Army awards $32.1M for 55 Medium Equipment Trailers to Oshkosh Defense under full and open competition
Contract Overview
Contract Amount: $32,136,134 ($32.1M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2025-05-15
End Date: 2026-06-30
Contract Duration: 411 days
Daily Burn Rate: $78.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: DELIVERY ORDER FOR THE PROCUREMENT OF 55 EA MEDIUM EQUIPMENT TRAILER (MET).
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $32.1 million to OSHKOSH DEFENSE LLC for work described as: DELIVERY ORDER FOR THE PROCUREMENT OF 55 EA MEDIUM EQUIPMENT TRAILER (MET). Key points: 1. Oshkosh Defense, a known prime contractor, secured this delivery order. 2. The contract type is Fixed Price with Economic Price Adjustment, indicating potential cost fluctuations. 3. Competition was full and open after exclusion of sources, suggesting a competitive bidding process. 4. The trailer manufacturing sector (NAICS 336212) is specialized, with limited but established players.
Value Assessment
Rating: good
The awarded amount of $32.1M for 55 trailers appears reasonable given the specialized nature of military equipment. Benchmarking against similar large-scale trailer procurements would provide further validation.
Cost Per Unit: $584,293
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process where specific sources were initially considered but the award was ultimately made broadly. This method aims for best value and competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the equipment procured.
Public Impact
Ensures the Army has essential equipment for logistical support and deployment. Supports a key defense contractor, potentially impacting jobs and industry capacity. The economic price adjustment clause warrants monitoring for potential cost increases impacting the final taxpayer expense.
Waste & Efficiency Indicators
Waste Risk Score: 78 / 10
Warning Flags
- Economic Price Adjustment clause may lead to cost overruns.
- Limited number of specialized trailer manufacturers could impact future competition.
- Long duration of the order (411 days) increases exposure to market volatility.
Positive Signals
- Awarded under full and open competition, indicating a competitive process.
- Oshkosh Defense is an established and experienced provider.
- Clear delivery timeline and quantity specified.
Sector Analysis
This procurement falls within the Truck Trailer Manufacturing sector, which is critical for military logistics. Spending in this sector is often driven by defense needs and can be subject to specialized requirements and limited supplier bases.
Small Business Impact
The awardee, Oshkosh Defense LLC, is a large business. There is no explicit indication of small business participation in this specific delivery order, which is common for large, specialized defense contracts.
Oversight & Accountability
The 'Full and Open Competition After Exclusion of Sources' method suggests a structured procurement process. Oversight will be crucial to manage the economic price adjustment and ensure timely delivery of quality equipment.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost escalation due to Economic Price Adjustment.
- Dependence on a single, large supplier for specialized equipment.
- Long contract duration increases exposure to market volatility.
- Lack of 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 $32.1 million to OSHKOSH DEFENSE LLC. DELIVERY ORDER FOR THE PROCUREMENT OF 55 EA MEDIUM EQUIPMENT TRAILER (MET).
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 $32.1 million.
What is the period of performance?
Start: 2025-05-15. End: 2026-06-30.
What is the historical pricing trend for similar medium equipment trailers from Oshkosh Defense or competitors?
Analyzing historical pricing data for comparable medium equipment trailers from Oshkosh Defense and other manufacturers is essential. This helps establish a baseline for fair pricing and identify any significant deviations in the current award. Understanding past price adjustments due to economic factors would also inform the risk assessment of the current contract's economic price adjustment clause.
What are the specific criteria used to 'exclude sources' in this full and open competition?
The exclusion of sources typically occurs when specific technical capabilities, past performance, or security requirements are necessary, limiting the pool of eligible bidders. Understanding these criteria is vital to assess if the exclusion was justified and did not unduly restrict competition, potentially impacting the final price and availability of the best solution for the government.
How will the economic price adjustment be monitored to mitigate potential cost increases for taxpayers?
Effective monitoring of the economic price adjustment involves establishing clear indices for price changes (e.g., material costs, labor rates) and setting pre-defined caps or review triggers. Regular reporting from the contractor on cost drivers and independent verification by the contracting officer are crucial to ensure that any price increases are legitimate and do not result in excessive spending.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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: $32,136,134
Exercised Options: $32,136,134
Current Obligation: $32,136,134
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV24D0001
IDV Type: IDC
Timeline
Start Date: 2025-05-15
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 12:06:00
Last Modified: 2025-07-31
More Contracts from Oshkosh Defense LLC
- THE Contract Includes Firm Fixed Price (FFP) Contact Line Item Numbers (clin) for Vehicles, Trailers, Kits (packaged and Installed), Test Hardware and Support, Vehicle Refurbishment, Systems Engineering/ Program Management (sepm), Storage and Maintenance of Vehicles, Vehicle Refurbishment, Integrated Product Support (IPS), and a Technical Data Package (TDP). the Contract Also Includes Cost Plus Fixed FEE (cpff) Clins for System Technical Support (STS), Total Package Fielding (TPF), and Interim Contractor Support (ICS). the Contract Contains Provisions for an Economic Price Adjustment (EPA) for Material Fluctuations for the Vehicles Procured in Option Periods SIX, Seven, and Eight — $6.1B (Department of Defense)
- Purchase Mrap Atvs, Including Associated Parts and Field Support — $3.5B (Department of Defense)
- Contract W56hzv-20-C-0050 IS Issued to Provide Continuation of Contract W56hzv-15-C-0095 — $2.1B (Department of Defense)
- Adding 2,634 Each Family of Medium Tactical Vehicles (fmtv), Ordering Year (OY) 02 Program Support, and Fret to Contract W56hzv-09-D-0159 — $1.9B (Department of Defense)
- Adding 1,941 Each Family of Medium Tactical Vehicles (fmtv) and Fret for Army National Guard Requirements — $1.6B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)