Army awards Oshkosh Defense $136.5M for 186 FMTV A2 LVADs, impacting tactical vehicle readiness

Contract Overview

Contract Amount: $136,545,576 ($136.5M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-24

End Date: 2028-07-31

Contract Duration: 1,041 days

Daily Burn Rate: $131.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FMTV A2 LVAD DELIVERY ORDER - 186 LVADS

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $136.5 million to OSHKOSH DEFENSE LLC for work described as: FMTV A2 LVAD DELIVERY ORDER - 186 LVADS Key points: 1. Value for money assessed through competitive bidding and fixed-price terms. 2. Competition dynamics indicate a robust market for tactical vehicle manufacturing. 3. Risk indicators include delivery timelines and potential supply chain disruptions. 4. Performance context is tied to the Army's ongoing fleet modernization efforts. 5. Sector positioning places this contract within the broader defense logistics and vehicle manufacturing industry.

Value Assessment

Rating: good

The contract's firm-fixed-price structure provides cost certainty for the government. Benchmarking against similar large-scale vehicle procurements suggests the pricing is within expected ranges for specialized tactical vehicles. The value is further enhanced by the competitive nature of the award, which typically drives more favorable pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting multiple qualified bidders likely vied for the opportunity. The presence of a competitive process is a positive indicator for price discovery and ensures the government receives offers from a wide range of potential suppliers.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among contractors.

Public Impact

Benefits the U.S. Army by providing essential tactical vehicles for logistical support. Delivers 186 Family of Medium Tactical Vehicles (FMTV) A2 variants with Light All-Wheel Drive (LVAD) capability. Geographic impact is national, supporting Army operations across various installations. Workforce implications include sustained employment at Oshkosh Defense and its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delivery delays impacting operational readiness timelines.
Supply chain vulnerabilities for specialized components could affect production schedules.
Long-term sustainment and maintenance costs for the LVAD variant need careful management.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Awarded through full and open competition, indicating market responsiveness.
Delivery order under an existing contract framework streamlines procurement.

Sector Analysis

This contract falls within the defense industrial base, specifically the tactical wheeled vehicle manufacturing sector. The market is characterized by a few large, established prime contractors and a complex network of specialized suppliers. Spending in this area is driven by military modernization programs and the need to replace aging fleets with more capable and survivable platforms.

Small Business Impact

While the prime contractor is a large business, the contract's scale may offer subcontracting opportunities for small businesses within the defense supply chain. Analysis of the subcontracting plan, if applicable, would reveal the extent of small business participation and its potential impact on the small business ecosystem.

Oversight & Accountability

Oversight will be managed by the Department of the Army contracting and program management offices. Accountability is ensured through the firm-fixed-price contract terms and delivery schedules. Transparency is facilitated by public contract award data, though specific performance metrics may be internal.

Related Government Programs

Family of Medium Tactical Vehicles (FMTV)
Tactical Wheeled Vehicles
Army Logistics Modernization Programs
Defense Vehicle Procurement

Risk Flags

Delivery Schedule Risk
Supply Chain Vulnerability
Long-Term Sustainment Cost Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $136.5 million to OSHKOSH DEFENSE LLC. FMTV A2 LVAD DELIVERY ORDER - 186 LVADS

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 $136.5 million.

What is the period of performance?

Start: 2025-09-24. End: 2028-07-31.

What is the historical spending trend for FMTV A2 LVAD variants?

Historical spending data for the FMTV A2 LVAD variant specifically is not readily available in the public domain as this appears to be a delivery order under a broader FMTV contract. However, the overall FMTV program has seen significant investment over the years as the Army has sought to standardize and modernize its medium tactical fleet. Previous contract awards for FMTV variants have often been in the hundreds of millions of dollars, reflecting the scale of production required to equip the force. The current award of $136.5 million for 186 units indicates a per-unit cost in the range of $734,000, which aligns with the high-spec nature of modern military vehicles. Future spending will likely depend on continued Army requirements, potential upgrades, and the lifecycle sustainment needs of the fleet.

How does the per-unit cost of these LVADs compare to other tactical vehicle procurements?

The per-unit cost for these FMTV A2 LVADs is approximately $734,000 ($136.5M / 186 units). This figure is substantial but must be contextualized within the specialized nature of military vehicles. Compared to commercial trucks, this cost is significantly higher due to militarized features such as enhanced protection, off-road capabilities, specialized mission equipment integration, and ruggedized construction. When compared to other tactical vehicle programs, such as Heavy Expanded Mobility Tactical Trucks (HEMTTs) or Mine-Resistant Ambush Protected (MRAP) vehicles, the cost per unit can vary widely based on size, protection levels, and mission role. The LVAD variant likely incorporates specific enhancements that justify its price point within the broader tactical vehicle landscape. Without direct comparisons of vehicles with identical capabilities and competition levels, a precise benchmark is difficult, but the price appears consistent with advanced tactical military platforms.

What are the primary risks associated with this delivery order?

The primary risks associated with this delivery order include delivery schedule adherence and potential supply chain disruptions. The Army requires these vehicles by specific dates to meet operational readiness goals, and any delays in production or delivery could impact mission capabilities. The supply chain for specialized components, particularly those related to the LVAD system or other militarized features, could be vulnerable to global shortages, geopolitical events, or manufacturing issues, leading to production slowdowns. Furthermore, the long-term sustainment and maintenance of these complex vehicles present a risk if not adequately planned for, potentially leading to higher lifecycle costs than initially projected. Contractor performance and quality control are also inherent risks in any large-scale manufacturing contract.

What is Oshkosh Defense's track record with the FMTV program?

Oshkosh Defense has a significant and established track record with the Family of Medium Tactical Vehicles (FMTV) program. They were awarded the original contract to produce and sustain the FMTV fleet for the U.S. Army and have continued to win subsequent contracts and delivery orders for various configurations and upgrades, including the A2 variants. Their performance has generally been viewed positively, enabling the Army to field a standardized and capable medium tactical fleet. Oshkosh has demonstrated the capability to manage large-scale production and integrate evolving requirements into the FMTV platform. This delivery order represents a continuation of that established relationship and Oshkosh's ongoing role as a key supplier for the Army's medium tactical vehicle needs.

How does the competition level for this specific delivery order reflect broader market conditions for tactical vehicles?

The fact that this delivery order was awarded under 'full and open competition' suggests that the market for tactical vehicles, particularly medium variants like the FMTV, remains competitive. This indicates that multiple manufacturers possess the capability and capacity to produce these types of vehicles, preventing a sole-source situation and allowing the government to solicit bids from a wide range of potential suppliers. This level of competition is generally favorable for price discovery and innovation. It reflects a market where established players like Oshkosh Defense face potential challenges from other defense contractors or vehicle manufacturers who can meet the stringent military specifications. The ongoing competition helps ensure the Army can procure necessary vehicles efficiently and at reasonable costs.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: $136,545,576

Exercised Options: $136,545,576

Current Obligation: $136,545,576

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