is a delivery order, the initial contract was awarded under full and open competition. This suggests a competitive process was used to establish the base contract, but the specific delivery order may have been placed with the incumbent.
Taxpayer Impact: Taxpayer funds are being used for essential military vehicle procurement, supporting national defense objectives.
Public Impact
Ensures the U.S. Army maintains its fleet of Family of Medium Tactical Vehicles (FMTV) A2. Supports military readiness and operational capabilities by providing updated vehicles. Contributes to the defense industrial base and associated jobs. The fielding of these vehicles is critical for logistical support in various operational environments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Lack of specific details on the 'total package fielding' scope.
- Potential for follow-on contracts or modifications not detailed here.
Positive Signals
- Awarded under full and open competition initially.
- Supports critical military operational needs.
- Clear end date for the delivery order.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on tactical vehicle manufacturing and fielding. Spending benchmarks for similar vehicle procurements would provide further context on the value for money.
Small Business Impact
There is no indication in the provided data that small businesses were directly involved in this specific award. Further analysis would be needed to determine if small businesses are part of Oshkosh Defense's supply chain for this contract.
Oversight & Accountability
The Department of the Army is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure proper execution and accountability.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for scope creep in 'total package fielding'.
- Limited information on specific performance metrics.
- Reliance on a single contractor for this specific award.
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 $26.9 million to OSHKOSH DEFENSE LLC. FMTV A2 TOTAL PACKAGE FIELDING
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 $26.9 million.
What is the period of performance?
Start: 2024-11-08. End: 2026-12-31.
What specific components and services are included in the 'total package fielding' to justify the contract's scope and cost?
The 'total package fielding' likely encompasses the delivery of the FMTV A2 vehicles, along with associated training, initial spare parts, maintenance support, and potentially system integration services. A detailed breakdown of these elements is crucial for assessing the overall value and ensuring all necessary components for operational readiness are included.
How does the Cost Plus Fixed Fee structure mitigate risks of cost overruns for this specific vehicle fielding contract?
The Cost Plus Fixed Fee (CPFF) structure requires the contractor to provide detailed cost breakdowns and justifications. The 'fixed fee' portion provides a ceiling on the contractor's profit, incentivizing efficiency. However, robust oversight from the Army is essential to scrutinize costs and prevent unnecessary expenditures, especially given the complexity of fielding new vehicle systems.
What is the expected impact of these FMTV A2 vehicles on the Army's overall logistical capabilities and operational effectiveness?
The FMTV A2 represents an upgrade to the Army's medium tactical vehicle fleet, offering improved performance, survivability, and payload capacity. Fielding these vehicles is expected to enhance logistical support, troop mobility, and mission accomplishment across various operational environments, contributing to increased overall combat readiness and effectiveness.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS FIXED FEE (U)
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: $26,855,890
Exercised Options: $26,855,890
Current Obligation: $26,855,890
Subaward Activity
Number of Subawards: 47
Total Subaward Amount: $5,414,280
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV18D0010
IDV Type: IDC
Timeline
Start Date: 2024-11-08
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-02-05
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