DoD Awards $30.5M Contract for Heavy Tactical Vehicles to Oshkosh Defense

Contract Overview

Contract Amount: $30,466,064 ($30.5M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2025-06-24

End Date: 2027-03-31

Contract Duration: 645 days

Daily Burn Rate: $47.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Defense

Official Description: FAMILY OF HEAVY TACTICAL VEHICLES (FHTV) V 5-YEAR FIXED-PRICE WITH ECONOMIC PRICE ADJUSTMENT (FPEPA) REQUIREMENTS CONTRACT. DELIVERY ORDER TO PROCURE 32 - M1075A1S, 8 - M985A4 GMTS, AND 8 - M1076A0S.

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54903

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $30.5 million to OSHKOSH DEFENSE LLC for work described as: FAMILY OF HEAVY TACTICAL VEHICLES (FHTV) V 5-YEAR FIXED-PRICE WITH ECONOMIC PRICE ADJUSTMENT (FPEPA) REQUIREMENTS CONTRACT. DELIVERY ORDER TO PROCURE 32 - M1075A1S, 8 - M985A4 GMTS, AND 8 - M1076A0S. Key points: 1. Contract focuses on procuring specific variants of heavy tactical vehicles. 2. Oshkosh Defense LLC is the sole awardee. 3. The contract includes economic price adjustment, potentially increasing final cost. 4. Spending is within the Truck Trailer Manufacturing sector.

Value Assessment

Rating: fair

The contract is a fixed-price with economic price adjustment, which allows for cost increases due to market fluctuations. Without detailed cost breakdowns or benchmarks for these specific vehicle variants, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this sole-source award may result in taxpayers paying a premium for these heavy tactical vehicles.

Public Impact

Ensures continued availability of critical heavy tactical vehicles for Army operations. Supports Oshkosh Defense's manufacturing capabilities and workforce. Potential for increased costs due to economic price adjustment clauses. Limited transparency on pricing due to sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition and price discovery.
  • Economic price adjustment introduces cost uncertainty.
  • Lack of small business participation noted.

Positive Signals

  • Procures essential military equipment.
  • Supports a known manufacturer with relevant expertise.

Sector Analysis

This contract falls under the Truck Trailer Manufacturing sector (NAICS 336212). Spending in this sector can vary significantly based on defense needs and infrastructure projects. Benchmarks are difficult without specific vehicle type comparisons.

Small Business Impact

The data indicates that small business participation was not a factor in this award (sb: false). This sole-source contract did not appear to leverage small business capabilities.

Oversight & Accountability

As a sole-source award, oversight is crucial to ensure fair pricing and prevent potential cost overruns, especially with the economic price adjustment clause. Further review of the justification for sole-sourcing is warranted.

Related Government Programs

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

Risk Flags

  • Sole-source award
  • Economic price adjustment
  • No small business participation
  • Limited transparency on pricing

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 $30.5 million to OSHKOSH DEFENSE LLC. FAMILY OF HEAVY TACTICAL VEHICLES (FHTV) V 5-YEAR FIXED-PRICE WITH ECONOMIC PRICE ADJUSTMENT (FPEPA) REQUIREMENTS CONTRACT. DELIVERY ORDER TO PROCURE 32 - M1075A1S, 8 - M985A4 GMTS, AND 8 - M1076A0S.

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 $30.5 million.

What is the period of performance?

Start: 2025-06-24. End: 2027-03-31.

What is the justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services, or in cases of urgent need. Further investigation into the contract file would be necessary to determine the official reason.

How will the economic price adjustment clause impact the final cost of the vehicles?

The economic price adjustment (EPA) clause allows for changes in contract price based on fluctuations in specified economic factors, such as labor or material costs. The final cost will depend on the specific indices used in the EPA and the market conditions over the contract period. This introduces uncertainty and potential for cost increases beyond the initial estimate.

Are there plans to compete future requirements for these or similar vehicles?

The provided data does not indicate future competition plans. Given this is a sole-source award for a specific delivery order under a requirements contract, future requirements could be competed or awarded sole-source depending on evolving circumstances and procurement strategies. Agency documentation would clarify this.

Industry Classification

NAICS: ManufacturingMotor Vehicle Body and Trailer ManufacturingTruck 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: $30,466,064

Exercised Options: $30,466,064

Current Obligation: $30,466,064

Subaward Activity

Number of Subawards: 95

Total Subaward Amount: $7,019,214

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: 2025-06-24

Current End Date: 2027-03-31

Potential End Date: 2027-03-31 12:03:00

Last Modified: 2025-11-19

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