Army awards Oshkosh Defense $24.3M for 30 Heavy Tactical Vehicles under FHTV contract
Contract Overview
Contract Amount: $24,353,858 ($24.4M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2025-06-24
End Date: 2027-06-30
Contract Duration: 736 days
Daily Burn Rate: $33.1K/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 9 EA M984A4S, 10 EA M1074A1S AND 11 EA M1075A1S.
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $24.4 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 9 EA M984A4S, 10 EA M1074A1S AND 11 EA M1075A1S. Key points: 1. The Army is procuring 30 heavy tactical vehicles, including M984A4S, M1074A1S, and M1075A1S variants. 2. Oshkosh Defense LLC is the sole awardee, indicating a potential lack of competition for this specific delivery order. 3. The contract type is Fixed-Price with Economic Price Adjustment (FPEPA), which can mitigate inflation risk but may increase final costs. 4. The North American Industry Classification System (NAICS) code 336212 points to Truck Trailer Manufacturing, a specialized sector.
Value Assessment
Rating: fair
The total award is $24.3 million for 30 vehicles. Without specific unit pricing or historical data for these exact variants, a direct benchmark is difficult. However, the average per-vehicle cost is approximately $811,795.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This delivery order was not competed, suggesting it may be a sole-source award or a follow-on to a previously competed contract where Oshkosh Defense is the incumbent. This limits price discovery and potentially leads to higher costs than a competitive process.
Taxpayer Impact: The lack of competition for this order may result in taxpayers paying a premium compared to what might be achieved through a competitive bidding process.
Public Impact
Ensures the Army maintains critical heavy tactical vehicle capabilities for operational readiness. Supports a key defense contractor, Oshkosh Defense LLC, and its manufacturing operations. The economic price adjustment clause may shield the government from significant cost overruns due to inflation. Potential for higher costs due to sole-source award impacts overall budget efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Economic price adjustment introduces cost uncertainty.
- Specific vehicle variants may have limited market availability.
Positive Signals
- Addresses critical Army vehicle requirements.
- Utilizes a fixed-price contract structure with adjustment for economic factors.
- Long-term contract provides predictable demand for the supplier.
Sector Analysis
The defense sector relies heavily on specialized vehicle manufacturers like Oshkosh Defense. Spending benchmarks for tactical vehicles vary widely based on type, quantity, and technological sophistication. This award falls within the typical range for specialized heavy military equipment.
Small Business Impact
This award went to Oshkosh Defense LLC, a large business. There is no indication of subcontracting opportunities for small businesses within this specific delivery order, which is common for large, sole-source defense contracts.
Oversight & Accountability
The Department of the Army is responsible for oversight of this contract. The fixed-price nature with economic price adjustment requires careful monitoring of cost increases to ensure fairness and prevent excessive spending.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition may lead to higher costs.
- Economic price adjustment introduces cost uncertainty.
- Potential for contractor to exploit sole-source status.
- Limited transparency on specific unit pricing.
- Dependence on a single supplier for critical assets.
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 $24.4 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 9 EA M984A4S, 10 EA M1074A1S AND 11 EA M1075A1S.
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 $24.4 million.
What is the period of performance?
Start: 2025-06-24. End: 2027-06-30.
What was the justification for awarding this delivery order on a sole-source basis, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically stems from unique capabilities, existing infrastructure, or specific program requirements where only one vendor can meet the need. To ensure fair pricing, the government may conduct market research, rely on historical pricing data, or use independent government cost estimates. However, without competition, the potential for overpayment remains a concern.
How will the economic price adjustment (EPA) clause be managed to mitigate potential cost increases and protect taxpayer funds?
The EPA clause allows for adjustments to the contract price based on specific economic factors, such as inflation indices for labor and materials. Effective management involves clearly defined indices, regular reviews of price change requests, and robust negotiation to ensure adjustments are reasonable and directly tied to documented cost increases, preventing unwarranted price hikes.
What is the long-term strategy for procuring these heavy tactical vehicles, and will future requirements be competed?
The long-term strategy for procuring these vehicles is crucial for ensuring sustained operational readiness and cost-effectiveness. Future requirements should ideally be subject to competitive bidding to leverage market forces and achieve better pricing. If sole-source awards continue, a strong justification and rigorous price negotiation process will be essential to safeguard taxpayer interests.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck 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: $24,353,858
Exercised Options: $24,353,858
Current Obligation: $24,353,858
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: 2027-06-30
Potential End Date: 2027-06-30 00:00:00
Last Modified: 2025-06-24
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)