Army Awards Oshkosh Defense $23M for 24 M1075A1 PLS Trucks, Delivery by March 2027
Contract Overview
Contract Amount: $23,003,636 ($23.0M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2024-12-17
End Date: 2027-03-31
Contract Duration: 834 days
Daily Burn Rate: $27.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: DELIVERY ORDER FOR 24 EA M1075A1 PLS NEW
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $23.0 million to OSHKOSH DEFENSE LLC for work described as: DELIVERY ORDER FOR 24 EA M1075A1 PLS NEW Key points: 1. Significant award for heavy logistics vehicles, indicating continued demand for robust transport capabilities. 2. Oshkosh Defense holds a strong position in military vehicle manufacturing. 3. Potential risk associated with sole-source procurement and economic price adjustments. 4. Spending aligns with the Defense sector's need for specialized equipment.
Value Assessment
Rating: fair
The contract is a fixed-price with economic price adjustment, which can lead to cost overruns if material costs increase significantly. Benchmarking against similar large vehicle procurements is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This delivery order was not competed, suggesting a sole-source award likely due to existing contracts or specialized requirements. Lack of competition limits price discovery and potentially increases costs for the government.
Taxpayer Impact: The sole-source nature and economic price adjustment clause present a risk of higher taxpayer costs compared to a competitive procurement.
Public Impact
Ensures continued operational readiness for Army logistics units requiring heavy-duty transport. Supports a key defense contractor, potentially impacting jobs and the defense industrial base. Highlights the government's reliance on specialized, high-cost military equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Economic price adjustment clause
- Long delivery period
Positive Signals
- Award to established defense contractor
- Addresses critical logistics needs
Sector Analysis
This procurement falls within the Defense sector, specifically for tactical vehicle manufacturing. Spending benchmarks for similar large-scale vehicle orders are highly variable based on specific capabilities and quantities, but this award represents a substantial investment in specialized equipment.
Small Business Impact
The awardee, Oshkosh Defense LLC, is a large business. There is no indication of small business participation in this specific delivery order, which is common for large, specialized defense contracts.
Oversight & Accountability
Oversight is managed by the Department of the Army. The fixed-price with economic price adjustment contract requires careful monitoring of cost increases to ensure taxpayer funds are used efficiently.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition may lead to higher costs.
- Economic price adjustment clause introduces cost uncertainty.
- Long contract duration could be subject to changing requirements.
- Dependence on a single supplier for critical assets.
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 $23.0 million to OSHKOSH DEFENSE LLC. DELIVERY ORDER FOR 24 EA M1075A1 PLS NEW
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 $23.0 million.
What is the period of performance?
Start: 2024-12-17. End: 2027-03-31.
What is the justification for the sole-source award, and what steps were taken to ensure fair pricing?
The justification for the sole-source award is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. The government should have conducted a price analysis to ensure the price was fair and reasonable, even without competition, potentially by comparing to historical prices or independent cost estimates.
How will the economic price adjustment clause be managed to mitigate potential cost overruns?
The management of the economic price adjustment (EPA) clause is critical. The contract likely specifies indices or formulas for adjusting prices based on fluctuations in labor and material costs. The contracting officer must diligently track these indices and ensure adjustments are applied according to the contract terms, potentially requiring contractor justification for cost increases.
What is the long-term strategic value of procuring these specific trucks, and are there alternatives being considered?
The M1075A1 PLS trucks are essential for the Army's logistics, providing heavy-lift capability for transporting equipment, ammunition, and supplies. Their strategic value lies in enabling force projection and sustainment in various operational environments. The data does not indicate if alternatives are being considered, but the sole-source nature suggests this specific platform is deemed necessary.
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: $23,003,636
Exercised Options: $23,003,636
Current Obligation: $23,003,636
Subaward Activity
Number of Subawards: 133
Total Subaward Amount: $5,945,969
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: 2027-03-31
Potential End Date: 2027-03-31 12:03:00
Last Modified: 2025-06-02
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