Army Awards Oshkosh Defense $33.3M for M1075A1 to A2 Truck Conversions
Contract Overview
Contract Amount: $33,343,086 ($33.3M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2024-10-25
End Date: 2026-05-31
Contract Duration: 583 days
Daily Burn Rate: $57.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: FHTV V DELIVERY ORDER FOR 41 M1075A1S THAT WILL BE CONVERTED INTO M1075A2S.
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $33.3 million to OSHKOSH DEFENSE LLC for work described as: FHTV V DELIVERY ORDER FOR 41 M1075A1S THAT WILL BE CONVERTED INTO M1075A2S. Key points: 1. This award focuses on converting existing M1075A1 trucks to the M1075A2 standard, indicating a modernization effort rather than new vehicle procurement. 2. The sole contractor, Oshkosh Defense LLC, is a known entity in military vehicle production, suggesting specialized capabilities. 3. The contract type, Fixed Price with Economic Price Adjustment (FPEPA), introduces potential cost escalation risks due to fluctuating economic factors. 4. The sector is dominated by large, established defense contractors, making it difficult for smaller players to enter this specific niche.
Value Assessment
Rating: fair
The total award is $33.3 million for 41 truck conversions. Without specific per-unit cost breakdowns or comparison data for similar conversion contracts, a precise value assessment is challenging. However, the average cost per unit is approximately $813,246.
Cost Per Unit: $813,246
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive bidding process. The justification for sole-source is not provided.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these truck conversions.
Public Impact
Modernization of the Army's truck fleet enhances operational readiness and logistical capabilities. The award supports a key defense contractor, contributing to jobs and economic activity within the defense industrial base. Potential for cost overruns due to the FPEPA contract type and sole-source nature requires careful monitoring. The specific number of vehicles (41) suggests a targeted upgrade program rather than a broad fleet overhaul.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Economic Price Adjustment clause introduces cost escalation risk.
- Lack of detailed justification for sole-source award.
Positive Signals
- Modernizes existing critical military assets.
- Supports established defense industrial base.
- Clear delivery timeline provided.
Sector Analysis
The defense sector, particularly for specialized vehicles like heavy-duty trucks, is characterized by high barriers to entry and long-standing relationships between government agencies and prime contractors. Spending benchmarks are difficult to establish due to the unique nature of military vehicle modifications.
Small Business Impact
This contract was awarded to Oshkosh Defense LLC, a large business. There is no indication of subcontracting opportunities for small businesses within the provided data, which is common for sole-source awards of this nature.
Oversight & Accountability
The Department of the Army is the contracting agency. Oversight will be crucial to manage the FPEPA clause and ensure the sole-source award remains justified and cost-effective throughout the contract's duration.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Economic Price Adjustment (EPA) clause
- Potential for cost escalation
- Lack of transparency in justification for sole-source
- Limited visibility into specific upgrade benefits
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 $33.3 million to OSHKOSH DEFENSE LLC. FHTV V DELIVERY ORDER FOR 41 M1075A1S THAT WILL BE CONVERTED INTO M1075A2S.
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 $33.3 million.
What is the period of performance?
Start: 2024-10-25. End: 2026-05-31.
What is the specific technical advantage gained by converting M1075A1 to M1075A2, and does this justify the sole-source award?
The conversion to the M1075A2 standard likely involves significant upgrades to payload capacity, mobility, or integration with new systems. Understanding these specific enhancements is crucial to evaluating if the benefits outweigh the lack of competition. Without this information, it's difficult to definitively assess the value proposition beyond simply upgrading existing assets.
What is the historical performance of Oshkosh Defense LLC on similar sole-source contracts, particularly regarding cost overruns with FPEPA clauses?
Analyzing Oshkosh Defense's past performance on sole-source contracts with economic price adjustment clauses is vital for risk assessment. Data on their track record with cost overruns, adherence to delivery schedules, and overall cost-effectiveness in similar situations would provide valuable insights into the potential financial risks associated with this current award.
Are there any plans for future competitive procurements related to this truck platform or its upgrades that could mitigate the current sole-source situation?
Investigating future procurement strategies is important for long-term cost-effectiveness. If this sole-source award is a precursor to a larger, competitively bid program for further upgrades or new vehicles, it might be more justifiable. However, if this represents an ongoing reliance on sole-source awards without a clear path to competition, it raises concerns about sustained value for taxpayer funds.
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: 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: $33,471,365
Exercised Options: $33,471,365
Current Obligation: $33,343,086
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $181,467
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W912CH24D0008
IDV Type: IDC
Timeline
Start Date: 2024-10-25
Current End Date: 2026-05-31
Potential End Date: 2026-06-30 12:06:00
Last Modified: 2026-01-14
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