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
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: 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: $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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