Army Awards Oshkosh Defense $36.4M for 60 Combat Support Trucks, Delivery Order Issued
Contract Overview
Contract Amount: $36,396,100 ($36.4M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2024-12-17
End Date: 2026-03-31
Contract Duration: 469 days
Daily Burn Rate: $77.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: DO TO PROCURE 60 EACH CBTS.
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $36.4 million to OSHKOSH DEFENSE LLC for work described as: DO TO PROCURE 60 EACH CBTS. Key points: 1. Significant contract value of $36.4 million for specialized vehicles. 2. Sole-source award to Oshkosh Defense LLC raises questions about competition. 3. Potential risk associated with a single supplier for critical defense equipment. 4. Spending falls within the Truck Trailer Manufacturing sector (NAICS 336212).
Value Assessment
Rating: fair
The contract value of $36.4 million for 60 trucks averages to approximately $606,601 per unit. Benchmarking against similar specialized military vehicle procurements would be necessary to fully assess pricing fairness, but this figure appears within a reasonable range for highly customized defense assets.
Cost Per Unit: $606,601
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to Oshkosh Defense LLC. The lack of competition limits price discovery and may result in a higher cost to the government than if multiple vendors had been allowed to bid.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive bidding.
Public Impact
Enhances Army's logistical capabilities with specialized combat support trucks. Supports a key defense contractor, potentially impacting jobs and industry stability. Procurement of 60 units indicates a moderate scale of operational need. Long-term sustainment and maintenance costs for these specialized vehicles will be a future consideration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Economic price adjustment clause could increase final cost.
- Long contract duration (469 days) increases exposure to market fluctuations.
Positive Signals
- Award to established defense contractor Oshkosh Defense LLC.
- Delivery order for critical combat support vehicles.
- Fixed-price contract type provides some cost control.
Sector Analysis
This procurement falls under the Truck Trailer Manufacturing sector, specifically NAICS 336212. Spending in this sector can vary widely based on defense needs and commercial demand. The $36.4 million award represents a significant investment in specialized military logistics equipment.
Small Business Impact
The award went to Oshkosh Defense LLC, a large prime contractor, with no indication of small business subcontracting in the provided data. This contract does not appear to directly benefit small businesses.
Oversight & Accountability
The Department of the Army is the awarding agency. Oversight will focus on contract performance, delivery schedules, and adherence to the economic price adjustment terms. The sole-source nature warrants scrutiny to ensure fair pricing and justification.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Economic price adjustment clause introduces cost uncertainty.
- Potential for higher costs due to lack of competitive bidding.
- Long contract duration increases risk exposure.
- No explicit small business participation noted.
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 $36.4 million to OSHKOSH DEFENSE LLC. DO TO PROCURE 60 EACH CBTS.
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 $36.4 million.
What is the period of performance?
Start: 2024-12-17. End: 2026-03-31.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves specific circumstances such as unique capabilities, urgent needs, or lack of viable alternatives. Without further documentation, it's difficult to ascertain the precise reason. However, the Army should have thoroughly explored competitive options and documented why they were not feasible or advantageous before proceeding with a sole-source procurement to ensure taxpayer value.
How will the economic price adjustment clause be managed to mitigate potential cost overruns?
The economic price adjustment (EPA) clause allows for changes in contract price based on fluctuations in specified economic factors, such as labor or material costs. Effective management requires clear baseline indices, regular monitoring of these indices, and a transparent process for calculating adjustments. The contracting officer must ensure that any adjustments are justified by actual cost increases and do not lead to excessive profits.
What is the long-term strategy for the sustainment and maintenance of these specialized trucks?
The long-term strategy for sustainment and maintenance is crucial for the operational readiness and total ownership cost of these specialized trucks. This includes planning for spare parts, technical support, training, and potential upgrades. The Army should have a robust lifecycle management plan in place, potentially involving follow-on contracts or organic maintenance capabilities, to ensure these assets remain functional and cost-effective throughout their service life.
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: $36,396,100
Exercised Options: $36,396,100
Current Obligation: $36,396,100
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $88,724
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: 2024-12-17
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 12:03:00
Last Modified: 2025-06-02
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