DoD Awards Oshkosh Defense $235M for FMTV LVAD Vehicles

Contract Overview

Contract Amount: $235,244,970 ($235.2M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2025-02-04

End Date: 2027-07-31

Contract Duration: 907 days

Daily Burn Rate: $259.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UCA FOR FMTV LVAD VEHICLES

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $235.2 million to OSHKOSH DEFENSE LLC for work described as: UCA FOR FMTV LVAD VEHICLES Key points: 1. Significant contract value of $235.2M for Family of Medium Tactical Vehicles (FMTV) Light Tactical Vehicle (LVAD). 2. Oshkosh Defense LLC is the sole awardee, raising questions about competition. 3. The contract spans over 900 days, indicating a substantial, long-term need. 4. This award falls under the Truck Trailer Manufacturing sector, crucial for military logistics.

Value Assessment

Rating: fair

The contract value of $235.2M for LVAD vehicles appears substantial. Benchmarking against similar military vehicle procurements would be necessary to definitively assess pricing fairness, especially given the sole awardee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Although the data indicates 'FULL AND OPEN COMPETITION', the award is to a single entity, Oshkosh Defense LLC. This suggests either a highly specialized requirement or potential limitations in the competitive process that warrant further investigation into price discovery.

Taxpayer Impact: Taxpayer funds are being utilized for essential military vehicle acquisition. The effectiveness of the competition method will directly impact the value for money achieved.

Public Impact

Ensures continued supply of critical medium tactical vehicles for Army operations. Supports military readiness and logistical capabilities. Potential impact on the defense manufacturing sector and associated supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole awardee despite 'full and open competition' claim.
  • Long contract duration could lead to price escalation risks.
  • Lack of detailed cost breakdowns makes value assessment difficult.

Positive Signals

  • Addresses a clear and stated need for military vehicles.
  • Firm Fixed Price contract provides cost certainty for the government.
  • Awardee is an established defense contractor with relevant experience.

Sector Analysis

This contract falls within the Truck Trailer Manufacturing sector, specifically for military tactical vehicles. Spending in this area is driven by defense modernization and operational requirements, with benchmarks often tied to vehicle type, quantity, and technological sophistication.

Small Business Impact

The data does not indicate any specific provisions or subcontracting goals for small businesses on this contract. Further review would be needed to determine if small business participation is being encouraged or mandated.

Oversight & Accountability

The Department of the Army is the contracting agency. Oversight will focus on contract performance, delivery schedules, and adherence to the firm fixed price terms to ensure accountability and prevent cost overruns.

Related Government Programs

  • Truck Trailer Manufacturing
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Potential lack of true competition despite 'full and open' status.
  • Long contract duration increases exposure to market volatility.
  • Limited transparency on cost breakdown for value assessment.
  • No explicit mention of small business participation.

Tags

truck-trailer-manufacturing, department-of-defense, wi, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $235.2 million to OSHKOSH DEFENSE LLC. UCA FOR FMTV LVAD VEHICLES

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 $235.2 million.

What is the period of performance?

Start: 2025-02-04. End: 2027-07-31.

What specific factors led to Oshkosh Defense LLC being the sole awardee despite the 'full and open competition' designation, and how did this impact the final price?

The designation of 'full and open competition' alongside a sole awardee suggests potential complexities. This could stem from highly specific technical requirements, unique manufacturing capabilities, or perhaps a limited number of responsive bids. The impact on price is difficult to ascertain without comparative data, but a lack of robust competition can sometimes lead to less favorable pricing for the government.

What are the primary risks associated with a long-duration (907 days) firm-fixed-price contract for specialized vehicles, and how are they being mitigated?

Risks include potential material cost increases, supply chain disruptions, and obsolescence over the contract's lifespan. Mitigation strategies might involve contract clauses for economic price adjustments on specific components, robust supplier management, and phased delivery schedules. The government's fixed-price commitment also transfers some risk to the contractor, incentivizing efficient performance.

How does the awarded value of $235.2M align with the expected operational and strategic value of the FMTV LVAD vehicles for the Department of the Army?

The strategic value lies in maintaining and enhancing the Army's tactical mobility and logistical support capabilities. The $235.2M investment is intended to procure a fleet of vehicles crucial for various operational theaters. Assessing alignment requires understanding the quantity and specific capabilities of the LVADs procured against the Army's projected needs and the cost-effectiveness compared to alternative solutions or maintaining existing fleets.

Industry Classification

NAICS: ManufacturingMotor Vehicle Body and Trailer ManufacturingTruck 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: $235,244,970

Exercised Options: $235,244,970

Current Obligation: $235,244,970

Subaward Activity

Number of Subawards: 256

Total Subaward Amount: $22,342,814

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: 2025-02-04

Current End Date: 2027-07-31

Potential End Date: 2027-07-31 00:00:00

Last Modified: 2025-07-16

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