Department of the Army awards $43.6M for 137 Family of Medium Tactical Vehicles (FMTV) A2 trucks to Oshkosh Defense LLC

Contract Overview

Contract Amount: $43,659,610 ($43.7M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2025-02-04

End Date: 2026-11-30

Contract Duration: 664 days

Daily Burn Rate: $65.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FAMILY OF MEDIUM TACTICAL VEHICLES (FMTV) A2 - PURCHASE 137 FMTV A2 TRUCKS

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $43.7 million to OSHKOSH DEFENSE LLC for work described as: FAMILY OF MEDIUM TACTICAL VEHICLES (FMTV) A2 - PURCHASE 137 FMTV A2 TRUCKS Key points: 1. Value for money assessed through competitive bidding process. 2. Oshkosh Defense LLC, a known entity in tactical vehicle manufacturing, secured this award. 3. Delivery order for trucks indicates a need for immediate or near-term fleet augmentation. 4. The contract is a firm-fixed-price type, shifting cost risk to the contractor. 5. This purchase contributes to the modernization and sustainment of the Army's tactical vehicle fleet. 6. The contract duration of 664 days suggests a phased delivery schedule.

Value Assessment

Rating: good

The award of $43.6 million for 137 FMTV A2 trucks represents a unit cost of approximately $318,683 per vehicle. This price point should be benchmarked against historical FMTV purchases and similar medium tactical vehicle procurements by other military branches or allied nations. Given the specialized nature and robust requirements of military vehicles, this cost is likely within a reasonable range, especially considering it was awarded under full and open competition.

Cost Per Unit: Approximately $318,683 per unit.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. This approach generally fosters a competitive environment, encouraging lower pricing and better terms for the government. The specific number of bidders is not provided, but the designation suggests a robust competition was available.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more cost-effective procurement by leveraging market forces to drive down prices.

Public Impact

The U.S. Army benefits from the acquisition of modern tactical vehicles essential for troop transport and logistics. 137 FMTV A2 trucks will be delivered, enhancing the operational readiness and mobility of Army units. The geographic impact is primarily within Army installations where these vehicles will be deployed. This contract supports jobs within the defense manufacturing sector, specifically at Oshkosh Defense LLC and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for future sustainment and maintenance costs not fully detailed in this award.
Dependence on a single contractor for a critical vehicle platform could pose long-term supply chain risks.
The specific operational environment and mission requirements for these trucks are not detailed, impacting full value assessment.

Positive Signals

Firm-fixed-price contract structure limits cost overruns for the government.
Award to an established manufacturer with a proven track record in tactical vehicles.
Delivery order indicates a clear and present need being met by the contract.
Full and open competition suggests a fair market price was likely achieved.

Sector Analysis

The defense sector for tactical vehicles is a specialized market dominated by a few key manufacturers capable of meeting stringent military specifications. Oshkosh Defense is a significant player in this space, holding numerous contracts for various military vehicle platforms. Spending in this category is driven by military modernization efforts, operational tempo, and the need to replace aging fleets. Benchmarks for similar medium tactical vehicle procurements would typically fall within a similar per-unit cost range, adjusted for inflation and specific vehicle configurations.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there is no indication of a small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist within Oshkosh Defense's supply chain, but this is not explicitly detailed in the award information. The overall impact on the small business ecosystem for this specific contract appears minimal based on the available data.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified goods within budget. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Family of Medium Tactical Vehicles (FMTV)
Tactical Wheeled Vehicles
Logistics Support Vehicles
U.S. Army Vehicle Procurement

Risk Flags

Potential for long-term sustainment cost escalation.
Supply chain vulnerability for specialized defense components.
Dependence on a single prime contractor for a critical vehicle platform.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.7 million to OSHKOSH DEFENSE LLC. FAMILY OF MEDIUM TACTICAL VEHICLES (FMTV) A2 - PURCHASE 137 FMTV A2 TRUCKS

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 $43.7 million.

What is the period of performance?

Start: 2025-02-04. End: 2026-11-30.

What is Oshkosh Defense LLC's track record with the FMTV program?

Oshkosh Defense LLC has a long-standing relationship with the U.S. Army for the Family of Medium Tactical Vehicles (FMTV) program. They have been the primary manufacturer and sustainment provider for FMTV variants for many years, including previous generations like the A1. This extensive history indicates a deep understanding of the vehicle's design, performance requirements, and the Army's operational needs. Their track record includes delivering thousands of FMTV trucks and providing ongoing support, modifications, and upgrades. This continuity suggests a high level of familiarity and capability in fulfilling subsequent FMTV contracts, such as this recent award for the A2 variant.

How does the per-unit cost of these FMTV A2 trucks compare to previous FMTV procurements?

The per-unit cost for this award is approximately $318,683. To provide a precise comparison, historical data on previous FMTV procurements (e.g., FMTV A1 or earlier variants) would be needed, adjusted for inflation. Generally, newer variants like the A2 often incorporate technological upgrades, improved survivability features, or enhanced performance characteristics, which can lead to a higher per-unit cost compared to older models. However, the fact that this contract was awarded under full and open competition suggests that the price achieved is competitive within the current market for such specialized military equipment. A detailed analysis would require accessing specific historical contract data and applying appropriate economic price adjustment factors.

What are the primary risks associated with this contract award?

Key risks associated with this contract include potential supply chain disruptions for specialized components, as is common in defense manufacturing. There's also a risk related to the long-term sustainment and maintenance of these vehicles; while the purchase is for new trucks, ensuring their operational readiness over their lifecycle requires ongoing support, which could become costly or face availability issues if not managed proactively. Furthermore, unforeseen changes in military requirements or operational environments could necessitate modifications or upgrades, potentially leading to contract changes and cost increases. Finally, reliance on a single supplier for a critical fleet component, even with competitive initial awards, carries inherent risks.

How effective is the FMTV A2 platform in meeting current Army operational needs?

The FMTV A2 platform is designed to be a versatile and robust tactical wheeled vehicle system, intended to replace a wide range of older vehicles and consolidate the medium-lift fleet. Its effectiveness stems from its modularity, allowing for various configurations (e.g., cargo, troop transport, recovery, dump trucks), and its improved off-road mobility and payload capacity compared to previous generations. The A2 variant typically includes enhancements in areas like crew protection, diagnostics, and potentially fuel efficiency. The Army's continued procurement of the FMTV A2 indicates its perceived effectiveness in fulfilling critical logistical and transport roles across diverse operational environments, supporting troop movement, equipment hauling, and mission sustainment.

What are the historical spending patterns for FMTV procurements by the Department of Defense?

Historical spending on the Family of Medium Tactical Vehicles (FMTV) program by the Department of Defense has been substantial, reflecting its critical role in Army logistics and operations. Oshkosh Defense has been the primary recipient of these funds over many years, securing multi-year contracts and numerous delivery orders for various FMTV variants. Spending fluctuates based on modernization cycles, end-strength requirements, and budget allocations. Major procurement efforts often occur in phases, with significant outlays during initial fielding and subsequent orders for fleet expansion, replacement, and upgrades. Overall, the DoD has consistently invested hundreds of millions, if not billions, of dollars over the program's lifespan to maintain and modernize this essential vehicle fleet.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $43,659,610

Exercised Options: $43,659,610

Current Obligation: $43,659,610

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